Phuket Gazette Phuket Property Review – Strength in Numbers
As the world crawls out from the shadows of the global economic crisis, and last year's political events in Thailand start to fade from memory, changing faces and places characterize Phuket's real estate market.
Interest from the emerging tourism markets of Russia, China and India is rising as traditional European buyers continue to refract.
As the market has matured, resales have come to the forefront in the once-dominant overseas sector.
Thailand's thriving three-year domestic property surge has headed to the south of the island with a flurry of both listed developers and low-cost entry-level products enjoying the highest trading volumes.
This can be seen most clearly in two polar opposites: inland properties priced from two to four million baht and luxury villas at 65mn baht and above.
Phuket retains the crown as Asia's resort destination king with 2.84 billion baht in upscale villa sales last year.
The highlight of the year was the Allan Zeman "Andara effect" cover story, twinned with a west-side slant.
Meanwhile a strong Thai baht is helping to keep many potential purchasers on the sidelines. Market conditions that favor buyers are expected to push the short-term trend towards secondary sales, where the negotiation power lies.
Another success story in the making is Patong's push toward urbanization, which has resulted in land prices pushing the 40 to 60mn baht per rai point of no return.
Meanwhile, the rush on land banking speculation has pushed into Mai Khao, Koh Sireh and up to higher elevations inland.
Increasing competition from other Asian resort destinations such as Bali and the promise of stabilized yields in developed markets such as the United Kingdom and United States is bringing, increased competition for Phuket.