Hyperinflation Hits Island Property Owners
For both residents and investors in Phuket's managed estates and developments, 2011 is set to see maintenance costs hit by hyperinflation.
The cost of labor intensive operations that affect common area or recurring maintenance fees derive largely from outsourced contracted functions such as security, gardening, and pool cleaning. These costs are then passed onto the customers, hence contribute to a great degree in escalating annual costs over normal inflation.
Driving the trend is a new minimum wage order which sees an 8.3% increase for the island to a daily amount of THB221. The rise is THB17 from the existing amount; though local officials had only asked for an THB11 increment.
Thailand's Ministry of Commerce has reported an official inflation figure for the first 11 months (January- November) of 3.4%, which is being forecast for a full year 2010 figure of 3.3%.
Conversely next year's new minimum wage for the nation's capital Bangkok will tally in at THB215 per day.