Pattaya’s major target market,
the Russians, are facing an
economic downturn
Royal Phuket Marina
PHUKET
Bill Barnett, founder and managing
director of leading hospitality and real
estate consulting firm C9 Hotelworks,
recommends that investors on Phuket
should buy prime locations and take
a long-term view. “There are no
shortcuts,” he commented.
More: Highs and lows in Phuket’s
residential market
But whilst middle-income investors
seem to be on the rise, per Knight Frank,
Barnett doesn’t generalise the entire
Phuket market. “Clearly Phuket is a story
of two different buying markets. You
cannot simply say that the broad Phuket
market is shifting as the significant
inventory of units on the market are in
the domestic inland segment and are
purchased by end-users.”
“Their tertiary resort grade market
which has higher foreign buyers has seen
a defined switch from early end users in
the early- to mid-2000’s and over the past
24-36 months has seen a greater number
of regional buyers who are investment
oriented.”
He cited data from property
database FazWaz.com, revealing the
average price of condominium units in
Phuket Town as THB78,235 (USD2,330)
per sqm compared to units in Patong,
Kalim and Mai Khao where median
selling prices per square meter exceed
THB150,000 (USD4,460).
Any challenges that investors should
keep in mind? “Certainly the issues over
leasehold properties that have emerged
in the media, as well as a large overhang
of secondary properties,” he said.
Story courtesy of Property Report
72
June 15 - July 15 , 2015