Phuket Q1 Market Update
As we enter the second quarter of 2017 the real estate market here in Phuket remains slow. There are pockets of demand: there is demand for freehold condos and discounted resale properties, enquiries from the Thai domestic market are picking up and the condo market in Bangkok is doing well, with many developers there reporting strong sales so far this year.
Over the past high season rental occupancy on pool villas was very good, with many villas experiencing high occupancy rates albeit at rental rates which were lower than in peak years.
It is true to say that the current market remains challenging but there are reasons to be positive for the not too distant future.
Like markets the world over, Phuket’s real estate market will experience ups and downs. In 2014 Phuket Real Estate prices were at a peak, the subsequent crash in oil prices and Russia’s economic down turn brought an end to this peak and since, real estate prices have come down. This is not necessarily a bad thing as markets get over heated and need a correction, markets cannot go up in a straight line forever. A correction will eventually bring in new buyers and can lead to a new sustained boom, look at the US stock market which is now at record highs after being written off by so many.
It is always difficult to time markets, however prices have come down to a level where we are seeing increasing buyer interest in terms of number of enquiries. This should signal that the bottom of the market is being reached as more people look to buy in and the argument for a bright future for Phuket is much stronger than the alternative. With elections due next year, new 50 year leases for foreigners being mooted, infrastructure improvements, a new constitution in place and continued stability with ever growing tourist numbers. These factors coupled with current lower real estate prices could lead to the next real estate boom here. For those with cash sitting idle in a bank account at record low interest rates, it is a good time to be a buyer in Phuket and put that money to work.
For more information about this article contact Kevin Hodges, Siam Real Estate (SRE) Tel: 076-324042 Email: ; www.siamrealestate.com