Phuket property booming as fears of adverse effects of the tsunami and political coup subside 
Phuket property booming as fears of adverse effects of the tsunami and political coup subside
A booming tourism industry is helping one part of Thailand buck the downward trend in property prices.
Phuket,
Thailand's biggest island in the Andaman Sea was devastated by the 2004
tsunami and it was feared that Thailand's military coup that ousted a
democratically elected government just two years ago, could have led to
an economic catastrophe.
There was concern that the thriving
tourist industry would grind to a halt, bringing down with it the
flourishing foreign-owned housing market.
But the latest figures show that more than 5 million tourists visited the island last year, an increase of 22.5%.
There
was a 32% rise in Phuket vacation home transactions during the second
half of 2007, according to CB Richard Ellis, Thailand's largest
international property firm. During the same period, the value of these
properties jumped by 56%.
Charlotte Filleul, a general manager
at CB Richard Ellis, said that foreign investors were indeed nervous
after the coup and most foreign buyers took a wait and see attitude.
Once
it became clear that the new government didn't intend to take any
measures that would adversely affect the tourist industry and the
property market, signs of a slowdown disappeared. 'Today the market is
strong. We have an ever increasing level of enquiries and buyers and we
have a very positive outlook,' she said.
Factors contributing to
the increase in prices include the fact that luxury properties, in
particular, are still 50% cheaper than the Mediterranean or the
Caribbean, management costs are very affordable, service is top quality
and there is a rapidly growing super yacht and marine industry.
This
positive outlook is backed up by a report from Jones Lang LaSalle which
found that condo sales are robust, increasing by 25% in the last year
and that interest is growing from beyond the traditional sources such
as the US, UK and Scandinavia. Visitors from Russian and Middle Eastern
countries are keen to invest.
One of the latest to do so is
Formula 1 world champion Kimi Raikkonen who has bought a beachfront
villa in Phuket. 'Having this kind of place, which is very exclusive,
brand new and very high quality, is exactly what I'm looking for when I
have a week or two off in winter. I can go and relax in a warm and
sunny place,' he said.
Source: http://www.propertywire.com/news/asia/phuket-property-booming-tsunami-politic...
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