Phuket property values are increasing
around 10-15% per year.

With this kind of growth, in the Phuket property market, it is not surprising more people are considering owning Phuket real estate. There are few, if any, Phuket property bargains to be had but the clever buyer can still find a worthwhile investment; and with growth of from 10-15% from the launch of a project to an owner taking possession, it has to be worth a look.

Traditionally Phuket has attracted a large proportion of Hong Kong-based expatriates given its accessibility with direct flights into Phuket Airport, its strong Return on Investment and the fact that it offers top quality resort facilities like golf, diving and sailing. Today Phuket property is attracting interest from further afield including Dubai, China, Great Britain and the USA with around 2000 foreign owners currently on the island.

Not only are investors being attracted by its reputation as a top resort but they are also being attracted by its excellent infrastructure including international schools and hospitals.

The tragic Tsunami revealed that the island’s property market is not as correlated with tourism as one might think. Buyers are still piling in. Retirees and those with some extra cash in Europe and the USA are realising the benefits of investing in the island’s future.

The British Consul on the island, Alan Cooke, runs Island Furniture supplying to a whole gamut of clients including entire developments. He has reportedly just had the best year ever and apparently remains optimistic about the future growth of the Phuket property market.

It is true that the prime beach-front real estate is all but gone. New developments are taking advantage of the island’s topography providing properties with either good sea views, like Samsara and Villa Santi (both near Patong), or views of the lush interior. It must be said though that even then land is at a premium which of course puts pressure on prices.

Most of the first developments on Phuket were villas but as the pressure on land grows condominiums and apartments have also been built. If you think a Phuket apartment might be an option then you could take a look at the Bel Air Panwa: a development of 87 apartments with freehold titles situated at Cape Panwa around 10 minutes south of Phuket Town.

Another key factor in Phuket’s real estate market is the development of the marine sector on the island. In 2003 the Thai government overhauled marine regulations and implemented zero tax on yacht imports. This together with the popularity of the annual King’s Cup Regatta, the Phang Nga Regatta, Phuket Race Week and PIMEX (the International Boat Show) encouraged marine developments like the Royal Phuket Marina, Boat Lagoon, Ao Por, Layan Marina, Paradise Bay Marina and the government-sponsored Chalong Marina.

In summary then everything currently bodes well for the Phuket property and real estate markets. I must point out though that I am neither a property nor an investment specialist and you must of course seek your own expert opinion about whether or not an investment in Phuket property is right for you.

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