Phuket Property Watch Your Eyes on Real Estate in Thailand
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Our first item for the new week is an Asian Correspondent review of the state of the property buyers’ market in Pattaya. Colliers International‘s Senior Research Manager Phattarachai Taweewong describes how oversupply in Pattaya is leading to continually softer returns as a large portion of buyers in the city are simply investors searching for the next big yield, not entirely matched by interest from potential homeowners. Prior to 2015, when Pattaya saw a first initial downturn, developers were adding 15,000 new units each year. The growth slowed further to just 8,000 units added in 2017, but that number jumped 20% to 10,000 new apartments and homes added to the Pattaya market in 2018. Currently developers in the area are sitting on nearly 90,000 unsold units and are being urged to clear existing stock before breaking ground anew. That makes up a full 20% of the 450,000 unsold property available across Thailand (valued at a staggering $41 billion), but still fares better than Bangkok with 40% of the country’s awaiting properties worth 55% of the overall unsold market share.
Our next piece is a fitting contrast of the Phuket real estate scene coming from our friends at NuWire Investor, specifically speaking to why Phuket condos are a great investment. NuWire describes the popularity of Phuket for foreigners and investors, but also for locals who are starting to show more and more interest in purchasing property and especially condos in Phuket, for investment or living purposes. One of the main draws in Phuket is the highly attractive 5% – 7% guaranteed rental return offered by many developers, covering the first 3 years after purchase; we are reminded to research and vet fully before buying as sometimes the deals do end up being too good to be true (what’s reward without some risk?). Taking a step back, NuWire also shares the perspective of Phuket itself as a fabulous holiday resort destination, replete with fine beaches, delicious & variegated food offerings, impressive diving and sailing, plus an exciting nightlife, while remaining a peaceful and comfortable location enjoyed by all sorts.
