International Interest in Property Rises in Phuket

Two recently-released studies indicate a significant increase in the purchase of property by international buyers in Phuket, one of Thailand’s top tourist destinations.

There was a 32 percent increase in the number of property transactions, in the second half of 2007, and a 59 percent jump in the total value of the property sold on Phuket island, according to a CB Richard Ellis report. The activity is attributed to a 22 percent boost in Phuket’s tourism, along with a rise in interest among Middle Eastern and Russian buyers.

A study by Jones Lang LaSalle on the high-end condominium market also noted a shift in the demographics of Phuket buyers. UK, US and Scandinavian investors have traditionally represented the market’s base, but now “affluent individuals from China, Russia, India, Korea and the Middle Eastern countries are representing a growing source of demand,” according to this study.

Whatever else the studies demonstrate, it seems evident that Thailand’s political issues, including a coup in 2006, continuing unrest in the South and recent, large-scale anti-government demonstrations in Bangkok, are not discouraging foreign interest in the resort property market.

“The new government has expressed its strong will to attract more overseas capital flows into Thailand,” noted Dan Tantisunthorn, the head of research for Thailand at Jones Lang LaSalle. Currently, the Thai government is considering legislation to extend foreigner land leasehold periods, he added. “Should the initiative materialize, we can expect the market to be more robust.”