Stories tagged with economy
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Phuket escapes global credit crunch
After the 2004 tsunami, the Thai island of Phuket’s real estate boom was stopped dead in its tracks, but in the last year, while many other regions of the world have been adversely affected by the slowdown in the US markets, Phuket’s property prices remain stable, if not on the rise. Many consistently stable regions have followed suit as the US housing market plummeted, but Phuket is reporting rises in its housing market compared to last year.
Director of Tropical Homes Real Estate David Wade says, "The huge difference between Phuket and the rest of the world is there's no finance. So the cash squeeze isn't felt here."
Phuket has escaped the fate of many other high-end regions due to its policies of not giving loans to non-nationals, except of course if a foreigner is married to a Thai. "There are no on-shore loans available to people who want to buy over here. Thai banks will not loan to foreign homeowners. You will not get a loan unless you're married to a Thai," says managing director of Engle & Voelkers Thailand Martin Phillips. So while the Phuket market remains stable, it may yet suffer from the lack of overseas buyers from countries like the US and the UK who are feeling the bite and not as willing to shell out on a second home.
Posted by: DaveB on 12 May 2008, 17:07