Reductions in Phuket property prices

Just one of Phuket's many idyllic beaches

Just one of Phuket's many idyllic beaches

As the global economic crisis continues, real estate prices in Thailand’s ‘hottest’ resort start to come down.

If you have ever considered investing in property in Phuket, now could be the best time to buy.

Over the past year, the financial crisis has affected many worldwide, but finally there is light at the end of the tunnel and savvy investors who know how to capitalise on this downturn are starting to snap up some great property bargains in

Due to our strong relationships with property developers in Phuket we have been able to secure some amazing deals, which are exclusive to Phuket Ocean Villas, strictly limited and only available to our clients and subscribers. Read on for details.

First let’s have a look at why Phuket is so successful.
The property market in Phuket has always been resilient and even faced with a global financial downturn experts are not predicting that prices will tumble. In fact when we analyse the prices of Phuket property over the last ten years, we have seen strong growth even in the wake of the stock market crash of 97, the Sars epidemic, the 2004 Tsunami and most recently the 2006 military coup.

The Phuket property market is very strong for several reasons but mainly due to the fact that it is almost entirely cash based meaning there are very few mortgages. People who bought and buy property in Phuket generally do so for longer term gains and investment rather than trying to cash in on quick profits by “flipping” properties before the final payment is due, as you see in many other destinations, such as Dubai.

This has the effect of avoiding the creation of “bubbles” in property values and then the inevitable bursting of those “bubbles” which leads to prices crashing, as we are currently witnessing in the U.S. property market.

Excellent prospects for the future.
Phuket is a world class holiday destination, which attracted over 4.7 million visitors in 2007, with strong growth in the high end sector.

Plans have been announced recently to upgrade Phuket International Airport and it’s capacity will be almost doubled by 2010.

Infrastructure is also excellent and continues to improve, with international hospitals, two international schools, and several major shopping centres. There are three existing marinas and another three under construction, including Jumeirah Private Island Resort. And let146s not forget the six championship golf courses, including The Blue Canyon Golf and Country Club which has hosted the Johnnie Walker Asian Classic three times.

“Phuket is a world class holiday destination, which attracted over 4.7 million visitors in 2007″Add to this the Phuket International Marine Expo taking place at Royal Phuket Marina this week, and The King146s Cup Regatta which is widely regarded as one of the finest sailing championships in Asia.

As the popularity of Phuket continues to rise, so the number of five star hotels across the island has increased significantly in recent years. Top hotels groups such as Jumeirah, Raffles, The Shangri-La, Outrigger and Langham Hotels have all invested in Phuket over the last two years and many more are looking for suitable development sites.

So why do Phuket property developers need to offer deals at all?
There has naturally been a slowdown in sales to international buyers over the course of this year as the global economy has taken a down turn, many investors have lost a great deal of money on the stock markets and people in general have begun to worry about their economic prospects.

Developers of completed projects want to ’sign off’ and transfer ownership to investors. This is because under Thai law they are responsible for paying the community fees on any unsold units, so it makes sense for them to offer discounts to sell the remaining few before they become liable for these fees.

Developers of properties which are under construction have been struggling with increased construction prices due to the increasing price of commodities. Now we are seeing significant reductions in these prices and in turn developers are able to offer reductions on their prices.

It is unlikely we will see extreme reductions in prices as the margins for developers are too tight and most market analysts agree that there is little room for attrition in the Phuket property market.

OK, OK, show me the offers.

As many of our offers are available on completed properties in established developments, they present very little risk to the buyer and a offer great opportunity to benefit from immediate rental returns.

It is likely that these offers will not be on the table for long once the level of sales increases.

A small sample of the exceptional deals we can bring you are:

  1. 25% off completed apartments and villas at a luxury development on the West Coast.
  2. Buy a two bedroom pool suite and get a studio for free.
  3. 10% discount and a free furniture package from a branded resort development on the East Coast.
  4. Move into your own luxury condo for just 1 million Baht down payment and spread the rest over 5 years.
  5. Free Toyota Yaris when you purchase an apartment in a completed development on the West Coast.

We have many other offers available exclusively for our clients and subscribers and, as always, we are committed to negotiating hard on your behalf to get the best deal for you and the maximum return from your investment.

Additionally, ALL our clients and subscribers benefit from the following services, completely free of charge:

  1. A free one hour legal consultation with an independent Phuket lawyer from a recognised International Law Firm, who can explain the legal issues to buying property in Phuket.
  2. Dedicated consultant from start to finish.
  3. On-going progress reports on the construction of your property.
  4. Exceptional discounts with leading Phuket hotels for all our clients wishing to view property during their stay in Phuket.
  5. Comprehensive after-sales service.

We will be delighted to share our exclusive deals with you, simply fill email us at for further information.

About the author

Rebecca Smith Rebecca Smith
Rebecca Smith is the sales director of Phuket Ocean Villas specialising in luxury ocean view properties in Phuket.
Other posts by Rebecca Smith ( 2 )

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