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Phuket Property Trends – Will the Boom Continue?

Phuket Property Trends – The Present

Phuket Property Trends – The increased tourism and retiring baby–boomers will sustain the market in the short term. However, the medium term outlook is not as rosy (USA, UK economic woes etc.), but the long term looks good.

The December 2004 Tsunami did little to dampen the enthusiasm of investors and the seemingly ever upward Phuket property trend.

Property prices have risen roughly 20% per year for the last five years should continue to rise at a similar if not higher rate.

The reasons for this comes down to a few fundamentals.

Firstly, there are lots of foreign buyers in the market, and this demand has been spurred on by the "retirement visa", which Thailand issues to foreigners over 50 years of age, even if they are still working in their home countries.

Secondly, Phuket is easily accessible via our International Airport, and airfares do not yet reflect the increase in fuel costs, with many bargain flights available, especially during the low season.

Phuket is also a sophisticated, modern, thriving metropolis with a range of quality International Schools, Hospitals and Dental clinics.

On top of this, there are now quite a few quality condominium developments where you can buy a unit, in your own name, on the beachfront for around 10 million baht, without any of the problems associated with purchasing land.

There's not many places in the world where you can do that, which in turn has stimulated demand.

Before the condos were built, beachfront land with a house cost over US $1 million.

So the net result has been that whilst property prices have been rising, it has become more affordable to own prime real estate in Phuket, and more and more people are becoming aware of it.

Phuket Property Trends – The Future

First class quality undeveloped ocean view land in Phuket is now a rare commodity.

The dominant development phase now is to take free standing or low rise developments and turn them into high rises.

Given that the Tsunami was a one off freak of nature, which did not affect Phuket to the degree the global media would have you believe, the future looks pretty bright for the Phuket property market.

The government is committed to a bright tourism future for Phuket, and a lot of money has been spent upgrading infrastructure such as roads and communications over the past few years.

Additionally, the planning rules prevent development close to the beach, which means all beaches are easily accessible to all.

Sensible height restrictions on developments also means most properties get good views.

Over the next 10 years more and more complexes and condos will be built, however good properties anywhere in Phuket will hold their value over time and are still a good value long term investment.

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