Demand for Luxury Apartments Decreasing Continuously In Phuket
Over 10 housing projects with a collective market value of about Bt10 billion continue to be on hold in Phuket, for the reason that demand from both local and overseas purchasers - particularly for luxury apartments - has decreased to nearly half of that of 2008.
This drop in demand for luxury apartments in Phuket had started dropping from the beginning of the global financial recession in 2008. Both local and overseas purchasers have gone away from the market, leaving behind the development companies which are not able to sell their current condominium projects in Phuket.
The condominium, which was launched in 2008 by the development firm Surin Hill Development is of value Bt1 billion. The company launched this project with a concentration on purchasers interested in investing in Phuket. When the global slump started in 2008, most of the investors postponed or cancelled their plans. Therefore the apartments remained unsold.
The development firm Surin Hill Development is trying to discover fresh allocation channels to sell the condominium units done until now, and is modifying plans for a third stage of the development to meet alterations in demand from home-purchasers.
Even though the firm had missed its target, it was abiding with construction. Construction works of 14 units have been finished in the first stage and construction is going on in 16 units in the second stage.
Local and overseas demand for apartments in Phuket was continuously sliding down as compared to the figures of 2008. A few local investors are interested in purchasing the housing projects; however the banks refuse their loan applications. This is the most significant problem for Thai investors.
Overseas investors are till now postponing their investments in real estate projects in Thailand, particularly in Phuket, where the luxury residences mostly have high prices.
Property experts believe that the Phuket property market may get better in the last quarter of 2009 or 2010 for the reason that most of the property projects in this region concentrate on the luxury market.
This drop in demand for luxury apartments in Phuket had started dropping from the beginning of the global financial recession in 2008. Both local and overseas purchasers have gone away from the market, leaving behind the development companies which are not able to sell their current condominium projects in Phuket.
The condominium, which was launched in 2008 by the development firm Surin Hill Development is of value Bt1 billion. The company launched this project with a concentration on purchasers interested in investing in Phuket. When the global slump started in 2008, most of the investors postponed or cancelled their plans. Therefore the apartments remained unsold.
The development firm Surin Hill Development is trying to discover fresh allocation channels to sell the condominium units done until now, and is modifying plans for a third stage of the development to meet alterations in demand from home-purchasers.
Even though the firm had missed its target, it was abiding with construction. Construction works of 14 units have been finished in the first stage and construction is going on in 16 units in the second stage.
Local and overseas demand for apartments in Phuket was continuously sliding down as compared to the figures of 2008. A few local investors are interested in purchasing the housing projects; however the banks refuse their loan applications. This is the most significant problem for Thai investors.
Overseas investors are till now postponing their investments in real estate projects in Thailand, particularly in Phuket, where the luxury residences mostly have high prices.
Property experts believe that the Phuket property market may get better in the last quarter of 2009 or 2010 for the reason that most of the property projects in this region concentrate on the luxury market.
Labels: Housing projects, market value, Phuket property market
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