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.

Decline in Phuket Property Prices

If you have ever thought of investing in property in Phuket, now is the finest time to purchase.

Over 2008, the financial recession has affected many globally, but ultimately there is light at the end of the tunnel and experienced investors who know how to take advantage of this recession are starting to grab a few great property deals in Phuket.

Let’s have a look at why Phuket is so thriving.

The property market in Phuket has always been flexible and even faced with a global economic recession; experts are not forecasting that prices will fall. Actually, when we study the prices of Phuket property in the past 10 years, we have seen strong development even in the wake of the stock market collision of 1997, the Sars outbreak, the 2004 Tsunami and most lately the 2006 military revolution.

The Phuket property market is very strong for quite a lot of reasons although mainly cause of the fact that it is almost completely cash based meaning there are a handful mortgages. People who have already purchased and are purchasing property in Phuket normally do so for longer term profits and investment more willingly than trying to cash in on immediate profits by “flipping” properties prior to the final payment is payable, as you see in many other places, like Dubai.

This has the result of avoiding the formation of "bubbles" in property values and then the usual bursting of those "bubbles" which leads to prices booming, as we are at present observing in the U.S. property market.

Phuket is a world class holiday hotspot, which fascinated more than 4.7 million visitors in 2007, with strong development in the high end sector.

Plans have been announced in recent times to improve Phuket International Airport and it146s capacity will be nearly doubled by 2010.

As the fame of Phuket continues to increase, so the number of five star hotels all over the island has increased considerably in recent years.