Russian and Chinese buyers push up property prices, forcing locals out of the market

[snoop1130]

Phuket coastal property

 

Phuket is seeing strong demand for real estate due, primarily, to the return of Russian and Chinese buyers, according to independent real estate agent and consultancy Knight Frank. Yes, it’s the 2023 property boom.

 

The sudden demand is driving up prices by 15-20% in some areas, with pool villas on Phuket’s popular west coast being particularly popular among foreign buyers, with Russians acquiring 40-60% of the latest sales, a 10-15% increase from pre-pandemic levels.

 

The beaches of Kata, Karon, Patong, Kamala, Nai Thon and Bang Tao are the favourites of buyers, and Cheng Talay’s Laguna is maintaining strong popularity for the people that enjoy living around a golf course, gated communities and higher-end living.

 

Full Story: https://phuket-go.com/phuket-news/phuket-news/russian-and-chinese-buyers-push-up-property-prices-forcing-locals-out-of-the-market/

 

-- © Copyright Phuket GO 2023-03-28

 

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[Gknrd]

This is exactly what Thailand wants. Rich foreigners. So who is complaining?

[sammieuk1]

Who has the dirtiest money to launder? looking at those houses pictured my money is still on the Thais especially police generals ???? 

[RandiRona]

Oh the Irony!!

[Adumbration]

What an absolutely ridiculous article.  Those west coast villas are priced north of 20 million baht.  How many Thai "locals" have that sort of cash.

[soi3eddie]

9 minutes ago, Adumbration said:

What an absolutely ridiculous article.  Those west coast villas are priced north of 20 million baht.  How many Thai "locals" have that sort of cash.

Many corrupt ones, and they don't like having to pay more.

 

[Enoon]

7 hours ago, Adumbration said:

What an absolutely ridiculous article.  Those west coast villas are priced north of 20 million baht.  How many Thai "locals" have that sort of cash.

 

I think "locals" refers to local plutocrats, politicians, criminals and military.

 

 

[guydude]

I'm curious. Probably I'm misinformed, but I thought property ownership by foreign individuals was prohibited in Thailand, except in the case of condos that maintain a certain ratio of local-owned units. Are these condo units that the story is talking about? 

[hotchilli]

10 hours ago, snoop1130 said:

Phuket is seeing strong demand for real estate due, primarily, to the return of Russian and Chinese buyers, according to independent real estate agent and consultancy Knight Frank. Yes, it’s the 2023 property boom.

Russians and Chinese are not pushing up the price of property.

There has been a glut of empty residences since Covid.

Property developers and sellers are gouging the market.

[hotchilli]

9 hours ago, Gknrd said:

This is exactly what Thailand wants. Rich foreigners. So who is complaining?

The locals who are being priced out of paradise.

[wwest5829]

The reason foreigners can not buy land is because it will drive up prices for Thai citizens … wait, what?! In all fairness, Thailand is not the only country where I have experienced this. 30 years ago my Czech friends also said if they allowed foreign property ownership the Germans could have bough the country. There was some reason to this outlook.

[Geoffggi]

38 minutes ago, hotchilli said:

Russians and Chinese are not pushing up the price of property.

There has been a glut of empty residences since Covid.

Property developers and sellers are gouging the market.

Absolutely correct, it is the developers pushing the prices, I cannot see any person wanting to buy saying "We want to pay more" ....................LOL

[Salerno]

10 hours ago, Gknrd said:

This is exactly what Thailand wants. Rich foreigners. So who is complaining?

The rich ones headed to places like Dubai:

 

Russian influx drives up rental prices in Dubai

Apartment prices were up 35% in 2022 compared with 2020, the peak of the pandemic, while villa prices have gone up by more than 50% during the same period, according to real estate agency Savills.

Russian cash has been the biggest factor driving up demand for real estate, both in terms of buying and leasing, since the outbreak of the Ukraine war last year, according to Katie Burnell, associate director at Savills Middle East, based in Dubai.

https://www.bbc.com/news/business-65037061

[mikebell]

11 hours ago, snoop1130 said:

pool villas on Phuket’s popular west coast being particularly popular among foreign buyers,

Yet foreigners may only legally own condos?  How do they buy villas?

[jacko45k]

10 hours ago, Adumbration said:

What an absolutely ridiculous article.  Those west coast villas are priced north of 20 million baht.  How many Thai "locals" have that sort of cash.

Well I expect Thais are more 'local' than Russian or Chinese!

[jacko45k]

1 minute ago, mikebell said:

Yet foreigners may only legally own condos?  How do they buy villas?

Shell company name, lease, usufruct, some other bypass arrangement. Show the money, arrangements can be made. Anyhow it is the land that is the problem rather than the building. 

[ChipButty]

10 minutes ago, mikebell said:

Yet foreigners may only legally own condos?  How do they buy villas?

Get yourself a good lawyer he will show you how, 

[Tropposurfer]

45 minutes ago, hotchilli said:

Russians and Chinese are not pushing up the price of property.

There has been a glut of empty residences since Covid.

Property developers and sellers are gouging the market.

There aint' no uptick in these ethnicities buying in the estate we live in at the far north of Layan.

 

I'm sure there are villas in the moderate to lower end being sold (e.g. 1/4 to a million AUD but in our estate there has been not one Russian or Chinese buyer, nor in the 2 estates bordering us, and I'm an are going and observant b#gger so I'd have noticed. 

A bit south I've seen more activity with folks coming n going from the larger dog-box condo's and high walled squeezed in villas who look decidedly Slavic. But, not having stopped and said goodaye I'm guessing as to what nationalities they might be.  

 

We visited friends at Trisara the other day and there were a few Russian families and couples (draft-able age males) who'd arrived for what my buddy said were short stays.

 

It's not surprising the lower end villas and of course cheap, (well with exchange rates cheap) condo's are being grabbed. But these will not be lived in permanently as the Ruskies (up to this point, and what appears to be the projected future) wont be allowed to stay indefinitely just as all who do not hold the appropriate visa's aren't.

 

On that note I wonder what sorts of pressures will be exerted by the US and Euro nations on LOS as the war carries on and the bite of no gas and grain problems and funding the war have on the West and how this will impact these relationships regarding Thai neutrality and open door/business as usual policies to Russia and its citizens? 

Anyone care to venture opinion or insights on this question?

[mikebell]

22 minutes ago, jacko45k said:

Shell company name, lease, usufruct, some other bypass arrangement. Show the money, arrangements can be made. Anyhow it is the land that is the problem rather than the building. 

I did the Company name scam for 8 years then when the <deleted> hit the fan I lost 75% of my house value BEFORE lawyers' fees!

[RichardColeman]

So, prices are basically going up due to people not wanted to return to warmongering dictatorships ? 

[parafareno]

10 minutes ago, RichardColeman said:

So, prices are basically going up due to people not wanted to return to warmongering dictatorships ? 

deport all russians beack to their mighty leader....

[jacko45k]

47 minutes ago, mikebell said:

I did the Company name scam for 8 years then when the <deleted> hit the fan I lost 75% of my house value BEFORE lawyers' fees!

Sorry to hear that... but it must depend on the circumstances. I believe the house opposite me has been in a company name for near 20 years, as per many nearby. I have heard of many methods over the years, plenty of falangs live in houses they own.... 

[Eloquent pilgrim]

1 hour ago, mikebell said:

Yet foreigners may only legally own condos?  How do they buy villas?

I own my villa that I bought 4 years ago. It is in my own name, but of course, I cannot own the land; however, I have the land on a 30 year lease, in my name, which is renewable for another two terms of 30 years. I also have an inheritance clause in the house deed, and the land lease, which is also important.

[Muhendis]

12 hours ago, Adumbration said:

How many Thai "locals" have that sort of cash.

That kind of money is in the hands of the Thais who own the land upon which such luxury homes and villas are built.

Also even the street food vendors are much better off in Phuket due to the higher prices they can charge. 

[thaibeachlovers]

4 hours ago, guydude said:

I'm curious. Probably I'm misinformed, but I thought property ownership by foreign individuals was prohibited in Thailand, except in the case of condos that maintain a certain ratio of local-owned units. Are these condo units that the story is talking about? 

Far as I know we can own houses but not the land they stand on. The land is leased for a maximum number of years.

[thaibeachlovers]

2 hours ago, RichardColeman said:

So, prices are basically going up due to people not wanted to return to warmongering dictatorships ? 

How does owning a house allow them to stay longer than the visa they have?

[Mises]

1 hour ago, Eloquent pilgrim said:

I own my villa that I bought 4 years ago. It is in my own name, but of course, I cannot own the land; however, I have the land on a 30 year lease, in my name, which is renewable for another two terms of 30 years. I also have an inheritance clause in the house deed, and the land lease, which is also important.

I believe a Thai court has already ruled that in effect you have a 90 year lease which is not legal so the whole lease is void including your first 30 years.  You could be sitting on nothing, Seek good independent legal advice.

 

One day when it suits the Thais all these get around schemes for land ownership will implode, I admit it could be a long time when at present the Thais can build a villa costing 5 million to build and sell it for 25 million

[jacko45k]

3 minutes ago, thaibeachlovers said:

How does owning a house allow them to stay longer than the visa they have?

I was wondering about that. Would it give them access to LTR type visas or some other investment driven category? 

[thaibeachlovers]

Just now, jacko45k said:

I was wondering about that. Would it give them access to LTR type visas or some other investment driven category? 

Sorry, but I have no idea. Seems strange unless it's one of those very expensive options I couldn't afford.

I guess if one can pay millions for a house, a LT visa wouldn't be a problem.

One does wonder how many of the Russians are that rich though. The ones I saw in Pattaya didn't look very rich.

[Eloquent pilgrim]

13 minutes ago, Mises said:

I believe a Thai court has already ruled that in effect you have a 90 year lease which is not legal so the whole lease is void including your first 30 years.  You could be sitting on nothing, Seek good independent legal advice.

 

One day when it suits the Thais all these get around schemes for land ownership will implode, I admit it could be a long time when at present the Thais can build a villa costing 5 million to build and sell it for 25 million

 

Incorrect, in my case at least. I have a 30 year lease which was scrutinised in fine detail by a very good, English speaking solicitor.

 

It has an option for two further renewals, but it is not a 90 year lease; if it is not renewed after 30 years, it is terminated.

 

Of course, it is only legal as the law stands at present, and I accepted when I invested that the law could change in the future, and that I will have to wear any change on the chin.