Jittery Scandinavians Plan To Dump Phuket Properties

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Jittery Scandinavians plan to dump Phuket properties

By SALINEE PRAB

THE NATION, PHUKET

Scandinavians are planning to sell their properties on the resort island of Phuket en masse after the political riots in Bangkok badly shook their confidence, said Thanan Tanpaiboon, president of the Phuket Real Estate Association.

"In the past few months, there have been hot debates among Scandinavian settlers and some have put their properties up for sale," Thanan said.

"The situation blew up in May with the shooting and burning. This caused jitters among the investors. Though we have tried to convince them things are stabile, a lot depends on the government's stability and how it can restore confidence."

The Scandinavians' strongholds are along Patong, Kata and Rawai beaches. Aside from them, Phuket has welcomed huge investment from UK, German and other European investors, who are less frightened about political instability. The island is also proving attractive to Russian investors, who are buying into complete freehold condominium units.

Thanan said property transactions on the island were active in the first four months of this year, but the situation turned upside down in April. He noted that though the rioting was contained in Bangkok, it spooked foreign investors nationwide. In Phuket in particular, foreign tourists stayed away.

"It remains to be seen if tourism will pick up in the upcoming high season. If political stability is restored, things should improve," he said.

On transactions from Thai investors, he added that the situation would improve based on the recovery of the tourism industry. Demand would come mainly from business employees and owners, particularly for housing units priced at no more than Bt2 million each. Thanan said there were rare transactions for properties priced at between Bt2 million and Bt5 million.

However, the luxury high-end segment has been spared from negative impacts. These units, worth Bt10 million or more, are being sold directly between friends.

"Now, they talk about units priced at US$3 million to $4 million [bt95.5 million to Bt127 million] each. The price depends on satisfaction. Though negative factors remain, they believe Phuket will continue to prosper in the next five to 10 years. The downturn is also believed to smooth deals," he said.

Developers on the island must adjust their marketing plans, he said, adding that developers on Phuket were quite adaptive given the many crises from disasters and diseases.

-- The Nation 2010-08-17

[Jimi007]

Why isn't this in the Phuket or Phuket news forum? It doesn't seem as though this news has stopped the building craze going on around here. Lot's of places that have been empty for well more than a year and yet they keep building. The bubble has burst, but Thais won't admit it!

[yabaaaa]

Why no just concrete the whole of the island and be done with it, they never know when to stop!

[steelepulse]

Is there a Scandanavian property owners association that I'm not aware of and did they have a meeting and they all voted to sell their holdings? This seems a bit hard to believe.

[NamF0n]

Why no just concrete the whole of the island and be done with it, they never know when to stop!

Because foreign investment has dried up, otherwise im sure they would.

This article sounds like the sort of story agents come out with when speaking to each other to try and come across as being astoundingly clever, and someone was daft enough to put it too print.

A significant amount of property going on the market all at once and buyers few and far between! it certainly sounds like the makings of a property crash Salinee Prab is talking up there.

Edited August 20, 2010 by NamF0n

[taninthai]

going by the amount of properties listed in phuket gazzete every week seems many people have been trying to sell there properties for a while with not much success ,overated and over priced is my opinion

[katabeachbum]

Is there a Scandanavian property owners association that I'm not aware of and did they have a meeting and they all voted to sell their holdings? This seems a bit hard to believe.

I am Scandinavian and I have properties in Phuket. I know some buyers, including Scandinavians, have pulled out of off plan sales partly due to lacking confidence in project.

But I also know quiet a few Scandinavians looking to purchase in Phuket in the 8-20 million baht segment.

[ESB7]

The Thai market in Cha am is really booming, both land and new properties. A recent project of 48 x 3 bed properties with shared pool at 4mill upwards has almost sold out to Thais and is in a great location and well finished, 2 other projects are also selling well to Thais, land is now on a par with Phuket pricing and is selling daily....yet one project ongoing for 3 years aimed at foreigners has hardly sold any units......with a population of 65 million and only a few hundred thousand expats ( that are mostly tight as a ducks bum) which is the most likely to sell..

[johnnyk]

Unrest in Thailand? Make a plan to sell your property! Good thinking!

Sell to whom?

[surayu]

Why no just concrete the whole of the island and be done with it, they never know when to stop!

"be done with it" ? are you crazy? look at Samui, start drilling in the ocean for petrol is the way to go and then maybe even an additional site for those nuclear reactors in the making...amazing Thailand! the hub of the whole world

[trogers]

Unrest in Thailand? Make a plan to sell your property! Good thinking!

Sell to whom?

Junk bonds can still find buyers. It's only a matter of price.

[stevehaigh]

why pull out of Phuket because of riots in Bangkok! Phuket is 700+km from BKK. makes sense to dump properties in BKK and move to Phuket i would think.

[katabeachbum]

why pull out of Phuket because of riots in Bangkok! Phuket is 700+km from BKK. makes sense to dump properties in BKK and move to Phuket i would think.

cause LOS government has had some airports closed by riots on occasions