Phuket Property Developers Say Life Is Good After Coup

[george]

Phuket property developers say life is good after coup

Despite - or because of - the coup on Tuesday 19 September, Phuket is seeing increased interest in its property market.

One developer told Phuket Post that he had been inundated with requests about a piece of land he had been trying to sell for over a year. “Last week we had three people interested in a plot of land we had for sale,” the developer, who asked to rename nameless, told the Post. “Yesterday [saturday] one buyer called to make a definite offer. When the second called and I told him the land was already under offer, he said he’d take the other plot we had. Then the third called and said he would improve on the first offer we’d received so he could get that first plot.”

Henri Young of Raimon Land – which is currently marketing its Kata Height project in Phuket – told the Post that the company had seen considerable buyer interest in Phuket since the takc-over by General Sonthi Bunyaratkarin. “We sold two properties in Phuket just yesterday,” he told the Post on Sunday.

Mr Young, who had already reported considerable buyer interest from the Hong Kong following the coup, told the Post, “We are very happy with what is happening in Thailand right now.”

--Phuket Post 2006-09-25

[johnnyk]

This is not news its piffle.

It will be news when the developers say life is terrible and its not the time to buy.

[Nam Kao]

Sounds like they are trying to pump it so they can get out

Like when an analyst upgrades a stock so they can liquidate their positions before the drop

Anybody investing in a country in this position needs their head examined

[TAWP]

I usually get emails like this, only that they are about stocks...and here they print them in the newspapers?

[kurgen]

sounds like Henry Young has been sniffing glue

[sriracha john]

Three phonecalls and two sales represents a boom in the real estate market??

[womble]

Actually, strange as it may seem, my friends real estate agency in samui has been quite busy this past week. Also had someone come to view the house that I rent the day after the coup, and the couple were not bothered in the slightest of the events in Bangkok.

Having said that, any interest in property is in spite of the coup and i'd definatley expect demand to drop in the short term.

That article is ridiculous, to suggest the coup has led to increased demand, yeah right.

But I think to anyone who knows Thailand well, and was already sure they wanted to buy here, it won't have much effect, they will still be looking to buy.

[Tornado]

I realise the sceptism, I would think the same.

After the tsunami, Phuket real estate agents and developers were inundated with interest in property and the same is happening here again in Phuket after the coup. The day after the coup, the boys in the office sold two properties and I am told today that they have over 27 new clients from the web site.

Major investors look at the history and the growth of a country, maybe they see this as an opportunity to buy and make major gains in the near future, after all it is a hiccup - hopefully.

[Beavis and Butthead]

Pretty laughable really

[womble]

Well, I guess it's highly possible you will see bargain hunters.

The thing is people who own here know how Thailand works and will not drop their prices as they know this coup shouldn't effect the markets too much. It will effect Bangkok more, I doubt it'll have any impact on Samui or Phuket though.

I expect what we're seeing is people looking for bargains, i'm sure there are some people who think the baht may weaken (i don't think it will significantly), they may be thinking of buying if the baht weakens enough, so are on the lookout for properties where maybe they think they can find owners who are worried about the politics and so maybe pick something up cheap.

[cclub75]

Three phonecalls and two sales represents a boom in the real estate market??

Yeah. It's pathetic.

In finance, they do the same : the name is "the boiling room".

[jimbob]

Three phonecalls and two sales represents a boom in the real estate market??

Yeah. It's pathetic.

In finance, they do the same : the name is "the boiling room".

I don't know, two sales in a week is huge in the middle of low season and during a military coup. Most of the property guys I know would kill to make two sales a week - especially on high end 10 or 20 million baht properties - that is multi million baht commissions!

Similar things happened in the property market after the Tsunami - land prices increased 15% on average across Phuket. Also the baht and Stock Exchange have all stayed steady and so far the international markets seem to think the coup is a good thing so why should the property market not also do well?

[sriracha john]

I guess I totally misperceived the Phuket real estate market. I was under the impression that at any given time, hundreds of properties were for sale island-wide... and that the most optimistic realtor that they could find for the article had sold two (with btw, just as much probability that they were on the low end 1 million baht) was rather pathetic.

If two sales constitutes a boom, then I have much clearer idea about the size of the Phuket real estate business.

Thank you.

[jimbob]

I guess I totally misperceived the Phuket real estate market. I was under the impression that at any given time, hundreds of properties were for sale island-wide... and that the most optimistic realtor that they could find for the article had sold two (with btw, just as much probability that they were on the low end 1 million baht) was rather pathetic.

If two sales constitutes a boom, then I have much clearer idea about the size of the Phuket real estate business.

Thank you.

Raimon Land are one of the biggest developers in Thailand. They do not sell properties for 1 million baht (in fact no developers sell property in Phuket for 1 million baht - maybe in the resale market but not in a state-of-the-art development).

Current Raimon Land projects in Phuket sell for between 15 and 30 million baht. Selling two of those in the middle of a military coup is one hel_l of a payday.

Property development here is now aimed increasingly at the highest end of the market - basically at the Hong Kong and Singapore business crowd.

The area on the west coast from Kalim up through Kamala to the airport is now known as millionaires mile as it costs about 1 million US to buy a villa there.

Land space is finite here so the emphasis is on quality and price rather than quantity.

[hammered]

I guess I totally misperceived the Phuket real estate market. I was under the impression that at any given time, hundreds of properties were for sale island-wide... and that the most optimistic realtor that they could find for the article had sold two (with btw, just as much probability that they were on the low end 1 million baht) was rather pathetic.

If two sales constitutes a boom, then I have much clearer idea about the size of the Phuket real estate business.

Thank you.

Raimon Land are one of the biggest developers in Thailand. They do not sell properties for 1 million baht (in fact no developers sell property in Phuket for 1 million baht - maybe in the resale market but not in a state-of-the-art development).

Current Raimon Land projects in Phuket sell for between 15 and 30 million baht. Selling two of those in the middle of a military coup is one hel_l of a payday.

Property development here is now aimed increasingly at the highest end of the market - basically at the Hong Kong and Singapore business crowd.

The area on the west coast from Kalim up through Kamala to the airport is now known as millionaires mile as it costs about 1 million US to buy a villa there.

Land space is finite here so the emphasis is on quality and price rather than quantity.

I hope all those in the Hong Kong and singapore business crowd have aThai spouse so that they can legally own the land they are being sold.

[jimbob]

I hope all those in the Hong Kong and singapore business crowd have aThai spouse so that they can legally own the land they are being sold.

I have to say that is what has put me off property in Thailand (not that I can afford it)

Mind you most of the HK and Singapore crowd can afford a Mia Noi or two!

[taxexile]

having just returned from a trip to phuket and samui , although i cannot dispute that there may be buyers pecking around , there are also hundreds of unsold properties , dozens of projects seemingly abandoned half way through building and the usual scene of bomb site moo baans with more builders than residents.

its a very strange market indeed

[eljeque]

Pattaya is not that bad, but the Pattaya Trader which is the major magazine for property sales has grown 100% in the past 2 years.

[malcolminthemiddle]

having just returned from a trip to phuket and samui , although i cannot dispute that there may be buyers pecking around , there are also hundreds of unsold properties , dozens of projects seemingly abandoned half way through building and the usual scene of bomb site moo baans with more builders than residents.

its a very strange market indeed

So how is the market in Hua Hin, still booming or has all the latest "issues" put a dampner on things?

[taxexile]

the local news sheets are full of ads for houses and paradise projects and dream fulfillment lifestyle solutions planned and underway , but i really dont know how well they are selling.

there seem to be so many places for sale but the prices are still going up , like i said , the property market aimed at foriegners in thailand is a very strange beast indeed.

[jimbob]

the local news sheets are full of ads for houses and paradise projects and dream fulfillment lifestyle solutions planned and underway , but i really dont know how well they are selling.

there seem to be so many places for sale but the prices are still going up , like i said , the property market aimed at foriegners in thailand is a very strange beast indeed.

It is a strange beast indeed but after all This Is Thailand!

In terms of the half built projects, many of these start life as off plan developments and are built over a period of anywhere from 1 to 3 years. I know of a number of developments that are completely sold out yet have only just started work on the foundations. Some of the mega condo and villa projects will not even start building until they have sold a certain percentage of properties (up to 25-40%!).

There is certainly strong demand in the market but it is my opinion that quality and good workmanship will become an increasingly important factor in the buyers decision, as will legal issues such as completion dates. Hopefully a more aware buying market will deter fly-by-nighters and conmen.

[Barney_the_Dinosaur]

Now, more than ever is a great time to buy Thai property.

[Steph1012]

having just returned from a trip to phuket and samui , although i cannot dispute that there may be buyers pecking around , there are also hundreds of unsold properties , dozens of projects seemingly abandoned half way through building and the usual scene of bomb site moo baans with more builders than residents.

its a very strange market indeed

This is the case. The positive posts are just agents talking the market up. The smart money in Phuket is going into the SCB for 4% interest. Thats how good the market here is!

There are thousands of empty plots, and hundreds of areas cleared for development that are just stood empty, cleared of trees but no action. Land is not limited here, it is readily available everywhere. You need to go and look for it yourself and don't listen to some fat loudmouthed falang developer. Rent a bike and tour the Island, save yourself a fortune.

Two sales in one week!! I think its the "dead cat bounce" we used to hear of in politics. Its its also impossible that two sales would go from initial visit to completion of sale in one week.

These are either completions from previous months or offers not yet completed, in which case they are not sales.

Keep up the bullshit boys, somebody somewhere is daft enough to believe you. Just look at all the bars that sell here.

Edited September 26, 2006 by Steph1012

[Maizefarmer]

Have you noticed anything different around you since Gen Sonthi started running Thailand Inc?

Not me, and the average man in the street goes about his daily affairs just as before the takeover. Foreign governemts made the usual sounds for and aginst, but overall Thailands trade status and its currency has not changed one iota.

Is property up or down? - I've seen no shift in property prices - they just continue to go up in places like Phuket (Thailands richest province).

Will they stay up - good question. There is a theory that as Phuket becomes more and more over crowded it will eventually start running into infrastructure problems (i.e. water shortages, power shortages) and prices will then drop.

mmmmmmmm............over what period of time. Still time to get in a make a profit I would have thought, but is it an enviroment I'd want to live in? Horses for courses I suppose - it wouldn't be my idea of a good place to live: its over crowded and if you're looking for a coastal location with a view - well, there are far nicer places at substantially less price than Phuket where you can buy and build.

Tim

[jimbob]

There are thousands of empty plots, and hundreds of areas cleared for development that are just stood empty, cleared of trees but no action. Land is not limited here, it is readily available everywhere. You need to go and look for it yourself and don't listen to some fat loudmouthed falang developer

If this is the case then why have land prices continually risen?

Also you may note that there is virtually no land on the much desired west coast of the island that is undeveloped. Drive from Karon beach through Patong and Kalim then up to Kamala and Bangtao. It is all developed or being built on.

The entire south of the island is increasingly the same. There is no beachfront land left for development in the south.

As for limited land you must remember you cannot build on land over 80 metres or on extreme slopes (I forget the exact angle restrictions).

And this is only a island, albeit a large one, so of course land is limited and ongoing town planning laws only tighten the amount of land available for development.

The only places left for development would be some fields in the middle of nowhere in Cherngtalay or Thalang. Everything else is earmarked for off-plan development or being sat on for speculation by a small number of well-established Phuket families who pretty much own most of the island.

[simon43]

The only places left for development would be some fields in the middle of nowhere in Cherngtalay or Thalang. Everything else is earmarked for off-plan development or being sat on for speculation by a small number of well-established Phuket families who pretty much own most of the island.

[\quote]

Don't agree. There is plenty of nice land still available! Near me, there are many vacant beach plots on the west coast. Just a few km inland I can buy lots of nice Chanote land at 1 million baht/rai......

But I'm not an estate agent, so I've got no interest in buying....

Simon

[jimbob]

Don't agree. There is plenty of nice land still available! Near me, there are many vacant beach plots on the west coast. Just a few km inland I can buy lots of nice Chanote land at 1 million baht/rai......

But I'm not an estate agent, so I've got no interest in buying....

Simon

Wow, that does surprise me - land on the beach in the south of Phuket - there are developers I know that would kill to get a plot there! Where is this land located?

Inland there is still land available but increasingly (for the worse of the island I fear) there is more and more of it earmarked for development. Places like Rawai and Chalong will lose their character in years to come as the trees are uprooted and ugly as hel_l shophouses and McVillas are put in their place.

[steveromagnino]

Wow, that does surprise me - land on the beach in the south of Phuket - there are developers I know that would kill to get a plot there! Where is this land located?

Inland there is still land available but increasingly (for the worse of the island I fear) there is more and more of it earmarked for development. Places like Rawai and Chalong will lose their character in years to come as the trees are uprooted and ugly as hel_l shophouses and McVillas are put in their place.

Land is available beach side; I can even think of one major site belonging to a hotel in Patong itself; and sites all the way down the coast.

However. ...land available at a price that can make developing profitable and available full stop (implying easy to make money on) are two different things. And without local support I can see that the foreign developer cuold have difficulties tracking down the land as easily as some have been doing over the last 3-4 years gone by, and especially since we are onto the next few sets of hands and are no longer in the 'land by the sea is worth less to Southern Thais' mindset; those original land owners are well down the chain, having sold off some sites for 100,000b per rai to various politicia, er, I mean, people, who are now onselling. And when every man and his dog thinks they are a real estate magnate, well you know things are going to get tough.

But if all developers are like the clown doing the Chiang mai development in the middle of nowhere down by Chalong Bay or that beast of a cow poo called Villa Santi, then indeed it could end up looking like a cartoon McVilla, and this will be the biggst problem facing Phuket for the middle upper market. As it stands now, so far I've looked at almost every major 1m USD + villa/condo project on the island and while some may appeal to Singaporeans and HKers, but if that's the case, with respect, their taste is pretty dreadful. It is sometimes like a concrete bunker, with the trappings of a Thai cartoon house built right up to the boundary...this is supposed to be worth $1m - $4m USD?!!!

The white staircase one up the hill round the corner from Villa Santi, I forget the name, is yet another eyesore that hopefully will slide into the sea. At least the Heights is nice enough, Raimon Land seem to be a bit more capable than most with their marketing and reputation, so I think sales will tend to gravitate to these types of set ups.

I can foresee that the first project/second project developers will be the ones hit hardest; especially the ones with dodgy titles/company proposal set ups. I can think of one $3-6m USD villa project with about 15 units AFAIK that still hasn't sold out in 2 years! Guys like Raimon Land, Trisara etc I think will continue to sell fine.

One day when the whole place is a dump, then I shall make my move, and convert the whole island into a Bennie Hill theme park, where everyone as to run around at high speed; it shall be law that all bald men acquiese to being patted on the head and women shall 'accidentally' run into people's hands and so on. The island wide sound system shall play the theme music and there will be no double pricing. Except for the people from Lichtenstein. Who will pay 11% higher but not have to pay VAT.

Edited September 26, 2006 by steveromagnino

[jimbob]

Great post steveromagnino!

I agree about some of the atrocious developments on the island and it amazes me that people buy into them. I have seen some appaling developments sell out overnight to speculators and morons. Personally I think overdevelopment will become a big problem but yet demand has not waned at all even with tsunami, SARS, military coup, end of the world etc.

And I think your idea about a Benny Hill theme park is on a par with anything the TAT have come up with to promote Phuket - Genius!

[steveromagnino]

Great post steveromagnino!

I agree about some of the atrocious developments on the island and it amazes me that people buy into them. I have seen some appaling developments sell out overnight to speculators and morons. Personally I think overdevelopment will become a big problem but yet demand has not waned at all even with tsunami, SARS, military coup, end of the world etc.

And I think your idea about a Benny Hill theme park is on a par with anything the TAT have come up with to promote Phuket - Genius!

Jimbob, thanks mate :-)

I can STRONGLY recommend buying Bennie Hill on DVD; available in the naughty, naughtier and naughtiest collection. I have shared with countless people and it really doesn't age.

There is a Niiiiiiiiice reference in family guy episode in series 2, where Stewie arranges his, as he calls them, sexy parties, which is a clear reference to Bennie, one of my childhood heroes.

Well, back on topic, if foreign property purchasers are going to keep buying here, then the least they can do is even more stringent control of what is being built. It is much like the property sold off to foreigners in NZ; some of THE most ugly and foul creations known to man ae sold off; mock georgian manors to the Chinese; beach side/river side mock cabins to Americans and so on. At some point (which has already been reached in NZ) suddenly locals can't access the land or talk to the owners that now have taken all the prime places..... this is not a sustainable business, and better to check it now rather than later.

Standards, quality and long term planning. A few more developers (including both Thai and foreign) should be shot for the junk they have produced in some of the world's most scenic places.

In the case of Villa Santi, the outright lies on their website (the first integrated villa/apartment development on Phuket...are you <deleted> kidding me?!) and the eye sore factor from Patong actually apparently prompted the Governor himself when looking across from Patong to say, what the hel_l is that, stop work on it, I demand to see their plan for it. How anyone could actually want to live in such a dump is beyond me.