Property Developers Insist Upbeat Market

[george]

The Insiders on the coup

Recently Phuket Post ran a story on its website – phuket-post.com – about the effects of the recent coup on the island’s property industry. The story reported that developers and agents are, for the most part, upbeat and some had even seen increased business in the aftermath of Tuesday 19 September. However, the readers of one Bangkok web forum treated the report with more than a modicum of derision. So, the Post has gathered the collected wit and wisdom of its property columnists to give their views on recent events.

--

Michael Martin

Exotiq Real Estate

Considering the coup has thus far been carried out in a peaceful way, I greeted it with a sense of relief. It will bring to a head a political ‘limbo’, which has not been in anyone’s best interests.

The weeks and months ahead will determine whether Thailand can return to political stability and restore confidence again to the foreign property market. One must remember that democracy is still in it’s infancy in Thailand and it is unrealistic for western countries to expect the democratic process to unfold as it does in their country.

But it is apparent that the Thai people want democracy and they have their own way of restoring stability and continuing on their path of economic growth.

It is yet to be seen what the new government’s stance will be on the new regulations, introduced just prior to the coup, regarding foreign company set up, but life in Thailand goes on and such is the nature of doing business and purchasing property in ‘emerging’ countries like Thailand.

We had two sales going on at the time of the coup – one buyer pulled out stating they were uncomfortable with the situation but the other buyer continued saying he had made the decision to make Thailand his home and that if this is what living in Thailand is about, then so be it.

The sheer beauty of the region and the friendly, open culture that greets you have not and will not change and this will ensure the property market remains strong.

The politics will work itself out.

Michael Martin. Exotiq Real Estate

Tel: 076-270 376 www.exotiqrealestate.com

Martin Phillips

Engel & Völkers (Thailand) Ltd

I strongly believe that a country’s domestic affairs should remain its own business and these should not come under critical opinion from an uninformed international community.

We chose to invest in Thailand for many good reasons and we remain firmly committed to building a strong domestic business that will contribute to the economy through expansion.

In recent months a number of real estate investors, driven by political uncertainty and specific real estate industry uncertainty have decided to adopt a "wait and see" approach.

Negativity created by the recent land code policy investigations has certainly caused confusion and has influenced some buyers who will no longer invest in Thailand.

I am sure many of the investigations are necessary but, unfortunately, the impact has been far reaching and, in the absence of clear statements from the government, investors tend to draw their own conclusions.

The effects of this added to the perception created by some international media regarding the recent coup, has caused potential buyers to look elsewhere. Lost investment serves no purpose to any party.

Investors like clarity and policies that can be regarded as being investment friendly – decision making then becomes a lot easier and investment flows.

The bottom line is that some customers have decided not to invest in Thailand. I am sure other agents have experienced similar cases. The concern is that this does not become a long term issue.

There needs to be a special effort to reassure and encourage international investors to enter the market. Clear policies that encourage overseas investment in real estate through a transparent system would be extremely beneficial to the economy.

Martin Phillips. Engel & Völkers (Thailand) Ltd.

Tel: 076-279 280-1 www.engelvoelkers.co.th

Nick Anthony

Indigo Real Estate

Politics, schmolitics. Governments come, prime ministers go, and political instability in an early democracy is often a difficult and hard won road.

Thailand’s own version of democracy is very much a work in progress. Thais enjoy a strong voice and free press, Thailand enjoys a solid Buddhist philosophy and benefits from the guiding hand one of the world’s most revered, influential and principled monarchies and has many centuries of commerce with the international community.

None of this will change.

Thailand’s tourism market, thanks to the new airport, will blossom; high season is around the corner and by all accounts will be a bumper one.

The issues relating to Koh Samui and the cleaning up of that hot development market will be positive. Let them learn from Phuket and develop higher quality projects with lower density and seek higher-end buyers and tourists.

The Temasek/Shinawatra investigation throws into light the need for improved regulations and transparency on asset ownership by foreigners.

Hopefully the new regulations regarding legal registration on the title of a foreign lease is the start of a positive trend acknowledging and encouraging foreign investment into property.

In Phuket, the changing government has been well received by the international community, however in the long term interests of residents, local and foreign alike, we hope the democratic transition team effectively pass power back to an elected administration, and one that embraces twenty-first century principles of good governance that will usher Thailand into a new era, heralded by this brave move and the opening of her most spectacular new airport.

Nick Anthony. Indigo Real Estate

www.indigoRE.com

David Wade

Tropical Homes Real Estate

I can honestly state the so-called coup has had no effect whatsoever on our business. Contrary to my immediate expectations, sales have continued to increase as the high season approaches and we have not lost a single sale.

Immediately following the take-over, I emailed all our clients – past present and future –with my thoughts on the matter, as I sincerely believed the removal of Prime Minister Thaksin, democratically or otherwise, could only be good for Thailand.

The democratic process was failing and Thaksin was clearly not going under his own steam, the coup simply gave him a helping hand in the great Thai tradition much to the relief of many Thai citizens and a lot of in the-know foreigners. The e-mail turned out to be unnecessary; those that replied simply supported my opinion.

The really great difference I noticed was more of a personal nature. When the tsunami hit my phone rang for two days solid from concerned relatives, friends and clients.

Following the coup I did not receive one phone call of concern even from my closest family and friends overseas. The fact is that clients and investors believe the coup may very well have a positive effect on the property market, especially in the long term.

From a purely selfish point of view I had hoped the baht might devalue just a little, but even that failed to happen. Those with the foresight to invest now will almost certainly reap the greatest rewards.

Fortune favours the brave!

David Wade. Tropical Homes Real Estate.

Tel: 076-326 125 www.tropical-homes.net

-- Phuket Post 2006-10-17

[lannarebirth]

David Wade

Tropical Homes Real Estate

The really great difference I noticed was more of a personal nature. When the tsunami hit my phone rang for two days solid from concerned relatives, friends and clients.

Following the coup I did not receive one phone call of concern even from my closest family and friends overseas. The fact is that clients and investors believe the coup may very well have a positive effect on the property market, especially in the long term.

From a purely selfish point of view I had hoped the baht might devalue just a little, but even that failed to happen. Those with the foresight to invest now will almost certainly reap the greatest rewards.

Fortune favours the brave!

David Wade. Tropical Homes Real Estate.

Tel: 076-326 125 www.tropical-homes.net

-- Phuket Post 2006-10-17

Well, I don't know he has drawn the correct conclusion, but I will say I had a similar experience. After the tsunami I had many calls from friends, who wanted to know if it might be a good time to buy real estate in Phuket. I could offer no input as it seemed like such a ghoulish interest. After the coup, I received no calls from friends or family, even though I expected I would. I'm not sure what that means, but it strikes me as indifference.

[jimbob]

After the coup, I received no calls from friends or family, even though I expected I would. I'm not sure what that means, but it strikes me as indifference.

Same here - my family seemed completely uninterested in it (just like most Thais ) - All I got was one lousy email.

[Khun Jean]

The strange thing is that these realestate agents still keep talking the talk that owning a property is easy.

Most people are looking for a holiday house or a house to live in, not for a company of any sorts.

For these people it will be impossible to own it, and so you can not speak of investing.

It is called spending.

[markg]

The strange thing is that these realestate agents still keep talking the talk that owning a property is easy.

Most people are looking for a holiday house or a house to live in, not for a company of any sorts.

For these people it will be impossible to own it, and so you can not speak of investing.

It is called spending.

Couldnt agree more K. Jean. The first people to come out of the woodwork are always the property developers who try to "talk up" the market.

Really they are running scared.

First its the clampdown on visa's. At some time in the future the Thais WILL clamp down on all these companies set up for the express reason to let a foreginer buy land. Its illegal. At the moment the authorities are turning a blind eye. One day they wont. Mark my words.

The property boom will continue i m sure, but one day, many people will get burned.

[dsfbrit]

Markg, KuhnJean

Agree with much of what you say.

I notice that one of them was honest enough to say that one buyer had dropped out and one had continued with the purchase. Flippantly I could say that is 50 percent dropping out then isn't it - mind you it would be a bit of a strech to say that on a sample of 2!

As the sentence before mentioned 'foreign company setup' I guess it means these were shell companies used to 'buy' the land - nothing to do with the Coup if that is what they were referring to.

I am one of the people that bought a property / land through the company route (doh!!!) a couple of years ago and I would now, like all/most people on ThaiVisa advise everybody never to do this.

Why then would a foreigner invest in a property other than a condo in his own name - if he is given the full facts.

Maybe I am missing the point here - not the first time - but how CAN a foreigner invest (ie: own) a house with land ? and if he cannot this must surely have a major impact on the growth of this area of the market?? - Coup or no Coup ?

Then there are the new visa changes - no more 'investment' visa etc...

I think we are being fed the proverbial 'crock...'???

Edited October 17, 2006 by dsfbrit

[johnnyk]

One hardly expects them to talk down their business.

They may be right, they may be wrong but they are not impartial observers.

[Johpa]

One hardly expects them to talk down their business.

They may be right, they may be wrong but they are not impartial observers.

If you believe what a property developer or a real estate agent is saying, anywhere in the world, then do I have a deal for you, prime Arizona waterfront beach property.

[englishoak]

usual hype .......... just talk

[johnnyk]

One hardly expects them to talk down their business.

They may be right, they may be wrong but they are not impartial observers.

If you believe what a property developer or a real estate agent is saying, anywhere in the world, then do I have a deal for you, prime Arizona waterfront beach property.

?????

Who said anything about believing them?

Read the post again. It is neutral.

Having owned 6 houses in my time I am quite capable of buying property without your assistance.

[cclub75]

What a pathetic "boiling room".

And meanwhile so sweet. Especially Martin, who attacks with a strong stance :

"I strongly believe that a country’s domestic affairs should remain its own business and these should not come under critical opinion from an uninformed international community."

And then slowly, like a little boy caught smoking in the toilets, fearfull : " Negativity created by the recent land code policy investigations has certainly caused confusion and has influenced some buyers who will no longer invest in Thailand." bla bla bla bla bla

I'm going to throw up.

I mean, come on, a bit of decency please !

Fed up with the Phuket boys and the so called "hype". Keep your "villas-ressort-spa" at 20 millions THB on the "paradise island"... you are doomed. This island is nothing but a dump.

Doomed.

[Tornado]

The "dump" looks great / beautiful from where Im standing. There are so many boats in the harbour today. Anyway I better go for a swim before breakfast what a dump

edit: the water is about 24ish degrees

Edited October 18, 2006 by Tornado

[Tornado]

What a pathetic "boiling room".

And meanwhile so sweet. Especially Martin, who attacks with a strong stance :

"I strongly believe that a country’s domestic affairs should remain its own business and these should not come under critical opinion from an uninformed international community."

And then slowly, like a little boy caught smoking in the toilets, fearfull : " Negativity created by the recent land code policy investigations has certainly caused confusion and has influenced some buyers who will no longer invest in Thailand." bla bla bla bla bla

I'm going to throw up.

I mean, come on, a bit of decency please !

Fed up with the Phuket boys and the so called "hype". Keep your "villas-ressort-spa" at 20 millions THB on the "paradise island"... you are doomed. This island is nothing but a dump.

Doomed.

I have to!

I can imagine what the c stands for in your nick!

why are you so venomous in your attack against an Island that has been through so much over the last few years? Is it because your a jealous loser who cannot afford a nice home? or is it because your a prick?

Facts are facts shit head, the Island is still moving ahead with or without your blessing!

[griffer]

Nick Urmuney

Smoke and Mirrors Inc.

Puket Thyland.

When Mr.Taksin came into power we hired a night-club and had a party. We felt that with a respectable business man at the helm of the country, things were going in the right direction.

And we were right. The very next day, our hard working sales team on the streets managed to pull in dozens of holiday makers to our “Sales Bonanza Extravaganza” and we only had to give away 9 free gifts. Some people signed up there and then, and we invited them back to the same night-club we had been to the night previously. A great time was had by all.

Now we have a new government. We are excited again. We were looking for something new to pull the punters in. Before we offered clients the option of forming a company and, er, practically owning your house through that. As we told clients, a thirty year lease is as good as gold. Come back to our office in thirty years time and we will “guarantee” to renew it (subject to certain conditions). Now we believe that Thailand will be thrust into the 21st century, somewhat like Burma, and the pickings are there to be taken.

We have no clients pull out of any of our deals. Ever. That could have something to do with Sicily Sid who does our follow-up work. His success rate breaks all the rules. He may have strayed in his earlier life, but since his release he seems to have found his calling.

So we are very positive. We feel there is a huge amount of money to be made here in the next few years. Personally, I am already looking for my retirement home that I can buy in my own name in either the Bahamas or Brazil. That’s how confident I am.

Nick.

[griffer]

[kathyjune]

huh?