Phuket buyer demographics shifting

by Robert Carry

According to a new report released by a leading real estate services firm, the profile of overseas investors buying into Phuket is changing rapidly.

Jones Lang LaSalle reported that whilst buyers from UK, US and the Scandinavian nations continue to generate the majority of demand, the demand base has been expanded by the increased interest of buyers from Russian, Middle Eastern and Asian countries.

Dan Tantisunthorn, the firm´s head of research in Thailand, ?Unlike the urban centre of Bangkok where Thais represent a substantial portion of demand in most condominium projects, the resort market of Phuket attracts primarily foreign buyers, who avail condominium units on both freehold and leasehold terms.?

He continued, ?While traditionally the bulk of these foreigners would be British, American or Scandinavian nationals, affluent individuals from China, Russia, India, Korea and the Middle Eastern countries are representing a growing source of demand. This trend is reflective of the growth in the number of tourists from these markets.?

The report also found that the high-end and luxury condominium market in Phuket reported strong sales over the high tourism season in 2008. ?Outlook for the Phuket high-end and luxury condominium market remains promising. The growing reputation of Phuket as one of the world?s top resort destinations will continue to attract buyers from around the world looking for a holiday or retirement home overseas.

?Moreover, the new government has expressed its strong will to attract more overseas capital flows into Thailand. The cancellation of the 30 per cent reserve on foreign capital investments is a positive sign. In addition, the Thai Finance Minister, Dr Surapong Suebwonglee, was recently quoted as saying the Thai government was considering to extend land leasehold periods. This is good news for the Phuket market. Should the initiative materialise, we can expect the market to be more robust,? Dan concluded..