Phuket News / Island’s Latest Updates

Two new studies show a dramatic increase in international buying activities especially in real estate and private villas in Phuket, popular tourist destination in Thailand. In the second half of 2007, there was a 32 percent jump in transactions and a 59 percent up tick in the value of the property sold on the island, according to a report by CB Richard Ellis. The property company attributes the activity to a 22 percent boost in tourism and increased interest from Russian and Middle Eastern buyers.

A study of the high-end and luxury condominium market by Jones Lang LaSalle research also noted a shift in the buyer demographics. Although U.S., U.K. and Scandinavian investors represent the traditional base of the market, “affluent individuals from China, Russia, India, Korea and the Middle Eastern countries are representing a growing source of demand,” according to the Jones Lang LaSalle study.

If nothing else, both studies suggest that the political issues in Thailand—a coup in 2006; unrest in the South—are no longer dampening foreign interest in the country’s property market.

“The new government has expressed its strong will to attract more overseas capital flows into Thailand,” wrote Dan Tantisunthorn, head of research at Jones Lang LaSalle in Thailand.The government is considering a measure to extend land leasehold periods, he notes. “Should the initiative materialize, we can expect the market to be more robust.”

Written by Kevin Brass on International Herald Tribune Blog - blogs.iht.com