Apart from some segments of the market like villas, real estate in Phuket hasn’t been performing all that well. However, things could be changing. Real estate agencies on the island have reported an increase in buying activity on the resale market where prices are the lowest, reports local media.
There are several reasons property prices in Phuket dropped since reaching record highs in 2014. The Russian economic crisis that impacted the value of the rubble saw buyers from the country lose their ability to acquire Thai property. The drop in oil prices and Brexit also caused real estate prices in Phuket to fall.
“A lot of people employed in the oil industry live in Phuket and buy and rent properties here. The drop in prices caused the oil industry to slow down. Brexit caused ructions for many British buyers looking to invest in the market here. Lastly, of course, Thailand itself has had an eventful few years,” says Kevin Hodges, North Branch and Investments Manager at Siam Real Estate, to the Phuket Gazette.
Things on the island are looking better now with the world economy gaining strength. Even with some troubling incidents over the past 3 years, Thailand continues to be resilient with a record number of tourists expected to visit the county once again in 2017.
Phuket property offers value with rental returns remaining steady. Many international real estate markets aren’t able to offer this at the moment with high prices cutting into returns. Owners of Phuket residential properties average 4 to 7 per cent returns on their investment.
“Since 2014, Phuket real estate prices have been correcting and some believe the market may have finally reached its bottom. With the long term upward trend of increasing real estate prices in Phuket, this means now for a good time to make an investment,” says Hodges.
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