The Legal Execution Department (LED), which organises auctions of financially-distressed property, much of it with unpaid bank loans, will hold auctions of Phuket properties over the coming months.
Ut Utthanon, Deputy Director of the LED, which is part of the Ministry of Justice, said that some good bargains will be on offer, with some Phuket properties valued at THB5 million being offered at starting bids as low as THB2 million.
A variety of properties are for auction, ranging from condominiums to sea view villas. Anyone – Thai or foreign – may bid on the properties.
This is the fourth round of sales organised in six provinces, Ut explained. “We have previously had successful auctions in Pattaya, Khon Kaen, Udon Thani, Chiang Mai, Chiang Rai and Phuket. We have held auctions in all these locations because they are attractive to investors.
“Phuket is a famous tourist place that receives a lot of tourists every year, which has fuelled property development and driven up prices. We have properties in town, near the beach, next to the shore, and on mountainsides with seaview. We have apartments, hotels, villas and resorts as well. This is a good opportunity for investors who want to invest in the tourism business.”
He explained that the LED has responsibility for about THB100 billion in problem properties. It is gradually resolving the problems, sometimes through auctions, but also through brokering compromises on debts, through debt restructuring and through legal reconciliation.
Samnao Suwannasampan, Director of Phuket branch of the LED said: “We will be putting seven Phuket properties up for auction soon. These, he said, are:
- The troubled 69-unit Chalong Bay View apartments, valued at THB278 million;
- 39 buildings on 69 rai of land, valued at THB509 million;
- The abandoned Peninsula Estate on the east coast of the island, looking out over Phang Nga Bay. The part-completed development, with a hotel and 12 villas, is estimated to be worth THB224 million baht;
- Concrete buildings on 29 rai of land valued at THB233 million;
- Chanote-title land of 16.5 rai and 36 bungalows in Rassada, just outside Phuket Town and valued at THB181 million;
- Land covering 2.5 rai in Talad Yai, Phuket Town, with 14 buildings, estimated at THB61.9 million;
- A classic Thai-design seaview house in Cherng Talay, estimated value THB46 million.
“These seven lots should be attractive to many investors,” Samnao said. “I expect them all to be sold within the year.”
This story was first published by The Phuket News and is reproduced as part of an editorial partnership between The Phuket News and PropertyGuru Group.
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