Thursday, March 12, 2009

Slight drop in demand for residential properties

Mr Kitsin (left) and Phuket Vice Governor Worapot Ratthasima at the recent seminar at the Royal Phuket City Hotel.

PHUKET CITY: Demand for residential projects in Phuket has dropped slightly due to the global economic downturn, the Government Housing Bank's Real Estate Information Center (REIC) confirmed recently.

According to an REIC survey, residential projects ready for sale in Phuket now numbered 139, or 12,334 units, said REIC Director-General Samma Kitsin at a recent seminar at the Royal Phuket City Hotel.

Of the total, 88 are detached-house projects with a combined total of 8,561 units. Of these, 5,508 units have been sold.

Additionally, there are 51 condominium projects with a total of 3,773 units. Of these, 2,054 units have been sold.

Foreign buyers are the main customers of residential property in Phuket and many of them have delayed a decision to buy.

Mr Samma said 51% of foreign buyers of residential property on the island are investors who hope to generate rental income or sell when prices rise. 34% invest in the properties as vacation residences, and the rest buy for long-term stays.

Residential property priced between 10 million and 40 million baht per unit are most popular with buyers seeking a vacation place or an investment.

Home-buyers who intend to live in their new Phuket property prefer a price of 3 million to 5 million baht, he said.


Gazette Editor
Phuket, Thailand