Thailand property developer Seacon Development is predicting that property sales in Phuket will increase by 25 per cent in 2011.
Although numbers are not expected to reach the highs of 2006 and 2007 when sales climbed to a peak of B12 billion, the developers of Seacon Square on Srinakarin Road in Bangkok note that foreign investment in Phuket property has continued to rise, year on year, since 2008.
In 2010, foreign investment in Phuket property totalled four billion baht (US$131 million). This represented an increase of 25 percent since 2008.
“The [property] market [in Phuket] has still not fully recovered from its peak before the 2008 financial crisis, said executive director of Seacon Development, Piya Sosothikul. “The major reason for continued weak sales is the economic situation in Europe, particularly Britain, where large numbers of customers came from in the past.”
A report by Seacon says that there are currently 147 property projects still under development in Phuket.
Ninety-six of these consist of villas ranging in price from B5 million to B60 million. A further 28 are condominium projects under construction.
There are also 23 projects classified as high-end luxury property (B60 million-plus). Most of these are on the west coast of Phuket in areas such as Surin Beach, Kamala, Laem Singh and Naithon Beach.