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#1
15-05-2005, 15:38
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Phuket Real Estate- Info and Values Post-Tsunami
Greetings to all,
I am a new member and this is my first post. I have been reviewing various international locations in reference to buying a residence for part-time residence with appreciation potential. I have many questions on the subject and I'd like to begin by asking opinions as to the wisdom of buying property in Phuket. After reviewing many previous posts I couldn't find any recent posts discussing housing prices or related information. There are many Phuket real estate websites, however, almost everyone I've found has not been updated to address the post-Tsunami effects on the real estate market. Realtors are also worthless for any unbiased information. Given the devastating effects on the local economy combined with the prospect of severly depressed tourism for an indefinite period it would seem such conditions may present a good buying opportunity? What are newer construction three bedroom homes with a private pool/ backyard selling for, both near or on the sea, or in the interior? Have these prices declined to any degree following the Tsumani? How close to asking price have homes been selling for recently? What are considered some of the better parts of the island to live? Is it preferable to live close to the Patong bar district or a "safe distance" away. Will look forward to your input 
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#2
15-05-2005, 16:42
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Given the devastating effects on the local economy combined with the prospect of severly depressed tourism for an indefinite period it would seem such conditions may present a good buying opportunity? What are newer construction three bedroom homes with a private pool/ backyard selling for, both near or on the sea, or in the interior? Have these prices declined to any degree following the Tsumani? How close to asking price have homes been selling for recently?
IMHO Property prices are stable & rising - Phuket is on the mend & no the tsunami has not created " a good buying oportunity " the websites have not changed much because we are now in the low season. Sounds like you are buying for all the wrong reasons...
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#3
15-05-2005, 17:12
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Also in an article in Gazette recently stated that the prices were not dropping because of the tsunami, most real estate companies said it was like before and no sign of lower prices and business almost as usual.
But to buy business, guesthouses and hotels may be cheaper now, I guess many people struggle and want to sell their business. I think this will be even more noticeable later this year.
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#4
16-05-2005, 15:25
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Expat -What is the wrong reason for buying? If he wants to have a part-time residence in Phuket with apprecation potential(as he stated), then that seems like the right reason to buy. Isn't that why most people buy? Phukethomebuyer - As far as the tsunami affecting prices on Phuket, it seems to me that few, if any at all, maybe none, of the private residences were damaged by the tsunami. The economy may be hurting a bit, but that has little effect on the real estate market. All the people I know who own bars, restaurants, or other businesses are renters. I suspect that the market for real estate is comprised largely of people with money to spend who want a vacation home just like you, Phukethomebuyer. Those people are not affected by the economy in Phuket any more than you are! You are a typical buyer! Such buyers, once they become owners, do not typically get scared easily and sell at a discount. Like you, they bought for appreciation potential as well as enjoyment, and are probably fairly sophisticated about real estate investing! But, in fact, it may just be that if prices are stable and not rising, then the tsunami has had some effect, because, otherwise, they might be rising. Following that line of thought, right now may be a very good buying opportunity, a time to buy before prices take off in the upward direction again!  JayBee 
__________________
LOS is warm, soft, smooth, and brown. 
Last edited by JayBee : 16-05-2005 at 15:31.
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#5
16-05-2005, 15:53
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Quote:
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Call me over sensitive but I think Phuket needs people who actually want to buy because they love the place. I find it mildly distaseful that while some people are still doing all they can to gather donations to help Phuket (I'm up to 8000 euro so far to help orphans go to school ) others are wondering if the tsunami has created a good buying opportunity... OK I guess I am a little naive. BTW I bought a house in February & paid the price advertised pre-tsunami. Last edited by Expat : 16-05-2005 at 15:58. Reason: missed the [QUOTE=JayBee]
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#6
16-05-2005, 16:57
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Have to agree with Expat on this it's a bit like coming in after 911 and asking if the property prices had dropped in NYC and can I get a better deal.
__________________
Always play to win!
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#7
16-05-2005, 18:53
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Insensitive
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Definitely insensitive bearing in mind this is the user's first post. The reason for coming on to the forum is quite obvious from the username. However any investments in to Phuket should be a help to the locally economy I would have thought, regardless of the intentions of the investor.
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#8
16-05-2005, 19:33
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I think it would be a bit naive to assume that someone who wanted to buy a property and outlay a substantial amount of money would be doing it just to help the local economy
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#9
16-05-2005, 22:06
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I can't believe I got a red square for this post @14:29 & someone called me idiot
 . Unless they signed it "idiot"...I don't undersatand this reputation game. Last edited by Expat : 16-05-2005 at 22:17.
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#10
16-05-2005, 22:13
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#11
17-05-2005, 01:46
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Just to clarify
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As someone who owns a couple of investment properties in London, I understand very well the intentions of property investors. However openly trying to take advantage of people's tragic misfortune is insensitive.  I did not say that the person involved was doing it soley for the benefit of the Thai economy (I'm not naive). The point I was making is that ANY inward investment would be a help to the economy. Gez
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#12
17-05-2005, 05:16
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Property values
For a few years now I've been thinking of buying some Phuket property of some sort. My idea is not to buy for appreciation, but for enjoyment. After all, I may be spending a lot of time there. Still, I can't say that I'm not interested in the trend of Phuket real estate prices. If prices are dropping, I might wait a bit longer to buy than I otherwise would. On the other hand, if prices are stable, then I wouldn't have any reason to delay.
Rex
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#13
17-05-2005, 07:40
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hey this is the way the world works. if you have an interest in buying in a certain place and if something negative happens to affect the cost, be it a foreclosure, security issues, a tsunami, i belive you act on it. again, this is the way the world works, its a tough world
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#14
17-05-2005, 09:48
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(2) Phuket Real Estate- Info and Values Post-Tsunami
The intent of my post was to gather unbiased information, perspectives, opinions and figures about the current state of the Phuket Real Estate market. Unfortunately, but not unpredictably, this straight-forward topic immediately warped into a referendum on the morality of purchasing real estate in a distressed market. Such a thread invariably leads to heightened emotions, flaming, and pointless arguing. And for what? At the end of the day, what's the purpose? It's always better to make a friend than an enemy.
Just for clarification, I'm very interested in living in Phuket and I'm not looking to make a quick killing on turning a house. In fact, just the opposite: I'm very enthusiastic about finding my dream home on a beach somehwere. I've been scouring the Internet for a possible paradise home somewhere on the globe. Phuket offers some advantages that would suit my individual situation so I've becom quite intrigued. I'm not rich by any means so I'll be stretching every penny to make it happen. So thought, "maybe, just maybe" this would be one of those once in a lifetime opportunities to make my dream a reality. If I was able to time the market to get in for a distressed price I might be able to afford it. Also, after puchasing, knowing that I'd be able to recoup my investment if I had to sell would allow me to sleep better at night. So PLEASE allow me to steer this thread back on-topic. Before I continue let me make it clear that I am putting the following hypothesis forward for discussion, it's not my intent to ruffle anyone's feathers. A few list members in this thread as well as other threads in the forum have discussed the lack of tourism and the corresponding economic hardship this has caused the local economy. So for the sake of discussion how can there be a disconnect between a battered economy and the real estate market? The effects would be both direct and indirect. A lack of tourists will immediately result in a glut of hotel and rental flat vacancies. A severely depressed economy with local businesses closing and the resulting departure of the local workforce will only exascerbate the vacancy situation. Subsequently, the law of supply and demand will dictate that hotel / flat prices will decline in an effort to compete for the shrunken pool of customers. How could this not impact the housing market? For at some point the disparity between the cost of renting versus the cost of owning will erode home values. I'm also very interested in the perspectives of homeowners on life in Phuket. Also, is the language barrier a difficult problem or can an English speaking person get by OK? Is it necessary to have a car? If so, what would an average used small car cost? I'm highly athletic so finding a good place to workout is important. Are there many gyms available? Is there continual stifling heat and humidity or are there possible times during the day when you can go running outside? Thanks in advance, I'll be looking forward to learning more from your experiences.
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#15
17-05-2005, 09:55
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Quote:
Expat, I didn't mean to be critical, but merely to present an alternative way of looking at the same facts. I think it is a matter of semantics, and, perhaps, the way P-homebuyer stated his case might sound very insensitive to some. It is a good thing that prices are stable. In fact, a smart buyer might view that as a good buying opportunity, and for all we know, maybe prices would be jumping upward right now if it weren't for the tsunami. But even if the tsunami had caused prices to drop like a stone(Thank God it didn't!), then it is the people, no matter who they are or what their motives are, who step in and buy because they see a buying opportunity, who stop the drop. Having another buyer in a market has never had a negative effect on prices anywhere, no matter whether they are a nice guy or an insensitive bastard. There are times when even having greedy bad guys in a market is good for the market. (That comment is not directed at you, P-homebuyer!) In a stable market, you need buyers to keep it stable. In a declining market, you need buyers to stop the fall. So, I say to P-Homebuyer, go for it. It is a buying opportunity. If you want to help maintain a healthy market, then you should never discourage a buyer from buying! JayBee
__________________
LOS is warm, soft, smooth, and brown.
Last edited by JayBee : 17-05-2005 at 09:59.
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#16
17-05-2005, 11:54
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And just to add, you cant. Under some recent Thai law, you cannot sell a house within, I think it is 3 years, of purchase. So all those that posted negatively about making a quick buck out of real estate, they should be aware of the local laws first.
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#17
17-05-2005, 19:51
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Steve, you have anything about that law ?? I know lots of turnover property (land and homes) that have been moved in the last few months even, that this has not effected ??
I know nothing about this AFAIK as long as you pay your property / sales taxes you can buy one week and sell the next (thai paperwork time not included)
__________________
Men have only 2 emotional states, hungry and horny.. So ladies, if you see me without an erection, make me a sandwich.
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#18
17-05-2005, 20:02
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A property investor Iam not,but if I was looking to buy my dream house i would know heaps about the place before I look at buying there.........IMHO it can`t be a dream house if you`ve never been there before and don`t know the weather or if there`s a gym in town........I dream about los because I know los,how can it be a dream destination if you don`t know anything about it......................er I`m not that cynical all the time but it just popped in my head.............
btw I do agree that it`s a tough world out there and astute business decisions are bound to often conflict with high morals and ethics......
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#19
17-05-2005, 20:04
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English speaking person can get by ok on Phuket especially in the tourist areas of west coast.. Of course as you go north it gets more important but in general Phuklet is pretty easy.. this is not like moving up to Nong Khai or somewhere in the sticks.. Do you need a car.. That too personal.. and also depends on where you live.. I know many people without one but I keep one just to run to the supermarkets and around the island.. Also if you live in Ao Po or somewhere a little more in the boonies you would have more of a need.. Cars here second hand are very expensive compared to Europe or us.. Finding a relaible car for a couple of grand is not likely.. even a old banger of a car generally gets about 100k.. Lots of reasons but mainly not enough cars to satisfy the low end of the market and Thais intense desire not to lose money on anything.. I knew a Thai guy who bought a car for 100k kept it for 2 - 2.5 years and then went to sell it for 100k.. The idea of depreciation did not seem to occur to him.. A small runabout car in clean condition can be found in the 200 - 300 category for relaible and usable of not cool.. a quality pickup starts at around 300 and up and 4x4's at about 400 - 450 and up.. New prices are apealing when you see cars only a little cheaper than new 2 years old and with km's on them.. Gyms are around in Patong and I assume Phuket town and other west coast areas.. Yes its hot but running will help you al***atise and adjust to the heat (I guess.. been many years now and I am still waiting)..
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#20
17-05-2005, 20:11
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re the property market...
Very little property changed hands cheaply after the tsunami.. There were lots of ambulance chasers and I myself assumed there would be a price adjustment (as puket is REALLY expensive compared to all the rest of Thailand) but it basically didnt happen.. The market just stagnated.. People were looking for bargains but sellers simply kept thier old price guidelines (for the vast majority anyway) even bare land plots didnt seem to cool off from thier burning acceleration of the last couple of years.. Now theres a lot of activity again (I am trying to find 2 land plots in Patong for buyers currently) and values seem the same.. I suspevct this year will be one of sideways trading while we see what befalls our little island this time.. I would also say personally if your looking with an investors head on that Phuket is now too expensive to see as much upside as other areas.. Hua hin / Samui are both interesting and lots cheaper than here.. Both areas are attracting increasing tourism and are likely to appreciate faster than Phuket IMHO.. Of course Land and then self build is a hassle but yields the best returns...
__________________
Men have only 2 emotional states, hungry and horny.. So ladies, if you see me without an erection, make me a sandwich.
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#21
17-05-2005, 22:05
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I'm in the north of the island and the tsunami merely postponed some people coming here to buy, but they are still buying.
If you are looking for a good return on investment on real estate I would not recomend Phuket there are so many other places where you will get the appreciation. However if you want to live here I suggest giving up looking online and get here on the island rent a house for a month or two and get an idea of what's going on. You won't know anything surfing real estate on the internet. There are no Tsunami deals unless you want to buy Junceloyon
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#22
18-05-2005, 06:16
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ok steering back to the original topic,
as i understand it Thai law will be changing next year regarding the special deal Americans have with the Thai goverment,hence Americans will be in the same boat as any other foreigner looking to purchase property in Thailand,and they will have to go through all the same channels as the rest of us only they will be no better of.so if your going to do it better get a move on . can someone shed some more light on to this?
__________________
Coffee for one sir ? The joys of sponsorship 
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#23
18-05-2005, 09:22
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