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How prices have risen across Phuket, according to AREA

Up and Up Go Phuket Property Prices

Monday, December 29, 2014
PHUKET: Property prices on Phuket are likely to slow next year after booming by up to 450 percent in the 10 years since the tsunami, says a newly released report.

Property consultants the Agency for Real Estate Affairs say that the average price per rai on Phuket rose 384 percent in that remarkable decade.

Patong on the holiday island's popular west coast was the leader with the price per rai zooming up from 40 million baht a rai in 2004 to 180 million baht a rai in 2014.

According to AREA's Dr Sopon Pornchokchai, the boom is likely to level off in 2015.

''Those kinds of rises are unsustainable,'' he said. ''The political front and the lacklustre Euro are likely to see a levelling.

''But if Phuket gains self-government and improved infrastructure, we could see another growth spurt at any time.''

Unsurprisingly, Phuket's west coast, with its beaches and resorts, is more pricey than the up-and-coming east coast with its better seascapes.

As for the tsunami, Dr Sopon believes it had no real effect on property prices because buyers are confident it was a once-in-100-years event.

Comments

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Property prices in Thailand are indeed unsustainable. Brought about by the influx of tourists and parasitic property developers and estate agents, driving up the prices even further for a quick profit. Similar patterns have also emerged from the UK (as an example), where foreign investors are allowed to buy a property in the same manner. Needless-to-say, many dwellings lay uninhabited, sold at a profit and the investor is never to be seen. One wonders if the government will ever step in to end this madness?

Thailand seems to be doing the same, and this increase has a dramatic effect on the locals, who unfortunately cannot afford to buy property in their own country.

Of course what comes up, must eventually come down. It's not a matter of if, but when.

Posted by reader on December 30, 2014 05:47

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chutima in my many years in thailand this is the quietest I have seen patong. running along the roads their are just too many rooms being built. eventually it will hit the wall

Posted by bondi on January 4, 2015 09:28

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The increase in the property prices is mainly on the back of foreign buyers.

This merely goes to show how many gullible people are around because paying a premium for something you can't legally own is complete madness.

I have a friend in the real estate business and according to that person no sales have been made for nearly 16 months ... it's the rental market keeping them afloat.

Could the prices rise further ... yes but that would require a change in the law to allow for property ownership of land and it's unlikely in a nationalistic and protectionist society such would be allowed to happen.

The Russian market has certainly died off and the only thing that remains in numbers is the Chinese and it's unlikely they'll buy.

Posted by Graham on January 6, 2015 19:38

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actually you are wrong the Chinese are buying..

Posted by Anonymous on January 6, 2015 21:52

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No questions, just big big wonder " AREA's" where would the be?

Thanks..

Posted by Joy on January 9, 2015 14:43

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I guess Asean citizens will still not be able to buy. The point I would have though that only Thais can buy land is to keep the prices affordable. Another furl up and also the money does not stay in Thailand, a double furl up

Posted by Fiesty Farang on January 13, 2015 17:08

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many years ago a block about 100 mtrs from the beach was valued at 500,000.00 just got knocked back for 12 million, whew

Posted by bondi on January 16, 2015 12:07

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Everything here is mirroring exactly what I witnessed in Southern Spain in the late 80's and early 90's. A huge oversupply building up. New condos and houses plus the resales from those already sold will lead to a massive slump in prices. In 28 years here I have never seen it so quiet in high season and business owners tell me they are really feeling the pinch. Watch out for plenty of unexplained fires in the off season.

Posted by Honesto on January 18, 2015 23:17

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try selling a house you have owned for several years, no one is interested because they can buy new and have kitchens & bathrooms to their own specification. There is little value in owning something you cannot sell.

Posted by shwe on January 19, 2015 12:56

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@Shwe

Depends on the house really - for example a friend of mine is looking to buy a house - he would much prefer to buy one that's a few years old that needs a new kitchen and bathroom, but is bigger and properly built, rather than one of those new tacky boxes that sit crammed in together like sardines.

But he can't find anything ! Loads of the new little boxes but nothing nice out there (so he says)

Posted by Amazing Thailand on January 19, 2015 14:43


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