LOCATION, location, location. That's what it's all about. When Andrew and Krista Hunter saw the tailor shop at the t-junction entrance to the Amanpuri Resort in Surin, they knew they had to have it.

And now, having waited, waited, waited for the tailor to go, it's the second office on Phuket for Sotherby's International Realty.

The Hunter's first office, not that far away on the entrance road to Laguna Phuket, opened in 2006 . . . one month before Thailand's coup. Given what's happened since, the Hunters are taking no chances this time around.

The new office has been outfitted on feng shui principles and blessed by monks.

The reason why the Hunters wanted the place is because the t-intersection marks the heartland for Phuket's unltra-rich. They reckon that as many as 40 percent of their property customers choose to stay at the Amanpuri.

The Hunters are self-starters who wanted to move to live on Phuket and approached Sotheby's with the suggestion of becoming their agents. They got it.

The couple remain refreshingly forthright in everything they do.

If Phuketwan every wants to know what's happening in real estate, the Hunters are always ready to provide a candid answer.

''Like most agents on the island, we've had ups and downs,'' says Andrew. ''2009 was a particularly bad year. People were not buying.

''Even superwealthy people stopped spending their money in 2009 everywhere, across the globe. They kept their hands firmly on their wallets.''

2010 was a ''much improved year,'' he says. ''There are signs that 2011 will improve on 2010. That's why we've expanded.''

That will come as welcome news to the Phuket property industry, even if other potential buyers don't quite match the Sotheby's clientelle. Hundreds of agents under the Sotheby's banner network around the globe, passing on helpful contacts if buyers show interest in properties elsewhere.

''I still feel it's going to be a tough year for some segments in property,'' Andrew says. ''However, the post $5 million segment can afford to buy, so we're seeing some positive inquiries again.''

At that high-flying level, the attractions of Phuket are as a holiday home, a place to enjoy life for up to six weeks a year. The weather, golf and marinas and Phuket's increasing number of international places to eat, drink and party are all part of the island's appeal.

The audience remains the same, largely expats from the surrounding cities in the Asian region. The Chinese? No sign of them making any sudden impact, probably because the culture remains work-centred.

''Wealthy Chinese are buying in New York, Hong Kong and London but they don't want a home on a tropical island just yet.'' Besides as Andrew says, Hainan, China's own Phuket, is always going to be closer.

Margins of all kinds are under more scrutiny these days lately, which is why buyers have been negotiating.

''They have not been so ready to accept the list prices,'' Andrew says. ''These days we are getting fewer and fewer individuals who are coming to Phuket for the first time and falling in love with it and just buying a property at any old price.

''Some of the people we are dealing with today are returnees. They have considered buying property here in the past, and they have put it off for a multitude of reasons. Those people usually negotiate very hard.''

While the Hunters both make the point that there are some desirable properties in Phuket's south and off the island in ''Greater Phuket,'' they say the interest of the ultra-rich really begins and ends within 20 minutes' drive from Phuket International Airport.

East, west, north or south, if a property is not inside the ''magic circle,'' it becomes a proposition that is unlikely to appeal to an ultra-wealthy buyer.

There's also a greater reluctance for people to buy off-the-plan these days, with so many Phuket projects, as Andrew puts it, ''in hibernation.''

''I was commenting to a developer the other day that we have very little luxury pipeline properties,'' Andrew said. ''In any case, there is not a great deal in the off-the-plan stage that we would consider.

''Many of the hibernating developments are undercapitalised. Some are trying to exploit this current high season but professional agents find it very difficult to support those kinds of developments. With one or two exceptions, we would be very circumspect.''

So what do the super-rich want, apart from a great home with a great view? ''Privacy and security,'' says Andrew. ''They are very, very sensitive and discerning. They want absolute privacy and absolute security.''

So it is that a place on a magnificent headland may not sell because the rubber plantations around it may one day be converted into condominiums.

What should change to make Phuket more appealing? Krista does not hesitate. ''The rip-offs. Whether it's the price of an egg, or a jet-ski or a tuk-tuk, it's the principle that matters.''

The Hunters tell of a visiting German couple staying at a Surin five-star who had asked about the cost of a local taxi, and been told that it would cost them 1000 baht to go from Surin to Patong.


Phuket's biggest handicap, whether the tourist is rich or poor, is ''layers and layers of cost-plus.''

While corruption may reduce Phuket's appeal if it grows worse in future, the Hunters don't see it as a barrier at present. ''There will always be a demand for good property here,'' they say.