PHUKET: The property industry on Phuket was destined for crisis if the growth in the condominium sector continued at present rates, the President of the property Association of Phuket, Thanusak Perkdate, warned today.
He told a meeting at Provincial Hall in Phuket City that the number of condos on Phuket was growing at more than 100 percent a year, much more than was needed.
Most of the units were being bought by Thais for investment, he said. The likelihood was that many of them would be rented out to rival resorts, triggering a different kind of market.
''There will be an effect on resorts at some point,'' he said. The number of condos on Phuket is not subject to controls. Nor is the growth in the number of resorts.
Prices for condos were between one million baht and two million baht, Khun Thanusak said, affordable by Phuket standards.
The market for more expensive villas had picked up by about 20 or 30 percent this year compared to last year, he said, despite the economic woes assailing Europe.
He told a meeting at Provincial Hall in Phuket City that the number of condos on Phuket was growing at more than 100 percent a year, much more than was needed.
Most of the units were being bought by Thais for investment, he said. The likelihood was that many of them would be rented out to rival resorts, triggering a different kind of market.
''There will be an effect on resorts at some point,'' he said. The number of condos on Phuket is not subject to controls. Nor is the growth in the number of resorts.
Prices for condos were between one million baht and two million baht, Khun Thanusak said, affordable by Phuket standards.
The market for more expensive villas had picked up by about 20 or 30 percent this year compared to last year, he said, despite the economic woes assailing Europe.
The next bubble is already created.
The 'investors' are mostly speculating on a quick sale, after construction is done. But that is more and more difficult. So they try, to rent the property out, minimum for the money, the bank gets, every month. So the resorts pushing the bubble, to rise longer, as it usually could rise. Will be a bigger Bang, in the end. Bad luck, for the 'normal' people, that invested their savings in a property, neither they can sale, nor can live in.
Posted by ??? on June 13, 2012 17:48