Property Sales in Thailand on the Rise

A rise in tourism and international airline flights has helped to increase the sales of property in Thailand, according to a new report. Real estate firm CB Richard Ellis, the nation’s largest international provider, notes that soaring investment in Thai property is, in large part, attributable the popularity of the country as a tourism destination. 

 

In Phuket, the firm reports a 32 per cent increase in transactions over the last two quarters of 2007, based on the latest statistics from the Land Department. Although the prices for homes and villas doubled from 2000 to 2006, CBRE said: “Phuket remains globally competitive. Prices and interest remain solid.”

One reason for the increase in sales is growing tourism. Tourist arrivals to Phuket exceeded 5 million last year, while for the country as a whole there was a 22.5% increase in visitors. The increase in visitors from abroad came from all over the world, including a number of new sources, such as Russia, the UAE, Switzerland and eastern European countries.

 

“As a result, there is a broader global customer base for high-end villas. Previously, most customers were expatriates from Hong Kong and Singapore. Now we are seeing a rise in demand from NRIs, Russians and Eastern Europeans,” said CBRE.

The increased interest in Thailand has resulted in more flights. From Singapore, budget airline Tiger Airways has flights via Silk Air connections. Air Asia has introduced new flights from Kuala Lumpur, and also daily flights between Macau and Phuket. Dragon Air is also upgrading its Phuket-Hong Kong route with larger aircraft and more international chartered flights in the busy season, which runs from October to March. With new flight links, investors are also looking for opportunities beyond Phuket to areas such as Phang Nga, Krabi and outlying islands in the Andaman Sea, said the realtor