News Forum - Rental demand soars, as Phuket real estate returns to fundamentals

[Thaiger]

 Urban flight has driven Phuket’s once investment-focused property market in an entirely new direction. This seismic shift has resulted in a dramatic return to real estate basics. Focusing on the pandemic era of the past two years, a constant flow of new incoming residents from both abroad and in Bangkok has seen the scales tip, as rental demand has vastly exceeded supply in upscale and luxury properties. In the backdrop of an inward rush for single-family homes, many developers have exhausted inventory and in the wake of new launches, have sold out at a rapid pace. One prime example […]

The story Rental demand soars, as Phuket real estate returns to fundamentals as seen on Thaiger News.

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[Thaidup]

Phuket has one fundamental non variable, It is an island, expansion beyond the size of the land will be extremely expensive. It only makes sense that the price of property will increase faster.

[BIGGLES]

The whole article is fanciful.

Who is buying?

Just take a look at any Phuket property site, there is property of all shades, from high end to s..t hole, and it is still not let.

If you own a property or the island,  put it up for sale and see what interest in draws.

The snake oil salesmen are wishful thinking. People bought for the wrong reasons, they bought by and large as an investment, not as somewhere to call home and live, which to a degree was fine pre-covid, even though decline had started before covid, but now is a different ball game.

Prices are way, way, way too expensive, even rental expectations as advertised, are way too optimistic. Just take a look at any YouTube video, to see what people are renting and the ridiculous low price they are paying. Talk to an agent, and you can't afford a tent.

[Soidog]

8 hours ago, BIGGLES said:

The whole article is fanciful.

Who is buying?

Just take a look at any Phuket property site, there is property of all shades, from high end to s..t hole, and it is still not let.

If you own a property or the island,  put it up for sale and see what interest in draws.

The snake oil salesmen are wishful thinking. People bought for the wrong reasons, they bought by and large as an investment, not as somewhere to call home and live, which to a degree was fine pre-covid, even though decline had started before covid, but now is a different ball game.

Prices are way, way, way too expensive, even rental expectations as advertised, are way too optimistic. Just take a look at any YouTube video, to see what people are renting and the ridiculous low price they are paying. Talk to an agent, and you can't afford a tent.

Yes I totally agree. I’m getting bored of reading these fanciful tales aimed at promoting a bright future. Such nonsense rarely seems to be called out by Thai media. Anything said by “official” or “experts” is allowed to be printed and presented as a nailed on fact. 
 

One thing I will say however, is that the Thais and indeed many Asian countries are good at looking good. This is in stark contrast to the West. The Western media can’t wait to talk about a “Crisis” and “Sharp slow down” of growth. While in theory, the money markets and exchange rates should work on facts, sentiment is also a major factor. When your ministers and bank governors are talking of slow downs and headwinds, countries who speak of bounce back and surges in demand are bound to catch the eye. I think this partially addresses the frustration many members post on here. We see through the nonsense and simply can’t understand how the media get away with it, while at the same time wishing our western media would be more positive. 

[KaptainRob]

On 5/6/2022 at 12:12 AM, BIGGLES said:

The whole article is fanciful.

Who is buying?

The article, or advertorial, expresses a valid opinion regarding demand for quality developments such as those promoted. 

We see the same demand here in Chiang Mai with one company having sold 5 out of 6 new 14m THB townhouses still under construction.  The 6th is the display home with a further 11 homes about to start on other nearby sites.

Whereas their 1st cluster of 5 homes sold out fast to Chinese buyers just before Covid emerged, the current project has sold to Swiss, Brazilian, American, German and Hong Kong arrivals.  These discerning buyers are not off-plan condo or investment types.  They are either relocating/retired or have a business in south east Asia and will make CM their home base.  The same is happening in Phuket.