Why is it Still a Good Idea to Buy Now?
Hector Alberto from Mexico recently asked a perennial question regarding his concern that prices in Phuket were unlikely to go much higher. With record land, villa and apartment property prices being realised in Phuket, why is it still a good idea to buy now?
The simple facts of supply and demand and of the cash based nature of Phuket's property market are the main features making purchasing now and in the foreseeable future a smart move.
Phuket's location, natural beauty and climate, pleasant and relaxed culture and lifestyle, stable political situation especially in relation to other regional players are strong and evergreen lures for buyers regionally and also from the wider world. Whilst prices have risen with demand, they are still attractive when measured against competing destinations. Since demand is actually increasing from Northern Europe and new found buyers emerging from Russia, the expat market in the middle east, as well as those escaping a highly priced Spanish market, Phuket will continue to have a healthy supply of motivated buyers seeking their ideal property. Even though regulars to the island comment on the amount of new build seen all over the island, break it down into product and budget types and you will see that many if not most niches are still underprovided.
One of the surprises that new visitors such as Hector find difficult to fathom is the lack of easily available finance. Though this checks many buyers ambitions, it also makes the market easier to read and enables buyers to get their heads around underlying values based on real demand. It is true that sellers can at times have inflated perceptions of their properties value, but overvaluing quickly comes to light when operating with independent agents. (buyers beware if you deal with exclusive agents promoting only a select product range...) The future story of property prices in Phuket is not it's imminent stabilisation or decline, but it's potential skyrocketing when finance and the more liberal economic climate this will create arrives.
For buyers like Hector, once they understand these simple fundamentals, and providing they are serious and focus on the better offerings, then more times than not they will end up making a smart move and entering the market.