 Phuket even during a global recession is not experiencing a fall in property prices even though the amount of real estate projects is slowing. The Thai resort town last year had its experience with the airport closures and public disorder however property values and prices are still holding. The 5 year property prices increases in Phuket has now slowed and with fewer property launchers and a number of large projects on hold, Phuket now presents the opportunity to negotiate a sweeter selling price and the potential for a better investment. Phuket property however is not suffering the massive hangover from which Spain is suffering as Phuket does not rely on foreign investment as much. 'In many ways the Phuket property market is a foreign driven market located on a Thai island. The bulk of visitors, hotel guests and property buyers are all foreigners,' said David Simister, Chairman of CB Richard Ellis (Thailand). 'While the slowdown, exacerbated by the forced closures of the airports became apparent in December when the numbers of bookings, tourists and traditional buyers of Phuket property all declined sharply, we do not expect the Phuket market to follow Spain or Florida into a headlong crash, as there are fundamental strengths to Phuket which differentiate it from other global resort markets,' he explained.There is still a limited supply of new projects on the island as most of the units have already been sold. As an example of the 3,000 plus villas which have been completed more than 89% have already been sold. In view of condominiums on Phuket Island, 2000 units had been completed with more than 92% having been sold already. Looking at 2009 it is estimated that only 1700 condominium units will come on the market. While Phuket is not immune to the global property downturn, the luxury end of the property market has continued to do well, according to real estate experts.
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