Thailand is quickly developing a reputation as one of the chief vacationing spots out there, and you’ll find that the city of Phuket is the gleaming gem in the crown. In terms of being a central place where you can find easy access to just about everything you need. One of the things that you will notice when you start staying in hotels a lot is that the hotel industry on a global level is becoming more standardized. A hotel in New York will often have a great deal in common to a hotel in Asia these days, and while that might be fine for people who are only interested in business or in staying in familiar surroundings, it is quite annoying for someone who is really looking to experience a different culture and lifestyle. If you are interested in really getting the most out of your visit, you’ll find that renting or even buying a Phuket residence is the way to go!

If you have to ask why you want to rent or buy a villa in Phuket specifically, then it is fairly clear that you have never been to the city itself. You’ll find that you can find diving, golfing, rainforest hikes, cruises and an extremely exciting nightlife, all in one, easy to access location. You’ll find that there is a very good reason that this city is known for its hospitality and for its excellent properties, and many people who come here once will come again and again; some of them even decide that they want to retire here or move there permanently.

There has been a strong urge from the people in the property sector to the country’s newly-elected democratic government to be more generous towards foreign property investors. Thailand going back to democracy after a 15 month military rule has already had a positive impact on the property market. There have been a notable number of deals completing during the high season in Phuket as well as more visitors to the sole agency projects. The newly elected government has begun to take initiatives toward a more open and favorable policy for foreign property investors. The new government has already taken away the 30% capital control which is thought to support bringing back foreign investments.

Since the December election, foreign investors have shown increased interest. Established developments have witnessed a particularly alive high season. Newly awarded projects have also met with a positive response. A similar trend is witnessed in Samui with a clear rise in visiting and purchases of resort properties. It is anticipated that there will be further demand in Samui with surge in flight schedules. The Samui market for luxury villas is closing on Phuket, with the establishment of international hotel brands wooing quality tourism. Samui has traditionally been a less favored beach destination, but this not at all the case now as it is emerging rapidly as a beach destination. Lot of high net worth investors is now increasingly keen. The Treasury Department’s recent land value appraisal displayed that land values in Phuket have rose by an average 160 per cent over the past four years, with Samui prices following closely. The steady rise in land prices on Thailand’s coast points to the confidence in the market and its long term prospects. There is no doubt that Thailand’s property market is continuously flourishing. Foreign investors will have a good time investing in Thailand from now onwards. If you are ready to forget the unfriendly past of Thailand and show renewed faith you are set to benefit.

Following the Thai government’s proposals to amend the Foreign Business Act which restricts the rights of foreigners to own or operate certain businesses in Thailand, CB Richard Ellis Thailand has been carefully monitoring the Thai residential, resort and office markets to judge the market’s actual response from news of the proposals to amend the law on foreign businesses and other recent events.

CB Richard Ellis has also looked carefully at the real effect of the current proposals in conjunction with major law firms and has considered the psychological effect and the perception of foreign businesses in Thailand and foreign purchasers of Thai property. The danger of these proposals is that they may be seen as a rejection of foreign investments with large potential losses for both the real estate and construction sectors of the economy and what might been seen as poor public relations or presentation of Thailand internationally.

According to the CB Richard Ellis Thailand Managing Director, Ms. Aliwassa Pathnadabutr, “Our first advice to all clients is that these proposals are not yet law. Secondly, detailed reading of the proposals shows them not to be as harsh as the headlines have presented them. Most businesses that will be redefined as foreign will be, by virtue of list three, largely unaffected and allowed to continue with time to amend their structure if necessary. Therefore, most office tenants should not be affected although demand from incoming tenants may well be reduced.”

There is strong overseas demand for luxury real estate, both condominiums in Bangkok and resort properties in the price range of US$ 350,000 and above. There is also strong demand in the mid range market with prices of US$ 100,000 and above for holiday and retirement homes in destinations like Pattaya, Hua Hin and Phuket. It would be a major loss for the Thai economy to lose this substantial and long term sustainable market to other tropical countries as noted by Ms. Aliwassa.

In conjunction with the government proposal to restrict nominee-structured companies from owning landed property, CB Richard Ellis would like to see positive steps to support the real estate industry such as 90 year leases for villas and an increase in the ratio of foreign buyers in condominiums from 49. Properties such as Laguna Phuket have never had significant local demand but are targeted specifically at foreign buyers, such developments are major contributors to foreign revenue inflow, the construction industry and local economies. Foreigners buying such properties contribute income not just on purchase, but continuously over the life of the properties through the purchase of local services.

For any current owner of a house or villa with a nominee structure, CB Richard Ellis advises owners to monitor the proposals and seek expert legal advice on how to amend the company’s structure and comply with any changes. The proposals allow a period of one year to amend or change a company’s status. If the Government did move on extending leases to foreigners to 90 years, this would be an obvious route for such villa owners to convert to leasehold.

Existing foreign owners and prospective buyers of Thai real estate should not panic or abandon their interest in purchase. They should focus on foreign condominiums quota and leasehold properties developed by well known and established companies. For example, CB Richard Ellis is proceeding with two overseas sales campaigns with the launch of Condominiums at The Cove in Krabi which will launch sales in late January in Stockholm, Sweden and in February the launch of Leasehold Pool Villas at the Shangri La Resort and Spa, a west coast Phuket beach project.

Despite recent events, there is still sustained foreign interest in Thai real estate. In confirmation of this, CB Richard Ellis Thailand points to sale bookings over Christmas and the first week of the New Year on multi million dollar leasehold villas in Phuket and continued condominium sales in Bangkok and Pattaya.

“We hope current uncertainties are quickly and professionally resolved so foreign investors know how to safely invest in Thai property. CB Richard Ellis very much hopes for and recommends longer 90 year leases and extended condominium ownership quotas. We believe, with confidence maintained, the Thai real estate market will continue to perform well and to rise on the back of sustained demand. Thailand is still a good real estate buy and foreigners’ preferred choice over other tropical countries,” concluded Ms. Aliwassa.