The unbelievable pace of condo development in Kamala Beach is unfathomable. Why is this happening in the Phuket real estate bubble? Why are there thousands of new condos under construction in a market that is virtually dead? Everywhere you look in Kamala you see the construction. Have all these developers lost their minds? Who do they think is going buy these condos in a market where NO ONE IS BUYING CONDOS!
10 Reasons I’ll Never Buy A Condo In Phuket
The environmental impact of these projects is staggering. Phuket doesn’t have the infrastructure to support the development. There is no where to put the mountains of trash now. We run out of water every April and sewage treatment is overwhelmed before these developments are even finished! In a Western country there would have long ago been a building moratorium until these environmental issues were addressed.
All these photos represent a different development in Kamala. Another development in which the condos will certainly be empty, overpriced and unsellable, yet the building continues.
How did we get to this point? By having no oversight on development in Phuket. The lack of government oversight has allowed developers to do anything they want. Who suffers from this lack of oversight? Everyone…for generations to come. Where are the sidewalks? Where are the parks? There is NO community planning…just building.
Why is this disaster taking place? I have only one answer…greed. Greedy developers believing they’re going to make huge profits. Since we know that’s not going to happen, why does this continue? I don’t have an answer. Maybe it’s just the momentum of starting the project that keeps it going. Poor business decisions trump common sense? No one is going to buy these condos. If these developers are looking for people to walk in and plunk down the money for a condo in their unfinished development, they’re screwed. They all have fancy sales offices where they’ll tell you all about their luxurious, incredible opportunities for investment. It’s all bullshit.
The ugly reality is every one of these developments is in trouble. One of the developments in Kamala that’s not even half finished (with a crane still on top of it) has stopped construction because of lack of sales. I went in to the sales office and they offered me a substantial discount off of a unit. When I pointed out that construction had stopped, they said no, they still build on Saturdays. Doesn’t give a buyer a lot of confidence to actually buy. Anyone want to buy a condo in an unfinished development…good luck. The jury is still out on if any of these projects will ever be completed.
What about the guaranteed 7% yearly returns all of these places offer? Doesn’t that make for an attractive investment? Hardly. There are laws against short term rentals of condos. It’s illegal to rent your condo for less than a month. How can the condo development offer a return on an empty condo? If the condo ever gets built there is no way they can return the money. The developer’s management team will undoubtedly have moved on by the time you’re looking for your guaranteed return on investment. Try to get your return through Thai courts? Good luck with that.
Kamala Beach continues to be destroyed by developers. I don’t get it.