Nobody can dispute there is a Phuket property glut. Because of the disorganized way property is marketed in Thailand, it’s difficult to say just how large the oversupply of condos/apartments/houses is. There is no organization among realtors or listing of properties for sale, so no one knows.
I think there is a HUGE property glut.
There is a Phuket property glut simply because property isn’t selling. No one is buying. This can be traced to the worldwide economic decline. Property sales had been drastically falling off for a few years, with the Russians saving the market until the Ruble collapsed. Who knows how many of those sales are now in default? Throw in the declining Australian dollar and the Phuket property market has come to a standstill.
The Chinese, the majority of tourists now, were never a factor. The Chinese will not buy property to holiday or retire to on Phuket.
Tourism is down an estimated 25% over last year, which wasn’t a good year. Thailand has become more expensive than it was in the past. The baht has remained strong against many other currencies. Realtors occasionally sell something when the price gets ridiculous, but very few are coming to Phuket looking to buy. New projects remain vacant and deteriorating.
I’ve advised people never to buy in Thailand.. Property in Thailand is a terrible investment. With the over development, prices have been falling. A lot of property has been for sale and unoccupied for years…even at fire sale prices.
Thailand represents too much of risk for far too little reward and that is not even taking into account the current state of the property market. The higher cost of living for many, failing critical infrastructure, lack of good governance, terrible traffic, rising crime, drug abuse, no public transport, bureaucracy surrounding visas, corrupt officials and you’re going to buy property here?
Buying property as an investment makes no sense. Renting property out has become much more difficult. In prior years you couldn’t find a place to rent from December to March. That’s all changed. There are plenty of places to rent this high season.
What is the preposterous result of Phuket property glut? The fact that no one is buying has no effect on new construction. More property is in the pipeline right now than ever before with more projects on the drawing board. The Phuket property glut is going to get much worse!
All this construction has turned Phuket into an environmental disaster. The complete lack of planning has come home to roost. The utilities on Phuket are already completely overwhelmed. Water, sewage and trash are all stretched far beyond limits. Yet, new construction projects are all full speed ahead. It’s an ongoing environmental disaster, with momentum.
In any Western country, a building moratorium would have been in place years ago. There is no planning in Thailand. Everything gets approved. Money talks.
What can be done at this point? Nothing, it’s crazy. The Thais aren’t going to stop the building. All I can suggest is, Don’t buy property in Phuket.
I love living in Phuket. Please come and join us, just be sure and rent. Long term rentals are cheap with lots to choose from.
Maybe some time in the future, a banker or CEO of one of these corporations financing the next property disaster will look at the glut of existing unsold property and say, “Hang on a minute…”
I don’t see any sign of that happening now. The Phuket property glut and what it’s doing to the environment just gets worse.