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Phuket has always been known for its sandy beaches and vibrant nightlife, however the popular destination also carries great investment value.  The large influx of Mainland Chinese tourists have driven up the economy of the city, and investors globally have recognised Phuket properties as a strong investment with high returns.

Golden Emperor, in partnership with Thailand’s leading and listed property developer Sansiri, hosted a seminar on discovering Phuket for investment on 11 & 12 July. At the event we also showcased the dcondo Mine project by Sansiri and about 120 clients attended this event.

Above: Over 120 clients attended the weekend seminar

Above: Golden Emperor provided a presentation on Phuket property investments

Golden Emperor and Sansiri, Thailand’s leading property developer, hosted a Bangkok Property Trip to introduce a selection of prime Bangkok residential projects to investors.  About 30 investors from Hong Kong attended the Bangkok property trip and visited 6 projects in various parts of the bustling metropolis.

Above: Our guests visited 6 projects in Bangkok, include NYE (pictured above)

Above: Guests visited the actual units of Sansiri projects

Above: We provided a presentation at the end of the tour about the Bangkok property market

Above:Tourists were getting the best deal in years as the baht value sank on crisis-level dumping of stocks in China and the ever-growing possibility of Grexit. (Bangkok Post file photo) 

The risk aversion prompted by mounting worries over China’s plunging stock market and Greece’s potential exit from the euro zone have sunk the Thai baht to its lowest level in six years and roiled local shares.

According to Kobsit Silpachai, head of capital market research at Kasikornbank (KBank), China’s tailspin has had a greater impact on Thai financial and capital markets than the Greek debt default has, given that Thailand’s economy has greater exposure to the world’s second-biggest economy, particularly in exports and tourism, than to Greece.

China is the No.2 destination for Thai shipments after the US, representing 11% of total exports during the five months through May. China is also Thailand’s biggest tourism market: the number of Chinese tourists who visited Thailand in the first half more than doubled to 4 million, generating 191 billion baht in income.

The stock market rout adds another threat to China’s cooling economy. Hundreds of companies halted trading after emergency measures announced last weekend failed to stop a collapse that has dragged down the benchmark Shanghai composite by more than 30% in the past three weeks.

The baht, which retreated for a third straight session Wednesday, slipped through the 34 level in the early morning and weakened to the day’s trough of 34.06 – the steepest point since September 2009 – – before climbing back to just shy of 34 in late trade.

The local currency has lost 4.3% in the past three months in Asia’s second-worst performance, according to Bloomberg.

Above:Kobsit: We need to monitor China

Mr Kobsit said concerns about China’s bourse would continue to depress the baht this week and possibly push the baht down to 34.20-34.30 in the coming weeks. “We need to monitor China’s new measures aimed at averting equity market chaos, which is an unexpected factor,” he said.
KBank recently revised its baht forecast to 34.50 to the US dollar at the end of 2015, citing domestic and international uncertainty. The revision was the bank’s fourth this year.

Safe-haven currencies such as the US dollar and the Japanese yen have strengthened as investors flock to them amid growing market volatility. Aside from China’s stock woes and Greece’s plan to unveil a new debt proposal, investors are on the lookout for clues from the US Federal Open Market Committee’s minutes from its June 16-17 meeting, said a local dealer at Bangkok Bank.

The baht could weaken to 34.10 against the dollar this week if China’s stock market fails to rebound, the dealer said. Prinn Panitchpakdi, country head for Thailand at CLSA Securities, said the baht depreciation could be attributed to domestic and external factors, with investors locked in a risk-averse mode.

Above:KBank recently revised its baht forecast to 34.50 to the US dollar at the end of 2015

Prinn Panitchpakdi, country head for Thailand at CLSA Securities, said the baht depreciation could be attributed to domestic and external factors, with investors locked in a risk-averse mode. Investors have been selling risky assets in Thailand and throughout Asean as concerns mount, he said.
Speculation abounds over whether another policy rate cut by the Bank of Thailand’s Monetary Policy Committee is in the offing, Mr Prinn said, adding that the recent naming of Veerathai Santiprabhob as the central bank’s new governor would affect baht movements because Mr Veerathai’s policy stance is seen as pro-growth – implying an inclination towards low interest rates.

In trading Wednesday, the SET index fell by 0.91% to 1,470.25 in moderate trade worth 37.62 billion baht. Foreign investors cashed out to the tune of 2.32 billion baht.

“It is difficult to see the SET index turning to an uptrend in the short term as long as Greece cannot reach a conclusion with its euro-zone counterparts on a debt deal,” said Kavee Chukitkasem, assistant managing director at Kasikorn Securities. “However, the downside risk is quite limited after the recent tumble.” He said it was not completely unexpected to see the Chinese stock market slump 30% after doubling to 4,000 points in a few months.

Source:Bangkok Post

The southern property market has bottomed out after falling rubber prices threw the region’s economy into the doldrums in recent years, says the Bank of Thailand.

Wajeetip Pongpech, the central bank’s director of risk management policy, said the property market, particularly in major southern provinces, was recovering thanks to tourism.

Above:  The major southern provinces was recovering thanks to tourism.

“There’s still a silver lining despite the sluggish period, as the tourism sector in key southern provinces grew by 25.7% during the first five months of this year,” she said.

In Phuket, Songkhla and Surat Thani, the tourism industry rose 7.2%, 61.5% and 24.7%, respectively. Chinese were the major tourist arrivals in Phuket, replacing the Russians and Malaysians that drove Songkhla’s economy.

Above：In Surat Thani, the tourism industry rose 24.7%.

“Government spending is also a major factor that will help to drive the southern economy in the second half if rubber and fisheries remain weak,” Ms Wajeetip said.

She said only the strong developers remain in the market, which is growing in emerging destinations such as Phangnga, Krabi and Trang as indicated by the increasing number of construction areas that won construction permits.

The Real Estate Information Center (REIC) said Phuket residential supply last year was 73% sold, with single houses and townhouses 75% sold and condos 72%. However, the absorption rate of condos shrank to 4.9% a month from 9.4% last year.

The REIC reported 5,455 condo units remaining for sale from 19,710 total units at the end of last year, the largest of any destination. Mr Thanusak said a new trend in the Phuket condo market was some projects now offered a guaranteed return to buyers for five to seven years from developers that rent out units to tourists.

Despite a tourism recovery in the province, average spending per head remains lower than in past years when Europeans dominated tourist arrivals, he said.

Source: Bangkok Post

The significant increase of tourists to the island, some of whom become expats, has driven real estate prices up, according to statistics unveiled at a real estate conference led by financial and property experts at the Royal Phuket City Hotel.

Above: From left, Varin Sachdev, Wannaprapha Suksomboon, Anukoon Ratpithaksanti, and Srinarin Paopongpaiboon.

Dozens of Phuket investors attended the discussion, dubbed the “Economy and Investment Trends for the Tourism Industry”, a collaboration between Siam Commercial Bank, the Tourism Authority of Thailand (TAT) and Plus Property Co.

A 27-per-cent increase in flights to Phuket during the high season, coupled with the 7-per-cent growth in the local real estate market over the past three years have helped Phuket families enjoy a 3 per cent increase in annual income.

The influx of tourists who become expats, along with the inclusion of residents from other parts of Thailand, have contributed to an annual 3-per-cent increase in the population of Phuket, according to the TAT.

Above: The significant increase of tourists to the island, some of whom become expats, has driven real estate prices up.

“There is a trend among tourists who come to Phuket after searching through Google and Agoda. Instead of staying in hotels, they rent an apartment or house. Most of them want to live in local Thai style,” said Wannaprapha Suksomboon, Phuket’s Deputy TAT Director.

Ms Wannaprapha noted that condominiums are the most popular in Kathu District, while villas rent well in Thalang District.

Property investment, especially in Phuket, has generally given higher returns than gold or government bonds, according to Srinarin Paopongpaiboon, a Senior Analyst at Siam Commercial Bank’s Economics and Business Research Centre.

Above: Instead of staying in hotels, tourist rent an apartment or house.

“If you buy a condominium with the aim of selling it, you will get 10 per cent profit after a year or, if you rent out your condo, you will get an income of 6-8 per cent a year,” she said.

Ms Srinarin also noted three important factors to be borne in mind when buying property: “Study carefully which development offers the best payment terms; Check the location – does it offer good potential for return on investment? And check the quality of the product itself.”

Land prices have increased dramatically as well. In the case of Kathu, land is now selling at B50,000 to B60,000 a square wa, a big change from B27,000 a square wa just a few years ago, according to figures by Plus Property Co.

“If you have the finances, you should grab the opportunity now to grow your money. Of course, every investment has risk attached and you should always set aside some money for emergencies,” said Ms Srinarin.

Above:  More and more tourist come to Phuket.

“But now is the time to invest in property, because some tourists are renting condominiums or houses instead of staying in hotels.”

One of the audience asked Ms Wannaprapha how he could convince his partners abroad to invest in Thailand in light of the problems of tuk tuk mobs, bad water, uncollected garbage, poor electricity supply, “Mafia” activities and poor infrastructure in Phuket.

She explained that Phuket suffers from a shortage of budget from the central government because only 362,000 of Phuket’s estimated population of one million are registered as living in the province, and it is that number – 362,000 – on which government budgets are based.

“We get limited budgets. That is why we do not have enough money to take care of these problems. We also have a lot of government rules to follow.

“I wish the island could be independent and we could work in our own way without having to depend on the central government for funding.”

She added, “In Thailand we usually get things done through personal relationships, unlike in many First World countries. We definitely need a path to reform.”

Source: The Phuket News