than real estate. Yes, we are a full service agency able to offer you complete start to finish service to successfully establish you on the island.
REAL PRO SERVICES
REALTOR
- Hotel
- Guest House
- Lease
- Sale
BROKER
- Consultant
- Buy & Sell
- Contracts
- Leases
- Form Company
- Work Permit
- Non B Visa
PHUKET
Phuket
About Phuket
Phuket is Asia’s most popular beach vacation destination and it’s not hard to see why. Luxurious, intricate coastlines, championship golf courses and secluded bays, Phuket has it all. Boasting some of the world’s most spectacular scenery surrounded by the warm gentle waters of the Andaman Sea, Phuket is the largest island within Thailand and has been bestowed the title of ‘Pearl of the South’ with its incredible beaches, rolling hills and lush tropical jungle to explore.
Now that it has developed into one of Asia’s premier tropical Island destinations with an excellent infrastructure, friendly people, fine cosmopolitan cuisine and international standards schools and hospitals, Phuket Island is now seeing worldwide demand for luxury ocean view property and business and investors are cashing in at all levels with land prices doubling, on average, every three years.
Also due to direct air flights into Phuket International airport, Phuket Island has been successful in attracting a cosmopolitan blend of Asian and international based investors that have led to incredible stability in Phuket property prices at times when other countries have been suffering economic slowdowns.
Phuket welcomes visitors and is Thailand's most popular tourist destination. Over 5.7 million tourists are expected to visit Phuket this year (2011), many drawn by the plentiful white sandy beaches, excellent dive sites night time dining and entertainment and the availability of top class hotels and of course Thai hospitality. Phuket today is an interesting and enjoyable place to visit; a place where East meets West and 5 star luxuries sit comfortably alongside traditional cultures and customs. There is foreign culture from all over the world living in Phuket and its many beach towns, some for 25 years and some just beginning. What is evident from the people who live here is they have embraced the Thai people and culture, find them to be special in many ways and love their life here. Count me as one of them.
Thailand Today Politics and Change
All this must be balanced out with the people of Thailand and their evolution as a democratic country. The writer has lived in Thailand both in Bangkok and Phuket for the past 7 years. Seeing the country and its people and their politics gives me a living understanding of the situation both past and present. I have read the history and researched events for my own benefit. I can say now after seeing the events that have taken place over the past 7 years and most recently the standoff with the protesters in Bangkok that I do not experience Thailand as a dangerous place for foreigners. The country has come too far along the path of economic development to ever fall back. This fact is a strong plus that the conflicting parties whether powerful people, middle class or poor people recognize and this will win in the end. The Thai people are only finding their way in a democratic system that is still new and is confronted by the same forces that are always in play when these things happen in developing countries, the rich versus the poor and the struggle for equity, new ideology versus established regime. The balance of power is being shifted to serve concerns that previously were not in the best interest of long established power groups. Given that this is moving in the right direction, it is my personal opinion as a businessman that Thailand is not in jeopardy of falling back but moreover is an emerging hub of Asia.
Foreign Investment
Foreign investment is encouraged here and the income earned from foreign investment and tourism drives the country. Without foreign investment it would not be able to accelerate as it has. The Thai people have experienced the benefits of the change in the economy in their lives in Bangkok and Phuket and are not going to give it up. It is said that 90% of real estate holdings in Phuket Island are invested in foreign ownership in one form or another. Even though Thailand has restrictions on how Foreigners hold land and other countries do not, it has not prevented the continuous development on some of the most attractive real estate on earth. This has been going on for hundreds of years.
Culture
In Thailand what is apparent everywhere is the rich culture and the diverseness of it. With a population estimated to be 68,000,000 there is an amazing difference from north, east, south and west, from hill people and sea side people to the cities. Fishermen, farmers, craftsmen and their families make up 75% of the population and live a traditional Thai lifestyle well away from the western luxuries and tourism which surrounds them.
The Thai people are a proud people and have never been colonized by foreign powers. This strength of character and ceremony is in every part of their social and government structures. The modern Thais in the city of Bangkok are the new generation upper and middle class being created from wealth and investment and job creation in markets driven by commerce and technology. These modern Thais want what the first world has and they have the wherewithal to get it. Smart, industrious, progressive and fashionable they are the vibration of the city of Bangkok. The future of Thailand is bright and it is poised to become a major hub of the Asean world.
Phuket City
Phuket still retains some of its traditional character as can be seen in Phuket City. You can still find traditional Chinese shop houses and businesses where families still continue their crafts and trades as they did many years ago. The city features an exciting mix of old and new, simple and sophisticated, peaceful and pulsating. The bustling administrative centre of Phuket is often overlooked in favour of the beaches but there's a lot to see and do in Phuket City having been recently upgraded to city status. The major Thai festivals such as the Chinese New Year and The Vegetarian Festival are celebrated on a large scale here.
About Patong
Patong Beach is an astonishing combination of breathtakingly beautiful white sand beach edged by the glittering Andaman Sea and the most concentrated area of tourist accommodations, shops, nightclubs, restaurants and attractions within close proximity of a 3,000 meter crescent shaped beach. Patong is the island's oldest and most developed tourist town. With plenty of action and friends to be found Patong is a popular spot for those seeking fun in the sun.
If you want a real good time, this is where you will find it. During the day enjoy all the beach-type activities from sunbathing to beach volleyball, jet skiing or aerial parachute gliding to boat cruises and yachting. Enjoy a soothing afternoon massage on the beach or after the sun. And don’t forget shopping, everywhere on the promenade along the beach to the finest that the spectacular Jungceylon has to offer. Bargins are always on offer and don’t be afraid to haggle on the price with the street vendors. They expect it!
Restaurants abound featuring the seemingly endless variety of Thai foods especially the seafood provided by the finest 5 Star brands to street vendors and at prices for everyone. Foreign fare is plentiful for those who prefer British, French, Northern European, Italian, American, Greek, Mexican, Indian and Muslim.
Later at night Patong transforms into entertainment all over but concentrated in the heart of the city near the intersections of Thaweewong Road (beach road) and Rat U Thit Road with the famous Bangla Road in between. The Thai people are very friendly and love to have “sanook” meaning fun. Patong Beach has long held the reputation for the night place to be in Phuket. Bars and nightclubs are everywhere with pretty girls to encourage your good time or enjoy cabaret shows that astonish. For dancing there's the disco clubs like Hollywood, Banana, Seduction, Tiger and now the new Tiger near Jungceylon. Dance until dawn in many of these clubs.
Patong Property Market and Business
Real Pro Co Ltd has been established in Patong for 4 years and specializes in the market here as opposed to being a general realtor on the island. The company markets Hotels and Guest Houses. We are also business brokers for clients who want to own a business to keep busy while living here and do not want to completely retire.
The property market in Phuket is robust even given the fact that the world wide recession in 2009 saw a decline in the number of visits to Phuket in general. As the owner of Real Pro I experienced the change in the purchasing habits of foreigners. Builders also pulled back from projects due to cash flow restrictions. However as 2010 came in and this coincided with our normal high season, buyers returned to the market but with adjusted prices they were willing to pay in mind. What this meant was that people that still had disposable cash (and there are many) were intent on going ahead with their plans in Patong but at a reduced investment. Therefore the property market was selling but the high end products were not moving. At this writing in October 2011, this is now changing. The average sale for villas and houses is 10,000,000 TB. The luxury market is poised to make an increase in sales. Developments are back on the go. It must be said that foreigners spend cash for property and business in Thailand, There isn’t much credit purchasing. As stated earlier it is estimated that 90% of real estate is held by foreigners. Therefore foreign investments are very stable and prices go up in Phuket.
The number of structures built in Patong in the guest house market is growing every year and there is no plateau yet as Patong has created a whole new area and road on the back side of the Jungceylon super mall. Condominium sales slowed in 2009 but are back on track in 2011. As Patong Beach is arguably the number 1 tourist destination in the world, we don’t see developments climbing because more and more people want to locate here and own a piece of paradise. The tourist demographic in Patong was typically men 25 – 65 years and young couples 25 – 35 years. However that is changing because mega projects like the Jungceylon attract tourists who want the upscale shopping attraction and better hotels. The face of Patong is changing all the time now from year to year. The development is always going on. The focus is the continued growth of the entertainment business and also the commercial brands of restaurants, 5 star hotels and the medium priced guest house business of Phuket.
For a more in-depth review of the property market in Thailand and Phuket please click this link at www.property-report.com.
The following information provides an understanding of the forms of real property ownership in Thailand.
It is reported that 90% of sea view condos, luxury houses and villa sales in Phuket are made to foreigners. That means Thai people are not in the market for ownership of these sales. The price points are outside the normal purchasing power of the Thai buyer. Projects oriented to the Thai buyer are not on prime sea view lands and are constructed for the local housing market in the towns inland. The developers of foreign investment projects on Thai lands are predominately Thai companies. Foreign developers form companies to joint venture with Thai land owners or companies. The construction is funded through 50% pre-sales to foreigners and then as much of 90% of the total sales will be purchased by Foreigners.
But in the beginning there was a problem.
No foreigner can out right own land in Thailand.
This goes back forever and stems from the attempts of the empires of England, France and Portugal to colonize the country as they did others. It was successfully resisted then and is that way today. Land is the sovereign right of Thai nationals. All land is held by title. There are various degrees of title and the power of ownership is dictated by the status of the title. For example the Chanote title is the highest form and is Thai Freehold. Foreigners can hold title in various ways as;
Foreign Freehold
The government found the first way to help Thai developers to sell property to foreigners. As in western countries they followed the creation of condominium status which gives full ownership rights including the right to sell or lease the property but does not have any land registered to or associated with the condominium. This gave the developers the ability to sell 49% of the units to foreigners, as a “foreign freehold” The other 51% are held for Thai freehold title.
But this also was only a partial solution.
At first foreign freehold enjoyed celebrated success even though the registration process with the government added significant cost increase to the developer. It was only with the experience of selling the projects that the developers found that the Thai buyers were not purchasing these condos. The 49% Foreign Freehold quota funded the loans and construction costs but generally the 51% of the Thai quota units held the profit. Developers were left with unsold units.
Then came the second solution.
Leasehold
The government created legislation that allowed a Thai owner of Thai Freehold land to lease to Foreigners for a 30 year period. Contracts can be renewed after 30 years upon agreement. Today it is typical for a “life long lease”contract to be written having 30 years with 2 renewal extension periods of 30 years for a total of 90 years. The holds the title and registers the lease for foreigner with the government for each 30 year period.
The purchase price is paid by collecting all the rent in advance. Leasehold agreements carry all the legal obligations and benefits that the foreign freehold does including the right to buy, sell, trade and will the lease to heirs. Both are registered instruments at the land office. Both are taxed.
With this new instrument developers were able to achieve the sales volume to foreigners reported above. So it does not matter whether you have a foreign freehold or a foreign leasehold, you are only holding ownership of the building. You are able to hold property in both ways for as long as you will need to and most likely sell the property in time for investment profit or to purchase a new property.
Another way.
Corporate Body
Share ownership in a Thai national company that owns the building and dominates the land is a way to develop property and not risk the loss of the Foreigners rights and investment to a Thai national who took signing rights on their behalf. This method is a common way in some countries. The makeup of the ownership of the shares is divided 49% Foreign and 51% Thai. However the Foreigner can control the mechanisms of a Thai company through the voting power of the shares and having the Foreigner become a Thai Director with signing power. The investment is protected and the operation managed by a Foreigner. As long as the company exists the land can be held. If you want to sell the land and building, you sell the company shares and make a change to the Foreign director. The cost of forming a Thai limited company is not expensive.
*Disclaimer: The writer has sourced the facts and information provided herein from personal experience and published information. The reader is advised to verify the facts and information independently when purchasing property.
Phuket climate
Phuket is typical of other tropical islands and has three seasons, warm, rainy and hot. Average temperatures in Phuket are between 25 and 30C. This means visitors and residents enjoy an enviable outdoor lifestyle all year round. The most popular time to visit is during the warm season from November to February when the temperature is cooler and rain infrequent. It’s also the most popular time for diving and water sports. The rainy season is from May to October with the highest level of rainfall generally in September. The hottest months of the year are March and April.
