Archive for the 'Asian Beach' Category
Signs of a recovery in Asian Property values continues as record prices are achieved in the region. The sale of what is the most expensive priced property in the world on a per square metre basis recently took place in Hong Kong. A 5 bedroom 572 sqm condominium sold for the equivalent of THB 1.8 billion or more than THB 3.2 million per sqm, which when you consider that high end Luxury Condominiums in Phuket sell for THB 100,000-150,000 and similar Condominiums in Bangkok in the region of THB 200,000-400,000 it makes Thailand, Bangkok Property and Phuket Property especially, look seriously undervalued. While Singapore Property has returned to the high prices it was realising before the recession Thailand Property still remains undervalued. The route cause for this appear to be the uncertainty with which the rest of the world see as being the current governmental situation. Ongoing issues between pro-Taksin supporters, the red shirts, and their direct opposition, the yellow shirts, often gives outsiders the incorrect impression that there is a struggle for power taking place in Thailand that may and sometimes appears to be seen to degenerate into violence on the streets. This is highly exaggerated by the media and in fact to 99% of the population, Thais and ex-pats alike, there is no problem at all. Even so, this together with an ageing and seemingly frail King to whom the Thai people idolize leads people to show concern for Thailand’s future prosperity. History has proven on most occasions that these factors have very little bearing on real estate values but can have the affect of slowing the market recovery. This can be greatly advantageous to the prospective buyer who may be able to capitalize on this if he is prepared to not “follow the sheep”.
Without doubt Bangkok Property is the most undervalued capital in the world from a property value perspective, let alone South East Asia. A vibrant capital with great connections to the world, an industrious labour force, a cheap and efficient transport system, great restaurants and nightlife and friendly people. Prices of Bangkok Apartment which were considered undervalued at one sixth of similar properties in Hong Kong and Singapore are now at around one tenth of the value. Compare “The River”, an iconic twin tower condominium development on the banks of the Chao Phraya river in an unparalleled location positioned next to The Peninsular Hotel and directly opposite The Shangri-La and Oriental Hotels. A 1,000 sqm Penthouse in Bangkok on the 62nd floor recently sold for as little as 250,000 baht per sqm. Can it be realistic that this is one twelfth of the cost of the similar condominium in Hong Kong?
Property in Phuket is even more undervalued when one considers Phuket is considered to be amongst the Top Ten locations in the world in which to live. With its fabulous marinas and surrounding waters, magnificent golf courses, world class hospitals and schools, fantastic restaurants and nightlife, and an international airport increasingly being seen as the South East Asian hub for many regional airlines it is easy to see the attraction. Nevertheless property in Phuket continues to look cheap even by the standards of other tropical islands in the region that have traditionally always played second fiddle to Phuket,. Bali Property, for instance, has shown continual growth during the past 12 months even though its problems are historically far more significant than any problems Phuket Property may have faced. Sea view condominiums in Phuket range from about 80,000 to 150,000 per sqm depending upon proximity to the sea and view. A typical example would be a 210 sqm Apartment in Kata with magnificent views and direct walkway to the beach for as little as 19.5 million Baht or 92,850 baht per sqm.
Villas in Phuket range from pool villas in what may be an attractive development priced at about 50,000 baht per sqm, a typical example being Anchan Villas in Layan situated about one km from Layan Beach and within the proximity of the highly regarded Laguna community. The standard for this development is far better than one would expect for the price of about 13 million baht with many designer features. For those to whom a Budget is just something that takes place in the UK once a year there are many multi-million dollar Villa developments to look at. These include the Philip Stark designed Villas at Cape Yamu or the Gary Fell designed development, Istana in Nai Thon. Neither would leave the discerning owner wanting.
Phuket Property be it Phuket Condomiums or Phuket Villas offers fantastic value and endless pleasure to the fortunate buyer. There will be many who, in a relatively short time, will regret not having jumped in and bought now!
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