In an article headed "Foreign investors lining up deals" Baht & Sold writes:
"Foreign investors are already negotiating to acquire and invest in real estate, especially hotels and resorts worth up to Bt 15 billion, with an eye to a democratic election to be held at the end of this year, according to Colliers International Thailand."
(You can read the full article here: http://www.bahtsold.com/forum/viewtopic.php?t=1160 ).
This is not an accurate reflection of the reality, especially in Phuket.
Yes, demand still exceed offer globally in the region.
Yes, prices have been reduced significantly recently and this makes Phuket market especially attractive.
But everything remains on hold.
For buyers the fact that a foreigner cannot own land in Thailand directly and in one's own name as well as the new visa regulations reducing the length of stay in the country are a barrier.
It is still almost impossible to obtain a bank loan to buy a property or to start a development project.
As for "investors", we keep seeing individuals and companies who are "interested", who ask information about the market almost daily, but still no move.
My analyze is that progressively foreign investors will realize that since the crisis erupted in May 2006, the authorities have threatened a lot but not really attacked.
Not one company holding land for the account of a foreigner was investigated.
Every single law limiting foreign investment in the kingdom has been cancelled within weeks of its introduction.
In fact all this is nothing but a play.
Generals are negotiating together in order to put their nominees in place at the government. Politicians are negotiating to be these nominees. And Thailand is negotiating between China and the USA to get the most of both parties.
China has long eyed Thailand for strategic purpose. China already controls Burma (Myanmar) and Cambodia and if it was controlling Thailand, China could dig a channel in the Isthmus of Kra linking the Gulf of Thailand to the Andaman Sea and the Indian Ocean.
Then its oil supply would not have to pass through Singapore (controlled by the Americans any more). The USA won't allow that and are going to bid higher.
We are back in the good old days of the Cold War.
Anyway, investors will realize gradually that it is safe to invest in Thailand. Fundamentally, there are more people looking to buy holiday or retreat property in Phuket than property available or under construction. Nevertheless, there is a window to buy at bargain price now.
But this window may close soon.
Now and until the new constitution is proclaimed in August potential buyer can negotiate price down. But then the market will anticipate a return to stability and prices are going to rise up quickly again.
