So is anyone really making money in the Phuket property market? Many properties spend over a year on the resale market without so much as a viewing, and some projects have even been put on hold indefinitely with buyers not being reimbursed a single baht of their initial deposit.

However, in such an underdeveloped market, there are still huge gains to be made on properties in the right location.

Speculation in the local market requires a different approach to investing in more developed countries such as Hong Kong or Australia.

Phuket is still a very immature real estate market and this can create tremendous opportunities for astute investors. While location and timing are of upmost importance, buyers must also look very closely at the people and the financial capacity backing the project. I always recommend that people buy from developers with a proven track record of building in Thailand, coupled with experienced maintenance and resort management teams.
Tourism numbers have increased significantly over the past year and this will have a direct correlation with property prices.

According to a survey conducted by Phuket Properties Co. Ltd, property buyers place proximity to the beach as the most important factor when looking for a home in Phuket.
Generally, developer?s stage pricing increases throughout the sales process, so much that in some cases, the developer?s profit margin on initial sales is very low. If a project is in the right location this creates a superb investment opportunity if you are able to get in early.

In the past I have seen investors achieve huge gains in projects such as Andara, Layan Estates, Ayara, and Cape Sienna. Their product is unique, offering affordable luxury in prime locations on the island.

I don?t believe that there is any problem with buying leasehold, as long as the structure is set-up correctly through an experienced law firm. I generally suggest people buy through an offshore facility to simplify the process when it comes time to sell.

It is also possible to add a clause in the contract allowing leasehold titles to be converted to freehold at any time throughout duration of the lease.

At the moment there are some spectacular buys for investors looking to get into the market. One of these opportunities is a distressed resale on the famed millionaire?s mile, which is 30% below market value. Priced at only 17m baht for a 245 sqm 2 bedroom apartment with full ocean views, this is the best opportunity I have seen for individual property buyers in the past year. This one should sell soon.

Location and timing are the keys to successful real estate investment, so it is imperative to choose a real estate agent who is in tune with the property market.

For consultation and to see what opportunities are available, visit www.realestate-in-phuket.com