Luxury Home Buyers Are Benefiting From Weaker Thai Baht
There’s been no doubt the political turmoil over the last several months in the capital, has indeed had a ripple effect in various industries and business sectors. However there has been a silver lining for one particular group: investors of luxury properties in Phuket and also regionally, regarding the depreciating Thai baht.
According to one of Thailand’s English language newspapers The Nation, luxury houses, condominiums and townhouses have seen an upsurge in demand where it is outweighing supply.
Renowned property agent CB Richard Ellis’ managing director Aliwasa Pattanthabutr, stated that fixed budgets are commonplace regarding foreign buyers seeking to purchase properties in this region. Moreover given the weaker baht recently, such investors are now able to buy more expensive properties than they had originally anticipated.
An approximate 10% of increased purchasing power has been realized with foreign investors. Those using US currency have greatly benefited as an example, where the baht has fallen from a previous THB 29.00 in 2013 to THB 32.90 in the first quarter of 2014. This certainly is a welcoming sign regarding acquiring ‘more value for money,’ compared to the previous year.
Additionally, other real estate businesses have fortuitously dodged the fallout caused by the street protests. Companies such as Fragrant Group which typically accommodates foreign buyers, hasn’t been affected by the political upheaval, as stated by its CEO James Duan. As a consequence, foreign investors have even helped balance and sustain their company’s sales.
Industry analysts have discerned that investors of luxury property in Phuket and other regions (more so from Scandinavia and Asia) are purposely choosing Thailand as their destination. This is due to the central locale of the country, in addition to the economic unification of ASEAN which will take place in 2015.
It appears even with the present discord taking place in the capital, luxury home sales in Phuket and elsewhere for that matter, shouldn’t be as negatively influenced as one would imagine.
A continuous stream of Asian, Russian and eastern Europeans flow into Phuket monthly, many of them being prospective investors. Therefore, it’s certainly a welcoming sign that such a demand for buying a home in Phuket, given the weaker Thai baht, has been
a saving grace for the local economy.