Country Guides Country Guide: Thailand

Date Published:

24/06/2008

Move away from the mainland, and there are a number of beautiful islands just waiting to be explored.

Amongst the islands to sail to in the bay and Andaman Sea are the backpacker island of Phi Phi- which is to the south of Coconut Island. In the opposite direction, the lush peaked islands with sheer limestone cliff faces that loom out of the sea and dot the horizon are a sight to behold and visit. Uninhabited in the main, their white sand beaches can only be accessed from the sea.

Amongst them is the island simply known as James Bond Island having appeared in the film, The Man with the Golden Gun.

Leaving fantasy island behind, the more grounded buyer will want to know the economic realities behind buying in Thailand. A respected realtor, who is active locally as well as globally, David Simister, CB Richard Ellis chairman, says: "Phuket's property market has in seven years seen prices increase (on quality developments) by 300-400%. Even today, many projects see their value double between launch and completion."

Investment buyers are attracted to the island by Phuket’s increasing reputation as a holiday and retirement destination, a factor that offers short and long-term rental possibilities. At The Village the developer is offering buyers a guaranteed rental income of 7% for four years with 60 days personal use annually. Thereafter, they may join the rental pool if they so wish, with an anticipated yield of between 9.9-12.9%. Add capital growth into the mix and the prospects look very strong for Phuket.

So what are the downsides of owning a property in Thailand? For pleasure, the flying time 12 hours and the relatively expensive cost of flights make visiting for less than a week at a time infeasible. For the investor, economically Thailand is the "sick man" of southeast Asia, and political unstable. Despite these shortcomings, Thailand continues to seduce. Perhaps it's because it's just so beautiful; like nowhere else. Yes, that'll be it.