In this issue:

1. Editor’s Corner
2. Project Updates

Contact Us

247/2 Phrabaramee Road
Kalim beachfront,
Patong.
Phuket 883150
Tel: +66 76 290 590

www.phuketland.com
info@phuketland.com

Contact the newsletter editor:
newsletter@phuketland.com

Upcoming Events In Phuket

Thursday 19 - Sunday 22 February: Phuket International Blues Rock Festival

The fourth annual Blues Festival, featuring 15 great acts, more details from their web site www.phuketbluesfestival.com

Monday 6th April: Chakri Day

Chakri Day commemorates the origins of the Chakri dynasty, founded by Rama I, who established Bangkok as the nation’s capital. HM King Bhumibol Adulyadej is the ninth monarch of the Chakri dynasty. Thai banks and public offices will be closed. Phuket Land offices will be open but operating with reduced staff so it is best to make advance appointments.

Monday 13th to Wednesday 15th April: Songkran

Songkran (Thai New Year). Also known as the Water Festival. Thai banks and public offices will be closed as will Phuket Land offices.

April : Laguna Phuket Sea Turtle Conservation

Since 1994, Laguna Phuket has held this event within its complex, to raise funds for the sea turtle conservation programs run by the Royal Thai Navy and Phuket Marine Biological Centre. In Thai culture, turtles represent longevity, and by releasing turtles into the sea, as happens during this ceremony, one hopes to gain long life and make merit. Donations are exclusively used for sea turtle conservation measures, including protection of nesting beaches, eggs and hatchings, public education and environmental legislation efforts.

Exchange Rates

In terms  of exchange rates, the USD, Euro and British pound have continued to be more or less stable over the last month.  From TT mid rates rates a month ago of 34.8 for the USD, 45 .8. for the Euro and  51.2 for UK Sterling, the corresponding mid February levels are 35.17  USD,  44.95  Euro and 50.1  GBP.

Siam Commercial Bank

As an important addition to our normal look at currency movements, please be aware that despite removing the withholding requirements on inward remittances over 20,000 us$ there are still strict reporting requirements for inward fund transfers so we continue to advise ....

#For values in excess of the equivalent of US$ 20,000 please check carefully with the sending bank and the recipient and state the purpose and source of the funds when remitting them to avoid the potential of a 30% withholding by the Thai authorities.

#Overseas banks still appear to be charging a premium on exchange rates when sending Baht into Thailand. As a matter of course, it is prudent to send in funds in foreign currency for exchange into Thai Baht once in Thailand.

#If in doubt ask your bank and the recipient of the funds.

#A major feature of interest is that on shore conversion rates in Thailand for the Dollar are significantly better than offshore rates, by as much as three baht to one US dollar. Thus if your funds are in USD, it is advantageous to bring them on shore in dollars before converting to Thai baht. Of course this also gives buyers the exchange control form they need to repatriate funds.

Editor’s Corner

Welcome to the February 2009 Newsletter.  The main news in the market continues to be the effect from the world's economic woes.  Just as during the last market softening  Autumn 2001 to early 2002, different effects are to be seen depending on the area in Phuket as well as  for different types of property.

If you are in the market for a lifestyle driven property with immediate or short term resale not being a concern, then the market may offer the best conditions seen since the early 2000s.  Some prime ocean view or near ocean property is now available for resale at prices not seen for a number of years. The further away from the ocean or resort centres one travels, the better the deals available in the resale market.

For those seeking good rental returns, a number of developers are backing their properties with two year, three year or longer guaranteed returns commitments.  Some offer additional discounts, deals on furniture packages and finance. One can now find fully completed developments doing so, which offers the additional benefit of  no risk of non or slow completion.  We feature two such developments below, where such incentives apply

Those looking for short term capital growth face the hardest prospects in a contracting market.  The general wisdom would be to stick with the most prime properties.  As waterfront especially on the west coast diminishes in availability, these properties offer the clearest solutions to surer capital upside.

Overall, a majority of  the most secure property in terms of demand and pricing continue to be those in the central west coast areas nearby resort centres, especially if they have good sea views.or are walking distance from a beach or the town.  Finished property especially if it can offer a proven rental yield continues to garnerbuyer interest.  Completely off plan apartments and large housing or land plot development especially those in the far south, north east or centre of the island are more problematic and deserve more careful scrutiny to pick out the better options..  Whilst properties in these areas might be expected to yield the deepest discounts, buyers seem to be sceptical that they offer good investments resulting in moderate sales take up.

Transactions in Phuket are unsurprisingly down from recent years with buyers are adopting a wait and see approach. Many who are prepared to enter the market are expectant of significantly reduced prices, but are often surprised to find sellers are in the most part holding firm.  A sellers disposition can depend on their place of origin.  For example, British and Australian sellers who wish to have funds repatriated may be able to offer a better deal due to exchange rate movements.  Those however, who wish to continue in Thailand are for the most part waiting for better times to return.

On other news, the government is set to prolong the reduction of transfer fees and business tax on sales of land and houses combined where the house is older than one year, until end of March 2010.  The transfer which is payable on the government minimum assessed value will continue at the reduced rate of 0.01% down from 2% and the business tax, which is payable on the declared sum recorded at the Land office at 0.11% down from 3.3%. 

Project Updates

Layan Gardens

Layan Gardens offers completed residential sized apartments in a premium location.  The developers have a proven track record in delivering high quality property and are motivated to get the remaining inventory sold.  Thus, buyers who want an upscale property with spacious common areas in the general Laguna area should certainly review these properties. 

The standard 3 bedroom/3 bathroom apartments are 156 square metres (1720 square feet) built-in and 65 square metres (720 square feet) of balconies all of which are 4 metres wide so that you can make good use of them for dining and recreation. They come with fully fitted kitchens and a lot of built-in furniture such as wardrobes in every room, TV and bookcase cabinets and much more. There are three units still available each with a differing view of  lake, mountain  or sea view apartments. Prices range from 18 million Baht  to 21.0 million Baht dependant on which block they are in the views.

There is also a remaining enlarged three bedroom variant which has four bathrooms and  a larger lounge plus a study.  The unit has 212 square metres of built-in area with 44 metres of balcony. This unit is priced at  24 million Baht

More details are available on our website here:

Listing 2881 on our Website

Listing 3703 on our Website

Listing 3704 on our Website

Luna

The pool villa style of property has been one of the main success stories on Phuket in the last four years.  Luna offers a nearly completed development of contemporary styled and generous sized three bedroom wrap around pool villas in the greater Bang Tao area.  The development is surrounded by other upscale housing and is within easy distance of the airport, Bang Tao beach, high end resort hotels as well as the several new marina developments on the east coast. 

More details are available on our website here:

Listing 2907 on our Website

Both Luna and Layan Gardens offer guaranteed rental returns at 6.5% net for three years, 50% financing if required and a heavily discounted furniture package.