A credit crisis typically inflicts the greatest immediate pain on the property sector. Because lending to foreigners is restricted, however, the booms and busts witnessed in other real estate markets around the world have not really been seen in Phuket.
Positive Effects of Inflation
Much of the trillions of dollars created by post-2008 quantitative easing in the United States flowed into global stock and property markets.
Investors from around the world came to buy Thai property, and prices have certainly risen. But the increases have not been excessive, and Phuket property has avoided “bubble territory”.
Global marketing has had a significant impact on the Phuket property market. In addition to properties being sold to those living in Thailand and to people visiting on holiday, Phuket now receives incredible international exposure. In fact, property shows are now promoting Phuket property around the world.
Even without the foreigners who have decided to make Phuket their home, Phuket is experiencing strong population growth (over 7% annually), which is higher than most other regions of Thailand.
Historically, the elderly in Thailand have lived with their children, but many younger Thais are now living in condominiums, townhouses or in gated housing estates.