Instead, investors are concentrating on the more positive aspects of this growing market and are noting healthy rental yields and capital appreciation, encouraging tourism figures, growing infrastructure and the sheer quality of properties on offer at a fraction of the price of comparable developments in other parts of the region. Not to mention the desirable lifestyle that Thailand affords.

In terms of attracting a large slice of international investment, local analysts say demand in Bangkok has quelled rumours of oversupply, Phuket is back on track after the tsunami disaster, while Pattaya, Koh Samui and Hua Hin are all beginning to attract a global audience.

Foreign investment is turning the high end of the property industry into a growing market, and developers are facilitating investors wishing to enter the market.

Law firms are also entering the arena with the sole purpose of ensuring that foreigners ease through the process of buying land.

Understanding the regulations of buying property in Thailand is vital to any potential buyer.

For instance, foreigners cannot buy land in the kingdom and own it outright, but if they buy a condominium, they are 100 per cent owners of that property.

Foreign investment in Thailand's property market can be an intricate maze, but all reputable developers will recommend to potential clients to seek proper legal advice from a well-known law firm.

And with an abundance of projects in the pipeline, this current activity and positive sentiment looks sure to continue into the future.

Phuket's C9 Hotelworks managing director Bill Barnett says the luxury market in Thailand has been bolstered not only by a strong global economy, but also a strong regional economy.

'Key feeder markets such as Hong Kong and Singapore have remained strong due to players there with plenty of capital to spend,' he says.

'There has been some strong lifestyle spending and Phuket has been at the forefront of the luxury housing boom, especially as far as resort development in the region [is concerned].

'Investors can still expect capital appreciation in the region of 10 per cent and rental yields of six to seven per cent.'

C9 Hotelworks recently launched the Movenpick Residence Karon Beach, Phuket. The property, consisting of 30 two-bedroom apartments and overlooking Karon Beach, is part of the recently re-branded 166-key Movenpick Resort and Spa Karon Beach, Phuket.

The development epitomises the advancement in design and style apparent in many of the upmarket properties springing up around Thailand, and Mr Barnett says interest has been strong since the property's launch in June.

'In the last year or two, as far as investment properties are concerned, there has been a trend emerging of people buying into 'branded hotels' and having a villa for their own use that is also giving them an investment yield,' Mr Barnett adds.

'We have seen the Sheraton, the Villas at Banyan Tree and now the Movenpick Residence all operating this way. It is definitely a worldwide trend and not just a regional one.'

Mr Barnett says investors realise that by aligning themselves with an international brand, their investment and rental yield is assured.

'People are looking at these properties as an alternative form of property investment. Brands trade at a premium and that's why condominium hotels are going strong in many parts of the world right now.'

Mr Barnett says Phuket differs from the rest of the resort markets in Thailand in that its boom has been fuelled by cash sales.

'If there is a blip in the property market, these guys do not have to sell and it's a soft landing. Prices may flatten out, but they are going to start from a much higher base than if the property market collapsed,' he says.

'Phuket is becoming a world-class destination. The more brands you have, the more the bar is raised.'

In the first half of this year the average cost per square metre for inner-Bangkok projects was 81,469 baht (HK$16,900), an increase over 80,774 baht last year. Of the 4,282 upmarket units launched in the first half of 2006, 80.3 per cent have been sold already.

Bangkok-based Raimon Land chief executive offer Nigel Cornick maintains the high-end condominium market across the board is 'in fine health'.

'At present the high-end of the Bangkok market is pretty much sold out and most of it will be completed within the next two to three years,' he says.

'What we have actually seen is a net take-up over the last four quarters, so that in fact what was perceived to be an oversupply has been diminished.

'And we see that trend continuing as people look to occupy completed real estate, effectively absorbing some of that oversupply. Unsold units have dropped from over 4,150 to 3,900 over the past nine months. Generally speaking, if you look at the high-end properties currently under construction at least 80 per cent of it has been sold and in fact the balance is not likely to hit the market, in terms of oversupply, for two years.

'There has been a slowdown in the number of projects launched, but this can be explained by the combination of sites becoming more scarce in the inner city area and a general maturing of the market.'

South of Bangkok on the Gulf of Siam's eastern seaboard, Pattaya is proving to be the star of the emerging locations in the high-end market.

Prices have now reached the same as the Bangkok luxury condominiums and with the new Suvarnabhumi Airport open, investment is only going to increase.

In November, Raimon Land will launch the high-end luxury condominium complex Northpoint in Pattaya. The development is already 20 per cent sold, proving the high demand for this location.

Koh Samui recently suffered bad publicity about dubious land-sale deals and developers encroaching on protected

national park sites. The situation quickly gained a true perspective when it was found that the amount of erroneous land titles issued was a far cry from what had at first been feared.

Destination Properties president Jake Vigoda believes the situation in Koh Samui was more about one or two developers that were not as careful as they should have been in the structuring of their developments.

'It's a situation that is as likely to happen in Samui as it is to happen in Phuket or Pattaya,' Mr Vigoda says.

'Samui though is transitioning from a backpacker market into a high-end market like Phuket. The median pricing in Samui is equal to Phuket, and in some cases higher for many top properties.

'It has very much distinguished itself for its high-end boutique properties and will continue to do so.'

But during this transitional period from a backpacker's haven to upmarket residential destination, Mr Vigoda still encourages buyers to take out title insurance on their investments to protect themselves against any land title misdemeanours.

'On all of our properties we always use title insurance,' he says.

'It is our view that title insurance is critical in maximising the resale value of the property, and this is one of the features that constitutes a lifestyle investment.

'All of our properties come with a home warranty programme and these are the types of things that will evolve in the market and that buyers will look for.

'Traditionally our investors have been from Hong Kong, but that is changing rapidly and we are seeing buyers from England, Europe, Russia and some from the Middle East. So the attractions of the resort destinations in Thailand have really transitioned from, let's say, the resort capital of Asia to the resort capital of Europe.'

Destination Properties is due to release the second phase of its flagship development - Shambala - a hillside collection of 42 villas overlooking the ocean in Hua Hin in the coming months.

Hua Hin is making its mark as one the more exclusive resort destinations in Thailand.

It is no secret that the Royal Thai family have their summer palace there and, being only a short drive from Bangkok, it is a favourite among many Thais looking to escape the hustle and bustle of city life.

Pacific Asia Travel Association president and chief executive Peter de Jong, who lives and works in Bangkok, has opted to build a villa in the tranquil resort of Baan Ing Phu on the outskirts of Hua Hin town, using Bangkok-based architect Krys Tarnowski of Tomaryk Design. The villa complex is adjacent to a newly developed 36-hole golf course.

'I chose to build in Hua Hin because it is safe, clean and has an unpretentious atmosphere,' Mr de Jong says.

'The beaches are lovely and more importantly it's only a two-and-a-half hour drive from Bangkok. For foreigners it has the advantage of Bangkok being a major Southeast Asian aviation hub, served by a great many airlines, including several low-cost carriers.'

Thailand undoubtedly offers the potential investor a variety of attractive investment and lifestyle opportunities, but the message is clear: before plunging into any Thailand development, investors should surround themselves with high-calibre professionals, choose a developer with a proven track

record and take the best legal advice they can afford.

With this accomplished, they can sit back with peace of mind and enjoy the ride.