Thailand offers some of the most luxurious tropical living in Asia and has led the way for many years with award-winning designs, great locations and an environment conducive to foreign investment. Foreign investment has also been fuelled by promises and delivery of solid rental returns.
Bangkok and the idyllic island of Phuket have been the mainstays of the luxury home markets in Thailand, but there seems to have been a shift away from the capital over the past 12 months.
While the capital's luxury condominium market marches slowly ahead, Phuket remains the choice destination for many investors, though the attention is beginning to shift to Hua Hin, where prices are starting to climb.
Thailand can do a lot better in the luxury sector though, says Phuket-based Richmond Group chief executive officer, Graham Bibby. He says Phuket still remains attractive for international investors, but uncertainty surrounding Thailand's political situation must be rectified soon.
'The luxury villa market overall has definitely slowed down, but companies with good reputations are still doing good business, although not as good as it should be,' Mr Bibby says.
'But we see major investors and institutions still buying land and investing in quality projects in Phuket because there are so many factors pointing to its long-term growth such as the excellent infrastructure, roads and marinas being put in place.
