WITH GREAT INCENTIVES ON LUXURY PROPERTIES, THE TIME IS RIGHT TO INVEST IN A HOLIDAY HOME IN THAILAND, SAYS GRAHAM NORRIS THERE has rarely been a better time to buy in one of Thailand’s second-home havens. The country looks strong again, a year on from the tragic tsunami, with tourist areas like Phuket reporting visitor numbers back to 80% of the seasonal norm just before Christmas. Phuket remains one of the world’s premier holiday-home locations, with direct air links to many international destinations and frequent internal flights of under an hour from Bangkok. Once there, you will enjoy December and January temperatures of around 29°C (85°F) – contrast that with other areas of Asia, as well as Europe and North America, at that time of year. Even in the cooler May to August period, temperatures remain in the high 60s and 70s (around the 20°C mark). Ruggedly beautiful countryside inland and unspoilt beaches along the coast make this a region for all types of second-home owners; there are westernised tourist spots on the west coast, but also many typically Thai areas, which remain largely undiscovered in the hills. Little wonder that the early 2005 lull in demand was short-lived as people returned to take advantage of a string of incentives for buyers. For example, Laguna Phuket resort, which combines villas and apartments for sale with holiday hotels, spa centres and a golf course, offers a chunky 6% annual rent guarantee for six years. The company’s Director, James Batt, says that demand from buyers elsewhere in Asia and in Europe is back to normal. Laguna Phuket and other premier developments, like the 400-apartment Royal Phuket Marina, joined tourist authorities in exhibitions across Europe over the winter and have employed international estate agents to boost marketing. About 50% of Phuket’s mid- to upper-end second homes are bought by Hong Kong, Chinese and British buyers, with mainland Europeans, Australians and Americans accounting for the rest. A further boost has come from German estate agent Engel & Volkers, an established name in Spanish holiday homes, which opened a Phuket offce just before Christmas. This will be the first of a number of Engel & Volkers branches across Asia. “The market’s growing for those who want a property here as a pure financial investment or for future retirement,” says Martin Philips, Engel & Volkers’ Asia Director. “German buyers are back as a result of the economy at home improving. Their demand for homes will boost prices.” Meanwhile, on Thailand’s eastern coast, Pattaya is also developing as a second-home location for Europeans who want property closer to the capital city – it is just 150km from Bangkok and easy to get to for Australians, Chinese and visitors from Hong Kong. But buyers new to Thailand must be diligent. A recent glut of low-cost, low-quality developments, some on land subject to ownership disputes, means the mid- to low-range market in many tourist locations is saturated and should be approached with caution. Respected estate agents like Knight Frank advise buyers to use only those developers that have a track record of quality construction and that will help investors make the most of their asset by offering rental management or extra amenities, ideally linked to a highly regarded hotel resort.

‘‘ The market’s growing for those who want a property here as a pure fi nancial investment or for future retirement. German buyers are back as a result of the economy at home improving. Their demand for homes will boost prices ‘‘ All new holiday homes are now built wiThextra safety standards in mind. Properties cannot be within 200m of the coast and, in Phuket, the hinterland is protected from overdevelopment by bans on construction 80m or more above sea level. “It’s all to reassure buyers that they’re safe as well as buying into a good investment and fabulous lifestyle,” says Knight Frank’s Phuket representative, Steve O’Brien. Sounds like holiday home heaven. NEED TO KNOW After finding your ideal property, hire an independent solicitor experienced in Thai property deals. He will contact the land registry, local authorities and planning departments to check a property’s history is sound. Only then should a buyer pay a deposit and enter into a purchase agreement, again handled by the solicitor. Buyers normally pay 0.5% of purchase price as stamp duty and 0.01% in transfer tax; they pay another 0.11% if selling again within five years. TOP FIVE BUYS 1. Layan Gardens, Phuket – still under con struction, the apartments will have terraces and balconies, granite and wooden interiors, sunken living areas, air conditioning and broadband. From €305,000.Engel & Volkers, tel +66 (0)15 398118 2. Northshore, Pattaya – 187 one-, twoand three-bedroom apartments are in this block close to Pattaya’s shopping and entertainment district, and two minutes from the beachfront. From €75,000. Raimon Land, tel +66 (0)26 519600 3. Puruvarna Villas, Phuket – individual apartments from €200,000 and stand-alone villas with private pools from €500,000, with all owners able to use resort facilities including a communal lagoon, restaurants, golf and shops. Colliers CRE, tel +66 (0)26 526300 4. Laguna Phuket – top-of-the-range villas in the Banyan Tree resort boast marble floors, plasma TVs and private outdoor pools, showers and baths, plus spas, shops, restaurants and a golf club. From €500,000. Laguna Phuket, tel +66 (0)76 324366 5. Anaman Village, Phuket – 26 homes on the north-west shore, each with private plunge pools and shares of communal swimming pools, an open-air dining area and exercise pavilions. From €250,000. Engel & Volkers, tel +66 (0)15 398118 INTERNATIONAL PROPERTY EXPERTS Colliers CRE, www.colliers.com Engel & Volkers, www.engelvolkers.com Laguna Phuket, www.lagunaproperty.com Royal Phuket Marina, www.royalphuketmarina.com

Bangkok Airways flyies daily between Bangkok, Phuket and Pattaya. Book online at www.bangkokair.com

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