Sunny skies in the Land of Smiles, as well as an exciting property market, are luring British buyers to Thailand. Words Amy Grace

Interest in Far Eastern property markets is currently very healthy. And in Thailand, despite having to overcome unrest and uncertainty, the property market doesn’t seem to have suffered from the international financial problems in the same way as other countries, mostly due to the fact that foreign investors have invested with cash rather than by borrowing from banks. The future looks promising, whether you’re an investor or a homebuyer looking to relocate.

Overseas property journals, newspapers and industry experts have reported that plans to give more rights to foreign property owners may further the interest seen towards the end of 2009. Patima Jeerapet, MD of Colliers International Thailand, recently told Property Asia Report: “Right now, foreigners can only lease for 30 years, and we have proposed to extend it since we think it is too short a period.” Mr Jeerapat is lobbying the Thai government to increase the length of lease overseas investors can take out, comparing it with other Asian countries which allow 70 to 90 years. David Redfern, Founder of DSR Asset Management Ltd, expects such a move to prompt signs of a recovery in 2010. He says: “The Asian real estate investment market continued to gain momentum in the third quarter of 2009, cash-rich domestic buyers continued to underpin activity, while foreign investors gradually emerged from a quiet first half year to look for medium to long-term investments.”

The issue of lease terms in Thailand is complex, and seeking clarity is vital before any money is exchanged. Richard Pope, developer of the new Kata Rocks in Phuket, says: “There are several ways to buy a property in Thailand. We are selling our units leasehold, and also giving our purchasers shares in the company that owns the land. These shares have special voting rights, allowing the owners to vote together to renew their own leases. This makes the leases perpetual, a little like share of freehold in the UK.”

Kata Rocks is a development of 34 luxury oceanfront sky villas on the favoured west coast of Phuket, and it has been voted the best development in Phuket by local property expert Bill Barnett. The site, due to be completed by the middle of 2011, is tucked between the area’s best two beaches. The location, combined with Pope’s 20 years’ industry experience, has underpinned the development’s success in attracting celebrity buyers such as Bear Grylls, the expertise of an award-winning architect, Adrian McCarroll, and the creative input of interior designer Kelly Hoppen.

“This backing by Bill Barnett is quite a coup for us,” Richard Pope comments, “as Bill is very respected in the property industry here and I have never known him give a ‘buy recommendation’ before. He rated us number one in his top five picks for 2010.” On the Phuket market, Richard says: “Everyone knows that the East is going to be the growth region in the world in the next 20 years, with China and India leading the way. I see Phuket as very much the holiday island of the region, in much the same way as Mallorca or Ibiza is for Europe, or the Caribbean is for the States. Half of the world’s population is within a five-hour flight of Phuket, and property prices are still much less than in Majorca, Ibiza or the Caribbean.”

Read more in the February issue of Living Abroad magazine