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News & Articles

When There Is Blood In The Streets, Buy Property - Part 2

In October of last year, I published an article here on this website, titled "When There Is Blood In The Streets, Buy Property". In the article I examined the old Rothschild wisdom, and applied it to the property market here in Thailand in the aftermath of the country's worst floods in the past 50 years. Throughout history, we have learned that in the days following tragic events such as wars, natural disasters and other tragedies, there could not be a better time to buy property. Despite the panic and negative reports in the media following the floods, my thoughts at the time were that buying property would be a solid investment.

 the price of property is only going to rise in coming years

Let's take a look back and see what has happened since October of last year? In December, The Nation Newspaper reported that Land prices in Bangkok's inner areas such as Siam Square surged dramatically after the floods. According to the report, the price of land has gone up from Bt1.2 million per square wah, to as high as Bt1.4 million per square wah, a 17% percent increase. They also went on to say that there were significant increases in property value in other areas of Bangkok, such as Wireless Road and Silom and Rajdamri roads.

The Nation also reported in January of this year, that condo sales in Pattaya surged by more than 120% in 2011. In my original article published back in October, I had said that "There couldn't be a better time to invest in property in a place like Pattaya". It seems that there is evidence to suggest that these predictions have indeed come true, as all indications are that the price of property across the country has risen dramatically since last year's floods.

There is still much concern regarding the future of Bangkok, and what steps the government will put in place to prevent future floods, not only this year but in the years to come. With many people convinced that future floods will continue to plague the country's capital, there has been a significant increase in demand in other areas, such as Pattaya, Hua Hin, and even Chiang Mai in the North. With the tourism industry growing each year, and the number of annual arrivals still expected to nearly double by 2014, the price of property is only going to rise in coming years, regardless of future floods, political instability, or any other adverse situations that may arise.

So as we look back, it should not be surprising to anyone that the old Rothschild's adage proved to be true once again, there are numerous examples of fortunes being made in the aftermath of history's darkest moments. There is no greater tool to predict the future, than to carefully study the past. We have all heard the saying that "history repeats itself", in this case we can suggest that the increase in property value after last years flood is much the same as what we witnessed in Phuket back in 2004, as land prices have roughly doubled since the tragedy occurred. As we look ahead, we all wonder what the future might have in store for us .. well I will go out on a limb, and say that it is going to be a lot like the past.

A New Year On The Horizon

Reflecting On 2011, And Looking Forward To 2012

In many ways 2011 was a tough year for Thailand, with the worst flooding in more than 50 years crippling the country's capital and killing any hopes of positive economic growth. Despite facing adversity, Thailand will look back at 2011 as a year that brought many positive milestones. The national elections in July of 2011 saw Thailand elect their first ever female Prime Minister, Yingluck Shiniwatra, sister of former PM Thaksin. Despite the flooding in the Central provinces and the closure of the Don Muang Airport, Thailand still managed to see a record number of annual visitors in 2011, a staggering 16 million tourists arrived at airports throughout the country.

resort areas of Pattaya and Hua Hin will see a dramatic increase in demand

While the floods managed to slow economic growth in 2011, property value continued to rise, Thailand's Treasury Department announced a 20% increase in property valuations nationwide, the cost of construction materials and skilled labour is expected to rise as much as 50%, with increased demand due to necessary repairs and reconstruction. While buyers might be hesitant to invest in property in the country's capital without a clear plan in place to combat future flooding, the nearby resort areas of Pattaya and Hua Hin will see a dramatic increase in demand.

The island of Phuket continued to see record numbers of annual visitors in 2011, however the resort destination is still suffering from growing pains, including the lack of an efficient transportation system, and an increase in crime and petty theft. Swedish newspaper "Aftonbladet", recently published a story predicting the demise of Phuket, saying "Phuket in Thailand has become a nightmare for many Swedish holidaymakers". Swedes make up a large percentage of the annual visitors to Phuket, and while negative publicity like this is nothing new, it seems inevitable that local authorities have a lot of cleaning up to do if they want to keep people coming to Phuket.

The economic forecast for 2012 is a modest growth of just under 5%, however GDP in the second half of 2012 will grow 5-7 per cent, better than the 3-4 per cent growth expected in the first half of the year. Another record number of annual visitors in 2012 will not only boost the economy, but also keep the property market going strong. All indications are that 2012 will be far more kind to Thailand than 2011, as we look forward to a positive new year.

The Similan Islands

When it comes to scuba diving and snorkelling in Thailand, there is no better place to visit than the Similan Islands. The National Park is located just 84 KM north of the island of Phuket, and the Similans rank amongst the world's top 10 dive sites, alongside such places as The Great Barrier Reef in Australia and west coast of Grand Turk in The Turks and Caicos. There are several dive companies offering day trips as well as live aboard trips departing from both Phuket in the south as well as Khao Lak just 50 KM away.

The Similan Islands are a group that consists of 9 islands with different names, however they are commonly referred to as "Islands #1,#2,#3" and so forth. The southernmost island, "Koh Huyong" is also known as Similan Island #1, and the numbers increase as the islands go north. There are ranger stations on Islands #4 and #8, with the only available overnight accommodation available only on Island #4. The island of Koh Bon, located approximately 17 nautical miles north, is a part of the Similan National Park and in the future may be granted honorary status as Island #10.

The Similan National Park is closed every year between May 1st until November 1st, and it is illegal to visit during this time. During the high season that begins November 1st, the island is open to visitors, however there are no resorts or stores at the National Park, only a few ranger stations and a handful of bungalows available for rent. The bungalows are quite modest, and they rent for over 2000 THB per night, however tents are available at a much lower price for those who are traveling on a budget.

The wide variety of marine life that are found living near The Similan Islands are what attracts scuba divers and snorkelers from all over the world. You will find Sea Turtles, Manta Rays, Barracuda, sharks, and a wide variety of other creatures that you don't find at most other dive sites in Thailand. Fishing in the waters near the National Park is illegal, however big game fisherman target Marlin and Sailfish just outside the immediate area of the marine park. Fishing charter companies often advertise day trips to The Similan islands, fishing in the waters nearby, getting as close to the marine park as the possibly can.

The crystal clear blue waters and glistening white sandy beaches of The Similans appear in postcards and travel brochures around the world, known as one of the most naturally beautiful places on the planet, and the premier location for diving and snorkelling in Thailand. Nowhere else in Southeast Asia will you see the wide variety of marine life, and the natural beauty that you see while diving and snorkelling in The Similan Islands.