Whether you are property buyer, seller or developer, it IS Important to figure out where you stand in the market cycle. Developing markets tend to evolve from a Wild West stage set into a more sophisticated and gentrified, older and wiser urbanite.
Risk and reward ratios tend to move counter to these patterns, while at the same time key indicators such as rental yields and capital appreciation usually stabilize.
Over the past six years, Phuket's demand has continually outpaced supply with capital appreciation averaging more than 20% per annum.
In many cases, within premium locations, people buying off-plan have seen 50% to 100% returns after 24 to 36 months.
Today, a scan of the teeming number of print directory property publications, newspaper classifieds and real estate agency websites shows that resale properties are becoming a market in themselves.
For buyers who were once limited to new products, secondary sales are becoming a market force often displacing initial sales in developments.
For existing villa, condominium or apartment owners who are contemplating a property transaction - to either take profits or upgrade their investment the ground rules are evolving.
Local industry commissions were once 3% as a rule of thumb, but now minimum rates of 4%-6% are being levied for individual properties.
The trend for many large, Internationally-affiliated agencies and established local operations is to focus on the premium villa and lifestyle-investment, hotelbrand products and to discourage listing properties valued at less than 20 million baht.
Welcome to the lottery that is the resale market.
Many lone sellers who want to attract interest in their properties are searching for the right formula to stand out from the crowd.
Often a sliding scale of commission is offered with benchmark selling prices attached.
