the mark with rapid economic reform, which was welcomed by overseas investors, but the current mud slinging and uncertaintv over nolitical factions is causing concerns.
Another event having a large-scale impact is the recent earthquake in China's Sichuan province, which will require enormous rebuilding in the area, hence the region's steel prices are soarmg.
This column is supposed to be about property. While it is important to give thought to key economic indicators and look at the bigger picture, you may be wondering how all this affects Phuket.
While I was in the US, I met a number of institutional investors who are looking to Asia as a ray of hope. These are firms that continue to have liquidity and need to invest money in highyielding markets.
There has been a shift and redeployment of resources by overseas firms snecializing in leisure and mixed-use projects. They see potintial growth in the property markets of Vietnam, China and Thailand. From afar, Phuket is perceived as a marketable brand with a considerable upside while capturing significant market share in the Asia-Pacific leisure-property sector.
Looking at recorded property transactions, the numbers don't quite gel with the consensus of a total market slowdown. However, oversaturation of the market along with corresponding incremental transactions and a growing resale market are cause for disparity.
While the overall sales volume is there, the number of projects is rising. Most long-term investors are on the lookout for when a market peaks, which may be about to happen in Phuket.
One key indicator is when initial investors start to cash out of the market. Analyzing Land Department transactions shows that this is happening with many medium to higher-end properties.
The good news is that the people selling up in Phuket are reinvesting in more-expensive properties on the island. Market sentiment is important. Investors in Phuket continue to act with confidence without knee-jerk reactions to troubles elsewhere in the world.