Phuket properties are boosting due to high demand of Russian buyers. They are working in Hong Kong and Singapore while they are addicted to the island. Piya Sosothikul, the managing director of the Phuket-based developer Erawana Co, said the demand coming from a cluster of new customers especially Russians rather than usual buyers in Europe like British. It is naturally causing by unstable economic condition in their area.

Demand from foreign buyers was little bit increase since local customer was absent. More foreign workers in Hong Kong and Singapore were return to Thai market due to Asia economic stays strong. Erawana market research shows sales in the first half of this year were 25% up year-on-year. The company wished for 5,4 billion baht sales this year rather than 4 billion baht record last year. Mr Piya, , a former Bangkok Bank executive, said Phuket market will remain for next 12-18 months but still lower than the peak of 2006 when sales were up 10 billion baht.

However it shook by 29 failed projects of the total of 168 projects due to it disturbed consumer confident who paid substantial down payment. They are unable to get refund on their villas and condos. Further it will influence the total recovery of Europeans on their financial crisis. Mr Piya said his company would launch 15 villas at Tanode 3 in the Laguna area worth 300 million baht by the end of this month. Erawana launched the five-villa Peykaa worth one million baht each earlier this year. Currently it has 20% in sales from both projects and expects to have 150-200 million baht in sales per year. Established in 2005, the company has developed 11 residential projects worth close to 1.5 billion baht in Phuket comprising more than 120 villas with prices in the range of 15-20 million baht apiece.

News by Bangkok Post