Patience Is The Key To Paradise
“Patience is bitter, but its fruit is sweet.” Jean Jacques Rousseau
Many things can affect tourism and real-estate investment. And there’s not always a lot that you can do, other than be patient.
Wednesday, April 2, 2008
For example, over the last 18 months a number of issues such as alleged land scams, tightening laws on foreign ownership, debate over nominee and preferential shareholdings, tougher immigration and visa rules, regular violence in the South and being a country under military rule following a coup that overthrew the previous government all, unsurprisingly, had an impact in terms of tourism and investment in real-estate on the island. Add to that list the fact that Phuket has undergone a resurgence; with tourists returning and taking advantage of lower prices following the tsunami.
However, the recent return to democracy has led to hope that all of the above issues will be less of a problem in the future. But there will now be other issues that take their place and create new problems.
It’s normal for any area to face continuing factors that affect life and investment. The important thing is that these are new problems and even more important is that these new problems are the effect of issues in other nations and not necessarily the fault of Thailand.
A lot of the previous local problems can now be dealt with and resolved; which is good news for everyone. But anyone selling their house, or any developer promoting a residential project should retain a sense of reality about the situation. The long-term looks rosy and, in time, the real-estate market on Samui and the tourist numbers will return and surpass the high levels achieved in previous years. But, that may not come immediately.
Samui now has to compete for tourists and investors with existing and emerging Thai destinations, such as: Pattaya, Phuket, Hua Hin, Krabi and Koh Chang to name but a few. Other South East Asian locations are also tapping in to both markets: Vietnam, Laos, Cambodia, Malaysia and Indonesia all offer viable alternatives. In fact, in some of these destinations buying property is far easier to do than it is here in Thailand.
However, Thailand, and Samui have something that everyone else wants but can’t somehow recreate. Of all the regional competitors Thailand continues to be the most attractive in terms of tourism and, as the two markets work alongside each other, in real-estate, too. Climate, atmosphere, cost of living, environment, low crime rates and friendly people all combine to make Thailand the undisputed number one destination. And, within Thailand, Samui is perfectly positioned to capitalise on that popularity with its own unique charms and atmosphere. Other areas have seen major efforts to attract tourists and increase real-estate opportunities. But nowhere else has seen the incredible amount of investment for the future that’s occurred here over the last 12 months.
Just about every major hotel group in the world now has an interest in at least one hotel or resort on the island and every month details of new hotel projects are released. The airport has undergone massive expansion to cater to more flights and bigger planes. It’s also opened the door for more airlines and therefore more destinations to come in the very near future. This all bodes very well for the prospects of Samui and yet people continuously talk about tourist numbers receding.
Considering all of the issues above it’s understandable that some visitors and potential investors decided to defer their visit or property purchase. The positive thing is that, now those issues can be resolved by a democratically elected government, they can once again continue with confidence.
All the signs suggest a very positive future for everyone on Samui, and especially for those involved in the tourism and real-estate industries. But that future may not be immediate. A stagnant global economy and major financial crises in the US have cast a shadow over the world’s finances. A rapid slow-down of the property market in the UK, with the threat of interest rises and an increase in property repossessions, could also have short-term repercussions on visitors and investors in real-estate. But this will not be limited to Samui; the whole world will be affected.
Since the election in December, the market on Samui has already witnessed a considerable upturn in activity. However, such new problems could restrict a repeat of the real-estate boom experienced a few years ago. That may not be such a bad thing. A market that evolves and develops steadily over time is more predictable and stable than one that builds too quickly. And, after all, it’s the predictability and stability of investments that makes them more attractive.
What all this signifies is that, for those with the means to do so, there’s still time to make a very profitable investment on Samui. The island has all the ingredients for the perfect holiday and an idyllic environment for retirees and younger professionals looking for a change of lifestyle. Those ingredients are only improving and, as these potential problems are rooted outside of Thailand, it’s inevitable that tourist numbers will rise beyond previous levels, and the real-estate market will soar above that of other destinations; local and worldwide.
The fact that this may occur at a steady speed means that now is potentially the best chance that many people will have of buying a dream property that is also a fantastic financial investment. For buyers with money to spend, now is a great opportunity to capitalise on the current market. Over the next 12 months or so the island will undoubtedly see an increase in foreign real-estate investment as astute investors capitalise on this period of time before prices rise and the market once again switches in favour of the seller.
If buyers and sellers remain realistic about the situation and have sensible expectations of the current market then everyone will be happy. Disappointment only comes when expectations are unrealistically high, as has been experienced by many property sellers recently. If all those that are employed on the island in both tourism and real-estate can be thankful that they’ve survived probably the worst period that they could possibly imagine, then they can all look forward to a future with renewed hope. For once it appears as though the major issues that could affect things on Samui are down to outside influences. Therefore, if those here continue doing what they do best and remain patient then good times will return.
“Have patience. All things are difficult before they become easy.”Saadi
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