Phuket Resorts 'Will Suffer if Condo Numbers Grow at Fast Rate'

PHUKET: The property industry on Phuket was destined for crisis if the growth in the condominium sector continued at present rates, the President of the property Association of Phuket, Thanusak Perkdate, warned today.

He told a meeting at Provincial Hall in Phuket City that the number of condos on Phuket was growing at more than 100 percent a year, much more than was needed.

Most of the units were being bought by Thais for investment, he said. The likelihood was that many of them would be rented out to rival resorts, triggering a different kind of market.

''There will be an effect on resorts at some point,'' he said. The number of condos on Phuket is not subject to controls. Nor is the growth in the number of resorts.

Prices for condos were between one million baht and two million baht, Khun Thanusak said, affordable by Phuket standards.

The market for more expensive villas had picked up by about 20 or 30 percent this year compared to last year, he said, despite the economic woes assailing Europe.