VERY INTERESTING ARTICLEThai real estate market тАШgoing greyтАЩ
http://www.property-report.com/archives ... &date=0602
Thai real estate market тАШgoing greyтАЩ
Dawn Ferguson
After all that planning and saving, when the time to retire finally comes most opt to head for warmer climates тАУ at least for part of the year...
... And as the allure of the traditional European hotspots wears off thanks to rising costs, developers here are capitalizing on ThailandтАЩs growing popularity among aging baby boomers looking for a new life. By Dawn Ferguson
тАЭItтАЩs definitely a market we see as being a growth market in the coming years,тАЭ says Henri Young, manager of development at Raimon Land. тАЬAlready, in Phuket as well [as Pattaya], a lot of our buyers are either retired or semi-retired. And a lot of Europeans plan to leave the harshness of the winter over there and relocate here for at least 3-4 months annually.тАЭ
Exactly which locale in Thailand is the most popular among retirees and seniors is difficult to pin down, as there has been little research specifically conducted to analyze this segment of the market. But, Young says RaimonтАЩs research department is now in the midst of deciding where the demand exists for purpose-built retirement condominiums.
тАЬWeтАЩre certainly catering to that market,тАЭ says Young. тАЬIf you look at the demographics from Northshore [a grade A condominium project in Pattaya that has nearly sold out] 35 per cent of the buyers were from the UK aged over 45.тАЭ
Given that most retirees make the decision to spend more time in Thailand after having visited the countryтАЩs major tourism destinations, it only makes sense they are putting down roots in hotspots like Phuket, Pattaya and тАУ a surprise to some тАУ Hua Hin.
While not that well-known on the international stage, this seaside town has long been a popular spot for retirees given itтАЩs a fair bit quieter than other resort hotspots like Pattaya and Phuket.
According to Steven Moore, managing director of the Property ShopтАЩs Hua Hin franchise, Hua Hin has in recent years seen a surge in arrivals.
тАЭOver the last year Hua Hin has begun to boom,тАЭ says Moore. тАЬPeople looking for retirement homes seem to be investing early; theyтАЩve caught on to the fact that prices are going to increase rapidly over the next few years тАУ they already are. IтАЩm finding probably about 40 per cent of my traffic at the moment is from people intending to use the home as a holiday home over the next few years with a view to retiring here permanently.тАЭ
The majority of people retiring in Hua Hin are made up of residents from the UK and Scandinavians, says Moore, adding that thereтАЩs an enormous amount of development going on right now in Hua Hin.
тАЭItтАЩs got everything going for it now,тАЭ he says. тАЬThereтАЩs a great selection of restaurants here with more opening all the time. ItтАЩs a quiet lifestyle, everything you want is here. ItтАЩs easy to get around, itтАЩs safe, and the kingтАЩs presence and the massive police presence make sure of that.тАЭ
Meanwhile, in Phuket, developers are now creating projects that appeal to the older demographic. In fact, one developer is going the extra mile and offering perspective retirees a way to literally just get up and go once their working years come to an end.
Island Oasis Resorts GroupтАЩs Kamala Lakeside Village features all the facilities that would appeal to retirees, says Keith Andrew, sales & resorts manager, and are fully-furnished, including even the sheets on the beds.
тАЬPeople that are going to retire have probably been living in the same house for the last 40 years in England or somewhere, and once theyтАЩre retired, theyтАЩre saying тАШhang on here, we can probably sell our house here and live in Phuket in luxury for the same price we can sell our little house here in Essex or London or Scandanavia or whatever,тАЩтАЭ says Andrew.
Units in Lakeside Village start at 144 sq meters, with prices averaging at about Bt10.25 million. The luxury two bed apartments and duplex penthouses in the village are to be built around four central swimming pools with onsite amenities, including a health spa, gymnasium, jacuzzis, a games room, library, large screen cinema/TV and a club/meeting room. And, keeping in mind their target market, there will be an onsite health clinic staffed by a nurse.
But, Andrew is cautious about pigeon-holing the project.
тАЬWeтАЩre not going to call it a retirement village as such,тАЭ he says. тАЬOnce you speak about a retirement village everybody seems to think of old people that are getting around in wheel chairs. WeтАЩre doing it for people who are planning retirement in 12 or 18 months timeтАжor theyтАЩre prepared to sell their house, get rid of their cars, etc. - prepared to start a completely new life where theyтАЩre coming into South East Asia at the end of their working life.тАЭ
As part of the package, Andrew says Lakeside Village will guarantee buyers a retirement visa on arrival, as well as two yearтАЩs worth of health insurance and two-health check-ups per year for two people. Units are on sale now, and Island Oasis plans to start to building in the next few months.
Besides Lakeside Village, there is little on offer in Phuket that is truly geared for the тАШgrayingтАЩ generation, despite the island making Fortune magazineтАЩs list of тАШfive idyllic places to retireтАЩ. However, Larry Cunningham, Managing Director of Phuket One Real Estate, is hoping to change that.
Cunningham says about 25 per cent of his clients are in or nearing the retirement phase of their lives - and that number is growing as more people recognize what Thailand has to offer.
тАЬWe sold a house to a gentleman from Tahiti; this fellow was nearly 70 and I had to meet him because I wanted to know why one guy would move from an island paradise to another,тАЭ says Cunningham. тАЬ[The Tahitian man] said: тАШIn Phuket I can get a driver, a gardener a maid and a cook for the same price it would cost me to get a gardener in French Polynesia.тАЩ So the retirees are coming here.тАЭ
Cunningham says he is currently looking at possible sites for retirement villages in Phuket, which would fill a much-needed gap.
тАЬThere are no retirement villages here at present, but IтАЩve got a fellow here from Australia that has a dozen or so retirement villages in Australia and weтАЩve been researching possible sites here,тАЭ he says. тАЬThe Australian is very interested in running a club sort of situation where a retiree would spend six months in an Australian retirement village and six months here, rotating around like that.тАЭ
Meanwhile, in Pattaya, data from Raimon Land shows that 48 per cent of Pattaya buyers were aged over 50 years old, and of that figure 16 per cent were over 60 years old.
David Gray, managing director of East Coast Real Estate, says that while he hasnтАЩt noticed a significant surge in the number of retirees coming to Pattaya, they are indeed a target market. тАЭThe one thing [developers] are doing to attract the older generation is making them better managed,тАЭ says Gray. тАЬOld people tend to want full property management services so there are more builders coming along with those types of facilities.тАЭ
Property developers arenтАЩt the only ones trying to lure retirees here. Even the Thai government is in on the act, with its Thai Longstay Management Company (TLM). Set up as a private company in 2002 with the endorsement of the Thai Cabinet and the Tourism Authority of Thailand as the major shareholder, TLM assists тАЬforeign nationals in planning and booking extended or longer-than-average stays in ThailandтАЭ.
According to TLM, in addition to providing accommodation and tour arrangements, they will provide services for anyone wishing to retire, or make an extended visit to Thailand for a specific purpose, such as rehabilitation, medical and dental care. Packages on offer include a number of items designed to make the life of visitors easier, including the use of a mobile phone and a Thai bank account.
They too will help foreigners applying for "Non - O (retirement) Code Visas". To be eligible for the visa, which is renewed yearly, the foreigner must be over 50 years of age, with no plans to work in Thailand. They also need a copy of a bank statement showing a deposit of no less than Bt800,000, or an income certificate with a monthly salary of no less than Bt65,000, or a deposit account plus a monthly income that totals no less than Bt800,000 a year.
But, thanks to ThailandтАЩs low cost of living and year-round warm weather, retirees donтАЩt seem to be letting this bit of red tape stand in their way тАУ a fact the countryтАЩs developers are hoping to cash in on.
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