Luxury property 'defies Thai slowdown'

The luxury end of Thailand's villa market has remained buoyant, a new report has stated.

A study by consultants C9 Hotelworks has found that the value of luxury villas in the resort of Phuket has reached BT3.5 billion (GBP6.3 million) in the first half of 2009.

This upturn has seen the top end of the market defy the downturn that has left the wider property sector in the country still in the doldrums, C9 said.

Managing director of the firm Bill Barnett stated: "While market recovery prospects are being set back to 2011, there has continued to be a gradual upswing in activity."

He said this was due to "financial source markets" improving sooner than expected in countries where overseas buyers of Thai property are from.

Thailand and the south-east Asia area is set to see its prices stabilise and recover in the year ahead, The Star Business noted last week.

CLSA Asia-Pacific research suggested Thai homes would either be stable or see slight increases next year, the paper noted.