Wilmslow, United Kingdom (PressExposure) June 25, 2009 -- Real estate market of Phuket and Koh Samui is witnessing a u-turn for last one year. Statistics show that there is a 70% slash in real estate transaction in the first four months of 2009. Both land and property were affected by this. There were only 1,945 transactions involving land title deeds for the period from January to April 2009. Business created by these transactions amounted to Bt883.24 billion baht. A lion share of this money came from the sale of land with pre-existing structure.
Worst sufferer of this downturn is business tax collection. Koh Samui [http://www.livethedream.com/] government collects business tax of 3.3% over the appraised value of property. Total business tax collected during this period is Bt132.0m and it was Bt104.3m during January to April 2008. Transfer fees (2% of registered value) also experienced a sharp decline of 91m compared to the last yearâs statistics. Collection of withholding tax, stamp duty also faced the heat of this slow down.
However, insiders of Koh Samui Real estate market are of the view that this volatility is of short-term in nature and the market will heal itself fast. They are looking at catalysts like increasing popularity of Koh Samui as a holiday destination, growing number of events and activities at this island as crowd-pullers. Comparison to island tourist destinations of the same league, land and property rate at Koh Samui is far cheaper. Along with it, Thai law is liberal towards investors who are interested to pour money into Thai economy to own property without much legal hassles.