A fresh round of real-estate frenzy is underway, say builders of luxury properties. This round will be largely driven by overseas institutions. "Among the 17 new five-star hotels are three Hyatts, an Evason, a Four Seasons, Jumierah, Shangri-La, Raffles and Oberoi," said Bill Barnett, managing director of Phuket-based C9 Hotel-works. Local and global investors are putting up the cash as well as hedge funds.

"When they are completed between next year and 2009, they will add more than 2,500 luxury units," he said.

"This December marks a full recovery for the market," said Royal Phuket Marina proprietor Gulu Lalvani. "I cannot even get a rooms for friends flying in."

While there are complaints by housing agents about the uncertainty over regulations regarding leases and foreign ownership, Lalvani said he remained convinced the new government welcomed foreign investment.

"Just to show my confidence in Thailand, I am buying two more land plots for development," said Lalvani, a British national of Sikh origin. "I am planning to build two marinas in Phang Nga and Krabi."

Lalvani said he invested US$50 million (Bt1.78 billion) of his own cash in his first marina, which he was proud to say needed "zero bank financing".

Other players in the middle segment are more cautious.

German real-estate operator Norbert Witthinrich said his firm, Sea Property International, like many realty firms, had seen a big drop over the last two quarters after authorities said foreign property buyers faced new transaction

procedures. The anxieties come mainly from rules pertaining to the use of local proxies and the setting up of shell companies to facilitate purchases.

At the recent annual regatta, major sponsors like Raimon Land was upbeat that Phuket had fully recovered from two tough years of rebuilding a tsunami-devastated seafront. It has completed its large sales office atop a hill overlooking Kata Bay for its 51-unit Heights project on one 14-rai estate. Its Kata Gardens condominium nearby is almost fully booked.

Raimon Land CEO Nigel Cornick said his company was now preparing to unveil its third Phuket project, near the Amanpuri Resort at Surin Bay.

"It is likely the villa prices will start from about Bt100 million per unit," said Cornick. The company was planning to build just 17 villas on the 30-rai site, tentatively called The Chedi.

At the Raimon-land sponsored regatta party, thousands of guests filled the Kata Beach Resort venue to the brim, but one visitor noted that the quality of food this year was down from last year. "But this is still a great function, certainly the best during this season," she added.

Lalvani's party on the other end of the island was more subdued, with budgeted costs for the extravaganza that included stage shows with dancers.

Security at both parties was beefed up, enough to repel any full-scale attack.

It was beyond anything guests had seen at any airport, with hundreds of military and police troopers employed to body-search suspicious visitors.

Although Phuket has never been struck by terrorists or insurgents, organisers felt obligated to take extra precautions, since the guests were largely expats.

The recent three bombings in Phuket that made the Phuket Gazette's front page had nothing to do with sanctimonious jihads, but rather were motivated purely by greed and petty squabbles over money.

Amid the scorching heat, far hotter than Bangkok's, high prices and infrastructure such shortcomings as the small size of the provincial airport, tourists continue to flock here.

"We are going to see higher prices for property," said Barnet.

Raimon Land is already pricing its Heights condominiums at about Bt105,000 a square metre, rivalling those in Bangkok's prime central business district.

But prices in Phuket has reached such levels that many punters are having to go to places like Khao Lak in adjacent Phang Nga province, the worst-hit area of the tsunami, where thousands of holiday-makers perished.

Two years of mourning for the dead now makes way for a fresh wave of avarice and the pursuit of money.

Itthi C Tan

The Nation

PHUKET