Graeme Laird, who heads Andrew Park Consultants, is optimistic about the long-term prospects for Thai properties but admits current conditions have unsettled investors.

A hotelier by training, Laird first came to Bangkok 27 years ago to work at the Oriental Hotel when it merged with Hong Kong Land's Mandarin lchain.

He later headed the adjacent Royal Orchid hotel before serving as general manager at a number of other Mandarin-Oriental properties.

A few years back, he switched professions and headed Andrew Park, a property consultancy.

"The laws about foreign-ownership rights have been clearly stated for years, but many assumed that certain practices [such as using proxies and shell companies] were acceptable when it later turned out they were not," he noted.

"The truth is many foreign buyers are keen to invest but they are confounded by the paperwork and sometimes-confusing interpretations," he said. "As a result, many opt to invest elsewhere - in neighbouring Malaysia, where the laws are simple and friendly towards them."

But despite outright offers of residency, tax breaks and the waiving of capital-gains fees, not everyone has abandoned the Thai market.

"Many are still waiting for the clouds to clear before jumping in," Laird said.

For seasoned buyers who are comfortable with the country's political style, this is a good time to check out opportunities.

Laird represents a local company building a luxury condominium project called The Crest on a 6-rai hillside plot 1.5 kilometres from Patong Beach in Phuket.

The units are located 60-80 metres above sea level, overlooking the Andaman Sea.

Tenty two have seaviews. These are two-bedroom freehold units that are priced between Bt22 million and Bt26 million.

There are eight poolside units that do not have direct views of the sea, costing Bt10 million each.

Laird says the project is being funded by a well-known tourism figure, Charn Pirapokin. He says the island represents one of the safest places for prudent investors, because the future of the island-province remains one of the most attractive in Asia.

"For many expatriates, Phuket is easily their first choice as a place to own a second or vacation home."

In time, he says, the crisis will pass, and the fundamentals will favour Phuket once more.

"The good news is it is now much easier to accumulate real estate

"In a soft market, sellers are more willing to accept lower nable prices," he added.

Itthi C Tan

The Nation