For Phuket property buyers, infrastructure matters. Access, commute times and traffic patterns shape rental appeal, lifestyle value and long-term demand. That makes a 600 million baht highway upgrade affecting 26 kilometers of eastern Phuket worth paying attention to.
On June 28th, Deputy Transport Minister Sornspech Boonyamanee oversaw progress on the Koh Kaew Pier U-turn project, part of a broader plan to upgrade Highway 402. The Department of Highways has proposed a budget of more than 600 million baht for fiscal year 2027 to address traffic issues along the route, which connects Phuket Town, the airport, and key residential and commercial zones in the east of the island.
The upgrade covers resurfacing, U-turn construction, drainage systems, sidewalks and traffic monitoring technology. If the broader budget receives final approval, seven additional U-turns will be upgraded across Phuket, bringing the total to nine. Two U-turn points, at kilometer markers 31 and 36, already have initial funding approved and contractors are set to begin work soon. The full project is expected to be completed and operational by 2028.
Why the upgrade matters for Phuket property
Highway 402 is not a coastal route lined with beachfront villas. It runs inland through Phuket Town, past Koh Kaew and up toward the airport. The road serves residents, workers, tourists and anyone traveling between the airport, town and the eastern side of the island.
For buyers considering property in Koh Kaew, Kathu, Phuket Town or surrounding areas, the relevance is practical. Better traffic flow means shorter commute times. Improved access can make previously overlooked neighborhoods more viable for buyers who prioritize convenience over beachfront views. Rental tenants, especially long-stay professionals, families or digital nomads, often choose properties based on ease of access to schools, hospitals, coworking spaces and the airport.
The Koh Kaew Pier U-turn, located near Ban Yi Teng, is described by officials as one of the most critical projects due to its role in alleviating traffic choke points. Koh Kaew sits between Phuket Town and the northeastern coast, near marinas, international schools and residential developments. The area has seen steady demand from long-term renters and families, but traffic congestion during peak hours has been a recurring complaint.
What the 600 million baht budget includes
The Department of Highways has proposed the budget for fiscal year 2027. The plan covers a 26-kilometer stretch of Highway 402 and includes:
- Resurfacing of road sections
- Construction of permanent U-turn facilities to replace temporary access points
- Installation of drainage systems to reduce flooding during monsoon season
- Construction of sidewalks to improve pedestrian safety
- Installation of traffic monitoring technology
Initial funding from leftover allocations in fiscal year 2026 has already been approved for two U-turn improvements at kilometer markers 31 and 36. If the broader budget is approved, seven additional U-turns will be upgraded. The minister confirmed that the full project is expected to be completed by 2028.
The wider context for eastern Phuket buyers
Eastern Phuket has long been seen as the practical side of the island. It lacks the resort glamour of Patong, Kamala or Surin, but it offers proximity to Phuket Town, the airport, marinas, hospitals and international schools. Rental demand in areas such as Koh Kaew, Rassada and parts of Kathu comes primarily from long-stay tenants, expat families and professionals working on the island.
Infrastructure improvements in this zone tend to affect property value less dramatically than beachfront areas, but they can shift buyer perception over time. If commute times drop and traffic predictability improves, the appeal of living inland rises. For landlords, better access can reduce vacancy periods and attract higher-quality tenants.
The timeline matters. Construction is set to begin soon on the first two U-turns, but the full project will not be completed until 2028. Buyers considering property in these areas now will need to weigh current access conditions against the promise of improvement two years from now.
What remains uncertain
The broader 600 million baht budget for fiscal year 2027 has been proposed but not yet received final approval. If approved, the scope expands from two U-turns to nine. The exact locations of the seven additional U-turn upgrades have not been publicly detailed.
Construction timelines in Thailand can shift due to funding delays, contractor issues or design adjustments. The 2028 delivery date is an official estimate, but buyers should be aware that infrastructure projects do not always complete on schedule.
Finally, it is not yet clear how disruptive the construction phase will be. Roadworks on a busy highway can temporarily worsen traffic conditions before they improve. For landlords with rental properties along or near Highway 402, this may affect short-term tenant satisfaction.
Frequently Asked Questions
What does the Highway 402 upgrade mean for property buyers in Koh Kaew?
The upgrade is designed to reduce traffic congestion, improve access and enhance safety along a key route connecting Phuket Town, the airport and eastern residential areas. For buyers, better access can increase rental appeal, especially among long-stay tenants and families who prioritize convenience and commute times over beachfront location.
When will the Highway 402 improvements be completed?
The full project is expected to be completed and operational by 2028. Initial work on two U-turn points at kilometer markers 31 and 36 is set to begin soon, funded by leftover allocations from fiscal year 2026. The broader 600 million baht budget for fiscal year 2027 has been proposed but not yet finalized.
Which areas of Phuket will be affected by the highway upgrade?
The upgrade covers a 26-kilometer stretch of Highway 402, affecting areas including Koh Kaew, parts of Kathu, Phuket Town and routes toward the airport. The Koh Kaew Pier U-turn near Ban Yi Teng is considered one of the most critical projects within the plan.
Could the construction phase disrupt traffic before improvements are complete?
It is possible. Roadworks on busy highways can temporarily worsen congestion before they improve traffic flow. The exact construction schedule and traffic management measures have not been publicly detailed. Landlords and property owners along the route should monitor updates as work begins.
Is the 600 million baht budget confirmed?
The Department of Highways has proposed the budget for fiscal year 2027, but it has not yet received final approval. Initial funding for two U-turn improvements has been approved. If the broader budget is approved, seven additional U-turns will be upgraded, bringing the total to nine across the 26-kilometer stretch.
Sources
- The Phuket Express — Deputy Transport Minister Oversees Koh Kaew Pier U-Turn Project, Assures 2028 Delivery — link
