Phuket’s real estate market is experiencing an unprecedented boom, with property values soaring to $12.8 billion as foreign buyers rush to invest in vacation homes and condominiums. This surge has surpassed pre-COVID levels, making Phuket a global hotspot for real estate investment.
Key Takeaways
- Phuket’s real estate market has reached a total value of $12.8 billion.
- Foreign buyers are driving the demand, particularly for vacation homes and condominiums.
- The island’s Gross Provincial Product (GPP) is estimated at $3 billion in 2023.
- Land prices have increased significantly, especially in prime areas like Patong Beach.
- Major developers like Sansiri and Origin are heavily investing in new projects.
A Booming Market
According to a survey by the Agency for Real Estate Affairs (AREA), there are currently 500 active real estate projects in Phuket, with a total value of 470 billion baht ($12.8 billion). This marks a significant increase from pre-COVID levels. The survey also revealed that 72,000 units are available for sale, with 62,000 units already sold.
Popular Districts
Thalang District is a major hub for foreign buyers, hosting 50% of the residential projects. Mueang District and Kathu District also have a significant number of projects. The types of properties available range from single-detached houses and townhouses to vacation homes and condominiums.
Investment Breakdown
- Vacation Condominiums: 130 projects with 27,000 units worth 210 billion baht. Average price: 7.7 million baht per unit.
- Vacation Homes: 149 projects with 3,300 units worth 36 million baht per unit.
- General Condominiums: 50 projects with 17,000 units worth 40 billion baht. Average price: 2.4 million baht per unit.
- Single-Detached Houses: 85 projects with 6,700 units worth 39 billion baht. Average price: 5.7 million baht per unit.
- Twin Houses: Similar quantity to single-detached houses, total value of 23 billion baht. Average price: 3.5 million baht per unit.
- Townhouses: 100 projects with 10,000 units worth 27 billion baht. Average price: 2.7 million baht per unit.
Rising Land Prices
Land prices in Phuket have risen by an average of 7.47 times over the last 20 years. Patong Beach holds the title for the most expensive land, with prices reaching 350 million baht per rai. Other areas like Rawai Beach and Bang Tao Beach have also seen significant increases.
Major Developers
Sansiri Public Company Limited and Origin Property Public Company Limited are two major developers investing heavily in Phuket. Sansiri plans to launch 16 new projects worth 15 billion baht over the next five years. Origin has already pre-sold a major project, "Origin Resort World Phuket Bang Tao Beach," worth 8 billion baht.
Concerns and Challenges
Despite the booming market, there are concerns about money laundering and other illegal activities. Authorities are investigating whether foreign buyers are using real estate investments to cover criminal activities or evade taxes.
Future Outlook
The future looks promising for Phuket’s real estate market. With new projects continually being launched and foreign investment pouring in, the island is set to remain a top destination for real estate investment. However, authorities will need to address the challenges to ensure sustainable growth.
Sources
- Phuket Real Estate Booms, to $12.8B As Foreigners Rush to Buy Vacation Properties, Khaosod English.
- PHUKET XTRA: VIDEO: Corruption doesn’t discriminate in Thailand, Phuket’s billion-dollar real estate boom || June 21, The Phuket News.
- Phuket real estate boom sparks money laundering suspicions, Nation Thailand.
- Phuket: Thailand’s thriving real estate haven – Asia Property Awards, Asia Property Awards.
- Phuket’s soaring real estate market becomes a beacon for global investors in 2023 – Asia Property Awards, Asia Property Awards.
