Phuket’s real estate market is experiencing an unprecedented boom, with foreign buyers snapping up vacation properties and driving the market to new heights. The island has surpassed pre-COVID levels, with a total market value of $12.8 billion USD in the first quarter of 2024 alone. This surge is fueled by a combination of factors, including increased tourism, attractive visa policies, and a growing demand for luxury properties.
Key Takeaways
- Phuket’s real estate market is valued at $12.8 billion USD as of Q1 2024.
- Foreign buyers are primarily driving the demand for vacation homes and condominiums.
- The island welcomed 8.37 million tourists in 2023, a 152.29% increase year-on-year.
- Land prices have risen significantly, with Patong Beach being the most expensive.
Market Overview
According to a survey by the Agency for Real Estate Affairs (AREA), there are currently 500 active real estate projects on the island, with a total value of 470 billion baht (approximately $12.8 billion USD). Of these, 72,000 units are available for sale, with 62,000 units already sold and 10,000 units still on the market.
The gross product of Phuket Province (GPP) is estimated at 110.648 billion baht ($3 billion USD) in 2023. The island welcomed 8.37 million tourists, an increase of 152.29% year-on-year, compared to 5.27 million tourists in Bali, Indonesia, and 1.8 million tourists in the Maldives.
Popular Districts
- Thalang District: 50% of residential projects are concentrated here, with 32,000 units, 25,000 of which are already sold.
- Mueang District: 190 projects with 28,000 units, 26,000 of which are sold.
- Kathu District: 70 projects with 12,000 units, with 700 units remaining.
Property Types and Prices
- Vacation Condominiums: 130 projects with 27,000 units worth 210 billion baht, costing an average of 7.7 million baht per unit.
- Vacation Homes: 149 projects with 3,300 units, averaging 36 million baht per unit.
- General Condominiums: 50 projects with 17,000 units worth 40 billion baht, costing an average of 2.4 million baht per unit.
- Single-Detached Houses: 85 projects with 6,700 units worth 39 billion baht, averaging 5.7 million baht per unit.
- Twin Houses: Similar quantity to single-detached houses but with a total value of 23 billion baht, averaging 3.5 million baht per unit.
- Townhouses: 100 projects with 10,000 units worth 27 billion baht, averaging 2.7 million baht per unit.
Land Prices
Land prices have risen by an average of 7.47 times or 10.7% per year over the last 20 years. The highest land prices are in Patong Beach, estimated at 350 million baht per rai. Other high-priced areas include Bang Tao Beach, Surin Beach, and Karon Beach.
Developer Activities
- Sansiri Public Company Limited: Planning 16 new projects worth 15 billion baht in Phuket over the next five years.
- Origin Property Public Company Limited: Investing a total of 13.75 billion baht in Phuket this year, including residential projects and hotels.
Future Outlook
The Phuket real estate market is expected to continue its upward trajectory, driven by strong demand from foreign buyers and ongoing investment from major developers. With new projects continually being launched and land prices steadily increasing, Phuket remains a prime destination for real estate investment.
Sources
- Phuket Real Estate Booms, to $12.8B As Foreigners Rush to Buy Vacation Properties, Khaosod English.
- Real estate in Phuket continues to be in high demand, Nation Thailand.
- PHUKET XTRA: VIDEO: Corruption doesn’t discriminate in Thailand, Phuket’s billion-dollar real estate boom || June 21, The Phuket News.
- Phuket: Thailand’s thriving real estate haven – Asia Property Awards, Asia Property Awards.
- Phuket’s real estate world’s collide as off-plan sales flatten in wake of growing resales | Thaiger, Thaiger.
