The Phuket real estate market is experiencing a significant boom, driven by the return of Russian and Chinese buyers. This resurgence in demand was particularly noticeable in the fourth quarter of last year, according to Nattha Kahapana, managing director of Knight Frank Thailand.
Key Takeaways
- Russian buyers account for 40-60% of pool villa sales in western Phuket.
- Real estate prices in popular beach areas have risen by 15-20%.
- Chinese buyers are increasingly entering the market, focusing on properties to serve their own people.
- The condominium market in Phuket has not yet fully recovered.
Surge in Demand for Pool Villas
Pool villas in western Phuket are in high demand among foreign buyers, with Russians acquiring 40-60% of the total sales. This marks a 10-15% increase from pre-pandemic levels. Popular areas among buyers include Kata, Karon, Patong, Kamala, Nai Ton, and Bang Tao beaches, as well as Cheng Talay Lagoona. These locations are favored for their long, private, and famous beaches that offer a calm atmosphere.
Rising Real Estate Prices
As a result of the increased demand, real estate prices in these popular beach areas have risen by about 15-20%, compared to an average increase of 3-5% in other parts of the province. According to Knight Frank research, demand from Russians is expected to remain high for the next 1-2 years. The top three factors influencing their decision to buy are location, price, and trustworthy developers.
Chinese Buyers Entering the Market
The report also highlights a rise in Chinese buyers. While Russians are purchasing property primarily for rest and relaxation, Chinese investors are looking for real estate to serve their own people. This shift in buyer demographics is contributing to the overall growth of the Phuket real estate market.
Condominium Market Struggles
Despite the surge in pool villa sales, the condominium market in Phuket has yet to fully recover. Condominium sales in 2022 fell from 78.3% the previous year to 76.9%. This indicates that while certain segments of the real estate market are booming, others are still facing challenges.
Sources
- Return of Russian, Chinese buyers sparks Phuket real estate boom, Nation Thailand.
