Phuket’s real estate market is experiencing unprecedented growth, driven by a surge in foreign demand for vacation properties. Recent reports indicate that the market has surpassed pre-COVID levels, with investments reaching a staggering 470 billion baht (approximately 12.8 billion USD) in the first quarter of 2024 alone. This boom is largely attributed to the influx of foreign buyers, particularly from Russia, who are seeking second homes in this tropical paradise.
Key Takeaways
- Phuket’s real estate market value has reached 470 billion baht (12.8 billion USD).
- 500 active projects are currently underway, with a significant portion aimed at foreign buyers.
- The average price for vacation properties ranges from 20 to 100 million baht.
- The island welcomed 8.37 million tourists in 2023, marking a 152.29% increase year-on-year.
Surge In Foreign Investment
The Agency for Real Estate Affairs (AREA) reported that the first quarter of 2024 saw 54 billion baht (1.47 billion USD) in new investments, with 500 active projects on the island. Of these, 320 billion baht is allocated to vacation homes and condominiums, highlighting the preference of foreign buyers for luxury properties.
Popular Districts For Real Estate
The Thalang District has emerged as a hotspot for foreign buyers, accounting for 50% of residential projects. Key statistics include:
- Thalang District: 32,000 units, 25,000 sold, 7,000 remaining.
- Mueang District: 28,000 units, 26,000 sold, 1,200 remaining.
- Kathu District: 12,000 units, 11,300 sold, 700 remaining.
Types Of Properties Available
The market offers a diverse range of properties, including:
- Vacation Condominiums: 130 projects, 27,000 units, average price 7.7 million baht.
- Vacation Homes: 149 projects, 3,300 units, average price 36 million baht.
- General Condominiums: 50 projects, 17,000 units, average price 2.4 million baht.
- Single-Detached Houses: 85 projects, 6,700 units, average price 5.7 million baht.
Rising Land Prices
Land prices in Phuket have seen a significant increase, with Patong Beach leading the way at approximately 350 million baht per rai. This trend is expected to continue as demand for luxury properties grows, particularly in areas like Bang Tao, which has been dubbed ‘liquid gold’ due to its skyrocketing prices.
Future Developments
Major developers are responding to the booming market with new projects. Notable investments include:
- Sansiri: Planning 16 new projects worth 15 billion baht in the next five years.
- Origin Property: Investing 13.75 billion baht in various residential and hotel projects.
Conclusion
Phuket’s real estate market is on an upward trajectory, fuelled by foreign investment and a growing demand for luxury properties. As the island continues to attract international buyers, the landscape of Phuket’s real estate is set to evolve, promising exciting opportunities for both investors and residents alike.
Sources
- Phuket Real Estate Booms, to $12.8B As Foreigners Rush to Buy Vacation Properties, Khaosod English.
- Investment in Phuket real estate continues to surge, Nation Thailand.
- Investment in Phuket real estate market hits B100bn record, The Phuket News.
