Phuket’s real estate market is experiencing unprecedented growth, reaching a staggering $12.8 billion as foreign buyers rush to purchase vacation properties. A recent survey by the Agency for Real Estate Affairs (AREA) highlights that the island now boasts 500 active projects, surpassing pre-COVID levels and indicating a robust recovery in the tourism sector.
Key Takeaways
- Phuket’s real estate market value has reached 470 billion baht ($12.8 billion).
- 500 active projects are currently underway, with a significant focus on vacation homes and condominiums.
- The island welcomed 8.37 million tourists in 2023, marking a 152.29% increase year-on-year.
- Thalang District is a hotspot for foreign buyers, with 50% of residential projects located there.
Real Estate Growth Post-COVID
According to Dr. Sopon Pornchokchai, Chairman of AREA, the first quarter of 2024 alone saw new investments totaling 54 billion baht ($1.47 billion) in low-rise houses and condominiums. The market is thriving, with 72,000 units available for sale and 62,000 already sold.
Popularity of Vacation Properties
The demand for vacation homes and condominiums is particularly high, with prices ranging from 20 to 100 million baht. Notably, two-thirds of the active projects are dedicated to vacation properties, indicating a strong preference among foreign buyers.
Breakdown of Active Projects
- Thalang District: 32,000 units (25,000 sold)
- Mueang District: 28,000 units (26,000 sold)
- Kathu District: 12,000 units (11,300 sold)
Average Prices and Sales Rates
The average price for properties in Phuket is approximately 6.4 million baht per unit. Here’s a breakdown of the average prices:
| Property Type | Average Price (Baht) | Units Remaining | Monthly Sales Rate | Expected Sell-Out Time |
|---|---|---|---|---|
| Vacation Condominiums | 7.7 million | 4,500 | 7.2% | 14 months |
| Vacation Homes | 36 million | 1,200 | 7% | 14 months |
| General Condos | 2.4 million | 1,300 | 7% | 15 months |
| Single-Detached Houses | 5.7 million | 1,100 | 2.2% | 4 years |
| Twin Houses | 3.5 million | 500 | – | 3.5 years |
| Townhouses | 2.7 million | 700 | 3.1% | 2.5 years |
Land Prices on the Rise
Land prices in Phuket have surged, with Patong Beach holding the title for the most expensive land at approximately 350 million baht per rai. Over the past 20 years, land prices have increased by an average of 7.47 times, significantly outpacing other regions in Thailand.
Future Developments
Major developers like Sansiri and Origin Property are investing heavily in Phuket, with plans for new projects worth billions. Sansiri is set to launch 16 new projects valued at 15 billion baht, while Origin Property is focusing on mixed-use developments that cater to both residential and tourism needs.
Conclusion
Phuket’s real estate market is not only recovering but thriving, driven by foreign investment and a booming tourism sector. With a variety of properties available and a strong demand for vacation homes, the island is solidifying its status as a premier destination for international buyers.
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