Phuket’s real estate market is experiencing an unprecedented boom, with the total value of active projects on the island reaching $12.8 billion. This surge is driven by a significant influx of foreign buyers, particularly interested in vacation homes and condominiums, pushing property prices to new heights.
Key Takeaways
- Phuket’s real estate market has surpassed pre-COVID levels, with 500 active projects valued at $12.8 billion.
- Foreign buyers are driving demand, especially for vacation homes and condominiums priced between 20 and 100 million baht.
- The island welcomed 8.37 million tourists in 2023, a 152.29% increase year-on-year.
- Land prices in prime areas like Patong Beach have skyrocketed, reaching up to 350 million baht per rai.
Booming Real Estate Market
According to a survey by the Agency for Real Estate Affairs (AREA) in the first quarter of 2024, Phuket’s real estate market has seen a remarkable resurgence. The island now hosts 500 active projects with a total value of 470 billion baht ($12.8 billion), surpassing pre-COVID levels. Of these, 72,000 units are available for sale, with 62,000 already sold and 10,000 still on the market.
Popular Districts and Property Types
Thalang District has emerged as a hub for foreign buyers, hosting 50% of the residential projects. Mueang and Kathu districts also have significant numbers of active projects. The majority of these properties are vacation homes and condominiums, which account for two-thirds of the total market value.
Price Trends and Sales Rates
- Vacation Condominiums: 130 projects with 27,000 units, averaging 7.7 million baht per unit. Expected to sell out in 14 months.
- Vacation Homes: 149 projects with 3,300 units, averaging 36 million baht per unit. Expected to sell out in 14 months.
- General Condominiums: 50 projects with 17,000 units, averaging 2.4 million baht per unit. Expected to sell out in 15 months.
- Single-Detached Houses: 85 projects with 6,700 units, averaging 5.7 million baht per unit. Expected to sell out in 4 years.
- Twin Houses: Similar quantity to single-detached houses, averaging 3.5 million baht per unit. Expected to sell out in 3.5 years.
- Townhouses: 100 projects with 10,000 units, averaging 2.7 million baht per unit. Expected to sell out in 2.5 years.
Land Prices and Investment
Land prices in Phuket have risen significantly, with Patong Beach holding the title for the most expensive land at 350 million baht per rai. Other prime areas like Bang Tao Beach and Surin Beach also see high land prices. Major developers like Sansiri and Origin are competing for investment, with plans for new projects worth billions of baht.
Concerns and Challenges
While the real estate boom has brought economic benefits, it has also raised concerns about money laundering and illegal activities. Authorities are investigating suspicious transactions and cracking down on foreign investors who may be using property purchases to cover criminal activities.
Future Outlook
Phuket’s real estate market shows no signs of slowing down. With new projects continually being launched and high demand from foreign buyers, the island remains a top destination for real estate investment. However, authorities must balance this growth with measures to ensure legal and ethical practices in the market.
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.
- Thai police crack down on Russian investors in Phuket — BenarNews, BenarNews.
