Watch This Episode: Our Phuket Real Estate Podcast
Our podcast covers all the topics for property investors looking at buying real estate in Thailand.
The property market in Phuket is experiencing a significant surge, with record prices for condos and houses driven by a combination of local and international demand. The total value of condominium and vacation house sales has exceeded 100 billion baht, marking a historic peak in the region’s real estate landscape.
Key Takeaways
- Property prices in Phuket have reached unprecedented levels, with a total value exceeding 100 billion baht.
- The market is seeing a notable increase in interest from international buyers, particularly Russians and Europeans.
- Developers are launching new projects, with a significant number of units still available for sale.
Record Prices in The Market
The unprecedented opening of condominium and vacation house sales has reached a historic peak, accumulating a total value exceeding 100 billion baht. Currently, there are 36 condominium projects comprising 8,743 units with a cumulative value exceeding 49.559 billion baht being offered for sale. This is a significant deviation from the usual practice of releasing 2,000-3,000 units per year.
Major developers, including Sansiri, Asset Wise, Origin Property, and Habitat Group, are leading the charge. For 2024, an additional 4,500 units are anticipated to be launched for sale. Of the 75 condominium projects that went on the market last year, 14,484 units have been sold, accounting for 65.08% of the total.
Growth in Vacation House Market
The market for vacation houses has also experienced rapid growth, with up to 61 projects offering 1,108 units for sale, valued at more than 51 billion baht. Most of these properties are located on the western side of the island, where prices range between 5-10 million baht. Developers involved in these projects include Laguna Resorts and Hotels, Sansiri, and Habitat Group.
International Buyer Interest
There has been a growing trend of Russian buyers purchasing properties for personal use and investment, particularly in resort areas. Additionally, there has been an increase in Israelis renting rooms in residential or long-term stay hotels. In 2023, 107 projects with 2,316 units went on sale, with 1,220 units sold, leaving 1,096 units available.
More than 98% of these projects consist of detached houses priced below 30 million baht, with significant interest from international buyers, particularly from Europe and Asia. This influx has resulted in all projects reaching the maximum foreign sales quota of 49%, necessitating long-term lease arrangements for remaining units.
Land Prices Surge
Land prices in Phuket have tripled over the past decade, with the highest prices along Patong beach, estimated at 180 million baht per rai. Continuous surveys indicate that land prices have increased by an average of 14% annually, with a notable 32% increase in the last two years, primarily driven by the tourism industry.
Post-Pandemic Market Dynamics
The luxury real estate market in Phuket is rebounding post-pandemic, with a shift in buyer demographics. The middle and upper segments of the market are booming, while entry-level purchases are lagging. This change is attributed to a new wave of wealthy buyers seeking second homes rather than holiday properties.
Conclusion
Phuket’s property market is witnessing a transformative phase, characterised by rising prices and a shift in buyer demographics. With continued interest from international buyers and significant developments on the horizon, the island’s real estate landscape is set for further growth in the coming years.
Sources
- Prices of condos and houses in Phuket reach record levels, Nation Thailand.
- Phuket Property Guide: What constitutes a bargain?, The Phuket News.
- Land prices in Phuket have tripled in ten years – Thailand Business News, Thailand Business News.
- Luxury real estate on Thailand’s biggest island is making a post-pandemic rebound, but it has changed in 3 major ways, Business Insider.
- From Phuket with love: Russians escape war in Thailand – Thailand Business News, Thailand Business News.
