When second-hand homes start flooding a property market faster than new projects can clear, the balance shifts. For Phuket property buyers, that shift is becoming visible.
Thailand’s unsold residential inventory reached 590,000 units in the first quarter of 2026, according to Kasikorn Research Center (K-Research), and could exceed 610,000 units by year-end. The key detail: second-hand listings climbed 34.2% year-on-year to 240,000 units as individual owners, financial institutions and asset management companies accelerated property disposals.
Phuket is among the provinces where rising inventory is most visible, particularly in higher-value properties.
The detail worth watching
The fastest growth in unsold inventory was not in the mass market. Homes priced above 10 million baht saw accumulated inventory jump 48% year-on-year to 46,000 units nationwide. The increase was driven largely by resale properties rather than new launches.
In plain English: affluent owners are bringing more assets to market.
For Phuket, where villa developments and luxury residential projects target international buyers and lifestyle investors, this matters. The province was specifically named by K-Research alongside Chon Buri and Chiang Mai as recording rising inventories of both new and resale housing.
The trend suggests that even higher-end markets previously considered more resilient are now seeing increased supply pressure. K-Research noted the rapid expansion of luxury resale supply may intensify competition, even in segments that developers shifted toward to avoid mass market oversupply.
Why developers slowed new launches
Unsold new homes held by developers actually declined 6% year-on-year to around 350,000 units. This was not a sign of strong sales. Developers curtailed new project launches amid slowing market conditions and prioritised clearing existing stock over expanding supply.
Accumulated residential inventory is now almost twice Thailand’s average annual housing transfer volume. That gap intensifies competition across all segments and strengthens buyers’ bargaining power while putting pressure on developers’ sales strategies, pricing and financial performance.
Greater Bangkok accounted for 52% of nationwide unsold inventory, equivalent to more than 310,000 units. But the story extends beyond the capital. Economic provinces including Phuket are seeing inventory rise as both new projects sit longer and second-hand listings increase.
What this means for Phuket property
For buyers comparing Phuket properties, the change is worth noting. Rising inventory typically translates to stronger negotiating positions, more choice and less pressure to commit quickly—especially in the luxury and upper-mid segments where resale supply is growing fastest.
For sellers and landlords, the opposite applies. More competition means pricing discipline becomes more important. Properties that were positioned aggressively a year ago may need reassessment if they are competing against a growing pool of resale listings from motivated sellers including financial institutions clearing distressed assets.
Developers in Phuket face a narrower window. The shift toward premium housing to avoid mass market competition looked logical when luxury supply was tighter. Now that luxury resale inventory has jumped 48%, even higher-end projects face increased competition.
K-Research expects nationwide housing transfers to increase by only 2.1% in 2026, despite a 13.4% year-on-year rise during the first four months. The expectation is that market momentum will soften in the second half. Although the government extended transfer and mortgage fee reductions for homes priced up to 7 million baht, the measure is unlikely to fully offset weak consumer confidence and fragile purchasing power.
What remains uncertain
The report does not specify how much of Phuket’s inventory sits in which price bands, nor does it break down resale versus new stock at the provincial level. It also does not address foreign buyer activity, which plays a larger role in Phuket than in most Thai provinces.
What is clear is that Thailand’s residential market is entering what K-Research describes as a more buyer-friendly phase. Developers are likely to remain cautious on new investment until excess supply is gradually absorbed.
For Phuket, where demand is shaped by tourism trends, foreign investment appetite, long-stay visa policy and rental yield expectations as much as by domestic purchasing power, the local market may not move in perfect step with national figures. But the underlying pressure from rising resale inventory and constrained buyer demand is the same.
Frequently Asked Questions
What does rising inventory mean for Phuket property buyers?
Rising inventory typically strengthens buyers’ negotiating power. With more homes available and sellers facing greater competition, buyers have more choice and less urgency to commit. This is especially visible in the luxury segment where resale listings have increased significantly.
Why is second-hand inventory growing faster than new supply?
Individual owners, financial institutions and asset management companies accelerated property disposals in the first quarter of 2026. Second-hand listings climbed 34.2% year-on-year to 240,000 units nationwide, while developers curtailed new project launches and focused on clearing existing stock.
Is Phuket’s luxury property market affected by this trend?
Yes. Homes priced above 10 million baht saw inventory jump 48% year-on-year to 46,000 units nationwide, driven largely by resale properties. Phuket was specifically named as a province recording rising inventories in both new and resale housing.
Could this affect property prices in Phuket?
Rising inventory and increased competition typically put downward pressure on pricing or at minimum reduce sellers’ ability to price aggressively. Buyers gain stronger negotiating positions when supply exceeds demand and inventory sits longer.
What is the outlook for the rest of 2026?
K-Research expects nationwide residential inventory to rise 4.5% to more than 610,000 units by year-end as second-hand listings continue increasing. Housing transfers are projected to increase by only 2.1% for the full year, with momentum expected to soften in the second half despite government fee reductions.
Sources
- Bangkok Post — Second-hand homes flood the market — link
- Kasikorn Research Center (K-Research) — Residential inventory report cited in Bangkok Post article
