Chinese investors are targeting the acquisition of villas, shops, hotels and even orchards to meet the needs of Chinese tourists. European investors contribute to the growth of demand for villas and houses in Phuket.
Europeans are mainly interested in houses with swimming pools both for rent to tourists and for their own use. Chinese investors are targeting a broader service sector for tourists.
Europeans buy real estate in Phuket to live. They intend to buy the property immediately, as they want to move right away. It is expected that more Chinese investors will come to the market in seven to eight months after the flow of Chinese tourists has fully recovered.
The Phuket Real Estate Association reports a huge demand, stating that all ready-made apartments and villas with swimming pools have been sold out. As COVID-19 subsided, sales of condominiums and luxury villas began to grow steadily.
The President of the association suggests that 2023 will be considered the "golden year" for the Phuket real estate market, and this trend will continue. They expect one or two more high demand from Europeans, looking for the best location and price from developers they can trust.
The number of European buyers has increased by 10-15% compared to the pandemic level and currently account for 40-60% of the total sales of pool villas in the west of Phuket. While the cost of real estate across the province jumped by 5%, prices in the west of Phuket increased by 15-20%.
Buyers are targeting villas on the beaches of Bang Tao, Cheng Talai Laguna, Kamala, Karta, Karon, Nai Ton and Patong, as these are famous and long beaches that offer privacy and a serene atmosphere.
The pool villa market in Phuket is booming, but the condominium sector has not fully recovered. In 2022, the level of condominium sales fell to 76.9% from 78.3% in the previous year. Nevertheless, experts predict that the condominium market in Phuket will regain its pre-pandemic level over the next few years.
In Bangkok, the rental apartment market also exploded in the first quarter of this year. In places from Ploenchit to Ekamai, rental rates are more than 50,000 baht per month. The occupancy of apartments in this place has recovered from 10% during the pandemic to 40%.