The flow of people coming to Phuket is reviving, the beaches are crowded again, tourists are looking for rental homes, while some are even thinking about purchasing real estate. The market demand is the highest for single-family houses and large condominiums.
There have been drastic changes on Phuket compared to 2019, when the Chinese accounted for most of the demand for real estate. Back then, new condominiums were sought after. Many of those were hotel-managed and promised a high level of service.
COVID-19 quickly turned that around. Many foreigners were unable to visit their recently purchased properties and some transactions were canceled.
The demand has shifted towards villas: Thai nationals from Bangkok were flocking to Phuket, while rich expat families from Hong Kong, Singapore, and other places chose Phuket as a place of residence for the sake of its international schools, hospitals, yacht marinas, golf courses, and a promise of slower-paced, nature-oriented living.
Today, the demand for upscale real estate on the West Coast, in the so-called Laguna, is growing. This is where the island’s most expensive properties are located.
According to recent data, five key developers of boutique villas are now the market leaders:
- Phuket Exclusive Development;
- AAP Architecture Properties and Development;
- Pearl Island Property;
- Attitude Club;
- Bangtao Paradise Construction.
50 projects with over 1,100 properties are currently under construction.
Developers changed prices drastically in relatively short time. Houses that used to cost 15 – 20 million baht are now worth 30 – 80 million US dollars. This certainly reflects a critical shift in the buyer’s income.
Another key trend is that many real estate buyers are interested not only in residential but also in commercial properties that can be leased for offices, bars, restaurants, and shops. These investment properties are quickly bought out by Thai and foreign buyers alike.
As for the resort-class condominiums, this market has divided into two segments over the past few years. There is still a market for entry-level investment-type properties, as evidenced by high buyout indicators of properties with an average price of 5 million baht. At the other extreme are buyers interested in apartments worth 9 – 15 million baht. This trend became apparent in the demand for larger multi-room apartments in Laguna Beachside and Skypark.
The pandemic has changed the island’s real estate market in dramatic ways. Middle-class tourists are now returning to the country and it is still unclear how it will affect the market’s priorities.