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Phuket Real Estate Trends 2020-2021. What to Buy?

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The year 2020 tested the strength of all local real estate markets. Phuket is one of the main destinations for investment in Asia. It is known for high-quality resort complexes that generate guaranteed passive income. How did the island survive the lack of tourists? Did the developers drop prices, did the owners make a profit? And most importantly, what should those who intend to invest in profitable real estate in 2021 do? We understand it together with the experts of Exotic Property.

Trend #1. Prices have stopped, but there are no sales

Increasing prices is a common practice for Phuket as the compound is built. The most affordable apartments can be rented at the off-plan stage. As soon as the developer fills the foundation, the price increases by 5%. The same happens after the completion of each stage of construction. As a result, the finished apartment will cost you 30% more.

In addition to the planned increase, developers quickly change the price tags based on the current demand. For example, January-February is a hot season in Phuket. Lots of tourists, lots of deals. And apartments are usually more expensive in winter than in summer. But not in 2021…

Trend # 2. Developers complete current projects and research demand

In Phuket, two payment schemes are common for real estate under construction. First, the developer issues an invoice upon completion of the stage. Second, the client pays 100% of the price, but immediately begins to receive cashback of a guaranteed income of about 7% per annum, which is usually paid after the building is put into operation. In both cases, small delays in construction are not critical for the buyer.

In 2020, Phuket experienced one tough lockdown. In April-May, areas of the island were closed, residents sat at home. There was no construction then either, but as soon as the restrictions eased, the developers continued to work. However, in 2021, the pace of launching new projects is likely to slow down. Developers take their time and carefully analyze the demand.

Trend # 3. Investors buy remotely, waiting for expats

The coronavirus pandemic has aggravated economic problems and created a huge amount of uncertainty. Under such circumstances, there is always a growing demand for real estate as a reliable asset that allows you to protect your savings from inflationary risks. A striking example is Russia. Despite the fall in GDP and real incomes, the number of housing transactions and real estate prices jumped. Thanks to the cheap mortgage that the government has supported.

In Phuket, there are also more local buyers in 2020. The excitement began after large Bangkok developers came to the island. Developers known throughout the capital were able to attract local investors. Credit products with a down payment of 10%, which banks offer to Thais, also helped. As for foreigners, they can still count on interest-free installments from the developer, and if there is a confirmed income in Thailand, then a bank loan for the purchase of an apartment.

Trend # 4. Guaranteed income is still there, even the rates are not reduced

The most affected industry in 2020 was tourism. The decline in the number of international guests at various resorts around the world reached 90%. This led to a loss of income for the owners of rental apartments. In the best case, thanks to local tourists, it was possible to come out in the plus. But the tenants who permanently live in the resorts won the most: they were able to rent apartments for a long time in the best locations at low prices.

But Phuket has become famous among investors thanks to guaranteed income programs, under which owners receive a return of 6-10% of the price of the property, regardless of how the apartment was actually rented out. In 2020, they were just able to assess the benefits of this program.

Examples of real estate available for sale:
Apartment for 38 691 euro on Phuket Island, Thailand
38 691 €
Apartment on Phuket Island, Thailand
20 sq.m 1 1
In the complex: a new apartment complex on Nai Yang beach, 2 buildings with studio apartments overlooking the garden. The complex has an office of the management company, lobby, gym, swimming pool, garden, parking, 24-hour security. In the apartments: a magnificent view opens from all apartments in the complex. Bright spacious apartments,...
Exotic Property
Apartment for 40 175 euro on Phuket Island, Thailand
40 175 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: a new complex in the center of the island. Three eight-storey buildings with apartments. On-site private parking, communal pool, fitness center, 24-hour security. In the apartments: the modern interior of the studios is ideal for those who prefer a dynamic lifestyle. Feature: the complex is located in close proximity to the...
Exotic Property
Apartment for 43 919 euro on Phuket Island, Thailand
43 919 €
Apartment on Phuket Island, Thailand
24 sq.m 1 1
In the complex: the project consists of three eight-storey buildings with 706 apartments. The infrastructure of the complex includes a clubhouse, which will house the office of the management company, a lobby, a gym and a multifunctional space for work and recreation. The swimming pool in the complex is divided into three zones: for swimming, a...
Exotic Property
Apartment for 57 067 euro on Phuket Island, Thailand
57 067 €
Apartment on Phuket Island, Thailand
24 sq.m 1 1
In the complex: a new complex in the center of the island. Two eight-storey buildings with apartments. On-site private parking, communal pool, fitness center, 24-hour security. In the apartments: the modern interior of the studios is ideal for those who prefer a dynamic lifestyle. Feature: the complex is located in close proximity to the...
Exotic Property
Apartment for 60 542 euro on Phuket Island, Thailand
60 542 €
Apartment on Phuket Island, Thailand
31 sq.m 1 1
In the complex: a new complex in the center of the island. Studios, one-room, two- and three-bedroom apartments are located in two 7-storey buildings. On-site private Parking, shared two-level swimming pool, park area, 24-hour security. In the apartments: the concept of quality and versatility. The interior is decorated in warm colors, each...
Exotic Property
Apartment for 64 676 euro on Phuket Island, Thailand
64 676 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: a residential complex under hotel management is located in an elite area of the Lagoon surrounded by a park area. The complex has 213 apartments, a large themed swimming pool with a sandy island, a restaurant, and five-star service. The apartments have eco-friendly materials, a good layout and a bright interior. The apartments...
Exotic Property
Apartment for 64 930 euro on Phuket Island, Thailand
64 930 €
Apartment on Phuket Island, Thailand
48 sq.m 1 1
In the complex: 60 apartments in a six-storey building on the Phuket Country Club golf course, communal pool, fitness center, 24-hour security In the apartments: the interesting interior of the apartments differs from the usual style of the tropics. Natural colors and wooden finishes create an unusually warm atmosphere, competing in beauty...
Exotic Property
Apartment for 65 107 euro on Phuket Island, Thailand
65 107 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: a large complex of 7 four-storey buildings with 40 apartments each, three communal swimming pools, sauna, gym, reception, office of the management company, parking, 24-hour security. In the apartments: the complex has a unique location, directly on the first line of Rawai beach, 30 meters from the sea. Inside the apartment,...
Exotic Property
Apartment for 65 691 euro on Phuket Island, Thailand
65 691 €
Apartment on Phuket Island, Thailand
44 sq.m 1 1
The complex has 2 seven-storey buildings, a communal swimming pool, fitness center, reception, parking, 24-hour security. In the apartments: modern, comfortable apartments, equipped kitchen, terrace with views of the surroundings and the sea, comfortable bathroom with shower or Jacuzzi to choose from, the complex is surrounded by tropical...
Exotic Property
Apartment for 65 841 euro on Phuket Island, Thailand
65 841 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
Object description: a small complex consisting of two eight-storey buildings, a total of 164 apartments with 1 and 2 bedrooms. The complex has 2 swimming pools, a gym, a shop, 24/7 security, video surveillance, parking for 84 places. The price includes: finishing, plumbing. Type S total (sq.m.) Cost 1...
Apartment for 66 097 euro on Phuket Island, Thailand
66 097 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: a building of 8 floors, a total of 609 apartments of various layouts. There is everything you need for a comfortable stay: lobby, garden relaxation area, laundry room, swimming pool with Jacuzzi and children's area, coworking area, wireless Internet throughout the complex, fitness center, 24-hour security and Parking. In the...
Exotic Property
Apartment for 73 553 euro on Phuket Island, Thailand
73 553 €
Apartment on Phuket Island, Thailand
25 sq.m 1 1
In the complex: the complex covers an area of 22 hectares and includes 6 residential buildings with a height of 7 floors each. There are 814 apartments in the complex. There is a wide range of common areas and infrastructure on the territory, such as a swimming pool, lobby lounge, fitness area, playground, spa center, and much more. On the...
Exotic Property
Apartment for 76 090 euro on Phuket Island, Thailand
76 090 €
Apartment on Phuket Island, Thailand
39 sq.m 1 1
In the complex: a large complex of 14 four-storey buildings with 40 apartments each, two communal swimming pools, parking, 24-hour security. In the apartment: inside the apartment, French windows allow you to admire views of the sea or tropical mountains. The floor is made of dark wood, a combination of beige and coffee-colored inserts add an...
Exotic Property
Apartment for 77 840 euro on Phuket Island, Thailand
77 840 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: includes two condominium buildings of 8 floors each, a total of 203 apartments. Studio apartments, with one and two bedrooms, ranging in size from 27 – 60 sq.m. The complex has all the necessary infrastructure - several swimming pools, including a rooftop pool with stunning ocean views, SPA, gym and sauna, restaurant, cafeteria,...
Exotic Property
Apartment for 79 083 euro on Phuket Island, Thailand
79 083 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
The complex has all the necessary hotel infrastructure, 24-hour security, gym, panoramic swimming pool, botanical garden, recreation areas, terraces, lobby, multifunctional library, Parking. In the apartment:practical furniture, modern design, comfortable layouts. Feature:The project offers a reliable income generation scheme. The owner...
Exotic Property
Apartment for 81 923 euro on Phuket Island, Thailand
81 923 €
Apartment on Phuket Island, Thailand
34 sq.m 1 1
The complex offers a wide range of unique amenities for a comfortable life on the prestigious island of Phuket, creating an ideal environment for a comfortable life. In addition to a huge fitness center, swimming pools, a children's club, coworking, an Italian restaurant and a rooftop lounge with a cinema, there is also a modern spa center,...
Exotic Property
Apartment for 82 177 euro on Phuket Island, Thailand
82 177 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: 137 apartments in a beautiful new complex. Communal pool, bar, park area, fitness center, shuttle bus to the beach, parking, reception, 24-hour security. In the apartment: classic style, laconic design. A successful layout, in which every centimeter of space is wisely used. Feature: the management company offers a profitable...
Exotic Property
Apartment for 82 348 euro on Phuket Island, Thailand
82 348 €
Apartment on Phuket Island, Thailand
34 sq.m 1 1
Description of the object: Club Apartments is a premium boutique condominium with 5–star service and beautiful views of the Andaman Sea, located in the heart of Rawai district. In the complex:All the necessary hotel infrastructure. A swimming pool with panoramic sea views, a gym with a sauna, contactless door and elevator technology, a...
Exotic Property
Apartment for 82 931 euro on Phuket Island, Thailand
82 931 €
Apartment on Phuket Island, Thailand
32 sq.m 1 1
In the complex:the building has 7 floors with a relaxation area on the roof, a swimming pool, a cafe overlooking the Andaman Sea, a yoga center, parking, 24-hour security. In the apartment:Inside the apartment, French windows offer beautiful views of the sea and tropical mountains. The interior is designed in a classic style with elements of...
Exotic Property
Apartment for 83 699 euro on Phuket Island, Thailand
83 699 €
Apartment on Phuket Island, Thailand
31 sq.m 1 1
In the complex:the first project in Phuket in neoclassical style, a total of 82 apartments of various layouts - studios, with 1 and 2 bedrooms. Communal pool, bar, park area, fitness center, shuttle bus to the beach, parking, reception, 24-hour security. In the apartment: modern style, concise design, successful layout in which every...
Exotic Property

What to buy in Phuket in 2021

Based on the trends outlined in the crisis of 2020, we can draw conclusions.

First, the situation plays into the hands of those who are willing to make a remote transaction. Prices have hovered at the level of 2019, and developers are now not spoiled by demand. This means that the buyer can get a lot of bonuses, such as furniture or freehold status as a gift (although usually apartments in full ownership are 10% more expensive than in leasehold). But it is clear that as soon as the tourist flow is restored, the developers will immediately take a position of strength, and it will be more difficult to bargain with them.

Secondly, when choosing new buildings, buyers always paid attention to the status of the developer, and in 2021 this parameter became critically important. Around the world the risk of bankruptcies and delays in payments from small companies increases. In the current situation it is better to hedge your bets and choose projects from developers with international assets that do not depend on bank loans and investors' funds. For example, large companies from Bangkok, China, Singapore, and Hong Kong are building in Phuket.

Third, despite the fact that the guaranteed income during the first years is usually paid by the developer, it is better to choose complexes with professional hotel management (Best Western, Wyndham Group, Sheraton, etc.). An international hotel chain will be able to ensure maximum occupancy of the complex when the borders are fully opened. In turn, thiss will bring the investor a better return on the property and help to sell the property profitably.

Fourth, location is still important. All other things being equal, it is better to choose apartments located closer to the beaches in Phuket. They will also be in demand among tenants, and it will be easier to sell them, especially in popular locations where there are already not enough places for construction.

And fifth, against the background of the general enthusiasm for remote work, we can expect a further increase in the number of expats in Thailand. The local authorities, by the way, are already working on this direction, they are developing a project of long-term visas "Thailand Elite", which allow wealthy foreigners to settle in the country. Developers offer their clients who buy real estate from 10 million baht, to apply for a long-term visa for free. This trend in the future will give an incentive to increase prices for villas, townhouses and spacious apartments that are designed for long-term living. Even now, investors can take advantage of this potential: buy a property, keep it in the property for several years, and then sell it at a higher price.

Also read: Buying Realty in Thailand Remotely

Quoting conditions of Prian.info materials

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