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Foreign interest in owning a home on the island of Phuket has led to an unprecedented rise in local property values in 2023. New sales have broken records and land prices have soared to 25-100 million baht ($695,000 to $2.78 million) for one rai (approximately 1,600 sqm). This was stated by Phattarachai Taweewong, Director of Research and Communications at Colliers International (Thailand).
The supply of condominiums and holiday homes has reached a historic peak, with a total value exceeding 100 billion baht ($2.79 billion).
There are currently 36 condominium projects comprising 8,743 units offered for sale with a combined value of more than 49.56 billion baht ($1.38 billion). This is much more than the 2000-3000 units usually put on the market per year. Major developers, both from Bangkok and the local area, include Sansiri, Asset Wise, Origin Property, and Habitat Group.
An additional 4,500 units are expected to be launched for sale in 2024. Of the 75 condominium projects that went on the market last year, with a total of 22,253 units, 14,484 units have been sold so far, accounting for 65.08%, while 7,769 units (34.91%) are still waiting to be snapped up.
The greatest interest lies in the development of projects on the western side of Phuket, with prices ranging from 5 to 10 million baht ($139,000 to $278,000).
The holiday home market has also experienced rapid growth. There are currently 61 projects for sale with 1,108 units with a total value of more than 51 billion baht ($1.41 billion), the highest figure ever recorded.
Most of these properties are located on the western side of the island. Developers involved in these projects include Laguna Resorts and Hotels, Sansiri, Asset Wise, Origin Property and Habitat Group, as well as Siamese Estate.
There is a growing trend of Russian buyers purchasing real estate for personal use and investment, especially in resort areas. In addition, there was an increase in the number of Israelis renting rooms in residential buildings or hotels for long-term stays, especially in January.
Currently, there are 107 projects with 2,316 units that went on sale in 2023, out of which 1,220 units have now been sold, leaving 1,096 units available for sale. More than 98% of these projects consist of private homes priced below 30 million baht ($834,000).
The holiday home market in 2023 has seen significant interest from international buyers, particularly from Europe such as Germany and Denmark, as well as Asian countries such as China, Hong Kong and Singapore. As a result, all projects have reached the maximum foreign sales quota of 49%. Developers are required to sell the remaining areas on a long-term lease basis for a period of 30+30+30 years.
Origin Property has the largest market share in the condominium market and in the holiday home market, Botanica Luxury Phuket has the largest market share.
Source: The Nation Thailand
Photo by Abhishek Revis on Unsplash
