Real estate firm Knight Frank has reported there was a mismatch between the demand and supply of condominiums in Phuket during the first nine months of 2015.
In its latest research the firm revealed the Phuket condominium market grew in terms of supply as of the end of September 2015, with total existing supply of condominiums reaching 11,177 units, up 15 percent from the previous year. However, at the same time it reported that demand has dropped slightly – by 1.88 percent.
Risinee Sarikaputra, Director, Head of Research and Consultancy for Knight Frank Thailand), pointed out that approximately 1,654 units from ten projects were added to the supply during 2015 however, four condominium projects totalling 225 units, were removed from current supply. These were the Massaluna project (with 184 units) at Naiyang Beach which had been converted into a hotel, while another three projects totalling 41 units have been halted.
Risinee added that Patong Beach area had the highest amount of new supply, contributing 41 percent, thanks to its popularity among tourists and property developers. Kamala and Rawai equally represented 27 percent while the Bangtao area contributed 5 percent of total new supply.
According to Risinee most of the condominiums launched prior 2009 were spacious, with sizes of more than 100 sqm and prices of more than THB 7 million per unit. After 2010 condos have been scaled down to between 30 sqm to 40 sqm with one bedroom, and priced at between THB 3 million to THB 5 million per unit.
Demand during the nine-month period in 2015 dropped to 64.89 percent with approximately 7,393 units sold, said Risinee, adding that today most buyers of condominiums in Phuket are expatriates based in Asia, particularly from Singapore and Shanghai, who have lived and worked in the region for a number of years. Also, they tend to know Phuket well and buy a condominium in Phuket for investment-led reasons rather than for a vacation home.
The research added that Phuket continues to attract property buyers and investors from all over the world due to its reputation as a top tourist destination. It is also politically stable and offers world-class shopping malls, international medical centres and schools, as well as high-end marinas. Phuket is also home to an international airport that serves direct flights between the island and elsewhere in Asia, the Middle East and Russia.