Tourism in Phuket is currently non-existent, but CBRE Thailand had found a small silver lining in the short term. The price of land across the island has dropped allowing domestic buyers to get back into the market after years on the sidelines.
While desirable land in Phuket remains in short supply, there has been a noticeable increase in demand from domestic investors and individual buyers, according to CBRE Thailand.
“In the past, the Phuket real estate market has attracted more foreign investors than Thais as a region’s leading resort destination. However, due to the travel restrictions, more local players are now eyeing Phuket land as potential investment and asset, especially if it has an attractive price tag,” Prakaipeth Meechoosarn, Head of Capital Markets – Investment and Resort Land at CBRE Phuket, stated.
The CBRE Investment and Resort Land team saw land inquiries from local buyers rise by 50 percent during the first nine months of this year when compared to the same period in 2019. More than 60 percent of this interest is coming from developers searching for new plots and private buyers wanting to build their own residence.
“In terms of supply, Phuket land that fits the conventional requirements for development such as beachfront and ocean view is still low in amount,” Khun Prakaipeth said. “However, more land plots have become available in the market. As the current situation is a buyer market, landowners are more open to price negotiations and willing to consider options.”
Even with a buyer’s market for land in Phuket taking hold, the limited supply will require local investors to act quick or risk missing out on the best plots.
“In the buyer-market phase, Phuket land is a good option for investment as more land is offered at reasonable prices. The market has not been this attractive since the pre-COVID-19 days. However, investors and buyers may have less time for decision-making for high potential plots due to the shortage of available supply,” Khun Prakaipeth reported.
It remains to be seen when foreign buyers will return. With overseas travel extremely limited, international investors aren’t able to enter the country which makes it difficult to perform site visits and other tasks.