Luxury villa resales on the island of Phuket have been dominated by a small number of high value transactions, some of which have doubled in price since their purchase.
Speaking to The Bangkok Post, Aliwassa Pathnadabutr, Managing Director of real estate firm CBRE Thailand, said that top-end villas on the island were part of an exclusive market characterised by a limited number of high-value transactions.
She said that major players in the sector were formerly small foreign developers with limited financial backing, but they have now been replaced by large operators.
She viewed this as a positive sign for the market in terms of reduced risks for buyers and investors, an improvement in both the quality of villas and designs.
She added that most villa sales are in the entry-level segment with prices below THB 15 million, and in spite of ongoing demand for the luxury segment, buyers still face limited supply.
He added: “In recent years, buyers’ preferences in the luxury sector have shifted towards hotel-branded products that offer quality management, five-star services and facilities as well as the ability to generate rental income.”
She said that the proportion of completed luxury villas priced above THB 35 million with hotel branding remains limited, and actually accounts for less than 10 percent of the villa market.
“We’re now beginning to see Western expat groups working in Asia, who bought prior to the 2008 financial crisis, starting to re-enter the market,” Aliwassa added.
Her views have been echoed by other senor real estate agents dealing with high-end properties on the island. Most have described a market that is dominated by a small number of high value transactions.
Khun Aliwassa’s comments are reproduced with kind permission of CBRE Thailand.