Phuket is exhibiting genuine signs of a property market recovery after two years of decline according to new research published today.
Real estate firm Plus Property has reported that sales of high-end condominium units priced around THB 100,000 per sqmeter and above are continuing to grow. Completed unit prices rose by 5 percent to THB 89,548 per sqm, on average, thanks to positive factors such as Thai government policies on transportation and tourism, as well as the recently-announced stimulus package for the property market.
The market has further been lifted by Phuket’s status as a highly popular destination for Thai and foreign visitors with excellent price trends and returns on investment, Plus Property noted.
Poomipak Julmanichoti, Managing Director of Plus Property, revealed its survey of the Phuket property market found the overall market had experienced slow growth however high-end beachfront condominium units priced at THB 100,000 per sqm and above were still performing well, as they were attracting interest of buyers with high purchasing power who are largely unaffected by the economic downturn.
“As a result, offerings from major developers were met with a better reception compared with the rest of the market.
“Top developers in terms of Phuket investment have a monthly absorption rate of 6.47 condominium units compared to the market’s 5.09-unit average – a fact that highlights the strong purchasing power held back just by a lack of confidence.
“Based on this data, the market slowdown can be seen as a temporary trend that will quickly be reversed once the economy improves.” Poomipak added.
“Phuket is an interesting destination for seaside vacations, with 16,241 condominium units available in the market. This includes 10,452 completed units in 53 projects (64 percent of the total supply). Demand for completed units has risen from our last survey by 38 percent to 7,166 units, representing an average take-up rate of 69 percent.
“Overall average prices now stand at THB 85,314 per sqm – up 4 percent from the previous year – and at THB 83,110 per sqm for completed units.
“With prices of completed units sitting close to the overall average, we are seeing resale units available for 5 percent more than the latter value at THB 89,548 per sqm – or between THB 2 million and THB 3 million per unit.
“This is a very good time for consumers to purchase a unit, thanks to this stimulus and various promotional campaigns from developers,” he concluded.
