The Phuket villa market performed well to end last year with CBRE Thailand recording a 125 percent increase in sales during the second half of 2021 when compared to the same period in 2020. That momentum has carried over into this year as the consultancy saw buyers continuing to seek residences on the island.
“Since the beginning of 2022, we have sold several villas to local buyers looking for luxury resort homes in Phuket. We believe the luxury villa market will continue to do well because buyers are looking for flexible working space and a safe haven for their family’s privacy,” Khun Prakaipeth Meechoosarn, CBRE Thailand Head of Phuket Property Sales, noted.
She added that further pent-up demand came from Thai and foreign clients seeking opportunities to buy Phuket properties on sale at special prices. Overall, local buyers looking for resort and second homes continue to be the most active in the Phuket villa market.
However, the potential for additional growth across the sector is likely, although it is dependent upon two major international groups of buyers who may remain absent for the foreseeable future.
“Chinese and Russian investors are largely absent from the Phuket condominium market due to travel restrictions and the ongoing international conflict. If these groups return, we may see a wider market for both groups, including both investment and own-use buyers,” Khun Prakaipeth stated. “Meanwhile, the Chinese market will be a challenge for developers with limit restrictions on bank transfers. Nonetheless, developers with Chinese joint ventures may have an advantage with bank transfers and greater confidence in projects.”
According to CBRE, the Phuket villa market could be buoyed by two types of Chinese buyers once this group returns. The first is investors seeking guaranteed yields and tenancy management. The other are end-users looking for luxury villas to use holiday homes with possible leasing opportunities.
Keep Reading: Digitization has shaped the Phuket property market during the pandemic
