Sales of villas on the Thailand island of Phuket saw a decline in Q3 2015 compared with the same period last year.
According to research from CBRE Thailand in its latest report covering the sector, the largest proportion of villas sold in terms of volume during the quarter continued to be in the entry-level (THB 5 million to THB 15 million) sector.
No high-end (between THB 35 million and THB 90 million) or luxury (more than THB 90 million) villas were sold during the three-month period.
There continued to be a large number of mainland Chinese tourists visiting Phuket however, there is no evidence to suggest that a significant proportion can be persuaded to buy villas any time soon, CBRE Thailand said.
Project launches remained relatively quiet with three projects launched in Q3. Developers remained cautious as they are aware of the slow state of the villa market.
Entry-level and mid-range buyers continued to demand guaranteed rental income as well as the ability to use the property. This has led to more developers adopting a guaranteed rental scheme in order to compete with projects that offer this incentive.
Going forward, CBRE Thailand said that is it now looking to the completion of the expansion of Phuket airport as a potential catalyst for attracting more potential buyers to the Phuket villa market.
In the meantime, CBRE believes demand will remain subdued.
Image: The recently-released Residences at Mont Azure development.
