The sales performance of the overall Phuket villa market declined during the first quarter of 2015 due to a slump in the entry level villa market.
According to the latest research from CBRE Thailand published yesterday, the sales volume of the other sectors remained relatively stable.
Entry-level villas priced between THB 5 million and THB 15 million are the most dependent on Russian buyers. According to CBRE, this sector will remain weak if the Russian economy and its currency, the ruble, does not make a recovery.
However, CBRE said it has seen evidence of some Chinese buyers entering this sector. It is possible that they may start buying in bulk once they have confidence in the market.
Two luxury villas (priced more than THB 90 million) were sold in Q1 2015. Both villas were located in the Banyan Tree Grand Residences development, with starting prices of THB 101 million.
In conclusion, CBRE said that it believes the villa market will remain sluggish in the near future.
“We do not expect that Chinese buyers will be able to immediately replace the decline in Russian buyers in the coming quarters.
Image: A Phuket villa in Patong, on the market with CBRE with a price tag of THB 90 million.
