Prakaipet Meechusan, Head of the Phuket Real Estate Transactions Department at CBRE Thailand, stated that the post-pandemic era has witnessed sustained growth in Phuket's villa and condo markets. It is anticipated that developers will introduce more luxury resort residential projects.
Overall, the Phuket condo market sold a total of 1,486 units in the first half of 2023, reaching the highest level in the past ten years.
It is projected that over 3,000 new condos will be launched throughout the year, marking an 8.9% increase compared to 2022, equivalent to 2.03 times the average condo opening volume of the past five years. The majority of upcoming projects are concentrated on the west coast of Phuket, including Bang Tao Beach and Layan Beach.
In the third quarter of 2023, the total sales value of Phuket condos increased by 113% compared to 2022. The purchasing ratio between Thai and foreign customers was equal, both at 50%.
Most foreign customers are from Russia, China, and the UK, and it is expected that this buyer demographic will remain the primary market in 2024. Customers from the Middle East and India have shown significant interest in vacation residential projects.
Moreover, 79% of buyers purchased condos for investment or rental purposes, while 21% bought them for personal use or as second homes. Phuket's well-developed infrastructure and growth potential make it a preferred choice for investment and rental clients.
For instance, the second-phase expansion of Phuket International Airport is set to be operational by 2028, expecting to host over 18 million visitors annually. The construction of highways and overpasses has increased Phuket's potential to attract foreign tourists and workers. Currently, Phuket is the second-largest digital nomad residence in Thailand, second only to Bangkok.
Bang Tao Beach and Layan Beach, not only offering stunning landscapes but also convenient access to shopping centers, Phuket Old Town, golf courses, hospitals, and international schools, have become the most favored locations for buyers. As a commercial and tourism hub, these areas have attracted many luxury resort residential projects, making them highly desirable for homebuyers.
Historically, the rental yield for luxury condos in Phuket has been around 6-8%, depending on factors such as interior décor, room size, views, and service levels.
CBRE believes that in 2024, luxury condo projects in Phuket will continue to be popular among both Thai and foreign buyers. For customers purchasing for investment, rental, or personal use, branded condos offering five-star hotel-standard services and lease management services will be among the top choices.
