As the sun-drenched shores of Phuket beckon travelers from around the globe, the island's property market has emerged as a beacon of opportunity for investors and homebuyers alike. This tropical paradise, nestled in the azure waters of the Andaman Sea, has long captivated the imagination with its idyllic beaches, vibrant culture, and burgeoning real estate landscape.
In the previous year 2023, the real estate sector in Phuket experienced a thriving market, with a total of 10,000 units sold, generating a revenue of 90 billion baht. While sales for holiday homes and villas have been strong, properties targeting Thai residents have been slower to move. In this comprehensive article, we delve into the intricacies of the Phuket property market in 2024.
1st Quarter of 2024
In the initial quarter of 2024, Phuket's real estate industry has witnessed a considerable surge due to the introduction of 25 fresh projects. Currently, approximately 500 real estate projects are available, consisting of 72,000 units with a total value of 460 billion baht. Out of these, 62,000 units have already been purchased, leaving only 10,000 units on the market, indicating a high demand for villas and vacation properties, particularly in the Thalang District. This information was reported by Sopon Pornchokchai, from the Thai Real Estate Research and Valuation Centre, and was published by Star Media.
Market Trends
The real estate industry in Phuket is experiencing heightened rivalry between off-plan property sales and the secondary market. According to C9 Hotelworks, from January to April 2024, resales dominated 68% of transactions, indicating a significant change in buyer preference compared to the previous year where primary and secondary sales were equally split. Currently, single-family home resales make up 70% of all transactions.
Global & Local Market
At the beginning of 2024, the leading foreign markets for Phuket's condominiums are Russia, the UK, the US, France, Australia, and Italy. The main purchasers of single-detached homes are from the US, UK, Russia, Australia, Italy, the Netherlands, France, and other Eastern European nations, with India showing potential as an emerging market. This year, the Thai real estate sector has seen positive growth in all property types.
Prospects for Investing
As the year progresses, numerous new properties are set to be finished, primarily at higher price ranges. This will likely result in a growing disparity between the values of these new developments and older properties. As a result, there will be a rise in the pricing of new developments and a more competitive market driven by the growing secondary sales sector.
In Conclusion
The current state of Phuket's property market makes it a favorable time for individuals seeking to invest. This is especially true for potential investors interested in villas and vacation properties. The market trends indicate a high likelihood of growth. With a variety of options available, including vacation condos and standalone houses, and favorable market conditions, Phuket presents itself as an appealing destination for those looking to invest in real estate.
