Prices of condos and houses in Phuket reach record levels
Foreign interest in owning a home in Phuket pushed real estate costs to unprecedented heights in 2023, with newly launched sales breaking records and land prices soaring to as much as 25-100 million baht per rai (approximately 1,600 square metres), Phattarachai Taweewong, director of Research and Communications at Colliers International (Thailand), revealed last week.
The unprecedented opening of condominium and vacation house sales reached a historic peak, accumulating a total value exceeding 100 billion baht.
There are currently 36 condominium projects comprising 8,743 units with a cumulative value exceeding 49.559 billion baht being offered for sale.
This deviates from the usual practice of releasing 2,000-3,000 units per year. Major developers, both from Bangkok and the local area, include Sansiri, Asset Wise, Origin Property, and Habitat Group.
For 2024, it is anticipated that an additional 4,500 units will be launched for sale. Of the 75 condominium projects that went on the market last year, comprising a total of 22,253 units, 14,484 units have now been sold, accounting for 65.08%, leaving 7,769 units (34.91%) still waiting to be snapped up.
The majority of interest lies in the development of projects on the western side of Phuket, with prices ranging between 5-10 million baht.
The market for vacation houses has also experienced rapid growth. There are up to 61 projects with 1,108 units now available for sale, with a total value of more than 51 billion baht, the highest figure ever recorded.
Most of these properties are located on the western side of the island. Developers involved in these projects include Laguna Resorts and Hotels, Sansiri, Asset Wise, Origin Property, and Habitat Group. and Siamese Estate. And many other projects have garnered strong interest from buyers.
Notably, there has been a growing trend of Russian buyers purchasing properties for personal use and investment, particularly in resort areas. Additionally, there has been an increase in Israelis renting rooms in residential or long-term stay hotels, especially in January.
Currently, there are 107 projects with 2,316 units that went on sale in 2023, out of which 1,220 units have now been sold, leaving 1,096 units available for sale.
More than 98% of these projects consist of detached houses with prices below 30 million baht, followed by homes in the ranges of 30-50 million baht and 50-70 million baht.
In the real estate market for vacation houses in 2023, there was significant interest from international buyers, particularly from Europe such as Germany, and Denmark, and Asian nations like China, Hong Kong, and Singapore.
This has resulted in all projects reaching the maximum foreign sales quota of 49%. Developers are required to sell the remaining units under a long-term lease arrangement for 30+30+30 years.
Origin Property has the largest market share in the condominium market, while for vacation houses, Botanica Luxury Phuket has the largest market share.
