PHUKET – Phuket’s real estate market is booming more than ever, surpassing pre-COVID levels. According to a survey by the Agency for Real Estate Affairs (AREA) in the first quarter of 2024, there are 500 active projects on the island with a total value of 470 billion baht (12.8 billion USD).
Particularly popular are “vacation homes and condominiums”, which are bought by foreign buyers at prices between 20 and 100 million baht each.
500 Projects Worth 470 Billion Baht
Dr. Sopon Pornchokchai, Chairman of AREA, told “Prachachat Business” that the latest survey of Phuket’s real estate market recorded 54 billion baht (1.47 billion USD) of new investment in both low-rise houses and condominiums in the first quarter of 2024 alone. As a result, there are 500 active projects on the island with a total value of 470 billion baht, which is higher than the pre-COVID period in 2020.
Of these, 72,000 units are available for sale. 62,000 units have already been sold, 10,000 units are still on the market.
The gross product of Phuket Province (GPP) is estimated at 110.648 billion baht (3 billion USD) in 2023. The island welcomed 8.37 million tourists, an increase of 152.29 percent year-on-year, compared to 5.27 million tourists in Bali, Indonesia (144.61 percent growth), and 1.8 million tourists in the Maldives. This cements Phuket as a world-class destination favored by international travelers.
Thalang District: A Hub for Foreign Buyers
The survey reveals that 50 percent of the residential projects are concentrated in Thalang District, with 32,000 units, 25,000 of which are already sold, leaving 7,000 units. In Mueang District, there are 190 projects with 28,000 units, 26,000 of which are sold, leaving 1,200 units. Kathu District has 70 projects with 12,000 units, with 700 units remaining. These include single-detached houses, twin houses, townhouses, shophouses, condos, and vacation homes or villas.
Dr. Sopon notes that:
- Of the 470 billion baht worth of active projects, two-thirds (320 billion baht) are vacation homes and condominiums, leaving only one-third as regular residential properties for Thai buyers.
- There are 130 vacation condominium projects with 27,000 units worth 210 billion baht, costing an average of 7.7 million baht per unit, with 4,500 units remaining. The monthly sales rate is 7.2 percent and the market is expected to be sold out in 14 months if no new projects are launched.
- There are 149 vacation home projects with 3,300 units, averaging 36 million baht per unit, with 1,200 units remaining. The monthly sales rate is 7 percent, expected to sell out in 14 months.
- There are 50 projects for general condos with 17,000 units worth 40 billion baht, costing an average of 2.4 million baht per unit, with 1,300 units remaining. The monthly sales rate is 7 percent and is expected to be sold out in 15 months.
- Single-detached houses have 85 projects with 6,700 units worth 39 billion baht, averaging 5.7 million baht per unit, with 1,100 units remaining. The monthly sales rate is 2.2 percent, expected to sell out in 4 years.
- Twin houses have a similar quantity to single-detached houses but with a total value of 23 billion baht, averaging 3.5 million baht per unit, with 500 units remaining. The monthly sales rate is expected to sell out in 3.5 years.
- Townhouses have 100 projects with 10,000 units worth 27 billion baht, with 700 units remaining, averaging 2.7 million baht per unit. The monthly sales rate is 3.1 percent, expected to sell out in 2.5 years.
The average price for houses and condominiums in Phuket is 6.4 million baht per unit. Regular residential properties cost an average of 3.5 million baht per unit, while vacation properties cost an average of 10.7 million baht per unit.
The cheapest project is “Baan Ekachai Villa” on Thepkrasattri Road in the Lipon area, a single-storey townhouse priced at 0.999 million baht, which is already sold out. The most expensive project is “The Estates at Mont Azure” in Kamala Beach, priced at 262 million baht per unit.
Vacation Homes Boom from 20 to 100 Million Baht
Dr. Sopon states that the prices for the different types of properties are as follows:
- Single-storey houses: most units are priced at 5-7 million baht, followed by 7-10 million baht per unit.
- Semi-detached houses: Most units are priced at 3-5 million baht, followed by 2-3 million baht.
- Townhouses: Most units are priced at 2-3 million baht, followed by 3-5 million baht.
- Shophouses: Most units are priced at 3-5 million baht, followed by 5-7 million baht and 7-10 million baht.
- General condominiums: Most units are priced at 2-3 million baht, followed by 1-2 million baht.
- Vacation condominiums: Most units are priced at 5-7 million baht, followed by 3-5 million baht and 7-10 million baht.
- Villas or vacation homes: Most units are priced at 20-40 million baht, followed by 40-60 million baht and more than 100 million baht. Most buyers are foreigners purchasing long-term leasehold properties. The government should support this group to buy more properties in Thailand.
H2 Purchase Power Surge Anticipated
The Mueang Phuket district is where most condominiums are sold to Thai buyers, with 10,000 units worth 26 billion baht, an average of 2.6 million baht per unit, with 500 units remaining. The monthly sales rate is 8.1 percent and is expected to be sold out within a year.
In Kathu district, vacation condominiums are the main product, with 4,000 units worth 28 billion baht, of which less than 100 units remain and are expected to sell out quickly.
In Thalang district, the total value of projects is 290 billion baht, with vacation condominiums and houses being the most popular at 86 percent of the total value. Vacation condominiums are worth 150 billion baht and villas are worth 100 billion baht. The monthly sales rate is 8 percent and is expected to sell out within a year.
New projects coming to market in Q1 2024 include 25 projects with 4,000 units worth 54 billion baht, an average of 13 million baht per unit. Most (83 percent) are vacation condominiums worth 45 billion baht, mainly in Thalang district.
Last year (Q2 2023 – Q1 2024), 10,000 units worth 90 billion baht were sold, averaging 9 million baht per unit, mainly in Thalang district.
Patong Beach Holds Title for Most Expensive Land
Dr. Sopon reports that land prices have risen by an average of 7.47 times or 10.7 percent per year over the last 20 years (2004-2024), significantly more than in other regions of Thailand.
Land prices in Rawai Beach have increased the most, by 14 times, followed by Bang Tao Beach (10.67 times) and Mai Khao Beach (9 times). The slowest increase was in Saphan Beach, Karon Beach and Koh Sirey.
The highest land prices on the market are in Patong Beach with an estimated 350 million baht per rai or 875,000 baht per square meter, followed by Bang Tao Beach, Surin Beach and Karon Beach with an estimated 80 million baht per rai or 200,000 baht per square meter. The market prices are significantly higher than the government’s estimates.
Sansiri and Origin Compete for Investment
Ongart Suwankul, Senior Vice President of Condominium Development at Sansiri Public Company Limited, mentioned that the year 2024 marks the 40th anniversary of Sansiri. The company has been investing in Phuket for 15 years, with 21 projects worth a total of 21 billion baht, making Phuket its second investment center after Bangkok and its surrounding areas.
In the next five years (2023-2027), Sansiri is planning 16 new projects worth 15 billion baht in Phuket, bringing its total investment to 36 billion baht. These include nine low-rise and seven high-rise projects.
Sansiri is preparing to pre-sell a new brand, “Canvas Cherng Talay”, in Bang Tao, Phuket, with a project value of 1.6 billion baht. This area is very popular with foreign buyers and the project is expected to be well received.
Krit Tachasamma, Managing Director of Origin Nationwide Company under Origin Property Public Company Limited, announced that the group has successfully invested in Phuket. Earlier this year, the “Origin Resort World Phuket Bang Tao Beach” was pre-sold with a project value of 8 billion baht on a 25-rai plot of land, part of which is beachfront. The company plans to invest a total of 13.75 billion baht in Phuket this year, including 11.25 billion baht in residential projects and 2.5 billion baht in hotels.
“Origin Resort World” is a mega project development model offering tourism and leisure products and services. The project includes contributions from Origin Nationwide, Britannia Public Company Limited, One Origin Public Company Limited and Origin Healthcare and offers comprehensive mixed-use developments in tourist cities,” Mr. Krit said.
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