The property market in Phuket is currently experiencing a substantial increase in the supply of villas. The first half of 2024 has seen remarkable growth, mainly driven by Russian buyers. The demand for high-end villas has exceeded that of condominiums, signifying a historic shift in the island’s real estate landscape.
Villas overtake condos in value for the first time
In the first half of 2024, the total value of villas launched in Phuket surpassed that of condos for the first time in 15 years. Villas accounted for ฿ 36.3 billion ($1.08 billion), compared to ฿ 36 billion ($1.07 billion) for condos. A total of 1,285 villa units were introduced to the market, showing a significant increase from around 1,100 villas launched in 2023. The growing demand for spacious, luxury villas is largely due to an influx of Russian buyers seeking prime properties in key areas such as Bang Tao, Cherngtalay, and Rayan.
Despite experiencing some setbacks in May and June due to flooding, sales activity significantly improved in July. One villa project alone reported sales worth ฿ 400 million ($11.92 million) to ฿ 500 million ($14.9 million) in just a month, highlighting the strong demand for premium properties. The market outlook for the second half of 2024 remains positive, with ongoing interest from foreign buyers driving the trend. Key villa locations are observing absorption rates of 2-3 units per month, emphasizing the high demand in these areas.
Phuket’s condo market is still strong in the affordable segment
Recently, villas have experienced a significant increase in value, while condos have continued to perform well, especially in the more affordable segment. During the first half of 2024, the absorption rate for condos was higher than that of villas, with an average of 5.8 units sold per month. Condos priced below ฿ 2 million ($59,580) per unit have been especially popular, with many projects expected to sell out within two years.
Outlook for 2024: Strong growth ahead
The real estate market in Phuket is expected to continue growing. The total value of condos and villas is projected to reach ฿ 150 million ($4.47 million) by the end of 2024, up from ฿ 110 million ($3.28 million) in 2023. Several new luxury projects, including developments by prominent firms like Sansiri, are set to launch in the second half of the year. As a result, the property market on the island is expected to finish the year on a strong note.
Phuket’s real estate presents promising opportunities for foreign buyers and investors, especially in the high-end villa segment. As the market heats up, potential buyers may need to act quickly to secure prime properties, as demand continues to outpace supply.
