Phuket’s property market is showing signs of slowing, according to Dr.Sopon Pornchokchai, President of Agency for Real Estate Affairs (AREA).
His research noted that during the first half of 2014, there were only 700 new units launched with a combined value of THB2.7 billion. Among the new launches, condominiums accounted for 96 percent of the market. Prices for these Phuket condominiums ranged from THB2 million to THB5 million.
AREA has been conducting market research on Phuket since 1994. During 20 years, the island has seen about 153 active projects with a total of 29,776 units, valued at a combined THB 95.6 billion. The average selling price of a Phuket property is around THB3.21 million
Condominiums are the most popular property type amongst developers with a total of 16,107 units, or 54 percent of the whole market. This is followed by townhouses (15 percent) and single detached houses (14 percent)
As of the end of June 2014, Phuket had a total supply of 7,124 units. Muang District is where most supplies are – some 2,929 units.
Condominiums on Phuket are also the best-selling product during the last 12 months,and accounted for 68 percent of the whole market.
The best-selling price range was between THB2 and THB3 million, followed by the THB1 THB2 million and THB3 million -THB5 million respectively.
Dr. Sophon cautioned: “During a market slow down, developers need to be careful and focus more on market study and financial strategy. They also need to learn more on specific restrictions in order to develop the right project on this island.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.
