Fewer than 10 Phukut luxury villas with price tags above THB80 million were transacted during the whole of last year, however CBRE is noting the return of some positive movement in this segment in terms of both new sales and launches.
In its latest Phuket MarkeView Report. real estate firm CBRE reported that new luxury villa projects have been launched in Phuket for two years. The good news, it says, is that it expect to see two luxury villa projects launched later this year in the Central West Coast area.
Overall, the villa market improved in Q1 2014 mainly for the lower-priced market. A total of 89 villas were reported sold, compared to 67 villas in Q4 2013. Total sales performance by value was around THB1.4 billion in Q1 2014. down from THB1.6 billion in Q4 2013.
CBRE said: “We continued to see growing demand for affordable resort property where villas priced between THB 5 and THB15 million were the best performing sector.
The nationalities of villa buyers in this quarter included Russian, British, German and some Hong Kong and Singapore nationals. These buyers mainly focused on affordable villas with prices less than THB 30 million (entry-level and mid-range segments).
Developers have focused more on launching lower-end villa projects with two new entry-level projects (THB5 to THB15 million) and two new mid-range projects (THB 15-35 million) launched in this quarter.
CBRE said: “We still continued to sees steady demand for the villas in the entry-level (THB 5-15 million) and mid-range (THB 15-35 million) segments.
“The most active condominium segment was units priced between THB3 and THB5 million. Developers have been trying to keep unit prices below THB 5 million by building smaller unit sizes, resulting in higher prices per sqm.
CBRE noted that even though condominiums priced between THB110,000 and THB200,000 per sqm showed the highest sales volumes this quarter, most of the units sold were priced between THB3 million and THB 5 million.
“We have seen a growing presence of Thai buyers in Phuket off-plan sales notably at Dinso Residence Patong. Most have bought for investment. Projects situated in the centre of the tourist area with strong rental potential and affordable selling prices have received a positive response from Thai buyers, “the agency concluded.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate email: andrew@propertyguru.com.sg