Most villa sales in Phuket during Q3 2014 were at the lower end of the market, according to research from CBRE Thailand, who also noted more Indians active in the resale sector.
More overseas property buyers from Hong Kong and Singapore were seen in Phuket during Q3 2014, replacing Russian buyers because of the substantially weakened Ruble.
In its Phuket Residential Marketview Q3 2014 report, CBRE Thailand noted it was a relatively quiet three months in terms of transactions. Most of the sales were entry-level villas priced between THB5 and THB15 million.
There were 68 villas sold in the quarter, according to CBRE, compared with the 69 sold in Q2 2014. This was an improvement from the same period last year when 51 villas were sold, is said.
Buyer profiles have shifted to Hong Kong and Singapore as Russian demand has slowed down due to the substantially weakened Ruble.
The resale market remained active during Q3 compared with new builds as buyers sought out superior locations where they could move in immediately after purchase.
CBRE also saw buyers from India with bigger budgets looking to buy resort properties in Phuket, especially in the high-end resale market.
According to the real estate firm, the new upcoming area for entry-level to mid-range projects in Phuket is in Pasak Soi 8 (Cherng Talay). It believes this is the upcoming hotspot for lower-end villa developments with prices less than THB35 million.
Looking forward, CBRE expected to see increased activity during Q4 as the high season approached, however it remained watchful of demand for villas, and of the Russians who remain plagued by the weak Rouble
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
