After two years of decline, the latest survey from Plus Property, has revealed that the property market in Phuket is starting to show signs of a recovery. The research noted that sales of high-end condominium units priced around THB100,000 per sqm. and above have climbed steadily and it appears as if prices in this segment will keep rising.
There has been a five percent increase in the price of completed units throughout Phuket which is due to several factors including the government’s focus on improving transportation and tourism in Phuket. The survey also revealed that the recently announced stimulus package for the property market in Thailand will have a positive impact on the region’s property market as well.
Poomipak Julmanichoti, managing director of Plus Property, stated that the company’s survey of the Phuket residential market found that the area had experienced slow growth in the property market as a whole but the high-end beachfront condominium has been resilient in these testing times. The high-end portion of the market is attracting interest from global buyers with high purchasing power.
This is backed up by research from Knight Frank Thailand that showed Phuket continues to attract its fair share of extremely wealthy foreigners and property investors. However, this research also noted that there are far fewer investors willing to spend THB100 million or more for a luxury villa.
Phuket remains one of the premier destinations for seaside vacations and at the moment there are 16,241 condo units available on the market, according to the figures from Plus Property. This includes 10,452 completed units in 53 projects, or 64 percent of the supply. Since Plus Property’s last survey, demand for completed units has increased by 38 percent, representing an average take-up rate of 69 per cent.
“This is a very good time for consumers to purchase a unit, thanks to this stimulus and various promotional campaigns from developers,” Poomipak concluded.
