According to the latest research from CBRE Thailand, the Phuket resort condo market slowed down in the third quarter but is still performing better than in previous years. The recently released Phuket Residential Report showed that units with an average price of THB5 million continue to be the most popular with buyers.
These units are considered to be entry-level for buyers who are often times buying a resort property for the first time. The report added that entry-level villa units are in direct competition with the condo segment and provide buyers with an alternative to mid-range and high-end resort condominium units.
This completed supply of Phuket’s resort condo market stands at 5,600 units and there are another 4,500 units that have been launched or are already under construction. CBRE noted that most, if not all, of these units will be completed before 2018. The number of condominium units launched this quarter was almost double that of last year. Of the four projects that were launched in the third quarter, two were in the popular entry-level segment and two were luxury projects.
Guaranteed rental schemes remain the best way for developers to compete in the market and CBRE reported that there is evidence that developers of mass-market condominium projects are now incorporating these rental schemes to attract buyers.
CBRE Thailand believes that Phuket’s residential property market should show signs of picking up during the fourth quarter which is the region’s high season and is also hopeful that the new airport extension will also improve the property market in 2016. Growth in Phuket’s tourism is expected to be more robust once the airport extension is completed and this is likely to help in the sales of resort condominiums.
It was also noted that the increase in flights routes could change the profile of Phuket’s tourists and property buyers. At the moment buyer profiles vary from project to project. Chinese buyers can be found in all project segments but they have not yet become the dominant group as has been predicted.
Image: Kata Rocks Phuket
