The luxury villa rental market in Phuket is looking to bounce back after a disappointing slump. Inquiries for rental rates for the upcoming holiday season, which runs from December to April, have increased from the past two years, Phuket-based agents tell local media.
The luxury villa rental market was down in both 2015 and 2016 and a number of villa owners were forced to have their property sit empty or accept lower rental rates to get guest in the door. In addition to this, the average booking length decreased when compared to earlier in the decade. Even with inquires for the upcoming holiday season rebounding, the market won’t be as strong as in the past.
“With holiday villas not renting out well during the last two seasons, we expect rental price wars and steep discounts to begin soon, as most villa owners will attempt to secure an early booking for the coming season. For those villa owners who try to hold out for a higher rate or a longer stay, it will probably be a chicken and egg situation about whether to secure an early booking with a lower rate/shorter period or not get a booking during the holiday season if demand dwindles closer to the holidays,” says Amy Koh, Sales Manager of Engel & Voelkers Phuket, to the Phuket Gazette.
Inquires from Russian renters are the most common this year with the recovery of the Russian ruble boding well for the tourism sector. Experts are predicting that more popular villas could be booked quicker than in the past two years as Russian guests look to secure their accommodations.
“Villa rentals, as compared to hotels, are popular among Russian clients as most of them travel with family and even extended family during the holiday season. Thus, they require a villa with a minimum of 3-5 bedrooms or more. Most Russian families also tend to cook – especially if they are staying for 1-3 months – so the fact that nearly all villas come with fully equipped kitchens is another plus,” says Koh.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
