Construction activity in Phuket is rising and this could be a good sign for the island’s real estate industry. Demand for holiday homes has started to recover while work on a number of infrastructure projects around Phuket has begun and should benefit both the tourism and property sectors, according to new research from JLL.
At the moment there are several residential projects being developed in Phuket. The 3rd phase of Twin Sands in Tri Trang close to the Rosewood Hotel, Twin Palm Residences by MontAzure, and Diamond Condominium in Bangtao are all under construction and should be completed in the next few years. The developments target both Thai and foreign buyers.
“The beaches, lifestyle, food, and air connections have put Phuket ahead of most other resort locations in the region and made the island a favourite of many nationalities for purchasing a holiday home or retirement property. Therefore it is no surprise that most of the high-end residential developments in Phuket are targeted at foreign buyers,” says JLL Director Dexter Norville to the Bangkok Post.
Buyers from the UK, the U.S,, Scandinavian nations, Russia, and the Middle East are historically the most active when it comes to acquiring villas and resort condo units in Phuket, but this has changed in recent years. Several global financial events, such as Brexit and dropping oil prices, meant there was a decrease in interest from buyers in these countries.
“Buyers from some of these markets have now had time to reset and are coming back. At the same time, other traditional source markets including Hong Kong and Singapore have showed continued interest. Though demand is picking up, the pace of recovery has been moderate, as buyers tend to spend a long time making purchase decisions,” says Norville.
Another issue slowing down the buying process is the stricter enforcement of legal compliance on the island’s property industry. This, along with increasing choices in terms of unit types and amenities, has made potential foreign buyers more selective than in the past.
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