Phuket villa property market strong in mid-range, high-end takes a hit

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PHUKET: The main villa property market in Phuket is going from strength to strength, but the outlook for high-end villas on the island is not so bright, reports Nattha Kahapana, Executive Director and Head of Knight Frank Phuket.


The market is continuing to see healthy take-up rates, Mr Natha noted in a Knight Frank report released yesterday (Jan 4).

As of the end of Q3 2017, there were approximately 1,982 units being sold out of 2,542 units on the market, and such units represented a sales rate of 78% with approximately 168 villa units sold last year, Mr Natha explained.

On the other hand, Phuket villas priced over B300mn per unit hold gloomy prospects. Sales transactions are quite stagnant, and only a few units were sold.

On the whole, average unit selling prices will be stable or slightly increasing. Also, there will be more resale villas entering the market, Mr Natha forecast.

There were approximately 2,542 villa units in Phuket. During the first nine months of 2017, about 178 units were added as new supply to the Phuket villa market.

The majority of new villas added during the first nine months of 2017 included two-bedroom villa units with a selling price of B8-12mn per unit. Most of the new units are located in the central part of the island, in the vicinity of Bang Tao, Surin and Kamala beaches.

Villa buyers are still foreigners and expatriates living in Asia such as Hong Kong, Singapore and China, Mr Natha pointed out.

There are also some foreigners from Australia and New Zealand buying a villa in Phuket for their second home, he added.

Buyers from China were among the top three villa buyers in Phuket after those from Hong Kong and Singapore. Non-stop flights, with only a few hours of flying time, from some cities in China to Phuket also helped boost the market, Mr Natha concluded.

Courtesy: Published at The Phuket News on January 5, 2018

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