Phuket real estate is back on the radar as demand for resort homes goes back up
Those who are buying villas mostly come from Hong Kong and Europe
In 2021, Phuket only had several international tourist arrivals, no new condominium projects, and launched only two villa projects. In data recently gathered by CBRE Thailand, however, there has been a slight increase in demand for resort homes, as well as performance recovery in the hospitality sector, which can be attributed to the easing of travel restrictions.
Prakaipeth Meechoosarn, Head of Phuket Property Sales at CBRE Thailand stated that “Since the beginning of 2022, we have sold several villas to local buyers looking for luxury resort homes in Phuket. We believe the luxury villa market will continue to do well because buyers are looking for flexible working space and a safe haven for their family’s privacy.”
“The Phuket hotel market has also seen improvement from increased vaccination rates, travel confidence, and government schemes that promote domestic travel, and adjustments to international entry policies,” added Atakawee Choosang, Head of Hotel at CBRE Thailand.
A steady influx of new domestic and foreign tenants has tipped the scales in the aftermath of the pandemic, with rental demand exceeding availability in prime properties.
More: Thailand to experience post-COVID boom in real estate and tourism sectors
Many renters are considering areas in the northwest of the island, including Kamala, Surin, Bangtao, Cherngtalay, Layan, and Yamu, according to The Thaiger. International schools with prestigious overseas affiliations and curriculums, such as British International and UWC, are major demand drivers for those migrating to Phuket.
As shown in a growing collection of Botanica and Anchan developments, the growth in single-family homes has been remarkable in the USD1 to 2 million range. Both are shining examples of proven success, with buyers achieving premium rental rates and above-market capital appreciation.
Those who are buying villas mostly come from Hong Kong and Europe, notably those with business connections in Southeast Asia, according to Knight Frank.
Part of the latter’s interest may well be from professionals who are able to capitalise on either of the Thai government’s two visa programs for foreigners, which are the Thai Elite Visa and the Digital Nomad Visa.
The Property Report editors wrote this article. For more information, email: [email protected].
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