High-net worth individuals from Bangkok, Hong Kong, and Singapore spark further optimism for Phuket’s luxury property market
According to new market research from Thailand consulting group C9 Hotelworks, Thai buyers who sought refuge during the pandemic have reignited Phuket’s mega-villa property sector by multi-millions, with over THB5 billion (USD167 million) in primary and secondary high-end properties transacted.
In spite of the flat trading levels in the broader marketplace, transactions in top tier real estate reached their peak in five years in 2020. Wealthy Thais, unable to travel and exhausted by air pollution in Bangkok, were drawn to expansive tropical island mansions with four or more bedrooms.
Bill Barnett, C9‘s Managing Director and 2020 judge for the PropertyGuru Asia Property Awards (Greater Niseko), said, “country living and estate villas in the age of pandemic are a strong reaction driven by both internal and external factors. Thailand’s wealthy have been effectively stranded in the country for nearly a year and the impact has seen them revisiting and falling in love with Phuket.”
“Resort real estate remains an emotional proposition and this is a contributing factor in reigniting luxury property sales.”
When looking at Phuket’s real estate, there is more to it than just the Thai segment. In the primary market, there’s off plan and completed properties, while secondary or resales market has experienced major discounting of large villas to foreign buyers.
Millionaires Mile in Kamala, Layan, and Nai Thon beach, which are all on the West Coast of the island, are favourites in these mega-villa trades. Whereas on the East Coast, Cape Yamu maintains its strong performance with the new Headland project.
Proximity has been identified as a key to success, and there is often one degree of separation between buyers in mega-villa estates.
“One of the most successful twinning of projects last year has been the ultra-luxury Layan Residences by Anantara and Avadina Hills by Anantara. The synergy of having a hospitality overlay and hotel-style management to the developments has helped enormously,” Barnett added.
Avadina Hills by Anantara also recently triumphed the Best Luxury Housing Development (Phuket) and Best Housing Development (Thailand) awards at the 14th PropertyGuru Thailand Property Awards.
Foreseeing Phuket’s luxury property market in 2021, Barnett expresses optimism for primary residences. “We are seeing considerable interest from Bangkok high-net-worth individuals and key regional capitals like Hong Kong and Singapore who are drawn to the island by clean air and space, quality international schools, and strong support infrastructure.”
He added, “we are on the cusp of seeing a series of new inland integrated communities such as Tri Vananda in Thalang come on stream and this is expected to shift a larger slice of demand towards luxury single-family homes. COVID-19 has refocused an entire generation on the value of work-life balance and proven work from home is a viable ongoing alternative.”
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