Why Phuket villas are popular with buyers
Demand for villas in Phuket is skyrocketing, and supply is also increasing. In the first half of 2024 alone, the number of new properties rose to 2,261 units, up from 1,288 units in the same period in 2023.
According to official statistics, 787 villas were sold in the first half of 2024 for a total of $893 million. In 2023, the number of transactions totalled 403 sales worth US$535 million.
At the start of 2024, 1,474 unsold homes, a record for Phuket, remained on the market. Traditionally, less than a thousand vacant villas stay on the market.
REIC notes that demand in Phuket remains strong, driving the construction of new homes. If no new properties are on the market, the current stock will be for sale within six months.
Properties in the following areas are the most popular:
– Thepkrasattri-Srisunthon, where 411 transactions were completed;
– Bang Tao Beach-Surin Beach, where 131 villas were sold;
– Nai Yang Beach-Mai Khao Beach had 102 homes sold.
In other locations, transaction volumes ranged from 3 to 30 units.
Most popular with buyers were villas priced between 894,000 and 1450,000 dollars. They accounted for 216 of the total number of transactions. Also popular are objects in the price range from 745 thousand to 894 thousand dollars. There were 136 such transactions, in the third place in demand for houses costing from 596 thousand to 745 thousand dollars.
Review of the profitability of Phuket real estate
Experts note that the average return on property in Phuket is around 10% per annum. The highest growth is in areas with high demand for housing, including Bang Tao and Laguna Phuket. The increase in yields is due to the recovery of the tourism business after the decline during the pandemic. In addition, there has been a significant increase in demand for extended — and short-term rental properties.
It is worth noting that the demand for rental properties in Phuket has been increasing since the beginning of the pandemic. It peaked in 2024 when there was a shortage of supply in the market. However, many new projects have been completed in recent years that should help alleviate the housing shortage in the market.
Foreign buyers are taking an active interest in local property. Experts note a rapid increase in transactions during the high season when properties are in demand by tourists.
The greatest demand is for one-bedroom apartments of around 60 square metres, which rent for US$1800. Foreign buyers are also interested in holiday homes.