Phuket villas appeal to overseas investors as year on year sales rocket
One of the most popular Thai locations for overseas buyers has long been Phuket, and so far in 2013 figures show that villa sales have increased year on year by 20%.
The latest analysis from CBRE revealed that sales of condominiums and apartments also increased by 10% in the fourth quarter of 2012, with developments such as Laguna Shores selling 47% of its units off plan within a few months of launch.
The new supply is reflecting changing market pressures with a preference for one bedroom and studio apartments going hand in hand with lower asking prices than the more traditional two bedroom design commands.
According to the new data, the entry level sector saw the strongest performance whilst the luxury segment showed the lowest. However, the total value of entry level sales stood at around THB340 million while the total value of luxury sales was at THB382 million.
The report said: “Overall, we believe that the outlook for the villa market will be positive in 2013. Demand will continue for affordable villas, especially entry level and mid range segments. Although developers slowed down launching new villa projects in 2012, we view that villa developers will come back into Phuket villa market in 2013.”
Europeans, Russians, and Australians were responsible for the majority of the sales and there was also increasing demand from buyers originating from Hong Kong and Singapore.
“We believe the condominium market will become more active in 2013 because more projects [sic]. Thai developers including Amari and Sansiri are offering more affordable units and are attracting the interest of Thai buyers. Thai publicly listed developers will dominate new supply and sales in 2013,” the report continued.
The West Coast is the most popular location, in particular the area around Patong. The relatively short distance from the airport plays a part in this, as does the easy access to both the beach and local entertainment.
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