The challenge for Phuket’s residential market

Phuket's residential
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A new report, published yesterday, has highlighted the challenges facing Phuket’s residential property market.

According to CBRE, in its Phuket Residential research report for the second half of 2017, just 155 villas and 1,070 condominiums were sold on the southern Thailand island during the whole of 2017.

While villa sales, according to CBRE, increased by 21 percent year-on-year, condo sales were subdued due to the limited number of new launches.

Several challenges were highlighted for property professionals in Phuket’s residential market.

The real estate firm noted that property sales were focused on investment-oriented or income-producing products for both villa and resort condominiums.

It added that “… at least 80 percent of condos sold were in projects with rental guarantees, and with lump sum prices of below THB 5.5 million”.

It said that Thais, European expatriates, and Chinese are the top buyers in Phuket’s residential property market, and especially in resort property.

Luxury segment sales above THB 90 million for villas and above THB 20 million per unit for condominiums were limited.

“We remain confident that there is still interest in the luxury sector, with one villa at the Residences by Anantara and one in Avadina Hills by Anantara sold at prices ranging between THB 200 million and THB 500 million per unit in the last six-month period.

And noting another challenge for Phuket property professionals, CBRE concluded by saying the challenge for the Phuket market continues to be not just relying only on Chinese and Russian tourists to reduce the risk of any downturn in these two key feeder markets.

Pictured: Angsana Oceanview Residences, for sale by CBRE for between THB 27 million and THB 37 million.

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