Phuket villas: sales still tough

Despite other research to the contrary, one real estate firm has predicted that Phuket villas priced between THB 8 million and THB 15 million still have good potential for Thailand property buyers and investors.

Earlier this year, real estate firm CBRE reported that 90 percent of all Phuket property transaction during the first six months of last year were at THB 4.5 million and below.

One area where CBRE, and new research from Knight Frank, concur is at the THB 300 million sector and above, where very few sales were reported during 2017.

Nattha Kahapana, Executive Director and Head of Knight Frank Phuket, said villa units with a selling price in the range of THB 8 million to THB 15 million possess good prospects.

The market will continue to see healthy take-up rates, and at the end of Q3 2017 some 1,982 units of the 2,542 units were listed as being sold on the island.

This represented a sales rate of 78 percent, with approximately 168 villa units sold during 2017, according to Knight Frank.

On the other hand, Phuket villas priced at more than THB 300 million hold gloomy prospects, with sales quite stagnant and only a few units sold.

Knight Frank said that average unit selling prices will be stable or increase slightly, and there will be more resales villas entering the market.

Knight Frank also revealed that the majority of villa buyers are still foreigners and expatriates living in Asia, especially as Hong Kong, Singapore and China.

Some foreigners from Australia and New Zealand are buying Phuket villas as a second home.

Buyers from China were among the top three Phuket villa buyers, after those from Hong Kong and Singapore, according to Knight Frank.