Phuket real estate prices on the rise
According to the Tourism Authority of Thailand Phuket has seen a 7% growth in the local real estate market over the last year.
There are a significant number of visitors to Phuket who become expats, semi-permanent or even permanent residents. Added to this is a steady influx of Thai’s from other regions that are attracted by Phuket’s successful economy. These two factors have contributed to a 3% increase in the population of Phuket.
Currently tourists are seeking alternative accommodation and choosing to stay in serviced apartments as opposed to hotels. According to research done by local authority’s condos are the more popular choice in Kathu district while villas are more popular in Thalang.
A Senior Analyst at Siam Commercial Bank commented that property investment has given a higher return than gold or government bonds. According to this research conducted by Siam Commercial Bank you may enjoy a 10% increase in the value of your investment after one year. If you chose to rent the property you could see an income of 6-8% per annum.
As you would expect land prices have also significantly increased. In Kathu for example, a square wa has increased from around THB 27,000 to THB 50,000 to TH B60,000 in just a few years.
The overall projection is that this growth will continue and based on this activity alone, no doubt there will be more investment in Phuket in the future to help sustain growth of the property market.
Prime beachfront locations on the west coast of Phuket are now quite well developed and the south and east coast are becoming increasingly popular. There are also plenty of inland sites such as golf courses being added.
Phuket is enjoying an increase in both rental buyers and long term property investors. Currently the most popular kind of property for sale is condos, particularly one bedroom condos. These kinds of properties are at the entry level (below THB 60,000 per sq. m.) and middle range which are currently selling for THB 60,000 - 89,999 per sq. m.
In response to market demand developers have been trying to keep the condo prices below THB 5 Million by building units of smaller size.
By 2016 more than 3,000 condo units are expected to be completed.
The demand for villas in the entry level and mid-range market is fairly steady and there has been an increase in the villa market during the last quarter of 2013.
There has been less demand for higher end or luxury properties and an ever increasing demand for entry level and mid-range properties in Phuket which will continue to increase prices.