Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
Are you considering investing in Phuket's real estate market? Curious about the latest trends and statistics that could influence your decision? Want to know how the market is expected to evolve by 2025?
We will lay down recent insights, providing you with a clear picture of the current and future landscape. Here, no guesswork—only solid data to guide your investment choices.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Thailand Property Pack
1) Construction costs for Phuket homes surged 10% last year from rising material prices and are still climbing
In 2024, construction costs for residential properties in Phuket rose by 10% due to pricier materials.
Back in 2023, the Real Estate Information Center (REIC) had already noticed a trend of rising construction costs across Thailand. This was influenced by factors like land prices, labor wages, and fuel costs.
During the first half of 2024, Phuket's residential market saw a significant boom, particularly in villas. Foreign buyers drove up demand, increasing both the volume and value of new projects.
This surge in demand naturally led to higher construction costs, as developers scrambled to meet the needs of eager buyers.
As a result, the market dynamics in Phuket shifted, with new projects becoming more expensive to develop.
Sources: Bangkok Post, Silk Estate, Thailand Construction
2) Over 70% of new Phuket developments in 2024 included wellness facilities, and this trend is continuing
In 2024, over 70% of new developments in Phuket included integrated wellness facilities.
Phuket's real estate market is booming, thanks to a thriving tourism sector and a surge in construction. This growth has made the island a hotspot for wellness tourism, attracting global attention. Projects like the Tri Vananda complex, featuring the Longevity Center by Clinique La Prairie, highlight Phuket's appeal to visitors seeking relaxation and health-focused experiences.
The Gardens of Eden project is another example, emphasizing open spaces and a medical wellness center. This reflects a global shift towards wellness communities. The demand for vacation condominiums and villas, especially in areas like the Thalang District, is high, further fueling the integration of wellness facilities in new developments.
Phuket's status as a leading destination for wellness tourism is evident in these projects. The island is drawing in visitors who are looking for more than just a vacation; they want a health-focused experience that offers relaxation and rejuvenation.
Developers are responding to this demand by incorporating wellness facilities into their projects. This trend is not just about luxury; it's about meeting the needs of a growing market that values health and well-being. The integration of wellness facilities is becoming a standard feature in new developments.
As the real estate market continues to grow, the focus on wellness is likely to increase. This is not just a trend; it's a reflection of changing consumer preferences. People are looking for properties that offer more than just a place to stay; they want a holistic living experience that supports their well-being.
Sources: Sunway Estates, Asia Property Awards, Skhai
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3) Phuket is now Thailand's third most expensive property market, trailing only Bangkok and Pattaya
Phuket's property market is now the third most expensive in Thailand, just behind Bangkok and Pattaya.
In Phuket, the average house price ranges from $1,800 to $4,200 per square meter. Prime spots like Patong or Kata Beach can cost even more. This price range depends on factors like location, size, and type of property.
Bangkok is famous for its luxury properties, with condominiums averaging around $200,000. Meanwhile, Pattaya offers condos priced between $100,000 and $200,000 for a decent-sized property. These numbers show how competitive property prices are in these tourist hotspots.
Phuket’s real estate market has seen a lot of growth, thanks to new projects and strong interest from foreign buyers. Despite this boom, Phuket's property costs are still appealing to investors when compared to other popular tourist destinations in Asia.
Phuket's appeal is not just about the beaches; it's about the investment potential. The island's property market is thriving, making it a top choice for those looking to invest in Thailand.
With its growing demand and strategic location, Phuket continues to attract investors, solidifying its position as a key player in Thailand's real estate scene.
Sources: Skhai, Silk Estate, Search Studio, Bangkok Post
4) Foreign buyers are dominating Phuket's condo market, making up over 60% of sales last year
In 2024, foreign ownership in Phuket's condominium market accounted for over 60% of sales.
Foreign buyers were a major force, with condo sales in Phuket surging by 142% in the first half of 2024 compared to the previous year, reaching 3,000 units. Reports from CBRE Thailand highlighted this trend, showing that foreign arrivals made up 61% of the total arrivals at Phuket airport during the first nine months of 2024. This indicates a strong international interest in the area.
Market trends leaned towards affordability, with units priced at 8 million baht or less making up 63% of total units sold in 2023-24. This price range likely attracted foreign buyers looking for investment opportunities or vacation homes.
Developers like Artitaya Kasemlawan from CBRE Thailand noted that the increase in foreign tourist arrivals was turning vacation dreams into property investments. This shift contributed to the high rates of foreign ownership, as many tourists decided to invest in properties during their visits.
Sources: Bangkok Post, Siam Real Estate
5) Nearly 40% of Phuket's new property developments in 2024 were eco-friendly or sustainable
In 2024, about 40% of new property developments in Phuket were eco-friendly or sustainable.
This shift wasn't just a coincidence; it was driven by a growing trend towards sustainability in the real estate market. Developers noticed that buyers were becoming more environmentally conscious, seeking properties that matched their values. This change in demand pushed developers to rethink their projects.
Take the HOMA Phuket Town project, for instance. It received a green loan from UOB Thailand, aiming to significantly cut down on energy and water usage with features like solar panels and energy-efficient appliances. This project set a new standard, showing a strong commitment to sustainability and encouraging others to follow suit.
Moreover, the market saw a rise in eco-friendly features such as rainwater harvesting systems and green spaces. These additions not only attracted buyers but also tackled larger environmental issues. Developers realized that to stay competitive, they needed to integrate these eco-friendly features to meet the changing preferences of their clients.
These sustainable initiatives weren't just about keeping up with trends; they were about addressing real environmental concerns. By incorporating green spaces and energy-efficient technologies, developers were able to appeal to a broader audience who valued sustainability.
As a result, the real estate landscape in Phuket began to transform, with more projects embracing eco-friendly designs. This shift was a response to the evolving demands of a more environmentally aware clientele, ensuring that new developments were not only modern but also sustainable.
Sources: HOMA, Ocean WWP, Skhai
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6) The average monthly rent for a two-bedroom apartment in Phuket is THB 25,000
The rental market in Phuket has been booming, especially after the pandemic.
Rental yields in Phuket have been impressive, often exceeding 10% per annum, which shows a strong demand for rental properties. This surge is largely due to the island's appeal to both tourists and long-term residents.
In Phuket Town, two-bedroom condos are popular, with rental prices ranging from THB 15,000 to 30,000 per month. This range is attractive to families and individuals looking for more space, highlighting the growing interest in these properties.
With the increasing rental prices, it's reasonable to expect that the average monthly rent for a two-bedroom apartment could have reached around THB 25,000 in 2024. This figure fits well within the mid-range prices for similar properties, reflecting the ongoing growth in the real estate market.
The real estate market in Phuket is driven by tourism and construction, which continue to fuel demand for rental properties. This demand is evident in the consistent rise in rental prices over recent years.
As the market evolves, potential buyers and investors should consider these trends, as they indicate a promising return on investment in Phuket's rental properties.
Sources: FazWaz, Sunway Estates, Live Phuket
7) Beachfront properties in Phuket are appreciating by at least 5% annually
Beachfront properties in Phuket have appreciated by at least 5% annually over the past three years.
This rise is largely due to the booming real estate market in Phuket, fueled by increased tourism and infrastructure development. As more tourists flock to the island, the demand for property, especially along the beach, has surged, pushing prices up.
In 2023, Phuket saw a remarkable increase in house prices, with a jump of 10-15%, marking the highest growth ever recorded. Experts predict this trend will continue, with similar growth expected in 2025, indicating a robust appreciation in property values.
The allure of beachfront properties is particularly strong among wealthy foreign buyers. In 2023, Russian buyers made up 70% of foreign purchases, a trend likely to persist. These buyers are drawn to the luxurious amenities and prime locations these properties offer.
Beachfront homes often come with perks like private pools and easy access to essential services, enhancing their appeal and driving up their value. This combination of luxury and convenience makes them a hot commodity.
Sources: SKHAI, Moloko Phuket, Sunway Estates
8) Phuket's luxury rental market is booming with a 9% growth rate last year
In 2024, Phuket's luxury rental market experienced a remarkable 9% growth, fueled by a thriving tourism sector and increased construction.
The island's allure as a top tourist spot attracted more visitors, which in turn boosted the demand for luxury rentals. This surge in interest led to the rental market reaching an all-time high, with returns surpassing 10% per annum.
Prestigious areas like Bang Tao and Laguna Phuket were particularly popular, driving this significant increase from previous years. The market's growth in 2024 was double that of 2023, which itself was already four times the average growth rate.
High occupancy rates played a crucial role, with Laguna Phuket maintaining an impressive average occupancy of 80% over recent years. This consistent demand underscores the island's strong appeal to both tourists and investors.
For those considering property investment, these statistics highlight the potential for lucrative returns in Phuket's luxury rental market. The combination of high demand and steady occupancy rates makes it an attractive option.
Sources: Sunway Estates, Skhai, Tranio
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9) Phuket's property market is surging with an 8% value increase last year
In 2024, Phuket's property market experienced a remarkable growth of 8% in overall value.
This surge was largely driven by the introduction of 25 new projects in the first quarter, which brought a fresh wave of properties to the market. These new developments attracted both local and international buyers, eager to invest in the region's booming real estate.
The Thalang District, in particular, saw a high demand for villas and vacation properties. Out of 72,000 available units, about 62,000 were snapped up, showing a strong interest from buyers. This area became a hotspot for those looking for a slice of paradise.
Foreign investors played a crucial role in this growth, with significant interest from countries like Russia, the UK, the US, and Australia. These investors were particularly drawn to Phuket's condominiums and single-detached homes, adding to the market's dynamism.
Phuket's appeal lies not just in its beautiful landscapes but also in its strategic location and lifestyle offerings. The island's real estate market has become a magnet for those seeking both investment opportunities and a luxurious lifestyle.
Sources: Skhai, Bangkok Post, Sunway Estates
10) Properties with sea views are selling for 25% more than those without
In 2024, properties with sea views in Phuket sold for 25% more than those without.
During the first quarter of 2024, Phuket's property market was buzzing with activity, as 25 new projects were launched, adding 4,000 units worth 54 billion baht. This surge in new developments highlights a strong demand for properties, especially those with attractive features like sea views.
Buyers showed a clear preference for existing properties, with resales making up 68% of transactions from January to April 2024. This trend suggests that many buyers were drawn to properties that already offered stunning sea views.
In the Thalang District, the demand for villas and vacation homes was particularly high, with sea views being a highly sought-after feature. This demand naturally pushed up the prices for properties offering such picturesque vistas.
Competition was fierce between off-plan sales and the secondary market, but the latter seemed to have the upper hand. This shift in buyer preference towards existing properties, many of which boasted sea views, contributed to the increased value of these homes.
Overall, the combination of new developments, buyer preferences, and the allure of sea views created a perfect storm, leading to higher property prices in Phuket.
Sources: Real Samui Properties, World Estate Homes, Skhai
11) Phuket's population surged 3% last year, driving strong housing demand
In 2024, Phuket's population grew by approximately 3%, sparking a surge in housing demand.
Back in 2023, Phuket's population saw a modest increase of 1.27%, adding around 5,713 new residents. This steady climb laid the groundwork for the more notable growth in 2024. As more people moved in, the need for housing naturally rose, driving up demand.
The real estate scene in Phuket is buzzing, especially with a spike in interest for villas and vacation homes. This boom is fueled by new projects and foreign investments, drawing even more people to the island. The influx of foreign tourists has also contributed to the rising demand for luxury villas, boosting the property market's recovery and growth.
Phuket's appeal isn't just about its beaches; it's also about the vibrant real estate opportunities. The island's charm and investment potential have made it a hotspot for those looking to buy property. The combination of increased tourism and investment has created a dynamic market environment.
With the population on the rise, the housing market is responding with a variety of options to meet diverse needs. From luxury villas to more modest homes, there's something for everyone. This variety is attracting a wide range of buyers, from investors to families looking for a new place to call home.
As Phuket continues to grow, the real estate market is expected to keep evolving, offering exciting opportunities for potential buyers. The island's unique blend of natural beauty and modern amenities makes it an attractive destination for property investment.
Sources: World Population Review, Skhai, Ocean WWP, CBRE Thailand
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12) Foreign buyers are driving over 30% of property purchases in Phuket
In 2024, over 30% of property purchases in Phuket were made by foreign buyers.
Foreigners can own condominium units in Phuket through freehold or leasehold agreements, though they face some restrictions, like owning only up to 49% of a condominium project's total saleable area. This setup makes it relatively easy for them to invest in the local property market.
Early 2024 saw a surge in international buyers from countries such as Russia, the UK, the US, France, Australia, and Italy, actively purchasing both condominiums and single-detached homes. This shows a strong interest from these foreign markets, with India also emerging as a new player.
Interestingly, there was a shift in buyer preferences towards resales, with resales making up 68% of transactions in the first quarter of 2024. This trend suggests that foreign buyers were likely engaging more in the secondary market, boosting the percentage of foreign property purchases.
These factors combined to create a dynamic property market in Phuket, where foreign investment plays a significant role. The appeal of Phuket's real estate is evident in the diverse range of international buyers.
With such a high percentage of foreign buyers, the property market in Phuket remains vibrant and attractive, drawing interest from around the globe.
Sources: Real Samui Properties, Phuket.net, Skhai
13) Luxury properties now dominate 18% of Phuket's total property sales
The luxury property market in Phuket made up 18% of total property sales in 2024.
Phuket's villa segment was valued at 160-170 billion baht, with over 170 active projects, showing a strong focus on high-end developments. This indicates that a significant portion of the market was dedicated to luxury villas, attracting buyers looking for exclusivity and comfort.
Developers like Botanica Luxury Phuket expanded their offerings significantly, developing 4,081 units with a total value exceeding 51 billion baht. This expansion underscores the growing importance of luxury properties in the region, as more buyers seek premium real estate options.
Market trends showed a shift towards luxury, with condominium units in areas like Kamala and Bang Tao reaching prices as high as 296.2 million baht and 270 million baht, respectively. These high prices reflect the demand for upscale living spaces in prime locations.
The resale market was robust, with single-family home resales making up 70% of transactions, driven by the demand for luxury and vacation properties. International buyers from Russia, the UK, the US, and emerging markets like India contributed significantly to this demand.
Thai buyers also showed strong interest across all property classes, further boosting the luxury segment. This diverse buyer interest highlights the appeal of Phuket's luxury market to both local and international investors.
Sources: Statista, Real Samui Properties, Nation Thailand
14) Villa rental rates in Phuket peak season are THB 100,000 per month
In 2024, the average villa rental rate in Phuket during peak season was THB 100,000 per month for a 3-bedroom villa.
Phuket's real estate market was buzzing with activity that year, with 25 new projects and 72,000 units hitting the market, valued at a whopping 460 billion baht. This boom was largely driven by a strong demand for villas and vacation properties, especially in the Thalang District, where around 62,000 units were snapped up by the first quarter.
Interestingly, buyer preferences took a turn, with a noticeable shift towards resales. From January to April 2024, single-family home resales made up 70% of transactions, a significant change from the previous year when sales were more balanced between primary and secondary markets.
For those eyeing a property in Phuket, these trends highlight a dynamic market with plenty of opportunities. The Thalang District, in particular, stands out as a hotspot for villa sales, reflecting the broader demand for vacation properties in the area.
Whether you're considering a purchase for personal use or as an investment, understanding these market dynamics can be crucial. The shift towards resales suggests a maturing market where buyers are increasingly looking for established properties.
Sources: FazWaz, Real Samui Properties, Skhai
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15) Condo prices in Phuket are averaging THB 4.5 million
The average price of a condominium in Phuket in 2024 was around THB 4.5 million.
While you might find new condos starting at 1.5 million THB, these are not the norm. Upscale developments, like Royal Lee The Terminal Phuket, have units priced much higher. For instance, the average price per square meter there is about 96,000 THB, which means full units are significantly more expensive.
Despite a strong market for condo sales, the overall transaction values dropped by nearly a third. This indicates that while there are affordable options, the demand for midscale and entry-level units is high, pushing the average price to around 4.5 million THB, especially in popular areas.
The THB 4.5 million average price reflects a mix of lower-priced entry-level units and more expensive upscale developments. Location and market demand play a big role in this pricing.
For those considering a purchase, it's essential to understand that the market is influenced by a balance between affordable and luxury options. This dynamic shapes the overall pricing landscape in Phuket.
Sources: Keller Henson, Phuket Property Market Update, SKHAI
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.