Is the villa market slowing down in Phuket in 2025?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Phuket. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Thai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Bangkok, Chiang Mai, and Phuket. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Attaya Suriyawonghae 🇹🇭

Real Estate Broker, Zest Real Estate

Attaya is a certified Thai Real Estate Broker who knows the Phuket market inside and out. With years of experience, she can guide you through the intricacies of the island's vibrant real estate scene, whether you're seeking a luxurious beachfront villa or a high-growth investment opportunity. After speaking with her, we reviewed the blog post, corrected a few points, expanded on others, and added her personal experience.

What's really happening with villa prices in Phuket right now compared to last year?

Phuket villa prices have continued their upward trajectory through 2025, showing 30-40% growth compared to five years ago.

The most significant price appreciation occurred during 2023-2024 as tourism rebounded post-pandemic. As of September 2025, beachfront estates command prices between THB 42 million and THB 207 million, with branded villas achieving double the price per square meter compared to non-branded options (THB 162,000 versus THB 73,000 per square meter).

Current median price levels sit around THB 70,000 per square meter across the island. Entry-level villa options in secondary or inland locations start from THB 6.9 million, while prime beachfront properties with brand backing reach the upper price ranges. The price growth has been most pronounced in areas with limited land availability and strong tourism infrastructure.

However, the rate of price increases has begun to moderate in certain segments, particularly in inland areas where supply has increased significantly. Prime coastal locations continue to see steady appreciation due to land scarcity and sustained international demand.

It's something we develop in our Thailand property pack.

Are rental yields holding steady, going up, or dropping?

Rental yields in Phuket remain among Thailand's highest, currently averaging 5.88-10% depending on location and property type.

Prime beachfront and branded villa segments are exceeding 10% gross rental yields, showing a 1-2% increase over the past two years. This represents a significant improvement from the 6-8% yields typical in the previous year. Inland and gated community properties maintain steady yields in the 5-8% range.

The yield improvements stem from strong rental rate increases, particularly for luxury properties. Beachfront villas now command weekly rental rates up to THB 1.8 million during peak seasons. The combination of rising rental rates and relatively stable purchase prices in some segments has driven yield improvements.

Branded residences consistently outperform non-branded properties in rental yield metrics. The tourism recovery and increased high-end visitor spending have supported these robust yield figures, making Phuket villas attractive for yield-focused investors compared to many other Thai markets.

How have average rental rates changed in the past 12 months?

Average villa rental rates in Phuket have increased significantly over the past 12 months, driven by strong foreign tourist demand and limited high-end inventory.

Luxury beachfront villas have seen the most dramatic rate increases, with premium properties now achieving weekly rates between THB 800,000 and THB 1.8 million during peak season. Mid-range villas in popular areas like Bang Tao and Cherngtalay command THB 200,000-600,000 per week, representing increases of 15-25% year-over-year.

The rental rate growth has been most pronounced in the luxury segment, where international visitors are less price-sensitive and seek exclusive beachfront access. Properties with private beach access, infinity pools, and professional management services command premium rates that continue to climb.

Even secondary locations have benefited from the overall market strength, with inland villas seeing moderate rate increases of 8-12%. The rental market's strength directly contributes to the improved yield figures across most villa segments.

Is there actual sales data showing fewer transactions, or is it just talk?

Transaction volume data confirms early signs of slowdown in specific market segments, though the overall market remains active.

Prime zones with limited inventory, including Bang Tao, Cherngtalay, and West Coast areas near new infrastructure, continue to see brisk transaction activity. However, inland and non-prime areas show measurably fewer deals and longer time-on-market periods compared to 2024.

The data reveals a clear bifurcation: while beachfront and branded properties maintain strong sales velocity, secondary locations experience visible transaction volume declines. Properties in oversupplied inland areas now average 6-9 months on market compared to 3-4 months for prime coastal villas.

New development launches continue at pace with approximately one project launching every two weeks, but absorption rates have moderated for both new and resale properties, particularly in non-prime locations.

Which areas of Phuket are seeing the sharpest slowdown, and which are still active?

The Phuket villa market shows stark regional differences, with inland and non-beachfront districts experiencing the sharpest slowdowns due to oversupply.

Area	Market Activity	Key Factors
Bang Tao	Very Active	Limited supply, beachfront access, luxury resorts
Cherngtalay	Active	Proximity to amenities, established expat community
West Coast (New Infrastructure)	Growing	Airport access, marina development, future potential
Surin/Bangtao Beach	Stable-Active	Established luxury market, beachfront scarcity
Inland Thalang	Slow	Oversupply, distance from beach, limited amenities
Eastern Districts	Very Slow	High supply, limited tourist appeal, infrastructure gaps
Central Mountain Areas	Slow	Excess inventory, longer commutes to beaches

Areas with direct beach access or proximity to major tourism infrastructure maintain strong activity levels. The West Coast benefits from new airport and marina developments, creating growth opportunities despite being previously underdeveloped.

Are resale villas moving slower than new developments, or vice versa?

Both resale and new development sales have moderated, but the patterns differ significantly by location and price segment.

New development launches continue at approximately one project every two weeks, but absorption rates have slowed compared to 2024. Developers in prime locations still achieve reasonable sales velocity, while projects in secondary areas struggle with extended marketing periods.

Resale villas in prime beachfront areas continue to move relatively well when priced competitively, often outperforming new developments in the same locations due to established gardens, proven rental history, and immediate availability. However, older villa stock in non-prime locations faces significant challenges with extended marketing periods.

The key differentiator is location rather than new versus resale status. Prime area resales often sell faster than new developments in secondary locations, reflecting buyer preference for established, proven locations over newer projects in less desirable areas.

It's something we develop in our Thailand property pack.

What's driving the slowdown—global economy, interest rates, oversupply, or just seasonality?

The slowdown stems from multiple interconnected factors, with oversupply in secondary markets being the primary driver, compounded by global economic uncertainty.

Excess supply in inland and non-beachfront markets creates the most immediate pressure, as developers have launched numerous projects in these areas over the past two years. Higher global interest rates affect financing costs for both developers and international buyers, reducing purchasing power and project viability.

Global economic volatility influences foreign buyer confidence, particularly from key markets like Europe and Russia. Currency fluctuations affect purchasing power for international buyers who traditionally drive luxury villa demand.

Seasonal effects play a smaller role, as the slowdown persists beyond typical seasonal patterns. The core issues are structural: supply-demand imbalances in secondary areas combined with macroeconomic headwinds affecting buyer behavior and financing costs.

Prime locations with limited supply and strong tourism fundamentals remain largely insulated from these broader slowdown drivers.

Are foreign buyers still coming in strong, or has demand shifted to locals and regional buyers?

Foreign buyers, particularly from Russia, China, and Europe, remain dominant in driving top-tier villa sales, though some segments show increased regional buyer activity.

International buyers continue to focus on prime beachfront and branded villa segments, where they face less price sensitivity and seek exclusive lifestyle properties. Russian and Chinese buyers remain particularly active in the luxury segment despite geopolitical and economic challenges in their home markets.

Regional and Thai buyers have become more active in mid-range and secondary market segments, taking advantage of more competitive pricing in these areas. This shift reflects both opportunity-seeking behavior and the reality that foreign buyers increasingly concentrate on premium segments only.

Currency volatility and global economic uncertainty have influenced some foreign investment patterns, but high-net-worth international buyers continue driving demand for exceptional properties in prime locations. The Thai and regional buyer increase primarily affects the THB 15-50 million villa segment rather than the luxury tier.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Based on current absorption rates, what's the outlook for the next 6–12 months?

The next 6-12 months will likely see continued market stabilization with modest growth in prime areas and ongoing challenges in oversupplied segments.

Prime beachfront locations should maintain positive absorption rates, though the pace may slow from the rapid growth seen in 2023-2024. These areas benefit from land scarcity, established tourism infrastructure, and sustained international buyer interest.

Secondary and inland markets face continued absorption challenges over the next 6-12 months as supply exceeds demand. Properties in these areas may require price adjustments or extended marketing periods to achieve sales.

Global macroeconomic factors, including interest rates and geopolitical stability, will significantly influence buyer behavior and market activity levels. If global economic conditions stabilize, absorption rates could improve more quickly than current trends suggest.

The outlook suggests market bifurcation will continue: strong performance in prime segments with ongoing challenges in secondary areas until supply-demand imbalances correct.

How do medium-term prospects (2–3 years) look if supply keeps rising at this pace?

Medium-term prospects over 2-3 years depend heavily on supply management and global economic conditions, with prime areas expected to remain resilient while secondary markets face pressure.

If current supply addition rates continue, oversupplied areas may experience price flattening or modest declines as inventory works through the market. Areas with weak fundamentals could see 2-3 years of stagnant appreciation until supply-demand balance restores.

Prime coastal zones near new infrastructure developments, including areas benefiting from airport and marina upgrades, should maintain growth momentum despite broader market challenges. Land scarcity in these locations provides natural supply constraints.

The medium-term outlook also depends on global economic recovery and tourism growth patterns. Strong tourism fundamentals and infrastructure improvements support long-term value creation, but oversupply in secondary markets may require time to absorb.

Developers may need to reduce launch pace in secondary areas to prevent further supply-demand imbalances that could pressure pricing across broader market segments.

What's the long-term case for Phuket villas—tourism growth, infrastructure, lifestyle demand?

The long-term investment case for Phuket villas remains compelling, supported by tourism growth, infrastructure development, and lifestyle demand from international buyers.

1. **Tourism Growth**: Phuket's position as Thailand's premier beach destination continues strengthening with international visitor recovery and new airline routes2. **Infrastructure Development**: Airport expansion, new marina projects, and improved road networks enhance accessibility and property values3. **Lifestyle Migration**: Increasing numbers of high-net-worth individuals seeking tropical lifestyle properties drive sustained demand4. **Land Scarcity**: Limited developable beachfront land in prime areas creates natural supply constraints supporting long-term values5. **Economic Diversification**: Phuket's economy increasingly attracts technology and service sector businesses beyond tourism

Infrastructure upgrades, particularly airport improvements and marina developments on the West Coast, position Phuket for continued growth as a luxury destination. The Thai government's support for tourism and foreign investment provides regulatory stability.

Climate change and lifestyle preferences increasingly favor tropical destinations, supporting long-term demand from international buyers seeking second homes and investment properties.

It's something we develop in our Thailand property pack.

If you're a buyer today, should you negotiate harder, wait it out, or move quickly on good deals?

Buyer strategy should depend entirely on target property type and location, with different approaches needed for prime versus secondary market segments.

For secondary and inland areas, buyers should negotiate aggressively and consider waiting for better opportunities as oversupply creates favorable conditions. Properties in these areas often sit on market for 6-9 months, providing negotiating leverage and multiple options.

Prime beachfront, branded, or exceptional location villas require swift action on attractive listings as these properties remain highly competitive. Limited supply in prime areas means good opportunities disappear quickly, and waiting may result in missing optimal properties.

Buyers seeking value deals should focus on oversupplied markets where developers and sellers face pressure to move inventory. Those prioritizing lifestyle or investment in established luxury markets should act quickly when suitable properties become available.

Current market conditions favor buyers in secondary segments but still require competitive positioning in prime areas where supply remains constrained and demand stays strong.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Thai Residential - Key Drivers Phuket Property Market 2025-2026
2. BambooRoutes - Should You Buy a Villa in Phuket
3. Sunway Estates - Phuket 2025 Market Trends
4. C9 Hotelworks - Phuket Property Market Update Report May 2025
5. Global Property Guide - Thailand Rental Yields
6. River House Phuket - Rental Property Market in Phuket
7. JFTB Real Estate Phuket - Real Estate 2025 Opportunities
8. CBRE Thailand - Phuket Condos and Villas 2025