Latest Phuket Property Trends and Data Insights

As Phuket moves toward the end of its tourism high season in April and into the low season, Phuket property professionals are asking, “What’s next?”The pressure is on for Thai-listed developers from Bangkok to demonstrate income growth, as the Stock Exchange of Thailand (SET) continues to decelerate.

Top Bangkok-based groups currently active in the Phuket market include One Origin, Sansiri, AssetWise, Siamese Asset, Ananda, Land and Houses, Charn Issara, and others. These developers are focusing on two specific tiers of projects aimed at foreign buyers. The first is small, entry-level, mass-market condominiums, while the second targets the upper end of the market with luxury single-family homes.

Another emerging trend is the development of larger, mixed-use projects in inland areas of the island. These developments are lifestyle-focused and cater to end-users or investors seeking recurring rental yields. A significant shift in the market is the rise of hybrid developments, where large-scale land is subdivided into micro-projects in collaboration with other developers.

One notable example is Ananda’s Mira Valley, which is partnering with Mono and the growing Punyisa brand. Together, they are populating this larger community with specialized developers who offer niche products but are attracted to the concept of a large integrated living complex. We expect to see more of these hybrid developments, along with more custom-built lots, signaling a departure from the many cookie-cutter, mass housing projects currently available in the market.

Regarding data, C9 Hotelworks has compiled rental data for the full year of 2024 from Thailand’s leading property portal, Fazwaz.com. With thousands of transactions analyzed, here are the key highlights focusing on the rental segment:

• In Bangkok, 89% of online rentals are long-term, and 94% are condominiums rather than houses. Demand for one-bedroom units makes up nearly half of the market, followed by two-bedroom units at 25%. The top three nationalities of renters are Thai, US, and UK.
• Looking at the transaction market, average sales prices have shifted due to the resale of older, larger units with higher absolute prices, despite an influx of smaller, entry-level, lower-priced units.

• In Phuket, the secondary market is growing, and single transaction prices have decreased by 20-25% due to a combination of resales and smaller, more affordable condominiums.
• On the island, 54% of rentals are long-term, with a slightly higher proportion of houses compared to condominiums. One-bedroom units are in high demand for condominiums, while three-bedroom units are the most sought-after for houses. The top three nationalities of renters are Russian, UK, and US, with Thais emerging as a growing segment.

We will continue to closely track real estate trends throughout the shoulder season and into the low season, especially considering the high volume of new project launches. Stay tuned.