The island is seeing clear shifts in buyer preferences and development strategies, as traditional mass-market approaches give way to more targeted, differentiated offerings, explains Bill Barnett, Managing Director C9 Hotelworks in ‘The Phuket Property Market Update – May 2025’ report.
The report shows that condominiums continue to dominate the supply landscape, making up 83% of the 40,600 units currently for sale across 343 active projects. Landed properties ‒ including villas and townhouses ‒ are also gaining ground, particularly in upscale areas.
Cherng Talay remains the island’s most active submarket, accounting for more than half of total inventory. Anchored by large mixed-use developments such as Laguna Phuket, the area is also home to some of the most expensive properties on the island, with one-bedroom ocean-view condos listed at up to B19.4 million and villas exceeding B138mn.
Branded vs. Non-Branded: A Growing Price Gap
Branded residences are outperforming their non-branded counterparts in both sales velocity and pricing power. Branded condominiums now command an average of B181,000 per square metre — a 28% premium over non-branded units. Branded villas and landed homes are fetching up to B162,000 per square metre, more than double the price of comparable non-branded offerings.
Despite this premium, non-branded units still dominate total supply. However, buyers are increasingly drawn to the perceived value and amenities offered by branded developments, particularly those with strong management, rental support and post-sale service.
Developers Target High-Value Segments
Bangkok-based firms like Sansiri and Ananda have expanded aggressively into the Phuket market, joining established players such as RHOM Bho Property, which holds the largest market share with 4,820 units across nine projects.
Developers are increasingly focusing on flexibility and lifestyle features, with units designed to accommodate both long-term residents and mid-term renters. This trend is especially relevant in light of stricter enforcement of Thai regulations prohibiting short-term condo rentals of under 30 days without a hotel license ‒ a shift that is influencing investor strategies.
Rental Market Remains Strong Despite Legal Pressures
The rental sector continues to perform well, particularly in lifestyle hubs such as Cherng Talay, Rawai and Patong. One-bedroom condominiums remain the most in-demand product, renting for an average of B22,541 per month on long-term leases and B26,616 for short stays. Three- and four-bedroom villas average B179,445 per month for short-term rentals, catering to families and high-end holidaymakers.
However, the government’s increased enforcement on illegal short-term rentals has added an element of risk for investors. Properties not compliant with hotel licensing laws face fines and tighter scrutiny, prompting a shift toward legal long-stay offerings and mixed-use developments.
Phuket’s Value Proposition Holds Strong
Compared to regional urban centres like Bangkok or Singapore, Phuket remains relatively affordable for luxury real estate, Mr Barnett noted.
The island’s maturing development ecosystem ‒ with better infrastructure, mixed-use communities and branded offerings ‒ is helping it transition from a holiday hotspot into a viable second-home and investment destination, he added.
As the market becomes more selective, the report notes, success will depend on how well new projects meet the needs of specific buyer groups ‒ from digital nomads and wellness seekers to high-net-worth investors looking for premium amenities and turnkey rental support, Mr Barnett concluded.
Read the full ’Phuket Property Market Update – May 2025’ report here.