Prakaipeth Meechoosarn, head of Phuket property sales, advisory and transaction services at consultancy CBRE (Thailand), said the island’s resort-home villa market continues to grow, with sales in 2024 rising by 23% from the previous year, reports the Bangkok Post.
"Villa sales have grown consecutively over the past three years, indicating the post-2021 acceleration reflects Phuket’s residential sector recovery and renewed investor confidence," she said.
According to CBRE research, annual villa sales in Phuket averaged at 147 units during 2017-19 and remained below 200 units a year until 2022, when the figure doubled to more than 300 units.
Last year, sales surged to 600 units ‒ four times higher than the pre-pandemic average. A cumulative sales rate of 75% between 2014 and 2024 also underscored strong demand and high absorption across the market.
"Villa supply in Phuket expanded steadily from 2017 to 2024, reflecting healthy market activity," she said. "The 2025 forecast shows the largest increase in new supply, signalling both confidence and expansion."
As of the first half of 2025, luxury villas priced above B90 million accounted for only 6.9% of the total villa market, but recorded a cumulative sales rate of 76%.
The most popular location was the southern east coast, which achieved the highest sales rate at 92.8%, while the central west coast posted a rate of 70.8%, according to CBRE.
Ms Prakaipeth said 68% of villa buyers purchased for investment, with the remainder buying for their own use. Foreign buyers accounted for 43%, led by those from the UK, Hong Kong and the US.
Torsak Jaichuen, chief executive of Phuket-based developer Garden Atlas Bayview Villa, said the company launched Garden Atlas Bayview, a B2 billion villa project in Makham Bay near Cape Panwa, comprising 15 units priced at an average of B150mn.
"We chose this location for our US$5-million villas because it offers a peaceful, private coastline with limited land availability," he said. "It is also maritime-ready, with deep water and calm bay conditions suitable for yacht mooring."
HIGH-END DRIVER
Jason Thelen, senior director of sales and marketing at Princess Villa, a property developer, said high-end condo sales in the first five months of 2025 were robust, outperforming both last year and 2023, which was considered a "big year" for the Phuket property market.
"Things slowed down significantly in June due to the low season and possibly the Trump effect and broader global economic conditions," he said. "This June was the slowest June since before the pandemic."
However, sales have rebounded from August, with its low-rise condo Sudara Residences recording a sales rise from under 30% earlier this year to 50% as of November, Mr Thelen added.
"We have a diverse international buyer base. Most are expatriates from Hong Kong and Singapore, followed by American, Australian, Russian and Thai buyers. Interestingly, one-third of new sales since August have come from Polish buyers."
The project, a joint venture with Hong Kong’s Lan Kwai Fong Group owned by Allan Zeman, will occupy a 9.3-rai site in the Bang Tao area.
It will feature 220 units ranging from 52 to 144 square metres, priced between B10mn and B27mn.
"Buyers are becoming more sophisticated, with many now younger, starting from around 40 years old, including families," he said. "We are planning a second phase of Sudara on a 22.5-rai plot near the first phase to capitalise on strong demand."
He said relaxed regulations for international buyers and the appeal of tropical living have continued to drive foreign investment.
In 2024, foreigners accounted for 60% of condo sales and 30% of all property purchases, with many favouring hybrid investment or holiday-home models.
According to historical data from Phuket authorities, condo prices have steadily appreciated from B20,000 per sq m in 2000 to B110,000 last year.
Over the past decade, the island recorded an average annual capital gain of 6.4%.
Rental returns reached as high as 9-10% per year, supported by strong demand from health tourists, digital nomads, expatriate executives and professionals, as well as families and work-from-home residents.
Since the pandemic, real estate values in the Bang Tao area have significantly outperformed the island’s average growth rate. This momentum is expected to continue due to rising demand and limited supply.
Yana Chuvalova, director of sales and marketing at Amal Group of Companies, developer of the luxury beachfront residential complex Gardens of Eden, said the firm launched phase three of the project early this week after achieving 82% sales in phase one and 62% in phase two.
"Demand for luxury condos remains strong, particularly among foreign buyers," she said. "Some 43% of our buyers are Russian-speaking nationals from Russia, Ukraine and Kazakhstan, followed by 12% from Singapore and 10% from Thailand."
Other buyers include 9% from India; 7% each from Sri Lanka and Italy; 4% from Hong Kong; 3% each from the UK and Germany; and 2% from the US.
The entire development spans 73 rai along Layan Beach, comprising 127 units in phase one, 455 units in phase two, 698 units in phase three and eight Etro-branded residence units.