Bangkok developers are increasingly venturing into Phuket’s condominium market as foreign demand continues to surge, compensating for subdued local interest.
Artitaya Kasemlawan, head of residential sales projects at CBRE Thailand, highlighted the remarkable growth of Phuket’s property market over the past two years. “The surge in foreign tourist arrivals has been a key driver, turning holidaymakers into property investors,” she explained.
Phuket airport recorded 6.2 million arrivals during the first nine months of 2024, marking a 24% year-on-year increase. Foreign visitors accounted for 61% of these arrivals, with Russia, China, India, Kazakhstan, and Germany as the top contributors. Hotel occupancy rates also climbed to 71.5% in the first half of the year, the highest in five years.
This influx of tourists has translated into booming real estate sales. CBRE reported a 142% year-on-year increase in condominium transactions during the first half of 2024, with 3,000 units sold. In 2023, Phuket set a record with 3,300 units sold, far exceeding the annual average of 1,148 units recorded between 2014 and 2019.
Ms. Artitaya noted a shift in market preferences, with 63% of condos sold in 2023-24 priced at 8 million baht or less, compared to 45% during 2014-22. Meanwhile, sales of units priced between 8-15 million baht dropped significantly.
Developers from Bangkok are now prioritizing Phuket due to its robust demand. “In Bangkok, only a few condo towers reach full foreign quotas, while Phuket offers significantly higher opportunities,” she said.
One such developer is Capstone Asset Co, which recently debuted the Peylaa Phuket Bang Tao project, a high-end development featuring 408 units valued at 3.4 billion baht. CEO Titiwat Kuvijitsuwan emphasized Phuket’s growing appeal as a global leisure destination, supported by infrastructure projects such as the phase 2 expansion of Phuket airport and the Kathu-Patong expressway.
“The Phuket property market remains resilient, driven by foreign buyers, while Bangkok faces challenges due to its dependence on local buyers amid economic difficulties,” Mr. Titiwat added.
Leading players like Sansiri Plc have long recognized Phuket’s potential. With 22 projects already completed on the island, Sansiri plans to launch 27 more between 2025 and 2029, totaling 25 billion baht in value. Other major developers, including Origin Property Plc and Central Pattana Plc, have also made significant inroads into the Phuket market.
Phuket’s growing number of international schools further reflects its increasing appeal to expatriates. The number of schools has risen from 11 in 2019 to 16 in 2024, with student enrollment up 17% year-on-year, reaching 4,901. This trend underscores the island’s transformation into a favored destination for foreign residents and investors alike.
