Phuket –
Despite signs of slowing demand in Thailand’s luxury real estate market, industry experts affirm that Phuket’s property sector remains resilient, driven by its enduring appeal as a global tourism hub.
According to Pattanan Pisuthvimol, Vice President of the Phuket Real Estate Association, the local market has experienced a noticeable deceleration since late March. The initial months of the year saw stable demand, but geopolitical tensions, inflation concerns, and global economic uncertainty—such as shifts in U.S. tax policy—have since dampened investor confidence nationwide.
While the downturn is evident across the country, Phuket stands out due to its tourism-led economy. Even as international visitor numbers dropped during the second quarter, many believe the lull is temporary. With the onset of the third quarter, signs of recovery have emerged, particularly in hotel occupancy rates.
An influx of new real estate projects—especially high-end pool villas priced over THB 30 million—has contributed to a surge in supply. Much of this development has concentrated in areas like Bang Jo, Cherngtalay, and Pasak, where land prices have soared from THB 6–7 million per rai to over THB 30 million in some zones. This cost escalation, paired with rising construction expenses, has led developers to adjust prices upward.
Of the roughly 4,000 pool villas launched last year, an estimated half remain unsold, with more than 2,000 units still on the market. Similarly, between 30,000 and 40,000 condominiums have entered Phuket’s housing inventory, though many are yet to be sold.
Despite the slowing pace of sales, experts insist that the situation is not indicative of an oversupply or imminent bubble. Instead, it marks a shift toward a more competitive market. Developers catering to foreign buyers are now urged to refine their financial and marketing strategies. “The days of building and selling without much effort are over,” Pisuthvimol noted. “Success today hinges on accurate market targeting and adaptive planning.”
The demand for second homes among foreign nationals—particularly from Russia, China, Europe, and the United States—remains steady. However, rising geopolitical uncertainty and trade tensions could influence investment flows. If global conflict intensifies, Phuket’s image as a safe haven might attract high-net-worth individuals seeking stable retreats.
Industry stakeholders anticipate that the fourth quarter, traditionally Phuket’s high season, will bring renewed momentum. The extent of the rebound will depend largely on international market conditions and travel policies abroad.
In addition to foreign investors, domestic demand continues to shape the island’s real estate landscape. Properties in the THB 5–10 million range, as well as resale homes, are increasingly sought after by Thai buyers—signaling sustained market vitality across multiple segments.
Phuket’s property market may be moving more slowly, but with strategic recalibration and the island’s enduring appeal, it still has room to grow, noted the Phuket Express.
