Soaring Prices and Scarce Land in Phuket's Real Estate Market
At the seminar “Investment Opportunities in Phuket Real Estate – Latest Market Trends” held on June 14 at the Novotel Phuket City Phokeethra Hotel, Sopon Pornchokchai of the Thai Real Estate Research and Valuation Centre, Agency for Real Estate Affairs Co., Ltd. (AREA), highlighted the challenges of finding available land in Phuket due to escalating costs.
“Based on a survey of market land prices from 2004 to 2024, we observe that land prices have increased on average by 7.47 times, or 10.7% annually, which is quite high compared to other areas in Thailand,” he said.
He noted that Rawai Beach saw the highest price increase, with prices rising 14 times, followed by Bang Tao Beach with a 10.67 times increase, and Mai Khao Beach with a 9 times increase. In contrast, areas such as Sapam Bay, Karon Beach, and Sirey Island experienced slower increases.
High Demand for Real Estate in Phuket
Currently, Patong Beach holds the highest market land price, with AREA estimating this year’s price at 350 million baht per rai. Other high-priced areas include Bang Tao Beach, Surin Beach, and Karon Beach, with prices estimated at 80 million baht per rai. Market prices significantly exceed government appraisals.
Discussing new project launches in the first quarter of 2024, Sopon mentioned that approximately 25 projects, totaling 4,000 units with a combined value of 54 billion baht, were introduced to the market, averaging 13 million baht per unit.
Most of these new launches, valued at 45 billion baht or 83% of the total, were vacation condominiums, nearly all located in Thalang District.
Real Estate Sales and Development
Over the past year, about 10,000 real estate units were sold in Phuket, amounting to 90 billion baht, with an average of 9 million baht per unit. Most sales occurred in Thalang District, where vacation condominiums and villas sold rapidly, while properties for Thai residents had slower sales.
In the first quarter of 2024, there were around 500 real estate projects for sale in Phuket, comprising approximately 72,000 units with a development value of 460 billion baht. Of these, 62,000 units have been sold, leaving about 10,000 units available.
Overall, Phuket's Gross Provincial Product stands at 110.648 billion baht, with real estate activities valued at 6.281 billion baht or 5.7%. However, the actual value of real estate development in Phuket is much higher, akin to Florida, where the real estate Gross State Product accounts for 24% of the total state product.
Tourism Surge in Phuket
In 2023, Phuket attracted 8,376,464 tourists, marking a 152.29% increase from the previous year. Compared to Bali, which had 5,273,258 tourists, an increase of 144.61%, and the Maldives with only 1.8 million tourists, Phuket stands as the most popular tourist destination in the region and one of the leading tourist destinations globally.
For more detailed information on the current real estate opportunities and trends in Phuket, visit [Siam Real Estate]. Explore their listings for [Patong Beach], [Bang Tao Beach], [Surin Beach], and [Karon Beach].
Source: Nation Media Thailand
