Phuket’s real estate market is poised for a significant influx of new properties, with approximately 10,000 new flats set to hit the market this year, according to property consultancy Colliers, as highlighted by the South China Morning Post. New project launches have started happening weekly, creating a buzz in the region.
However, the situation is complicated by a rising unsold inventory in Phuket, which stood at 4,982 units across 16 projects by the end of the fourth quarter last year.
The surge in new supply could further intensify the existing oversupply issue. Colliers reported a staggering 14,700 units launched across 56 projects last year, with only 64% finding buyers. This scenario reflects increasing competition among Thai developers, particularly as sales growth in Bangkok cools and mortgage rejection rates rise.
Many prominent Thai developers are shifting their focus to Phuket due to sluggish sales in Bangkok. In contrast, Banyan, which has maintained its Phuket land bank for years, is taking a more measured approach and plans to unveil US$1 billion in luxury residential projects over the next two to three years, notably targeting Hong Kong buyers.
Chinese buyers remain the largest group of foreign investors in Bangkok flats, but demand saw a 19% drop to 1,481 units valued at THB6.12 billion (US$187 million) in the first quarter.
In the first half of last year, Chinese buyers represented 39.5% of all foreign buyers in Thailand’s condo market, acquiring 2,872 units for THB13.2 billion, as per the Government Housing Bank and reported by Thai PBS. The popular locations for foreign buyers included Bangkok, Phuket, Chiang Mai, and Samut Prakan, indicating a diverse interest in Thailand’s real estate landscape. After all, who wouldn’t want a slice of paradise?
