All About Phuket Island - Useful Information for Prospective Property Purchasers
Phuket Island By Numbers
Longitude/latitude : 7°53′24″N 98°23′54″E
Area in Square Kilometres/Miles : 576 km2 / 222 m2 including outlying islands
Distance from Bangkok : 863 kilometres (536 miles)
Population: Approx: 600,000
Population Growth Rate: 7.4% p.a.
Number of Tourists 2019: 14 million
Number of Tourists 2023 (est.): 12 million (an 86% recovery from pre-Covid 2019)
Number of Islands in Phuket Province : 32
Highest Point : 1,736 feet (529 metres)
Main Agricultural Products : Rubber, palm oil and pineapple
Topography of Phuket Island – The Different Terrains for Phuket Property
Developers on the island contemplating a new project have a vast amount of terrain to choose from when considering a new project, as do private investors wishing to build a stand alone Phuket villa. Obviously west coast beachside and sea view is the most popular, but the island is relatively small and this land is hard to find at present, so the flat areas away from the coast are also becoming increasingly popular. The land values on the inland plains are considerably cheaper, so anyone contemplating the purchase of Phuket real estate will likely find much better value inland.
Seventy percent of Phuket Island’s area is mountainous terrain, extending from north to south, predominantly on the western half of the island. The remaining thirty percent is composed of the plains in the central and eastern parts of the island, including the Kathu Valley, which extends eastward to Phuket Town. In the South, between the central mountain and the sea, the hilly land levels off for a couple of kilometres, before meeting the beaches, but there are some mountains around Nai Harn which form headlands and capes, which jut out into the water, some of which have been developed and offer stunning Phuket property with amazing views.
Phang Nga Bay on the eastern side of Phuket offers up a spectacular array of limestone karst formations, so east coast property also has incredible views, but it is worth noting that the water on the east coast is not the turquoise crystal-clear water that is found on the west and few tourists are attracted to this side of the island.
Many of the mountains and even some of the flat lands are national parks and protected land. The more elevated mountainous areas are teeming with wildlife, and so Phuket also has an 80 metre above sea level height restriction for any construction. Most of the west coast beachside land is also national forest or owned by the crown, making beachside land extremely hard to purchase.
Phuket Island’s Climate and Weather and How it Affects Phuket Real Estate
The Phuket real estate market always ebbs and flows during the course of a calendar year. Most residents of Phuket tend to think of the year as having two seasons: the high season and the low/rainy season (often referred to as the “green season”). These two seasons correspond with the biannual changes in the monsoon winds.
For anyone thinking of investing in the Phuket property market it is important to understand the variations in weather, especially if the objective is to generate rental income. Occupancy rates vary considerably throughout the year, as they do in other holiday destinations around the world.
Not only are occupancy rates lower in the low season, rental rates are also considerably lower, so the low season tends to make up only around 20-30% of generated revenue for villas and condos, as well as for the hotel industry. Most income is generated during the period starting from mid-November to the end of April, when the sky is blue and the sun shines throughout the day. It should go without saying that the best time to rent out a Phuket property is when the sun is shining.
The number of tourists who visit in the low season pales in comparison to the number of tourists who visit in the high season. So, it also stands to reason that the number of Phuket property sales are far greater in the high season than the low season, when more people are visiting.
Officially, Thailand, in general, has three seasons: a wet season, a cool season and a hot season. The seasons in Phuket are distinctly different from the rest of Thailand, however, and even differ from the islands on the other side of the Malay Peninsula, (e.g. Koh Samui). But in Phuket, January and February are often regarded as the mid-way point of the high season, which is also when the weather is amazing, as temperatures drop but the sun still shines all day.
Beach goers may head indoors during the rainier months, but the change in winds creates the perfect conditions for surfers, so the West Coast is usually full of surf boards from April/May until the seas become calmer in November/December.
The Immense Attraction of Phuket Island and Why So Many People Buy Property in Phuket!
Phuket has always been the jewel in the crown of Thai Tourism, but the attraction it has garnered since the 2004 tsunami, has metamorphosed the island, catapulting it into the global tourism limelight. Since that calamitous event, according to the World Population Review, Phuket’s population has increased almost three-fold. And this incredible upward trajectory is not abating.
The Jewel of the Andaman Sea is not just a vacation hot spot, but for the past few years has also been attracting new residents from a broad array of countries around the world. But it is not just foreigners, many Thai nationals have also been moving to the island from other provinces in Thailand.
Although tourism and related industries make up the majority of the islands gross income, this huge influx of new residents is also aiding in the prosperity of the island. As Phuket’s income stream has continually increased, the local government has also been able to continuously improve the infrastructure on the island.
Foreign corporate investors, too, have been investing in the island, adding to the number of new tourist attractions, which in turn, benefits both residents and holiday makers. And, as the island welcomes more and more tourists, we will undoubtedly see more Phuket real estate transactions taking place. We have said for many years that the number of sales of Phuket real estate is inextricably linked to the tourism industry. It stands to reason that the more people who visit the island and fall in love with it, the more people will buy property here.
This impressive influx of foreign buyers and residents has also buoyed the villa market, with many developers taking on huge projects to cater for this recent demand. Whilst we have always seen development taking place across the island, the past couple of decades pales in comparison to the current frenzied activity.
Tourists only have to visit Phuket Island once to be enchanted by its people and culture. And no matter how long they stay, they will very likely come across foreigners of their own nationalities, living happily on the island, having bought their own little slice of paradise.
So what is it exactly that attracts people to Phuket?
Sun, Sea, Sand
The most valid reason for being bullish on Phuket’s property sector over the long term could be described as “love at first sight”.
And what is not to love! Phuket offers sunny days, stunning beaches and amazing scenery. It is a tropical island with a relatively mild rainy season. There are no typhoons like the ones that punish the Pacific or the Caribbean each year, nor does the intensity of the rain come close to the monsoons which strike the Indian Subcontinent.
For most of the year, the weather is out of this world! Anyone who loves the beach, the sea, surfing, sailing, boating – or even just sunshine – absolutely falls in love with Phuket Island.
The Affordability of Phuket Property
Compared with other tourist destinations, Phuket property is extremely affordable. Phuket attracts a vast array of nationalities, but due to property booms in their respective countries, many people have been priced out of the market for entry level homes.
People pay top dollar for property in Southern Europe or in other warmer climates with beaches, but a quality one bedroom (freehold) condominium on the West coast of Phuket can start as low US$ 100,000. Further inland it is possible to find Phuket condos for nearly half that price.
The choice today is huge, with a broad spectrum of types, sizes, styles and pricing. With such a diversity of Phuket real estate options, there is likely to be something on the market that will appeal to everyone.
For anyone with a larger budget, looking instead at the luxury end of the spectrum, there are some sea view penthouses in Phuket with private pools which run into millions of US$, as well as breathtaking villas which can cost tens of millions.
Phuket Property Buyers Want Decent Health Care and Top Class Hospitals
Before foreigners, especially retirees, make a Phuket property purchase, they want to make sure the island offers a high standard of medical care. But Phuket’s hospitals have long been praised for both the quality of care and the excellent value for money they offer.
In addition to smaller specialist clinics and medical centres, Phuket Island is home to two major accredited hospitals, which are frequented by patients from all over the world. The Bangkok Hospital Phuket and Siriroj International Hospital are modern facilities which equal (and in some cases even surpass) western standards. The newest modern facility is Biduk Hospital, part of the Bangkok Dusit Medical Services network (BDMS), one of Thailand’s largest hospital groups. Located on Chao-Fa West Road, it offers convenient emergency, out-patient, and in-patient care to residents in the Chalong, Rawai and Nai Harn areas.
Thailand is a major Southeast Asian hub for medical tourism, as well as dental tourism with people flying into the country for a wide variety of surgeries and treatments every day. In addition to the excellent facilities in Phuket, Bangkok boasts Bumrungrad Hospital, one of the finest hospitals in all of Asia.
Families With Children Require Excellent Education Options Before Considering a Real Estate Purchase
The tremendous influx of foreign nationals to Phuket over the last decade has brought with it a corresponding growth in the number of international schools in Phuket. In 2024, we now have 14 quality international schools on the island, accommodating students from 18 months up to 18 years of age.
International schools on the island cater to all nationalities. While the American, British, Canadian and French curricula are the most common, instruction is also given in other languages including Russian, Chinese, Korean and Spanish. Most international school children are also taught the Thai language and introduced to the wonderful Thai culture.
A number of international schools are in the south of the island. The Lighthouse International School and Growing Minds are both located in Rawai, while nearby Chalong is home to the Lighthouse International Kindergarten and School, and Berda Claude International School (BCIS).
More centrally located in the Koh Kaew area, not far from the Boat Lagoon and the Royal Phuket Marina (RPM), are the British International School and Finnway International School. The impressive UWC (Unity World College) is the furthest north, and offers a high standard of education with world-class facilities.
School enrolment throughout the island is either at, or in some cases exceeding capacity. The pandemic saw an influx of families who wanted a more pleasant place to live if the world locked down again, while a further surge in school enrolment came from families escaping the war in Ukraine, and even Israel has a growing population on the island.
One of the newest schools in the South is BCIS (Berda Claude International School) in Chalong, a French/English school with high standards and a rapidly expanding enrolment. The school has grown at an impressive pace, including adding first class sports facilities and Southern Thailand’s first planetarium, as well Phuket’s only indoor ski slope.
The islands newest addition is the new campus from Headstart International School, in the Cherng Talay area. Headstart hope to replicate the success of their sister school in the south, as well as providing the ever growing expatriate community in the area with an additional option for quality education for their children.
The international school arena has expanded so much on the island, that in 2024, it doesn’t matter what area foreigners decide to purchase a Phuket property, there is likely to be an excellent school just a short drive away. Developers are also capitalizing on this dynamic and building both villas and condos close to renowned internationals schools.
Phuket Yachting, Marinas and Ports
At the start of the millennium, Phuket had only one marina. Today there are four major marinas situated along the East Coast: The Boat Lagoon, The Royal Phuket Marina, Ao Po Marina, and (further north) The Yacht Haven.
Phuket hosts the annual Phuket International Boat Show (PIMEX) which attracts prestigious yacht and boat builders, not to mention boating enthusiasts from all over the world.
Still in its infancy compared with other countries, the yachting industry has plenty of room to grow, but as more people experience Phuket, it will only continue to prosper.
Ongoing Infrastructure Improvements
For the past 25 years, and with a noticeable increase in pace in the few years leading up to 2019, Phuket Island has been on a development fast track, and the improvements in infrastructure have helped transform the island into a global tourist destination.
In addition to expanding and upgrading the airport, the island has added a modern bus service connecting the airport to the south of the island. Improvements to the road network are ongoing, including tunnels to alleviate traffic at key intersections.
The subsequent inflow of tourists and capital has coincided with the addition of world-class leisure and recreational facilities. All of these improvements have attracted not only tourists, but also new residents and investors.
So much To Do for Phuket Residents – Recreation and Tourist Attractions
Wherever on the island new arrivals decide to purchase a Phuket property, there will always be plenty to do. New and improved tourist attractions continue to appear on the island. These include an ice skating rink, water parks, zip-lining, and aquariums, all of which offer an alternative to the more traditional jungle trekking, elephant rides and boat excursions.
There are always new things to do in Phuket, ensuring that there really is something for everyone.
Golf-Side Properties in Phuket
Just as some people enjoy the view over the Andaman Sea from their Phuket condo or villa, many people love the view over the greenery and lush landscapes of a golf course, especially if they are a golfer themselves. Although golf side property prices don’t quite compare to sea view Phuket properties, they will most certainly hold a premium for the view.
There are currently seven golf courses in Phuket, each one offering beautiful landscapes and unique tropical foliage. Loch Palm, Red Mountain, Blue Canyon, Mission Hills, Phuket Country Club, and the Laguna Golf Club are all on the island. And there are now three courses not a great distance away in Phang Nga. These are Aquella, Katathong and Kirinara, all just a short drive north of Phuket, near Kao Lak.
A Country of Abundance and World Class Shopping
Wherever foreigners decide to buy a Phuket property, there will be a myriad of choices for shopping. As well as local Thai markets, and Supercheap’s, which both offer fresh produce all over the island, there are now also more foreign orientated stores, such as Villa Market, Macro, Tops, and Lotus’s, selling international gourmet foods, as well as some privately owned foreign importers of international food.
For non-grocery types of shopping, the retail shopping experiences in Phuket continue to amaze us all. For example, the Central Shopping Mall is a marvel in the tropics. Central now has three different buildings, joined together by covered walkways across the major Darasamut Intersection, and each building is a discovery in itself.
The addition of Central Floresta to the original Central Festival offers a combined total area of 400,000 m2, with 185,000 m2 of retail space accommodating over 700 stores – the most in Southern Thailand. The Central complex offers fashion brands from the high street to the high end, as well as an international supermarket and English language cinema.
But Central is by no means the only option on Phuket Island. Modern shopping villages, business centres, factory outlets, duty free malls and supermarkets are sprouting up right across Phuket. This trend is expected to continue well beyond 2024.
Modern amenities are nice, but the well preserved Thai culture and way of life are what attracted most expatriates to the island in the first place. And there are obviously plenty of local shops and markets that still offer that traditional Thai ambiance, and the traditional local prices!
In Summary
As the above sections have demonstrated, people may have originally come to Phuket Island as tourists, but many of them come back as residents, or to have a holiday in the Phuket condo or the villa they bought on a previous visit to the island.
While the climate makes it a popular holiday destination, the affordability of condominiums and villas makes it a popular place to live or invest in Phuket property.
For decades now, we have seen year-on-year increases in tourist numbers, which has led to greatly improved infrastructure on the island. As Phuket continues to experience buoyant growth, more and more potential investors have taken note of this growth and have seen the potential and rewards of investing in the Phuket property market.
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