OPPORTUNITIES ABOUND !
As we near the end of 2023 and look forward to the coming high season, it appears that there is no slowing down for the Phuket real estate sector. Charging forward, firing on all cylinders, Phuket property is attracting more and more buyers, and opportunities abound!
Phuket Island, also known by its moniker “The Pearl of the Andaman Sea”, has grown over the last few decades to cater for every possible type of tourist, of all ages, with its culturally rich heritage, stunning beaches and crystal clear waters, excellent shopping and dining, as well as its incredible nightlife.
The high season is typically the busiest time of the year in Phuket when for a few months of the year (typically between November and April), the skies are a miraculous blue and the azure coloured seas are as calm as a lake.
Phuket’s Property Market Performance in 2023
At time of writing, the real estate sector has, arguably, experienced the most prolific growth since the market first took off over two or more decades ago. Nearly everyone who has being paying attention to the market over the last 12 months, has seen the dramatic price rises occurring all over the island, although this is especially more pronounced in high demand areas.
As tourism picks up as we head into the high season, so will the Phuket property market. There are now a multitude of new projects being launched, driven predominantly by the number of foreigners who have decided to make Phuket their new home in the sun. The sheer number of these new ambitious projects on the island is testament to this growth.
Even with the rise in prices of Phuket real estate, demand is still running high, and unless we encounter some unexpected difficulties at some stage in the future, we expect the current upward trajectory to move into 2024 and beyond.
How Tourism Affects Real Estate
Historically, real estate in Phuket has always been driven by tourism. This makes perfect and logical sense. If more people visit the island, then it stands to reason that once they land on Phuket soil, they will be able to see the amazing natural beauty and attractions of the island for themselves.
Once they have their feet on the ground, they experience for themselves the amazing potential it holds, both as a fresh start in life or somewhere to invest their hard earned money.
After the sad and destructive tsunami of 2004, Phuket was finally on the map for holiday makers. Most people around the world had never heard of the island back then, but this all changed after the 2004 tragedy. Since then, aside from the occasional hiccup, we have seen the number of tourists making Phuket their holiday destination steadily increasing, with the numbers of tourists visiting Phuket increasing to over 14 Million in 2019.
Since the lull seen during and after Covid, the island’s tourism has been bouncing back. And as the number of visiting tourists increases, so does the number of properties being sold. And if tourist numbers can keep growing, all that fresh demand from new buyers will keep buoying the real estate sector.
Something For Everyone
As the demand for Phuket property has remained strong, we have seen a significant increase in the types of developments being available for both investors and those seeking residential homes.
From luxury condos, smaller hotel licensed investment condos, affordable villas and high end sea view luxury villas, there is a diverse range of properties for sale now on the island to suit all budgets.
New areas of land are also opening up. Many previously neglected areas are now being developed. Whether new buyers prefer the hustle and bustle of a west coast tourist resort, the isolation of the mountains, rubber plantations or buffalo pastures, or even a blend of both, there is likely to be something to appeal to all tastes and preferences.
Prices Are Still Competitive Relative to Other Countries
Although we have undoubtedly seen Phuket prices rising over the last few years, when compared to other similar holiday destinations, the prices in Phuket are still attractive. Coupled with the variety of properties available spanning all price points, buyers are not finding it hard to find a property to match all their criteria.
The price differentials are more seemingly apparent when buyers look at prices and then make the comparison of what they received from a sale of property in their home countries. Depending on their country of origin, buyers still see immense value in Phuket real estate.
In addition, due to the flourishing tourist industry, the Return on Investment (ROI) for property investors in Phuket is extremely attractive, certainly compared to other similar destinations. Even long term monthly or yearly rentals are providing excellent yields for owners.
Summary Outlook For 2024
As we prepare for the coming high season, it is hard to be anything but positive on the outlook for the Phuket real estate sector.
The Phuket property market has experienced many upheavals over the years. We experienced the Asian crisis in 1997, the bursting of the Dot Com Bubble in 1999, 911 in 2001, the tsunami in 2004, the global credit crisis of 2008, the Bangkok floods, some political woes such as the red shirts/yellow shirts stand off, and more recently, Covid 19. But the market has proved resilient through all of this and has bounced back strongly after each crisis, continuing to grow significantly over these years.
For retirees, younger families and investors, there is now the largest choice of properties to consider than in any time in Phuket’s real estate history. If tourism remains strong, if demand remains robust, if the Thai Baht stays competitive, and if the island’s infrastructure keeps on improving, there is no reason to believe that the number of families or individuals looking to buy Phuket property will diminish any time soon.
Unless, for some unexplainable reason, the dynamics mentioned above change in some way, then it is likely that these trends will continue well into 2024.
The demand for Phuket property remains strong and robust!