Real estate in Phuket continues to be in high demand

TUESDAY, JUNE 18, 2024

Prices are soaring in the popular beach destination, making it increasingly difficult to find available land

Speaking 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), lamented that it was becoming increasingly difficult to find land in Phuket due to the ever-rising cost of land.

“Based on a survey of market land prices from 2004 to 2024, we see 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.

“The highest price increase was in Rawai Beach, where prices rose by 14 times, followed by Bang Tao Beach with an increase of 10.67 times and Mai Khao Beach with an increase of 9 times. Areas with slower increases include Sapam Bay, Karon Beach, and Sirey Island.

Real estate in Phuket continues to be in high demand

Currently, the highest market land price is on Patong Beach, 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 are significantly higher than government appraisals.
Going on to speak of new project launches in the first quarter of 2024, he said some 25 projects had come onto the market, totalling 4,000 units with a combined value of 54 billion baht, averaging 13 million baht per unit.

Most of the new launches, valued at 45 billion baht or 83% of the total, were for vacation condominiums, nearly all of which were in Thalang District.

Over the past year, about 10,000 real estate units have been sold in Phuket, totalling 90 billion baht or an average of 9 million baht per unit, with most sales again occurring in Thalang District. Vacation condominiums and villas sold very quickly, while properties for Thai residents went more slowly.

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 is 110.648 billion baht, with real estate activities valued at 6.281 billion baht or 5.7%. However, in reality, the value of real estate development in Phuket is much higher, close to the case of Florida, where the real estate Gross State Product accounts for 24% of the total state product.
In 2023, Phuket attracted 8,376,464 tourists, an increase of 152.29% 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 is the most popular tourist destination in the region and one of the leading tourist destinations in the world.