Mr. Nattha Kahapana, Executive Director and Head of Knight Frank Phuket, forecasted that villa units with a selling price in the range of THB 8 to 15 million possess good prospects. The market would continue to see healthy take-up rates; as of the end of Q3 2017, there were approximately 1,982 units being sold out of 2,542 units, and such units represented a sales rate of 78% with approximately 168 villa units sold in 2017. On the other hand, Phuket villas priced over THB 300 million per unit hold gloomy prospects. Sales transactions are quite stagnant, and only a few units were sold. On the whole, average unit selling prices will be stable or slightly increasing. Also, there will be more resale villas entering the market.
Source: Knight Frank Thailand
There were approximately 2,542 villa units in Phuket. During the first nine months of 2017, about 178 units were added as new supply to the Phuket villa market. The majority of new villas added during the first nine month of last year included two-bedroom villa units with a selling price of THB 8 to 12 million a unit. The majority of the new supply was located in the centre part of the island in the vicinity of Bangtao, Surin and Kamala beaches.
Source: Knight Frank Thailand
Villa buyers are still foreigners and expatriates living in Asia such as Hong Kong, Singapore and China. There are also some foreigners from Australia and New Zealand buying a villa in Phuket for their second home. Buyers from China were among the top three villa buyers in Phuket after those from Hong Kong and Singapore. Non-stop flights, with only a few hours of flying time, from some cities in China to Phuket also helped boost the market.
