Knight Frank Thailand Says Phuket Condominium Market Pulling Off in Terms of Supply Growth, with Slight Drop in Demand
Knight Frank Thailand reveals that the Phuket condominium market has managed to grow in terms of supply by the end of a 9-month period in 2015 with a total existing supply of 11,177 units, up 15 per cent from the previous year. However, demand dropped slightly by 1.88 percent.
Miss Risinee Sarikaputra, Director, Head of Research and Consultancy, Knight Frank Chartered (Thailand) Co., Ltd., pointed out that approximately 1,654 units from 10 projects have been added to the supply in 2015. However, four condominium projects, totalling 225 units, were removed from the total current supply, namely the Massaluna project (184 units) at Naiyang Beach, which had been purchased and converted into a hotel, while another three projects, totalling 41 units, have been halted. Ms. Risinee added that Patong Beach area had the highest number of new supply, contributing 41 per cent, thanks to its popularity among tourists and property developers. Kamala and Rawai equally represented 27 per cent while Bangtao contributed the least, with only 5 per cent of the total new supply.
According to Ms. Risinee, most of the condominiums launched prior 2009 were spacious units with sizes of over 100 square metres and the price was over THB 7 million a unit; however, after 2010, condos have been scaled down to a compact size of 30 to 40 square metres with one bedroom, priced at THB 3 to 5 million baht per unit.
Demand during the 9-month period in 2015 dropped to 64.89 per cent with approximately 7,393 units sold, said Ms. Risinee, adding that today, most buyers are expatriates based in Asia, particularly from Singapore and Shanghai, who have lived and worked in the region for a number of years. Also, they tend to know Phuket well and buy a condominium in Phuket for investment-led reasons rather than for a vacation home.
Ms. Risinee also pointed out that that as of Q3 2015, condominiums with sea views in Phuket have reached THB 124,185 from THB 121,750 per square metre in 2014, or up 2 per cent. Meanwhile, prices of partial sea-view and non sea-view units have remained relatively unchanged, slightly increasing from THB 91,658 per square metre in 2014 to THB 91,874 per square metre in 2015, and from THB 67,850 in 2014 to THB 67,859 in 2015, respectively.
Phuket attracts property buyers from all over the world due to its worldwide reputation as the world’s top tourist destination. It is also a politically stable city that offers world-class shopping malls, international medical centres and schools as well as high-end marinas. Phuket is also home to an international airport that serves direct flights between the island and Asia, the Middle East and Russia.
