Phuket Property market soon set to return to pre-Covid level

May 15 16:54 2023

Phuket Property market has always been an attractive investment opportunity for foreign investors, thanks to its excellent return on investment (ROI) figures. However, the COVID-19 pandemic has significantly impacted the property market in Phuket. Many industry professionals believe that the market still needs time to recover and is waiting for more foreign tourists to return.

Fortunately, the situation is slowly improving. The condominium market in Phuket is beginning to recover as foreign tourists return to travel in Phuket. Developers have started to re-launch marketing campaigns and develop projects again after the project was paused due to transportation problems of construction materials. However, foreign investors are unable to make international money transfers for payment terms during the construction of the projects according to the contract conditions, which has caused several projects to come to a standstill.

Supply and Demand Don’t Match

As a result of all the factors above, the overview of the selling trends of properties in Phuket has slowed down both in terms of supply and demand. Nevertheless, according to surveys and data gathered during the second half of 2022, the demand for the condominium market is increasing, but still not as popular as the villa market in Phuket during the same period.

The tourism situation has begun to come back to life, and foreign tourists continue to choose Phuket as their main tourist destination for relaxation and stay during their visit to Thailand. However, it will still take another one to two years for the property market to fully recover to pre-COVID levels, as it has to wait for tourists to return to the same level as before the COVID situation.

It is expected that during the year 2023, many condominium and villa projects under construction will gradually be completed and open for service in the form of a hotel to welcome more increasing tourists, especially the Chinese. The rental market is also expected to be very popular in the future, especially if there are no new projects launched, as there will be no new assets for investment. Since foreigners can buy property in Thailand, tourists are more interested in purchasing a piece of heaven instead of renting recently.

Demographics of the Investors

From tourism throughout the year 2022, the number of foreign tourists visiting Phuket this year is about 2.3 million people, and it is expected that next year the number of tourists will increase to 4-5 million. This group of tourists will be interested in condominiums and villas and will buy for investment. The main reason is to escape the cold weather in their countries and use it as a place of refuge during the unusual situation in their countries, such as the current Russian-Ukrainian war.

It is expected that the main groups who still like to come and stay in Phuket are the Russian and Chinese tourists. The development of condominium and villa projects is expected to be located further from the beach, as the available land for development is becoming scarce. Investors who are interested in the property market in Phuket need to understand that the market is still in recovery mode and will take some time to reach its pre-COVID levels.

Future seems bright

The good news is that the Phuket property market has always been a good investment opportunity, and as long as investors have a long-term investment horizon, they can expect to see excellent returns in the future. The market is waiting for more foreign tourists to return, and when they do, there will be a significant demand for both condominiums and villas.

In conclusion, the Phuket property market is slowly recovering from the impact of the COVID-19 pandemic. It will take time to reach its pre-COVID levels, but with more foreign tourists expected to visit Phuket in the future, the market is expected to grow. The development of condominium and villa projects is expected to be located further from the beach, and investors should have a long-term investment horizon to see excellent returns in the future.

Media Contact
Company Name: Storm Real Estate Phuket
Contact Person: Aydin Nuno Isitemiz
Email: Send Email
Country: Thailand

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