Phattarachai Taweewong, director of the research department at property consultancy Colliers Thailand, said the Phuket villa market was hot and should remain so in the second half of this year, reports the Bangkok Post.
“Some projects were quiet in May and June because of floods, but activity picked up significantly in July, with sales at one project reaching B400-500 million in just a month,” he said.
Even with an influx of new supply, said Mr Phattarachai, demand is still strong and this positive sentiment was expected to continue.
In the first half of 2024, the number of new villas launched in Phuket tallied 1,285 units, worth B36.3 billion from 65 projects, compared to around 1,100 units launched in the whole of 2023.
“There are 170 villa projects with units available for sale, most of which were launched in the past two years,” Mr Phattarachai said. “The usual number was only 30-40 projects, with 100-150 new units launched per year.”
The number of new condos launched in the first half tallied 4,690 units, worth B36bn from 20 projects.
This marked the first time in 15 years that the value of new condo supply was lower than that of villas.
In total, the value of condos and villas launched in the first half of the year was B72.3bn, and it is expected to reach B150bn by the end of the year, up from B110bn last year.
A significant amount of new supply is expected to be launched in the fourth quarter, said Mr Phattarachai.
Among the new projects in the second half, four will be from Sansiri Plc worth around B4bn, which will comprise a luxury pool villa project with units priced between B30-50mn, a condo project in Cherng Talay, and a new single detached house project in Koh Kaew.
Mr Phattarachai said Bang Tao, Cherng Talay and Layan were locations where villas had the highest absorption rates, with two to three units per month, while other areas recorded only 1-1.5 units per month.
For condos, the absorption rate in the first half was 5.8 units per month, meaning they would be sold out in less than two years, especially those priced below B2mn per unit, as these prices are considered affordable.