Phuket Property Market in 2024: Key Insights Q1

First Quarter Highlights
Phuket’s property market saw a significant boost in the first quarter of 2024, with 25 new projects adding 4,000 units worth 54 billion baht. Most developments, valued at 45 billion baht, were vacation condominiums in the Thalang District. Over the past year, 10,000 units were sold, generating 90 billion baht. The market includes around 500 projects, with 72,000 units valued at 460 billion baht, and 10,000 units still available. This indicates strong demand for villas and vacation properties, especially in the Thalang District.

Market Dynamics and Buyer Preferences
Competition between off-plan sales and the secondary market is increasing. In early 2024, resales made up 68% of transactions, showing a shift from the previous year when primary and secondary sales were balanced. Single-family home resales are now 70% of transactions. While condominium sales remain strong, transaction values have dropped by a third, with entry-level and midscale units in high demand.

International and Domestic Buyers
Top international buyers for condominiums include Russia, the UK, the US, France, Australia, and Italy. For single-detached homes, leading buyers are from the US, the UK, and Russia. India is also a growing market. Domestically, Thai buyers are gaining across all property classes. However, there is concern about the slowing demand from Russian buyers post-winter and the impact of stricter laws on foreign ownership.

Future Outlook
With many new properties expected to be completed this year at premium prices, there is a growing gap between new and older property values. This will likely increase pricing pressure on new developments. For investors, now is an ideal time to explore opportunities in Phuket’s villas and vacation properties, with strong potential for appreciation in prime locations like the Thalang District.

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