Developers and the hospitality sector continue to build luxury properties in both resorts to satisfy the growing demand from foreign visitors
All roads are leading to Phuket and Pattaya for the real estate sector these days driven by the purchasing power of tourists who have been pouring into Thailand since the Covid-19 situation eased.
Phuket’s rapid recovery in 2023 brought in 388.017 billion baht in tourism revenue from a total of 11,300,498 tourists. Its situation has been enhanced by the government’s plans to enhance Phuket’s potential, including infrastructure development for transportation along the Andaman coast.
In the first quarter of this year alone, major real estate conglomerates have poured over 56 billion baht into investments in Phuket, Pattaya, and Hua Hin.
“The government should prioritise leveraging the real estate sector to drive the Thai economy, which could create over a million domestic jobs and utilise more than 90% local materials. This would contribute to the Thai economy growing by 2.9 times, accounting for 8-12% of GDP,” Prasert said.
Phattarachai Taveewong, director of Research and Communication at Colliers Thailand, stated that in the first quarter of 2024, Phuket saw the launch of 12 new condominium projects with a total of 3,338 units valued at 25 billion baht.
These projects were developed by Bangkok-based developers in collaboration with local developers, including Sansiri, AssetWise, Origin Property, Habitat Group, and CG Capital.
Compared to previous years, where the average number of new condominiums launched annually was around 2,000-3,000 units, the increase in tourists and investment from both the public and private sectors has significantly driven the growth of the condominium market in Phuket. It is expected that 2024 will see over 8,500 new units.
Currently, there are over 87 condominium projects in Phuket with a total of 25,591 units, of which 16,905 units (66%) have been sold.
“Foreign buyers account for 49% of sales in most projects, and if additional interest arises, developers offer long-term lease options (30+30+30 years) to increase sales opportunities for foreign buyers, who are a major driving force in Phuket’s market,” Phattarachai said.
According to a report by C9 Hotelworks, a leading hotel consultancy group, the expansion of the tourism sector and the potential of Phuket have led to the development of numerous luxury branded residences.
This has attracted a significant influx of foreign investors, making Phuket the largest branded residences market in the world. The total value of these projects has exceeded 80 billion baht, breaking historical records, and is expected to continue growing.
Currently, Phuket has 26 branded residence projects with a total of 4,258 units. Out of these, 17 projects with 3,283 units are available for sale.
Layan Beach is the top emerging location, boasting the highest number of branded residence units at 1,322, accounting for 31% of the market share. This is followed by Kamala Beach and Bang Tao Beach.
Source: The Nation
