Phuket real estate market continues to grow generating a steady income to investors. Even the value of properties in Phuket continue to appreciate in income and capital. You are considering purchasing Phuket villa as we will be talking about in this blog post today.
Villas in Phuket are growing in value year on year. The time to act is now! In this article, we will provide an in-depth analysis of the Phuket villa market, offering insights that will help buyers make informed decisions. We will discuss the latest trends and pricing information, as well as the most sought-after hotspots in Phuket.
Phuket Villas Market Trends:
Phuket villa market has seen significant growth in recent years. The influx of foreign buyers, particularly from China and Russia, has driven up demand for luxury properties. The villa market has been particularly buoyant in the high-end sector, where properties are priced at over THB 50 million. However, there has also been increased interest in mid-range properties, particularly those in the THB 20-50 million range. High demand of villas in Phuket occurs because of the privacy and vast open spaces the property type provides.
Presently, homebuyers are interested in properties that can be used as a home, a place to work and even for renting out the place when you are not using it. Phuket as a whole is a big tourist destination. During high seasons rental out your villa generates high rental yield and a healthy passive income.
Price Trends of Phuket Villas
According to research conducted by CBRE, the luxury villa rental market in Phuket has been growing steadily in recent years, with an average occupancy rate of 67% in 2019 pre-pandemic. In addition, the average daily rental rate for luxury villas in Phuket was THB 33,000 in 2022, up from THB 31,000 in 2019. Since the start of 2023, where borders have re-open price to rent further increase to 38,000 THB in average.
Furthermore, data from the Tourism Authority of Thailand shows that Phuket received over 9 million tourist arrivals in 2019, with over 3 million of those visitors coming from China. This indicates a steady stream of high-net-worth individuals who are willing to pay a premium for luxury villa rentals. With the latest news of mainland China homebuyers are ready to purchase ready-to-in properties because of the fear the country might refer back to “Zero policy Covid-19” restrictions.
Pricing of villas in Phuket varies depending on the location and the level of luxury offer to homebuyers. As mentioned earlier, the high-end sector is particularly buoyant, with prices ranging from THB 50 million to over THB 100 million in districts such as Patong, Bang Tao and Laguna Phuket . Mid-range villas, which are typically located in areas such as Kamala Beach and Surin Beach, can range from THB 20 million to THB 50 million.
Off-plan developments are often priced more competitively, with prices starting at THB 10 million for mid-range properties. It’s worth noting that off-plan developments may offer attractive payment plans, which can make luxury property ownership more accessible to a wider range of buyers.
Seeking for properties in Phuket under 7 million USD, check out the 7 hottest properties in Phuket right now in 2023.
Advantages of Owning a Villa in Phuket
Purchasing a villa in Phuket can be a smart investment decision for several reasons. Firstly, owning a villa in a prime location such as Kamala Beach or Surin Beach or at Bang Tao district can be a great way to diversify your investment portfolio. With a steady stream of high-net-worth individuals visiting Phuket every year, demand for luxury villa rentals has been consistently high. With the returns of tourists from China, Russia, India, and Hong Kong, the rise of traveling together as a family is increasing day by day.
One of the significant advantages of owning a villa in Phuket is the potential rental yield. According to research conducted by FazWaz Real Estate, rental yields for luxury villas in Phuket can range from 5-10% per annum, depending on the location and quality of the property. For example, properties located in Kamala Beach tend to have higher rental yields due to the high demand from tourists and with nearby amenities such as water skiing, night markets and the location being in the middle of Phuket island.
Hotspots in Phuket
Phuket has several hotspots that are particularly popular with property buyers. One of the most sought-after locations is Kamala Beach, located on the west coast of Phuket. Kamala Beach is known for its beautiful scenery, high-end resorts, and luxury properties. It is particularly popular with families and retirees, who are looking for a quiet and peaceful location.
Another hotspot in Phuket is Surin Beach, which is located on the north-west coast of the island. Surin Beach is known for its beautiful white sandy beaches, crystal-clear waters, and luxury properties. It is particularly popular with high-end buyers, who are looking for a quiet and exclusive location. Check out the top 9 hotspots in Phuket here.
In conclusion, Phuket villa market is growing, with a particular focus on the luxury villa market. Off-plan developments and attractive payment plans have made luxury villa ownership more accessible to a wider range of buyers. Kamala Beach and Surin Beach are two of the most sought-after locations, with villas in these areas being affordable and reasonable prices. Potential rental yield for luxury villas in Phuket can range from 5-10% per annum, depending on the location and quality of the property. With a growing luxury villa rental market and a steady stream of high-net-worth individuals visiting Phuket every year, investing in a villa can be a lucrative long-term investment.
You are considering purchasing property in Phuket, it’s important to do your research and seek professional advice from local real estate agent in Phuket. By staying informed and understanding the latest trends and pricing information, you can make an informed decision that will benefit you in the long run.