2022-06-10-莱坊-Phuket_Condominium_Market_2021_7页_2mb

Phuket Condominium Market Overview 2021 Summary

Core Content

The Phuket condominium market in 2021 showed signs of recovery despite the ongoing challenges from the global pandemic and geopolitical tensions. The market was primarily driven by foreign investors, especially Russians, who became the main purchasing power in the latter part of the year. The market's performance was influenced by the limited supply of new units and the gradual return of tourism due to the Phuket Sandbox policy.

Main Points

• Supply and Sales Rate:

  • Total supply of condominiums in Phuket at the end of 2021 was 26,068 units.
  • 78.1% of the supply had been sold, with a 2.4% increase compared to 2020.
  • No new condominiums were launched for sale in 2021, leading to a stagnant supply.

• Buyer Composition:

  • 90% of new units were sold to Russian buyers.
  • A few European buyers and some Chinese buyers also contributed.
  • Thai buyers accounted for the remaining 10%, mainly purchasing for second homes.

• Price Trends:

  • Sea view condominiums had an average price of 196,015 baht per square metre, up 1.6% from 2020.
  • Partial sea view condominiums saw a 2.2% decrease, averaging 97,541 baht per square metre.
  • Non-sea view condominiums increased by 0.45%, averaging 76,526 baht per square metre.

• Market Outlook:

  • The market is expected to show an upward trend in the first half of 2022, driven by Russian investors returning to Phuket.
  • The Phuket Sandbox and Test & Go policies have helped improve the tourism situation, positively affecting the real estate sector.
  • Recovery may still take time due to ongoing geopolitical tensions and travel restrictions, which have reduced the presence of Chinese investors.

Key Information

• Market Recovery: The condominium market is in a recovery phase, with developers focusing on selling remaining units rather than launching new projects.
• Geographic Distribution:
  • Patong had the highest number of units launched (15% of total).
  • Bang Tao, Kamala, and Rawai each accounted for 13%, 12%, and 12%, respectively.
  • Mai Khao, Nai Yang, and Nai Thon had lower supply percentages (5%, 4%, and 2%, respectively).
• Project Classification:
  • Sea View Projects: More than 50% of units have a direct sea view.
  • Partly Sea View Projects: Less than 50% of units have a direct sea view.
  • Non-Sea View Projects: Most units have no sea view.

Conclusion

The Phuket condominium market is showing signs of recovery, with a focus on foreign buyers, particularly Russians, and a gradual increase in prices for sea view units. However, the market remains sensitive to global events and policy changes, which could affect its future trajectory. Developers are cautiously waiting for a clearer picture of the market before launching new projects.