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Phuket market update: From Holiday Island to Global Residential Destination
Phuket is the top performer in Thailand's luxury property segment, according to Knight Frank. The more interesting story is who is buying. The market is worth THB705 billion, with around 90,000 units across 806 projects, of which 85% have been sold. Resort properties make up 52% of supply, and it is foreign demand driving growth.
Demand is truly global. Which is good for stability. Buyers come from Europe, the Middle East, China, Hong Kong, Singapore and India alongside Thai purchasers. Interestingly, the USA does not feature among the leading source markets, which leaves scope for future growth. Phuket is shifting from a holiday market to a long-term residential and investment destination, and the buyer profile is becoming more international, more affluent and more lifestyle-driven. These buyers are buying into a place as much as a property, driven by wellness, hospitality, improving connectivity to markets such as China and India, and a level of trust in the destination.
We’re seeing that trust increasingly attaching to brands. Knight Frank notes that buyers are favouring developments with strong brands, proven quality and realistic rental income potential, which makes luxury and branded residences both the most popular and the most resilient part of the market. We see this at Banyan Group’s branded residences in Laguna Phuket, where international demand is strong and channel partners span multiple markets. Rental performance supports the case, with condominiums and pool villas generating relatively strong returns compared with many other Thai markets.
Supply constraints add to the appeal. Land is scarce, particularly on Phuket’s west coast, and Knight Frank expects sustained foreign demand, limited prime land and ongoing infrastructure improvements to support long-term growth.
The trajectory echoes other destinations that moved away from volume-driven mass tourism towards a lifestyle proposition, namely Dubai and the UAE, Portugal’s Algarve and in the Caribbean, Antigua and Barbuda. For investors, Cherng Talay and Bang Tao are the areas to watch, attracting higher-end development and the strongest demand.
As ever, if you’re mulling over an investment property decision, where to invest, what to invest in – and how long for, please pick up the phone and send us an email. We’d love to chat. You can also browse our current global opportunities on our website.
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About the author
richard bradstock
Founder & Managing Director
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
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