Demand for Phuket luxury villas grew to start the year as the unexpected emergence of a buyer’s market saw many high-net-worth individuals (HNWIs) swoop in. According to research from CBRE Phuket, interest is coming from local and international buyers with each group having unique reasons for investing.
“The surge of luxury villa demand is visible from two main sources; firstly, well-heeled regional buyers such as Singapore, Hong Kong and Mainland China who are seeking a second home or a retirement home in the post-pandemic tropical location and are already familiar with Phuket’s natural attraction and landscape,” Khun Prakaipeth Meechoosarn, Head of Advisory & Transaction Services – Resort Property Sales at CBRE Phuket, explained. “The second group are the local buyers, both Thais and expatriates, who are looking for a luxury resort home with the purposes of own stay and investment.”
This is different from past years when demand for Phuket luxury villas was driven almost entirely by overseas investors. With a turnaround expected before the end of the year, many buyers decided to act now to secure the best possible deal.
“The unexpected turn of the Phuket market into a buyer’s market phase has prompted these high-net-worth individuals (HNWIs) to look for a worthwhile long-term investment in a property sector that was predominated by foreign investors for many decades,” Khun Prakaipeth said.
She added, “This is a good window of opportunity for buyers seeking second homes or income-producing properties. The supply in the market is currently stocked with the best choices, flexible price and a variety of product options which may not be available when the market situation returns to normal.”
It remains to be seen just how the third wave of COVID-19 in Thailand will impact demand for Phuket luxury villas. The island had been set to welcome vaccinated tourists in July, but those plans are now uncertain.
“CBRE believes if the number of inbound tourists return with help of the Thai government’s approval of international vaccinated tourists to visit Phuket without quarantine coupled with a successful vaccine roll-out and a consistent dedication to keep the third COVID-19 wave under control, the revival of Phuket’s luxury villa market should be expected by the end of this year,” Khun Prakaipeth concluded.