Phuket's Real Estate Market Heats Up

With around 10,000 new flats set to enter Phuket's market this year, the island is witnessing a surge in real estate development. According to Colliers, unsold inventory reached 4,982 units across 16 projects by the end of last year's fourth quarter.

Developers are hopeful for the upcoming high season to attract new buyers, as stated by Nasupha Suwansri of Juwai IQI.

Oversupply Concerns and Market Dynamics

The record 14,700 units launched last year, with only 64% absorbed, highlights the oversupply issue. This situation is exacerbated by Bangkok's cooling sales and rising mortgage rejections, pushing developers towards Phuket.

Stuart Reading of Banyan Group Residences notes a strategic shift to Phuket, with plans to launch luxury projects worth US$1 billion targeting high-end markets, including Hong Kong buyers.

Foreign Investment and Market Recovery

T.H Group's Ayana project is optimistic about foreign demand, hosting 100 American passport holders for property viewings. Despite a 19% drop, Chinese buyers remain crucial, accounting for 39.5% of foreign condo purchases in Thailand last year.

Phuket's property market saw a significant rebound in early 2025, driven by tourism, with 3,167 new condominium units introduced. Colliers Thailand's Phattarachai Thaweewong anticipates another 3,000 units, focusing on prime locations like Bang Tao and Cherng Talay.