Demand has grown for smaller and cheaper resort villas, condominiums and apartments in Phuket, according to CB Richard Ellis Research (Thailand).
The company’s research shows that 80 per cent of the villa sales on the resort-island were for properties priced lower than Bt15 million in the third quarter of last year. There were no villas sold with prices above Bt35 million in the period.
The main nationalities of Phuket villa buyers in the quarter were British, Italian, German and Russian, these purchasers mainly focusing on affordable properties costing less than Bt20 million.
The west coast of Phuket has long been the most sought-after area for villa developments, with 53 per cent of the island’s completed supply. The central area is the most popular location within the west coast zone.
Resales in the third quarter started to exceed new sales, unlike Bangkok, where most buyers prefer new property, said the research company.
It continued to see steady demand for villas in the entry level (between Bt5 million and Bt15 million) and mid-range (between Bt15 million and Bt35 million) segments during the quarter.
Meanwhile, the high-end (between Bt35 million and Bt90 million) and luxury (above Bt90 million) villa market continued to be slow, as there were more choices of units for secondary resale.
Only one villa project, Coco Chalong with 80 units priced Bt5 million-Bt9 million, was launched from July to September last year, compared to four projects (55 units in total) in the second quarter.
In the third quarter, there were two new resort condominium projects launched in the east coast and west coast areas; the luxury Silver Beach Condominium and the high-end Diamond Hills.
Two new projects were completed – the Icon Park and the Sea & Sky Condominium, which are high-end resort condominiums (Bt90,000-Bt109,999 per square metre) located at Kamala and Karon Beach, respectively.
The island’s completed supply grew by 3.4 per cent on the second quarter of 2012.
There are more than 2,800 resort units in the pipeline which are expected to be completed by the end of 2015.
Buyers now prefer smaller condominium and apartment units and sales were best in mid-range projects (Bt90,000-Bt109,999 per square metre), said the research house.
The west coast continues to be the most preferred location, particularly the southern part, including Patong.
Properties that offer sea views and easy access to the beach are the most popular. Distance from the airport is also a further value consideration, said the company.