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New residential demand emerges in Phuket
Jul 16, 2012
Condominium units are experiencing higher demand on Phuket
A new residential market has emerged in Phuket for non-beachfront and non-resort condominiums, developed by Bangkok listed developers such as Sansiri and Supalai. New off-plan projects have been successfully selling condominiums inland aimed at local Phuket residents mainly studio units, sized 29-37 square metres with average prices at THB1.5 million (US$47,514). It remains to be seen how deep market demand is in this sector and what else may come to the market.
Based on a CBRE research survey in Q1 of 2012, 60 resort villas were sold. Sales were spread across all price ranges. CBRE segments the villa market into below THB15 million (US$475,140), THB15-35 million (US$475,140 " 1.1 million), THB36-90 million (US$1.1 " 2.8million), and over THB90 million (US$2.8 million). Villas below THB15 million (US$475,140) made up 50% of the sales, but at the top of the market, two sales were recorded in excess of THB120 million (US$3.8 million).
The Sava located across the Sarasin Bridge in the Phang Nga province has reportedly sold all seven villas at prices ranging from THB62-180 million (US$1.9-5.7 million), three of which were sold this quarter.
In the resort condominium market, the report shows that 84 units were sold in Q1 of 2012. Sales were concentrated in five projects where the main sales were one bedroom units with average prices of THB 5.9 million (US$186,888). There are about 3,700 completed resort condominiums in Phuket. By comparison to Pattaya, there are 22,000 completed condominiums and a further 21,500 under construction. The main product in Pattaya is a THB2-3 million (US$63,352-95,028) one-bedroom condominium.
“Despite healthy increases in tourism arrivals, CBRE is not, for now, seeing proportional increase in sales in resort property market. The rising tourism numbers are mainly from Asia whose tourists have yet to become resort property buyers,” said Mr. Simister, chairman of CBRE Thailand. “Over time repeat tourists will create fresh buying demand and new product will emerge to match their requirements. The quarterly report is essential reading for anyone involved in hotel and residential developments in Phuket.”