Phuket Residential MarketView Q4 09
Q4 2009 saw a continued recovery in the Phuket property market. Sales of resort property improved but were still at low levels and mainly concentrated in a limited number of projects.
The level of built but unsold inventory of completed condominium and villa units is low.
Prices for built property have remained relatively stable with few examples of forced sale situations.
Purchasers are cautious and are focusing on projects promoted by known developers where there has been visible construction progress. We believe that demand is recovering.
The total supply of completed resort condominiums was 2,681 units at the end of Q4, an increase of 9% Q-o-Q and 30% Y-o-Y. Five Condominium projects were completed in this quarter. The single unit type that accounts for the largest proportion of Phuket’s completed condominium supply are two-bedroom units in entry-level projects.
No new condominium projects were launched in Q4 2009.
We estimate that 13% of completed resort condominiums have not been sold.
During Q4 2009, the average asking price of condominiums being marketed was THB 86,755/m2.
Villa
The total supply of completed villa projects was 3,472 at the end of Q4. There were 13 villa projects completed in this quarter.
As expected, completed units have the highest sales performance, with 76% sold. 58% of villas in projects under construction have been sold. We estimate that there are 372 units that are under construction still available for sales.
The average asking price of luxury villas being marketed was THB 124,110,000.
Outlook
Overall Phuket has come through the combination of the global financial crisis and Thailand’s political problems relatively unscathed.
The opportunity and challenge is for developers to identify target markets and create properties that match those requirements. Potential buyers will be more cautious and will want to be confident about ability of developers to deliver product both in terms of their financial resources and development expertise Phuket Villa Sales – Read full report
