PHUKET LUXURY VILLAS REMAIN POPULAR
Despite the fact that the overall Phuket property market has slowed down this year, demand for Phuket luxury villas has remained steady. The most popular holiday destination in Thailand has seen transactions for high end villas in Phuket reach 3,5 billion Thai Baht for the first half of 2009, according to a report from consultants C9 Hotelworks.
Demand for luxury villas in Phuket will probably remain constant for the remainder of 2009 the report says. The report also predicts that 2010 will remain fairly steady as the supply of luxury property in Phuket will not change much, but the overall market should see a significant growth in 2011.
C9’s Managing Director Bill Barnett noted that supply and demand fundamentals for Phuket high end property are continuing to strengthen and that excess supply is being absorbed. While market recovery prospects are being set back to 2011, we have seen a continued gradual upswing in activity. This has been driven primarily by earlier than expected momentum in many of the financial source markets where potential overseas buyers originate from.
The Phuket luxury villa market has seen a slow down in new properties under construction. This will help to drive increased value for buyers and sellers in the coming months and years as there will not be enough properties to meet the demand. The property dynamics look at more ocean front villas in Phuket or ocean view villas in Phuket, resort style managed properties in Phuket and buyers who keep coming back to Phuket.
According to the report, the existing inventory of luxury villas in Phuket is valued at 10 billion Thai Baht with 92 units on the market at this moment. From January to June of this year (2009) a total of 19 new high end properties in Phuket were sold with a total value of 3,5 billion Thai Baht. The resale market emerged with over 1 billion Thai Baht in transactions.
The report concludes that continued tight equity and debt market will limit new developments while barriers to entry highlighted by limited availability of ocean or beach front land indicates positive long term stability. Resale’s, holiday rentals in Phuket and long term rentals in Phuket are tapped to drive more demand in the near to medium future.
Source: Property Report
