Phuket Property Market to See Continuous Improvement
In line with the global economic recovery, also the market of Phuket property for sale has shown signs of improvement, according to a new research. If there is no political turmoil, the market should continue to improve, the research also revealed.
Although the market was slow in the second quarter due to the political situation, the supply of new developments was limited. Therefore, the affect it had on the market was limited as well. However, foreign investors interested in Phuket real estate have started making more inquiries for properties for sale in Phuket during the past two months.
Phuket villas
Most Phuket villas are not pre-built. Therefore, the chance of oversupply in the market is reduced. The research noted that prices of villas for sale in Phuket dropped with 14% in the first quarter – from an average selling price of 59 million Baht (1.89 million USD) during the previous year to 50.3 million Baht (1.6 million USD). That was also for a big part as a result of the political uncertainty which forced villa owners to reduce their prices to attract buyers.
Phuket condominiums
In terms of Phuket condominiums for sale, the supply during the first quarter of 2010 was at 4,686 units, which is only 65 units up from the end of last year. New projects were small developments with one- and two-bedroom units, while the average selling prices were slightly increased from 88,885 Baht (2,841 USD) per sqm to 89,113 Thb (2,849 USD) per sqm.
This price increase does not sound reasonable when compared to the slowdown in the Phuket property market. However, the survey found that there were a number of condo transactions from time to time. This seems to confirm that the market of condominiums for sale in Phuket is in a better shape that the villa market.
Political stability will help regain investors’ and buyers’ confidence. Not only for Phuket, but for Thailand as a whole. Moreover, the local economies of Phuket’s main buyers of property in Phuket, such as Singapore, Australia, Germany, Switzerland, England and Russia, are on the rise.
This allows buyers in those countries to feel more confident about buying property in world famous tourist destinations such as a holiday home in Phuket. In addition, increases in direct flights to Phuket, as well as an expansion of Phuket International Airport, which is scheduled for completion in 2013, are added positive factors.