Phuket’s property sector continues to recover, with the condo market in particular set to return to pre-Covid levels over the next 2 years. Property consultant Knight Frank Thailand says this is being driven by the return of international tourism, adding that the pool villa market is also expected to continue growing.
Managing director Nattha Kahapana says the condo market will need up to 2 more years in order to fully recover, which will happen in line with the return of international tourism to pre-pandemic levels.
“Foreign tourists continue to choose Phuket as their main tourist destination. They will be interested in condos and will buy for investment as they want to escape the cold weather in their countries to use as a place of refuge during the unusual situation in their countries.”
A number of condo development projects on the island are expected to be finished this year, with several projects set to open as hotel services for tourists, including the returning Chinese.
“If there are no new condo projects launched, the rental market will be popular as there will be no new assets for investment.”
The Bangkok Post reports that the gradual recovery of the island’s condo market began last year, as foreign tourists returned in greater numbers. Property developers relaunched their marketing campaigns and construction resumed after being halted due to supply chain problems, such as the transportation of building materials.
Nattha says that as of 2022, a total of 24,211 condo units have been made available along the island’s west coast, from Mai Khao in the north to Rawai in the south. Of those, 941 were newly launched in 2022, compared to zero in 2021. The number is the lowest level since 2013.
“We found a missing supply from the market from 2018 to 2022, amounting to 4,247 units as project development was frozen. Developers of these projects lacked financial liquidity during the pandemic.”
SOURCE: Bangkok Post