The demand for luxury and exclusive villas in Phuket has increased significantly since the start of 2021, as the unexpected emergence of a buyer's market has seen many high net worth individuals (HNWIs) flock to it.
The sale of ultra exclusive villas in Phuket has seen an unexpected increase as buyers sought refuge in the crisis of the Covid-19 pandemic. More than 5 billion THB (around 167 million USD) of exclusive primary properties and secondary luxury homes have been traded at the height of the pandemic.
According to a study made by CBRE Phuket, the interest of local and international home buyers comes from each group with the unique reason to invest.
"The surge in demand for high-end villas can be seen from 2 main sources: at first, a well-heeled regional buyers such as Singapore, Hong Kong, and mainland China looking for a 2nd home or a retirement property in a post-pandemic tropical location and knows Phuket and its property market.
Khun Prakaipeth Meechoosarn, Head of Advisory and Transaction Services at Property Sales at CBRE Phuket, explained:
"The second group is made up of local buyers, both Thai and expatriate, who are looking for a luxury residence for the purpose of their own stay and investment.”
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This is different from previous years when the demand for luxury realty in Phuket was almost entirely driven by foreign investors.
With a turnaround expected before the end of the year, many buyers have decided to act now to get the best deal possible.
The unexpected shift in the Phuket market into the buyer's phase has prompted these high net worth individuals (HNWIs) who are looking for investment in a real estate sector which has been dominated by foreign investors for many decades, ”said Khun Prakaipeth and she added:
"This is a good window of opportunity for buyers looking for second homes or income-generating properties. The offering in the market currently includes the best choices, flexible pricing and a variety of product options that may not be available when market conditions return to normal.
It remains to be seen just how the 3rd wave of COVID-19 in Thailand will impact demand for Phuket luxury real estate. The island had been set to welcome vaccinated tourists in July, but those plans are now uncertain.
Khun Prakaipeth concluded by: "CBRE believes that if the number of inbound tourists returns with the help of the Thai government's approval of vaccinated international tourists to visit Phuket without quarantine, coupled with a successful vaccine rollout and continued commitment to keep the third wave COVID-19 under control, the revival of Phuket's Deluxe villa market should be expected by the end of this year"
Phuket is one of the main tourist destinations in Thailand and its real estate market remains one of the most attractive for those looking for vacation homes, as the villa market can offer everything to suit everyone's lifestyle depending on their budget and of its whereabouts requirements.
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