Phuket’s property pandemonium: Foreign buyers drive real estate prices sky high

Phuket’s property market has been catapulted to unprecedented heights, with foreign interest igniting a buying spree sending prices soaring.

Phattarachai Taweewong, director of Research and Communications at Colliers International (Thailand), revealed that the allure of owning a slice of paradise in Phuket has pushed land prices to astronomical levels, hitting as high as 25 to 100 million baht per rai.

The condominium and vacation house market are blazing hot too, with sales breaking records and values surpassing a staggering 100 billion baht.

In a dramatic departure from the norm, a whopping 36 condominium projects offering 8,743 units have been unleashed onto the market, with a jaw-dropping value exceeding 49 billion baht. This year, an additional 4,500 units are set to hit the market.

The action is centred on the western side of Phuket, where prices range from 5 to 10 million baht, attracting eager buyers like moths to a flame. Moreover, there are a whopping 61 vacation house projects boasting over 1,100 units up for grabs, totalling a mind-blowing value of more than 51 billion baht.

From Russian buyers snapping up dream properties for personal use and investment to Israelis seeking sanctuary in residential havens, the demand is unstoppable.

And it’s not just Europeans like the Germans and Danes getting in on the action – Asian powerhouses such as China, Hong Kong, and Singapore are making their mark too, driving demand to a fever pitch, reported The Nation.

On the other hand, developers are racing against the clock to meet foreign sales quotas, with all projects hitting the maximum limit of 49%. The solution: long-term lease arrangements for the remaining units, ensuring that the dream of owning a piece of paradise remains within reach.

In this whirlwind of property pandemonium, Origin Property reigns supreme in the condominium market, while Botanica Luxury Phuket takes the crown for vacation houses.

In related news, foreign buyers such as the Chinese and Russians dominated the condominium scene in December last year, turning Bangkok, Pattaya, and Phuket into international real estate playgrounds.