Connect with us


Phuket’s re-sale market shows value

Legacy Phuket Gazette



PHUKET: Most re-sale properties in Phuket are priced lower than comparable new developments, a trend clearly highlighted in the data accumulated in Siam Real Estate’s 2014 Phuket Residential Market Report.

In Phuket and the rest of Thailand, most buyers prefer brand-new properties. There are many reasons for this: new properties have never been lived in; they offer the latest in terms of building materials and quality; and property developers offer extended payment terms during construction with special introductory terms for buying off-plan, resulting in a higher capital appreciation.

Also, buyers looking for a property as an investment can enjoy an average annual rental return of 5-7%. Typically, capital appreciation when buying during the pre-sale period is 30%, and 5-10% when buying during the construction phase.

However, sellers of re-sale property competing with the demand for new property are able to offer attractive price discounts, which has led to Phuket’s re-sale market staring to offer better value.

The charts above clearly show that re-sale properties are currently priced at a discount to new developments. These results are based on more than 4,500 property listings on offer in Phuket.

Specifically, condominium prices have been broken down into price per square meter and houses by number of bedrooms, the results are an average for all locations in Phuket. The evidence is clear: the discounts are there for all to see.

One of the key reasons sellers are able to offer discounts on resale property is capital appreciation.

Foreign buyers in Phuket who bought their properties five or more years ago have since seen the baht appreciate strongly against their home currencies – specifically, the baht has appreciated more than 20% against US dollars, euros and pounds over the past five years.

Therefore, a lot of foreigners who want to sell their properties can do so at much lower prices than the true market values of the properties. When these sellers repatriate their money, they gain on the exchange rate.

Adding to this is the fact that construction costs, including materials and labor, in Phuket have increased significantly in the past 10 years. Hence, buyers who bought units five to 10 years ago can offer lower prices than comparable new developments and still make attractive capital gains.

Last, but certainly not least, is that land prices have increased dramatically over the past five years. In some locations, prices have doubled.

This increase in land prices is adding to the cost of new developments, as developers have to pay higher prices to buy land plots on which to build.

As the re-sale market in Phuket continues to mature, re-sale prices can be expected to align with the prices of new developments. When the availability of suitable green-field sites for new developments in Phuket becomes scarce, the re-sale market will begin to mature as demand for re-sale properties increases.

For more information about this article contact Mr Hodges, the North Branch and Investments Manager for Siam Real Estate in Phuket and author of SRE’s Phuket Residential Market Research Report. He has more than six years’ experience in Phuket’s real estate market. Tel: 076-324042 Email:;

— Kevin Hodges


Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Coronavirus (Covid-19)2 hours ago

30 million baht added to vaccine side effects compensation fund

Coronavirus (Covid-19)3 hours ago

Plan for 16-week gap between AstraZeneca vaccines dropped

Coronavirus (Covid-19)4 hours ago

CCSA: 120 day reopening will proceed with conditions

Phuket Sandbox July 1st


Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

Sponsored by image

Tourism5 hours ago

Sandbox latest, CCSA says all regions reopening must reach 70% local vaccination

Coronavirus (Covid-19)7 hours ago

Covid UPDATE Saturday: 3,667 new infections and 32 deaths

Politics8 hours ago

Thamanat elected to role of head ‘fixer’ in Palang Pracharat party

Expats17 hours ago

List: China has over 50% of all foreign-owned condos in Thailand

Coronavirus (Covid-19)19 hours ago

Government plans 10 million vaccines for July

World23 hours ago

Thailand News Today | Vaccine deaths investigation, PM heads to Phuket, BMA extends vendor licences | June 18

Thailand23 hours ago

1 million AstraZeneca doses arrive, Anutin says “more” on the way

Drugs23 hours ago

1.2 tonnes of methamphetamine and heroin seized near Malaysian border

Coronavirus (Covid-19)24 hours ago

Pattaya bars plead for government help

Thailand24 hours ago

Colour-coded zoning revised, restrictions to ease nationwide

Transport1 day ago

Department of Land Transport will reopen, issue licenses

Best of1 day ago

Top 8 Things to do in Chiang Mai

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand5 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8