Foreign buyers flocking to Phuket
Affordable properties are likely to sell well in the popular Thai resort of Phuket in 2013 but the luxury end of the market is less popular, according to analysts. The latest market research shows that in the third quarter of 2012 the average asking price was THB 75.3 million for a villa and for apartments it was THB 14.24 million.
The report from CBRE also shows that the number of completed villas as of the end of the third quarter was 2,781 units and 76% of villas completed, under construction, and planned, have been sold. The number of new project launched in the quarter fell considerably with only two entry level projects of 10 units launched onto the villa property sales market.
‘Overall, we believe that the outlook for the villa market will remain positive over the rest of 2012. Demand will continue for affordable villas, especially entry level and mid-range segments,’ says the report. Analysts expect that there will be more foreign buyers and point out that whatever their nationality buyers prefer completed developments with completed units. Indeed, completed developments outperform those under construction at 87% sold compared to 45% respectively.
‘Buyer profile is unlikely to change too much but we expect more purchases by Asians, including Hong Kong Chinese and Singaporeans, the British, Russians and some other European buyers,’ it adds. Apartments are also popular and the report says that in the third quarter some 120 resort condominiums were sold, compared to 83 units in the previous quarter. Mid-range units priced at THB 60,000 to THB 89,999 per square metre performed best, with 113 units sold.
Quote from PropertyCommunity.com : “Purchasing a Foreign Freehold Condominium. In legally registered condominiums 49% of the registrable area (not therefore, necessarily, 49% of the units) can be sold directly and legally to foreigners.”
During the third quarter, two mid range condominiums were launched: Chic Condominium Phase II; and Kamala Waterside, both on the west coast. Their asking prices were THB 2.55 to THB 7.36 million and THB 3.17 to THB 11.61 million, respectively. The stock of completed villas totalled 2,781 units and one new project was completed. Analysts estimate that the number of new villas in the future will total 1,113 units at 82 projects – of these, 243 units are expected to complete by the end of 2012, with 870 units to be completed in 2013.
However, because of the new supply the number of new project launches decelerated with only two entry level projects totalling 10 units launched on the south coast. There were no newly launched projects in the mid-range, high end, and luxury sectors. In the third quarter only one project was completed, The Nchantra at Sirey Beach, with two bedroom, three bedroom and penthouse units at an average price of THB 23 million – some 57% of the units had been sold as of the end of the third quarter.
Of the total of 5,183 resort condominium units completed, under construction, and planned, it is estimate that 74.7%, or 3,871 units, have been sold.