Big operators have taken over luxury villas in Phuket after it was previously dominated by small players. The completion of the expansion project on Phuket airport is expected to have a positive impact on the resort’s property sales. Demand is relatively strong for luxury villas in Phuket and this has doubled the price of resale units. Visit the website here for Thailand holiday villa homes.
High end villas on the island used to be part of an exclusive market that was characterized by a limited number of high-value transactions. Most of major players were small foreign investors that had limited financial backing and now they are being replaced by big operators. This can have a positive impact on the market because there will be reduced risks for buyers and there will be an improvement in the quality and design of luxury villas.
Most of the villas sold are on the entry level segment with prices that are below 15 million baht. However, in spite of the strong demand for luxury villas, buyers are faced with limited supply. In recent years, buyer preferences in the luxury sector were towards hotels that offer quality management, 5-star services and facilities including the ability to generate income.
The proportion of completed luxury villas with prices above 35 million baht remains limited and accounts for less than 10% of the villa market. With the completion of Phuket airport, further growth in tourist arrivals in Phuket is expected and this will have a positive effect on resort property sales.
Tourism in Phuket has suffered because of the coup last year because the tourist destination has been negatively mentioned. However, some of the owners of four-star and five-star hotels including big chain hotels banded together to try to restore the tourism industry and create a Phuket brand. The Phuket Hotel Association tried to convince the small players but they do not have problems in their market segment.
Launch prices of some luxury projects have already hit the $10 million mark and villas are offered for sale at prices ranging from 61 to 175 million baht. All villas for sale need to enter a rental program where the owners can stay for at least 60 days a year and at the same time receive rental yield.