Sales of lower-priced Phuket villas declined during the first three months of 2015, according to the latest research from CBRE.
In its Marketview research report focusing on the property market on the Thailand island it noted the continued decline of Russian buyers, however it also pointed out some evidence of Chinese buyers starting to enter the Phuket property market.
Three projects were launched to the market during Q1 2015, two of which were mid-range and the other high-end, according to the real estate firm.
It said the “entry-level” villas priced between THB 5 million and THB 15 million is the one most reliant on Russian buyers, and it said this sector will remain weak if the Russian economy and its currency does not recover.
CBRE said: “We have seen evidence of some Chinese buyers entering this sector. It is possible that they may start buying in bulk once they have confidence in the market.”
Two luxury villas were sold during Q1, both at Banyan Tree Grand Residences where prices start at THB 101 million.
“We believe that the villa market will remain sluggish in the near future. We do not expect that Chinese buyers will be able to immediately replace the decline in Russian buyers in the coming quarters.”
The overall sales performance of the Phuket villa market was dragged down by the slump in entry level villas, however CBRE reported sales volumes in other sectors remained relatively stable.
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