This article on overseas demand for Phuket villa rentals appeared in the Dot Property Group Phuket Real Estate Market Update. Click here to download your copy.
Demand for Phuket villa rentals rose notably over the past few months. According to research from the Dot Property Group, interest rose by 46.2 percent between June and July and then jumped a further 34.1 percent when comparing July to August.
This is welcome news for the island as it prepares for its first peak period with no entry restrictions since 2019. Strong take up of villa rentals in Phuket could be a sign that a robust high season is on the cards.
A little over 73 percent of demand for Phuket villa rentals comes from overseas. Residences with monthly rents of THB50,000 and above were the most popular among both international and domestic tenants, followed by those priced between THB20,000 and THB50,000 per month.
While this may seem pricy on the surface, context is important. THB50,000 is roughly USD1,400 which is extremely affordable for many prospective tenants when compared to what they pay for rent back home or the cost of staying at a nice hotel for multiple weeks. In fact, people are often surprised by just how far their money will go on the Phuket villa rental market.
Three-bedroom villas are the most popular with these accounting for 46.5 percent of all inquiries made to the Dot Property Group between January and August of this year. Meanwhile, two-bedroom rentals made up 25.6 percent of demand.
Many developers in Phuket have hit the sweet spot in terms of pricing and size which bodes well for those who invested in those developments. The area around Bang Tao, in particular, has seen the completion of several high-end projects that are primed to take advantage of an increase in demand.
The island’s international airport along with its status as a global tourist destination means a strong high season is likely if early interest in villa rentals is any indication.