CB Richard Ellis Research (Thailand), as reported by The Nation, recently revealed that the demand for property in Phuket is shifting towards smaller and cheaper villas.The west coast of the resort-island has long been the most sought-after area for villa developments, and it currently houses about 53 percent of the island’s completed villa supply. Prices range from THB 5 million for entry-level units to over THB 90 million for the most luxurious homes.
CBRE’s latest research shows that 80 percent of villa sales were for properties priced below THB 15 million in the third quarter of last year, covering the entry-level and lower end of the mid-range market segments. In the same period, there were no villas sold with prices above THB 35 million, reflecting the slowdown in the high-end (THB 35 million and 90 million) and luxury (above THB 90 million) segments. There were also more choices of units for secondary resale.
Additionally, CBRE noted that resales in the third quarter started to exceed new sales. Buyers were mainly comprised of British, Italian, German and Russian nationals.
In terms of new launches, one project, Coco Chalong, with 80 villas priced between THB 5 million and 9 million each, was launched in the third quarter last year, compared to four projects (with 55 units in total) launched during the second quarter.
Similarly, condo buyers in Phuket were drawn towards smaller condominium units. In the third quarter, sales were best in mid-range projects priced from THB 90,000 to 109,999 per square metre. The west coast continued to be the most preferred location, particularly the southern part, including Patong.
