Phuket’s residential property sales market saw a 13% year on year decrease in condo sales, while villa sales increased 21% according to CBRE.
Property sales in Phuket remained focused on “investment-oriented or income-producing products for both villa and resort condominiums”. Investors preferred resort condominiums because of the cheaper total price and rental management schemes. At least 80% of condo units sold were in projects with rental guarantees and total prices of less than THB 8 million.
According to the latest property report by CBRE Thailand 546 condominiums units and 63 villas were sold in H2 2018, a decrease of 13% year on year and an increase of 21% year on year, respectively.
Previously condo buyers were mostly foreigners from China, Hong Kong, Singapore and Russians. However the report states the decline of Chinese tourist arrivals had not yet significantly impacted condominium sales as of H2 2018.
The report also showed there were with hopeful signs of recovery as December Chinese arrival figures increased by 2.8% year on year; despite four previous months of negative year on year arrival figures.
According to the report hotel-branded residential developments will continue to be preferred by purchasers who are increasingly demanding professional management to oversee their rental and guarantee schemes.
According to the CBRE the “growth in tourist arrivals will also continue to be a key driver of demand in both the residential market and hotel market”.
However the challenge for the Thai island remains for it to decrease its reliance on Chinese and Russian tourists – reducing the risk of any downturn in these two key feeder markets.