Bangkok, April 20, 2018 – According to the latest report by the research department of CBRE, a leading global real estate consultancy, villa sales in Phuket reached 155 units in 2017, marking the highest sales since 2015 and a 21% increase from the previous year. Notably, 90% of all villa sales in 2017 were in the mid-range to lower market, priced between 5 to 35 million baht.

          The CBRE research department found that most sales in both the villa and vacation condominium markets were driven by investment purchases or income generation. Most projects offered rental schemes with guaranteed returns of 5-7% per year for periods of 2-5 years. The top three groups of buyers for vacation properties in Phuket came from Thailand, Europe, and China.

          Ms. Prakaya Phet Meechusarn, Director of the Vacation Home Sales Department at CBRE Thailand stated, “Sales in the luxury market, with villas priced from 90 million baht and condominiums from 20 million baht per unit, are relatively limited. However, CBRE is confident that the luxury market continues to attract interest, as evidenced by the sale of two villas in The Residences by Anantara and one villa in Avadina Hills by Anantara, priced between 200 to 500 million baht in 2017.”

          The CBRE research department predicts an increase in vacation properties managed by hotel chains, as this has become another factor of interest for buyers looking for projects with guaranteed rental returns.

          In 2018, CBRE believes that the rising number of tourists will continue to be a significant driving force behind demand in the Phuket real estate market, both in the vacation property and hotel sectors. The mid-range to lower vacation property market will remain primarily investor-driven. For the upper market, CBRE believes there are still opportunities, but challenges exist for developers in aligning products with customer demands.

Thank you for the information from www.cbre.co.th