Although the overall housing and real estate market in Thailand has been slowed this year, the demand for luxury villas in Phuket has remained steady. The popular holiday destination in Thailand has seen transactions for luxury villas hit Bt3.5 billion in the first half of 2009, according to a report from consultants C9 Hotelworks.
Demand for luxury villas for the remainder of 2009 will probably remain constant, according to the Phuket Luxury Villa Market Report from C9. The firm predicts that 2010 will remain fairly steady as the supply of luxury villas won’t change much, but the overall market should see significant growth in 2011.
C9’s Managing Director Bill Barnett noted that supply and demand fundamentals for the high end are continuing to strengthen and excess supply is being absorbed. “While market recovery prospects are being set back to 2011, there has continued to be a gradual upswing in activity, driven primarily by earlier than anticipated momentum in many of the financial source markets where potential overseas buyers originate from,” said Barnett.
The luxury villa market has seen a slowdown in new properties under construction. This will help to drive increased value for buyers and sellers in the coming months and years as there won’t be enough properties to meet demand. The property dynamics look at more ocean front or view villas, hotel managed units and buyers who keep coming back to Phuket.
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