The Phuket real estate market has gone through some major changes over the past couple of years due to several factors, including the never-ending COVID-19 pandemic. But that shouldn’t mean sitting out of the market. Now, buyers and investors are understandably wary.
There are a variety of good reasons that can support the saying “Now is the best time to buy or invest in Phuket property”. However, it is also subject to personal views, purposes and financial components that only the individual buyer or investor knows best. Our view is that any time is the best time to buy or invest in property, especially in the well-known tourist destination like Phuket Island whose property value is continuously rising.
This year 2022, the Phuket real estate market is currently recovering. Here are the 8 reasons that may help you make better decision on property purchase or investment;
1. Properties in Phuket can always be traded at a good price
Villas and condominiums especially on the west coast and northern part of Phuket such as Kamala, Surin, Bangtao, Laguna, Cherngtalay and Layan can still be traded at a good price. The land plots for property developments in these locations are relatively scarce due to the increasing demand.
As a result, Phuket has seen positive annual property price gains and that’s all good news for investors, despite the unfavourable pandemic and economic situations.
2. Property prices are more negotiable
Some previous owners who either couldn’t return to the island due to COVID-19 or are absent due to travel restrictions and the ongoing international conflict, wanted to unload their assets. Savvy buyers and investors see these opportunities to buy condominiums or villas at a lower price, believing that Phuket still has great potential and tourists will return to the island eventually.
3. The pandemic and the demand for villas of high-income, Bangkok-based Thais and expats
The pandemic boosted the demand for villas among high-income, Bangkok-based Thais and expats by increasing the need to work from home and for more socially distanced locations away from dense urban areas.
The buyers from Thai capital decided to buy villas in Phuket for flexible working space and a safe haven for families. This has enabled many projects and some new developments to close deals both online and in-person visits.
4. Rental demand for upscale and luxury single-family homes surges
The upscale and luxury single-family home market continues to do well. The push comes as more renters, who are relocating to Phuket from Bangkok, Singapore, and Hong Kong, have the flexibility to work from anywhere and are looking for homes in a good location with larger spaces, outdoor areas and international schools for children.
5. Thailand is now opening to tourists
The government lifts nationwide COVID-19 restrictions with immediate effect on 23 June 2022. The announcement allows almost everything with social distancing precautions, including colour-coded zones removed, outdoor mask-wearing is voluntary, restaurants and eateries serve dine-in customers alcoholic beverages, entertainment venues including pubs, bars, and karaoke lounges that have been certified are also allowed to operate, as the country is stepping into post-pandemic.
Phuket tourism is starting to be active again, which is good for the real estate market and signals a return of the purchasing power of foreigner buyers and investors who still have demand for properties. These are positive factors that will benefit the Phuket property market in the future.
6. Not only with travellers but Phuket is also popular with retired people around the world and they will definitely return
Recently, Phuket has been named No. 1 island in Southeast Asia, in the inaugural ‘Asia’s Best Awards’ from Travel + Leisure Southeast Asia.
Travel + Leisure Southeast Asia said of Phuket “In addition to the sandy stretches of postcards and the buzz of Patong, Phuket is home to a wide range of neighbourhoods – do you want uber-luxury, beach club party vibe, local hipster, family friendly, or yoga and detox? There are plenty of unique accommodation, professional health care centres, hospitals, outdoor activities, and impressive attractions. And wow, is Phuket Town coming into its own; take a day’s break from the beach for photogenic Sino-Portuguese architecture, and a thriving food and bev scene.”
The island also placed well in Travel + Leisure’s ‘World’s Best Awards 2022’. In the list of ‘The 25 Best Islands in the World’, Phuket was named the 7th best with a score of 91.90, and in the list of ‘The 5 Best Islands in Asia’ it was 3rd best.
7. Phuket real estate market passed its lowest point
The COVID-19 pandemic and the economic shutdowns are dealing a severe blow to the Phuket economy and especially the real estate market over the past couple of years. However, the experts estimate that the market has passed its lowest point and that the island is taking now to speed recovery after the worst of the health crisis has passed and blunt long-term adverse effects. The relaxing of COVID-19 restrictions, the reopening of the country, and the distribution of vaccines have all aided this.
8. Currency exchange rate: Thai Baht depreciation
As at today’s exchange rate, the baht continues to weaken and according to major Thai banks, they forecasted in June 2022 that the baht would be weaker further against the US dollars. Apparently, this situation benefits the property buyers or investors who hold US dollars and decide to purchase or invest in Phuket property now.
Finding the right property to buy or invest in Phuket can be challenging. The services of an experienced real estate agent at phuketproperty.property Real Estate make finding the right property on the island much easier for you.
Please contact salescoordinator@phuketplus.co.th to find out how the property selection and buying process can be easy with the help of our experienced team.
