Phuket's Premium Property Market Set for Significant Growth

Drone View of Laguna Phuket

Phuket's Grade A residential market, valued at 337 billion baht, is projected to grow by 10-20% annually over the next five years, largely driven by rising global demand from high-net-worth buyers, according to C9 Hotelworks, a leading hospitality consultancy.

Bill Barnett, managing director of C9 Hotelworks, notes that Phuket's appeal to international luxury property buyers is bolstered by the province's extensive range of world-class amenities. These include premier international schools, high-quality hospitals, luxury hotels, wellness centers, and high-end retail options.

In its latest report, the *Phuket Luxury Report*, C9 Hotelworks reveals that approximately 450 new luxury residence units are currently on the market in Phuket, with 413 of these being condominiums and 37 villas. Notably, over half (51%) of these units are located in Kamala, with the Cherngtalay-Bang Tao and Layan areas accounting for 38% and 10% of the remaining properties, respectively.

The units come in various sizes, with one-bedroom units representing about 41% of the market, while two-bedroom, three-bedroom, and four-bedroom options account for 33%, 21%, and 5%, respectively. The average absorption rate for luxury condos is currently at five units per month.

Over the past two decades, the luxury property market in Phuket has shifted in line with changing buyer preferences, moving from traditional Thai designs toward a more minimalist, lifestyle-oriented aesthetic. Buyers now seek experiential luxury, preferring gated communities with ocean views and proximity to commercial centers. Privacy remains a priority, with a focus on wellness programs and exclusive social experiences.

In a noticeable shift, investment value has become the primary driver for buyers, surpassing personal use and occasional rentals. Phuket remains competitively priced in the luxury real estate market, with an average price of 231,579 baht per square meter. In comparison, Marbella, Miami, and Dubai luxury properties are priced at 484,343 baht, 710,461 baht, and 1.01 million baht per square meter, respectively.

As Phuket evolves into an urban resort destination, Barnett highlights the need for substantial infrastructure development to meet the demands of its growing luxury lifestyle market. This includes improvements in water management, transportation, and power infrastructure.

To support Phuket’s ongoing development, C9 Hotelworks and key stakeholders are preparing a white paper for the government, providing detailed growth insights and recommendations for the island's future progress.

Source: Bangkok Post and C9 Hotelworks