Price Segments and Types of Real Estate in Phuket
Over the course of 25 years of tourism development, the number of arrivals at Phuket Airport has increased fivefold, with the island of eternal summer welcoming 39,916,000 tourists from all over the world in 2019. The global COVID-19 pandemic brought a pause to the tourism sector worldwide, but gradually, things are returning to normal and the situation in Phuket is successfully recovering. In a quarter of a century, Phuket has managed to make a name for itself on the global stage and earn a reputation as one of the top vacation destinations in the world.
As a result of the thriving tourism industry and the consistently increasing demand for prime locations, Phuket boasts an extensive selection of real estate options. The island serves as a benchmark for the entire Kingdom of Thailand, illustrating the diverse opportunities available for both residential living and investment purposes. For further insights, we invite you to explore our in-depth article, "Why People Buy Property in Thailand and Phuket."
Note that there is no single classification of property types; the division is arbitrary and intended to simplify the task of choosing the right property for you.
All of Phuket's real estate can be divided into three main types: condominiums, villas, and houses.
Condominium, what is it and how does it differ from a typical residential complex?
Acquiring property in a condominium is the most common option for investors.
A condominium, or condo, refers to a multi-unit residential complex within a secured territory, which may consist of one or multiple buildings. This is where the similarities with a regular multi-unit residential complex end.
What are the distinctive features and advantages of condominiums?
Typically, within a condominium development, an array of exclusive amenities is established: multiple swimming pools - featuring a rooftop pool, a well-equipped fitness center, a sauna, a recreational area, a reception desk, and an on-site cafe. Additionally, residents often have access to a complimentary shuttle service that provides convenient transportation to the beach. These facilities and services are available at no additional cost to the residents of the complex.
The maintenance of the residential territory is entrusted to a dedicated property management company established for each specific residential complex. Consequently, in high-quality condominiums, the grounds are always meticulously tended to, the pools are kept immaculately clean, elevators are regularly inspected and repaired, and maintenance and renovation work is undertaken on a regular basis. Additionally, should the need arise, the management company can assist in renting out your property in your absence, record meter readings, locate suitable tenants, and provide support during move-ins and move-outs.
What is the difference between a studio and a one-bedroom apartment?
Condominium developments typically offer a diverse array of residential options, including studios, one-, two-, or three-bedroom apartments spanning an impressive range of 25-150 square meters, complete with an optional furniture package. Options such as penthouses or duplexes are like rare gemstones, and they are usually bought up immediately at the start of sales and during the construction phase.
A studio is a living room with a kitchen area, a bathroom, and a balcony.
One-bedroom apartments consist of one bedroom, a living room with a kitchen and dining area, a bathroom, and a balcony.
The cost of apartments during the construction phase starts from 110,000 baht per square meter. In completed buildings, the price starts from 130,000 to 140,000 baht per square meter.
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Villas in Phuket
An increasing number of clients are expressing interest in purchasing villas for both living and investment purposes. The villa market in Phuket had its genesis 30 years ago, and currently, the volume of available options is expanding at a rapid pace.
As we previously discussed in our article, "Why You Should Invest in Real Estate in Thailand and Phuket," the market in Phuket is still young and developing, which means that owning a luxurious villa on a world-renowned resort with limited land for development is still feasible at a highly attractive and accessible price, unlike many other resort destinations.
After the COVID-19 pandemic, an interesting trend has emerged:
Previously, people chose relatively small vacation options for 3-4 weeks a year, while the rest of the time the villa was rented out for income.
Now: there is definitely an increased demand for 3, 4, and even 5-bedroom villas, with a large terrace and a private pool. Buyers and renters take into account the experience of the pandemic and lockdown when choosing a villa and consider longer stays on a paradise island with the ability to work from home and feel comfortable.
Acquiring a fully constructed villa from a developer is a challenging endeavor due to the rapid sale of available units during the project's early sales and construction phase. However, purchasing a villa provides significant benefits, as construction commences immediately upon payment and typically lasts between 12 and 24 months. Following completion, the property may be inhabited, generating income or used as a personal residence.
Prospective buyers may be concerned about living amidst ongoing construction activity. However, it is important to note that, in such cases, the entire project's construction typically concludes at the same time as the rapid sale of available villas. As such, there is no cause for concern regarding the availability or completion of the villa upon the buyer's taking possession.
What are the exclusive benefits of acquiring a villa?
For instance, Botanica Foresta offers premium villas from a developer with 14 years of experience in constructing villas in the premium segment. The development provides a choice of either tropical Balinese or contemporary villa types.
The premises are safeguarded within a gated community, and each villa is enclosed by a high fence to guarantee confidentiality and complete privacy. One can savour a leisurely morning coffee aroma on the terrace or practise yoga in the midst of natural surroundings. The villa provides a generous-sized pool, a sumptuous loggia, an inner garden, a barbecue area, and an assigned private parking space.
Personalized approach. The developer places great importance on the layout, with the maximum comfort of customers being a priority. If desired, you can rearrange the space of the villa to suit your taste.
Furthermore, pets are welcome. Owners need not worry about their pets' comfort or the management of the premises.
Well-planned facilities throughout the area: gym, children's club, clubhouse, cafeteria.
Unique community, status, and personal comfort. It's hard to deny the prestige that comes with living in a luxurious villa. Your neighbors will be people with similar values, lifestyles, and social status.
Faster and Higher Return on Investment. As we mentioned earlier, a villa can be built on average within 12 months, making the return on investment almost immediate. Let's not forget that not only does the villa appreciate in value, but also the land on which it stands, which brings even greater long-term income.
The cost of villas in the market depends on the view, location, quality of materials used, as well as the size of the living area and plot size. It's a delicate balance of factors that ultimately contribute to the unique charm and value of each individual villa. From stunning ocean views to lush green landscapes, each villa has its own personality waiting to be discovered by its future owner. With carefully selected materials and skilled craftsmanship, these villas are built to last and provide an oasis of luxury living in some of the most sought-after destinations around the world.
There are generally two types of villas available:
1. Beachfront or sea view villas. The cost of such villas in high-quality projects developed by reputable developers start from THB 100,000,000.
2. Villas with mountain/lake/nature views. The cost of such villas starts from THB 17,000,000.
We have prepared a selection of villas exclusively for you, which you can browse through the following link: "TOP 5 Best Villas in Phuket". ознакомиться по ссылке Best villas for comfortable living, relaxation, and rental purposes
Houses
Phuket houses include townhouses and two-unit houses (two houses with a common wall). Generally, houses are located in the central part or closer to the eastern coast of the island in areas with high population density, away from the tourist infrastructure.
Unfortunately, due to the lack of demand, the supply of quality houses in Phuket is severely limited. The price of liquid houses with a good location, infrastructure, and a guarded territory is not homogeneous and on average starts from 9-10 million baht.
Primary or Secondary Market: Which is Better?
When it comes to buying property in Phuket, one of the key decisions to make is whether to invest in a new development on the primary market or to buy an existing property on the secondary market. Both options have their advantages and disadvantages, and the choice ultimately depends on your goals.
The primary market is rapidly growing in response to increasing demand and the changing needs of modern buyers. There are three types of property purchases available in Phuket:
1. Off-plan purchases - buying at the start of sales/construction
Off-plan property purchases are very common and popular in Phuket, and offer several advantages. The most attractive feature is the lower price, which can increase by 30-40% when the property is completed. Other benefits include interest-free installment plans until completion and handover, as well as the ability to customize the property to your liking. There is also a wider selection of properties available, including duplexes, corner units, and units with better views, which are usually limited and sold quickly during the initial stages of sales.
2. Completed units from the developer
Buying a property that is already completed and ready for occupancy is also a popular option in Phuket. The main advantage of this option is that you can move in or rent out the property right away, without having to wait for construction to be completed. However, the downside is that the selection of properties is limited, and the best units may have already been sold.
3. Investment properties, often in the form of hotels
Investment properties are a popular choice for those looking to generate rental income from their property. These properties are typically part of a hotel development, often with well-known brands such as Sheraton, Marriott, or Wyndham. The property is rented out as part of the hotel and usually on a short-term basis. This option is ideal for those looking to purchase a property solely for rental income purposes.
And for those who would like to have the opportunity to stay in their apartment for more than 15 days a year and furnish their apartment to their liking, it is better to consider properties that offer a combined option - vacation with income.
The secondary market is characterized by a modest selection. This is because, when purchasing real estate and seeing a confident increase in prices, owners are not eager to part with their villa/house/apartment, at least not so quickly.
Let's imagine, you purchased an apartment for 5,000,000 baht at the start of sales from the developer, after two years with capitalization, your apartment will already be worth 7,000,000 baht, and with the overall increase in prices in the market and good rental income, you are unlikely to want to sell such a profitable investment quickly.
And although the choice is very limited, the main advantage of buying on the secondary market is that your property is immediately at your disposal, and you can evaluate the finishes, the area, and others.
To summarize the above, the choice of real estate depends on your goals, but it is important to understand that prices are rapidly increasing with each new project, so we recommend not delaying the decision to purchase real estate for a long time, because there is no more suitable time to buy in the near or distant future.
Do you still have any questions or uncertainties regarding your choice of property purchase? Are you unsure about what and where to buy or having trouble defining your objectives?
Please feel free to contact us via our social media channels, and we will be glad to provide you with professional and complimentary consultation on all matters related to your property purchase.
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