Phuket’s Property Market: Navigating a Shift from Boom to Balance
Phuket’s residential real estate market, a hotspot for investment and second homes, is undergoing a important transition. After experiencing record-breaking launches and sales in 2023 and 2024, the market is now recalibrating, facing increased inventory and softening demand. this analysis, drawing on data from the Real Estate data Center (REIC) and insights from industry leaders, provides a extensive overview of the current situation and what it means for you.
The Recent Boom & Current Correction
For the past two years, Phuket saw an unprecedented surge in new residential projects. Siddhipen Siddharthapong, acting assistant director-general of the REIC, highlights that 2023 and 2024 marked peak periods for new supply launches. However, this rapid expansion has led to a build-up of unsold inventory, notably in the condominium sector.
here’s a swift look at the key figures:
* 2022: 475 condo launches
* 2023: 7,106 condo launches
* 2024: 14,454 condo launches (a record high)
* First Half 2025: 2,113 condo launches (down 51% year-over-year)
This surge in supply, coupled with evolving market dynamics, is impacting sales velocity. Condos now take approximately 28 months to sell out, a significant increase from the 14 months seen in the latter half of 2022.
Sales Trends: A Declining Trajectory
The cooling effect isn’t limited to launch numbers. Sales figures also reflect a downturn in the first half of 2025:
* Condo Sales (First Half 2025): 2,192 units (down 51% year-over-year)
* Villa Sales (First half 2025): 231 units (down 70% year-over-year)
while 2024 saw record sales – 10,971 condos and 1,446 villas – the growing inventory is a key concern. By the end of June 2025, Phuket held a record 10,466 unsold condo units, representing a total value of 88 billion baht.
What’s Driving the Shift?
Several factors are contributing to this market correction.
* Tourism fluctuations: Maetapong Upatising, president of the Phuket Real Estate Association, emphasizes the strong correlation between tourism and residential demand. A decline in Chinese tourist arrivals this year has impacted overall demand, despite increases from Russian and Indian visitors.
* Resale Market Growth: The resale market is gaining traction,offering buyers choice options. This is driven by limited land availability for new developments and the increasing prices of new supply.
* Price Discrepancies: Data from Faz Waz, a Thailand-based online real estate group, reveals a significant price difference between off-plan and resale properties.In 2024, off-plan condos averaged 121,000 baht per square metre, compared to 68,000 baht for resale units. This price gap is attracting buyers to the resale market.
Absorption Rates: A Critical Indicator
Perhaps the most telling sign of the market shift is the declining absorption rate. According to Ms. Siddhipen, the monthly absorption rate has dropped to just 2.9%, the lowest level post-pandemic, down from 7% last year. This indicates that properties are staying on the market longer, requiring developers to reassess their strategies.
Impact on developers & What to Expect
The current market conditions necessitate a more cautious approach from developers. ms. Siddhipen advises developers to exercise greater caution with new condo launches.
Looking ahead, expect:
* Slower Launch Pace: A continued slowdown in new project launches, particularly in the condo segment.
* Increased Competition: Developers will need to differentiate their offerings and focus on quality and value to attract buyers.
* Potential for Price Adjustments:
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