Real estate developers are redirecting their attention from Bangkok to the southern Thai island of Phuket, aiming to take advantage of the growing interest from Chinese and American tourists as well as retirees.
Approximately 10,000 new apartments are set to be introduced into Phuket’s real estate market this year, with new projects launching consistently each week, reports Colliers, a property consulting firm, as stated in the source. South China Morning Post.
At the end of the previous year’s fourth quarter, unsold inventory in Phuket rose to 4,982 units spread across 16 different projects, as observed by Colliers.
"Nasupha Suwansri, who serves as a vice-president at Juwai IQI—a real estate brokerage overseeing more than $4 trillion worth of properties worldwide—stated that developers anticipate the approaching peak season will attract new purchasers to the island," she explained.
|
|
Homes in Phuket, Thailand. Image courtesy of Pixabay/Michelle_Pitzel |
The arrival of additional inventory could worsen the surplus, since Colliers noted that last year saw a record-high launch of 14,700 units spread across 56 initiatives in Phuket, with just 64% being taken up by purchasers.
This indicates increasing rivalry amongst Thai developers, exacerbated by Bangkok’s slowing sales growth and escalating mortgage rejection rates.
A number of prominent Thai developers have shifted their focus to Phuket because of slow apartment sales in Bangkok, says Stuart Reading, who serves as the managing director for group property development at Banyan Group Residences, a Singapore-based resort developer.
He stated, "It appears that there is an overabundance of such specific projects in Phuket, as they fall within the price range of $100,000 to $200,000 each." He added, "There has been significant development in this sector."
Banyan, which has held its Phuket land bank for decades, is not rushing development, unlike Bangkok developers who face pressure to acquire new land and minimize holding costs, Reading explained.
The firm intends to introduce approximately US$1 billion worth of upscale housing developments in Phuket within the coming two to three years. This initiative aims at catering to the premium segment by ensuring that the supply meets the current demand, with potential purchasers including individuals from Hong Kong.
The T.H. Group remains hopeful regarding the interest of international investors for their Ayana project in Phuket as they promote it.
The firm plans to gather approximately 100 individuals holding U.S. passports, including numerous Asian-Americans intending to retire in Thailand, for property viewing sessions in both Bangkok and Phuket later this month.
Allen Su, who leads projects at Ayana, stated, "This is the first instance we've seen of an American property viewing delegation this size."
In the first quarter, Chinese buyers continued to be the biggest purchasers of Bangkok apartments, though their demand fell by 19%, totaling 1,481 units valued at THB6.12 billion (US$187 million).
"The condominium market in Bangkok is showing signs of recovery, though the situation remains varied," stated Kashif Ansari, who is the co-founder and group CEO of Juwai IQI.
Due to policy uncertainties, Thai purchasers are hesitating. Meanwhile, Chinese buyers continue to be crucial for the market.
During the initial six months of last year, Chinese buyers made up 39.5% of all international purchasers of condominiums in Thailand.
According to the Government Housing Bank, they purchased 2,872 units valued at THB13.2 billion, as reported. Thai PBS.
According to the bank, the leading destinations for international purchasers during this time were Bangkok, Phuket, Chiang Mai, and Samut Prakan.
Post a Comment