Phuket's Luxury Residential Boom is here to stay: here’s why
Phuket's Luxury Residential Boom is here to stay: here’s why
To someone in the not-so-distant past, the concept of Phuket becoming a hotbed for luxury tourists and residents was far closer to pipedream territory to the realities of life.
Flashback to 2019, when 9 million tourists sought to purchase a property and bask in Phuket’s gorgeous weather the world, and the island was a very different place.
A seemingly infinite stream of entry-level investment properties, especially large block condominiums promising mouth-watering rental returns were going up and selling like hotcakes, until that fateful period at the end of 2019, turned the world inside out changing the very face of property in Phuket as we know it.
The people of the world, fed up by the claustrophobia of lockdowns that became the everyday norm began to seek larger, more luxury villas.
Now, families venturing from Bangkok, Hong Kong, Singapore, as far away as Chicago and Las Vegas are looking to cash in on the incredible lifestyle, quality schooling, state of the art healthcare and slower living.
But this new market trend should never have been a surprise.
What makes Phuket so attractive to luxury residents?
Where to begin when considering the attractiveness of Phuket to luxury property consumers?
The weather
The weather is an easy place to start. Wedged snuggly between the tropics, it’s shorts and t-shirt weather all year round. Although the monsoon rains can sometimes dampen the mood for a few months in the year, the temperature rarely drops below 20 degrees celsius.
The establishments
But it's not only the natural phenomenon that is drawing more luxury property consumers to Phuket. With an eclectic gastronomy of Thai, Asian and western delicacies found especially to the west of the island, visitors are now spoilt for choice when it comes to dining options.
The rise of a luxury class of beach clubs dotted along the western coast especially Catch Beach Club and Cafe del Mar are providing a classier alternative to the age-old Phuket hotspots of Bangla road and Phuket town whilst losing none of the energy and flair that has become a staple of the Phuket night scene.
The value
Moreover, it is the affordability of the luxury that is also opening the residential floodgates. Individuals and families alike are realising that for the same value of their tightly packed city dwellings, they can obtain spacious and airy luxury pool villas behind the walls of a safe and secure compound or a hillside villa overlooking the vast expanses of the Andaman sea.
The Baht
Not only are the relatively low luxury realty prices a reason for foreign investors to flock to Phuket, but as the value of the baht goes through one of its worst lulls, they are increasingly finding they can get more bang for their bucks. The Thai baht is currently hovering at just about 37 to the dollar, a near 16 year low after depreciating by 12 percent in 2022. For much of the country this might spell bad news, but for Phuket, opportunity.
As the world has accelerated its reopening efforts, international flights and real estate rental bookings have been chock full of tourists, excited to return to Phuket for the first time in years. An influx of foreign buyers has followed this trend with individuals looking to relocate to the island in an unclear worldwide political and economic environment, high-net-worth individuals snapping up properties amid growing portfolios and a vibrant Phuket luxury property market.
What’s next
In an uncertain and increasingly volatile world, it would be premature of me to suggest that the trends outlined in this article are sure to continue for the coming years.
However, when taking all these factors into account, Phuket is a transforming place. From a hotbed of mass tourism is blooming the luxury buyer’s dream, a safe and secure location to spend some time out to avoid the hustle and bustle of city life or raise a family with the worst of the world’s problems firmly in the rear view mirror.
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Source: C9 Hotelworks
