Phuket Villas and Houses For Sale Information
Phuket has established itself as a global resort destination, offering a range of luxury houses, villas, condominiums and apartments for sale. For people who buy a villa in Phuket, their purchases are easily comparable to those offered in the Mediterranean and Caribbean, at a fraction of the price.
Widely accepted as the pinnacle of the Asian resort market, the Phuket villa market has expanded since the 1990’s in line with the growth in its tourism. The Phuket villa market is well positioned with the island’s supporting infrastructure including world-class amenities and leisure facilities and an International Airport offering good accessibility. Many investors choose to invest in the Phuket villa market as it offers a combination of western luxury and an exotic tropical lifestyle.
In recognising the long-term potential of the Phuket property market, CBRE opened its Phuket office in 2004. The sales team of Thai and expatriate staff are experts in the Phuket villas, condo and apartment market. The CBRE team has some of the broadest market knowledge in the industry and with our experienced Phuket real estate agents, we are able to offer valuable insights (Phuket Villa Research) for buyers and investors interested in buying a Phuket Villa.
Phuket Villa Types: Definitions
A “villa” is a common term referring to landed properties, often a one or two-storey house for sale in Phuket built on a private ground. Most villas in Phuket for sale are located within a resort or a gated development, with a limited number of standalone villas on the market.
Most quality Phuket villa developments are offered for sale on a leasehold basis. In accordance to Thai law, foreigners are prohibited to own freehold land, therefore a series of renewable 30-year leases are granted. There are no restrictions on foreigners owning a building outright. In case of Thai buyers, they are able to own the land and structure outright for developments that offer the freehold ownership option.
Phuket villa types can be broadly classified as follows:
1) Prime Location Phuket Villas:
Prime location Phuket villas are luxury villas located in beachfront locations with panoramic sea views. Prices of these Phuket villas for sale usually start from USD 3 million for a 4-bedroom property. Common features include a private pool, expansive indoor and outdoor living spaces, and high specifications with comprehensive common facilities and professional management.
2) Luxury Phuket Villas:
Prices of luxury Phuket villas for sale typically start from USD 1 million and are mostly located in low density developments offering a high level of privacy. Common characteristics of luxury Phuket villas and houses include prime locations, either on hillsides or close proximity to the beach with some offering sea views. These Phuket villas and houses for sale offer a high standard of construction and finishing. Most luxury Phuket villas feature a private pool, with comprehensive common facilities and professional property management. A selection of our Luxury Phuket Villas.
3) Semi-detached Houses & Townhouses:
There are a number of developments offering semi-detached townhouses and houses for sale in Phuket, notably around the Laguna area. These developments are often located inland, mostly without sea views and in higher density developments with smaller land plots. This type of property offers a good quality of construction with a range of common facilities, usually at prices starting from approximately USD 500,000.
4) Branded Hotel Villas on Phuket:
Phuket has an increasing number of Phuket villas for sale that are operated by four and five-star branded hotel operators, for example, The Point Yamu by Como, Banyan Tree and Dusit Thani. These villa properties command a premium as owners will benefit from the four or five-star management. The price of a branded hotel villa for sale in Phuket starts from approximately USD 750,000 for a four-star brand and from USD 2 million for a five-star branded villa. A selection of our Branded Hotel Villas on Phuket.
There has been a diversification in locations being developed in Phuket. The west coast was the original centre of development where many luxury villas for sale in Phuket today are located, including Amanpuri. As prime beachfront west coast sites have been taken up, the once overlooked south and east coasts now see an increase in the number of exclusive developments including Cape Yamu and The Point Yamu by Como. Developments are also extending beyond Phuket into Phang Nga, Krabi and the outlying islands in Phang Nga Bay. (View Phuket Map)
The stunning beaches of the west coast from Nai Thon down to Kata Noi are the centre of Phuket's tourism and also offer the lion's share of the hotels and branded resorts. Initial developments were concentrated in Patong up until the opening of Laguna Phuket which shifted development focus to Bangtao and Surin areas, and are the centre of luxury villa developments in Phuket today.
With a limited number of prime beachfront sites available on the west of Phuket, the east coast, with its stunning views across Phang Nga Bay, is now seeing rapid development. The access to Phang Nga Bay has also motivated a number of marina property developments, namely the Yacht Haven, Royal Phuket Marina, Ao Por Grand Marina and the Boat Lagoon and a number of luxury villa projects including Marina Living by Ao Po Grand Marina, The Cape Yamu, Baan Yamu และ The Point Yamu by Como.
The distance from the Phuket International Airport and golf courses has resulted in a slower pace of development. The south of Phuket not only has good quality beaches, but also has a number of headlands with developments offering quality sea views. The popularity of Cape Panwa and Rawai has increased.
With the shortage of west coast beachfront land, a number of property developers have moved up to the beaches on the northern end of the island. These villas and houses for sale in Phuket offer close proximity to Phuket International Airport.
The most popular spots for development are those located a few metres from the shore with easy access to the beach and those with golf course views or situated near hubs of activity such as Phuket Town. Inland properties are becoming increasingly attractive to individuals who want to buy a Phuket villa but are constrained by a limited budget.
Greater Phuket (Phang Nga, Krabi and Outlying Islands)
Phang Nga is an attractive alternative to some of Phuket’s busy beaches. Located to the north of Phuket, Phang Nga offers an unspoilt coastline with proximity to the Phuket International Airport. The market is still largely undeveloped, but a number of developments are commencing.
Phuket Villas - Purchase Options
1) Re-sale Phuket Villas:
Resale villas are second-hand properties offered for sale by individuals, as opposed to sales directly from the original developer. These properties can be under construction (off-plan) or completed. To date, Phuket has had a limited market for resale villas as most buyers tend to be long-term investors and occupiers of their villas upon completion. However, the Phuket property market for resale villas is a growing and maturing market.
2) Completed Phuket Villas:
Villas that have completed construction and are available for viewing. This type of villa purchase carries no development risk as the property is already constructed and buyers can also see the exact quality of finishing and design, which is not possible for off-plan purchasers.
3) Off-plan Phuket Villas:
Off-plan villas are villas sold whilst the projects are under planning or construction. To minimise development risk in purchasing an off-plan villa, it is important to buy from a reputable developer. Most quality developments selling off-plan have show units available for viewing. There is often an appreciation potential for off-plan properties upon completion as off-plan sales are usually offered at a discount.
4) Investment Villas:
There are a number of developments positioned as investment properties. Investment properties have owners’ usage restrictions as the units are part of a compulsory rental programme. The level of guaranteed returns varies from 5% to 8% for a period of 1 to 6 years and an annual owners’ usage of 45 to 60 days, depending on each project.
Most people discover Phuket as tourists, enjoy its outstanding white sandy beaches, unparalleled hospitality, tropical climate, great value for money, beautiful diving sites and some of Asia’s best golf courses. Many then choose to invest in its property market, and buy a second or retirement home.
The island now has in excess of 3,000 villa owners. For the past ten years, Phuket offers property buyers a lifestyle investment with good potential for capital appreciation. Investors have experienced an average capital appreciation of 20% to 50% per annum for prime beachfront or sea view locations, although some Phuket properties have seen the value of their asset rise by as much as 100% between the launch and completion.
Lifestyle/ Leisure/ Infrastructure
Phuket currently has over 150 hotels & resorts along with extensive sporting and leisure facilities. The island has a total of six golf courses including Blue Canyon Country Club, Laguna Phuket Golf Course and Mission Hills, and four marinas providing a total of 655 marina berths. As the Phuket’s tourism and property market has matured, there is also an expanding choice of upmarket dining and entertainment venues.
The island’s infrastructure is also well developed with an International Airport, 6 major hospitals and 3 international schools. The development of Phuket’s infrastructure and extensive leisure facilities has complemented the growth of Phuket's real estate market over the years.
Phuket has a balmy tropical climate and a fairly consistent temperature all year round (25 to 35 degree Celsius), with its best weather during the European winter. There are two distinct seasons in Phuket- the dry and green season. Phuket’s weather is at its best when the dry season starts in November through to January, while March and April are the hottest months. The green season runs from end-April to November when the rainfall is at its peak.
Access To/From Phuket
Phuket arrivals exceeded 5 million in 2012. Served by a total of 42 airlines (14 of these are chartered airlines), the Phuket International Airport offers flights to destinations including Hong Kong, Singapore, Kuala Lumpur, Moscow, Seoul and numerous others.
Phuket Villa Market Research
This section outlines some of the findings from the CBRE Phuket Property Report, a quarterly subscription report which brings professional analysis and transparency to the growing Phuket villa market. (Phuket Villa research)
- Phuket villa market continued its pace and saw a slight improvement in H1 2021 since there was an increase in deals made and launches of new villa projects.
- A total of 61 villas were sold in H1 2021, a decrease of 29.9% Y-o-Y. Products from the upper-end segments accounted for 17% of the total villas sold, representing the ongoing market as buyers are less affected from the financial crisis from COVID-19 pandemic.
- Two villa projects launched in H1 2021 namely (1) Akra Collection Layan (Phase II) - Valley Villas and (2) Anchan Tropicana (Phase VII). Both are from the Mid-range segment with a total of 29 units, adding to the total villa supply.
Phuket Villa Supply:
Note: We have revised our villas database. Please note that the cumulated existing supply includes projects that are sold out and being market. We have taken out projects that are on-hold and cancelled. The x-axis label of the graph has been corrected due to technical error in the previous issue.
Before 2004, the Phuket villa market used to be small with a total stock of approximately 200 units. After that, both the supply of and demand for villas grew significantly because of the expanding tourist market in Phuket and the accelerating regional economy. However, the villa market was affected by the global financial crisis of 2008 and, although prices did not fall, potential buyers started to reconsider their financial position which led to a decrease in demand. Consequently, the number of villa completions had slowed down from 2008 until the year 2014 when we started to see more villa completions. The COVID-19 outbreak has continued to impact the Phuket villa market. The absence of foreign buyers in Phuket has resulted in market slowdown and most projects have been shifted towards local and expat demand to maintain sales performance and upkeep the projects. Many developers decided to postpone the launches of their new villa projects until the COVID-19 situation improves. The difficulties from lockdowns and restrictions have directly affected the completion of under-construction projects with some developments postponing their completion dates.
In H1 2021, there was a total of 5,089 villas from 338 projects in the Phuket villa market, increasing 1.3% H-o-H from 5,026 villas in H2 2020. The increase in supply was from adding 2 newly launched projects and another 2 existing projects after basket revision. Of a total 5,089 units, 4,296 units are completed supply from 308 projects while 793 units are under construction.
There were some projects whose status was changed to on hold while some projects came back to the market. It should be noted that the total number of units of each project could change due to the redesign of projects’ masterplan or opening up of new phases, therefore we revised the total unit number following the revision from developers.
Please note that from H1 2019 onwards, we have revised our villa database and the cumulative existing supply includes only projects that were sold out or being marketed. We have taken out projects that were on-hold and cancelled.
Phuket Villa Market Summary:COVID-19 Impact on Villa Market
The Phuket villa market continued its pace and saw a slight improvement in H1 2021 since there was an increase in deals made and launches of new villa projects despite the second wave of COVID-19 in December 2020. Current demand is mostly driven by locals and Thailand-based expatriates. Meanwhile, foreign demand remains limited and uncertain because of Thailand’s ongoing ban on international commercial flights as the country continues to deal with the ongoing 3rd wave of the COVID-19 outbreak in April 2021. Thailand’s COVID-19 vaccine rollout, which started in late March this year, has boosted up public confidence and Phuket has attempted to be an island with a fully vaccinated population to prepare for the Phuket Sandbox scheme.
Due to the ongoing COVID-19 pandemic, the Phuket Communicable Disease Committee has imposed tight border restrictions starting from 1st June 2021. Visitors entering Phuket must be fully vaccinated or had tested negative for the COVID-19 virus as the island prepared to open its borders for ‘Phuket Sandbox’ starting 1st July 2021. The Phuket Sandbox scheme has created excitement and expectations to all businesses in Phuket especially residential projects, hotels, retail centres and other tourism-related businesses after there were zero international inbound visitors to Phuket since the second quarter of last year. We expect to see slight improvement in activity levels in the villa market as foreign demand will be able to return; however, the outlook of the market is still unclear due to the instability of the COVID-19 pandemic across the world and the outcome of the Phuket Sandbox remains in conclusive.
Despite the COVID-19 pandemic, Luxury villa properties were less impacted compared to other market segments. The reason behind this was due to luxury property buyers being less affected by the financial crisis from the pandemic. The work-from-home policy has created emerging demand for short-term individual villa rentals as vacation homes to escape lockdown. During this time, villa projects will need to differentiate themselves to become more appealing to clients who are looking for holiday properties. These includes in-room services, multi-generational activities and outdoor sport activities provided by upon request.
The Phuket villa market has remained relatively quiet due to the decrease in the number of newly launched projects. There were only 29 villas from 2 newly launched projects in H1 2021, compared to 44 villas in H1 2020. These two projects were in the Mid-range segment (THB 15-35 million per villa in the West Coast (North) area. The increase of new villa launches brought the total villa supply to 5,089 villas in H1 2021.
Overall, there was no completed villa project in H1 2021 due to market slowdown and delays in construction from the effects of the COVID-19 pandemic in Thailand. This has resulted in the number of completed villa supply to remain the same as the previous record at 4,296 units. Of which, only 16% of the total completed supply are available for sale in the market. By the end of 2021, we expect to see approximately 337 more units being completed, bringing challenges to the existing unsold units during market slowdown. However, as many villa properties are developed as off-plan projects which directly relate to demand at that time, it is possible that not all scheduled projects will be completed as originally planned.
There were a total of 61 villas sold in H1 2021, decreasing 29.9% Y-o-Y but increasing 69.4% H-o-H from 36 villas sold in H2 2020. We started seeing signs of recovery after the lockdown period and downturn last year, however the rate is still considered lower than pre-pandemic levels. The increase in the number of units sold was mainly driven by end users from local and Thailand-based expat demand.
There were a total of 10 villas sold from the High-end (THB 35-90 million) and Luxury (Above THB 90 million) segments, which accounted for 17% of the total villas sold. The Mid-range segment (THB 15-35 million) continued to dominate a large portion of units sold at 61% of the total villas sold. The Mid-range market has become more active compared to two to three years ago as the market has continued to move toward investment-oriented products where the main driver of demand comes from buyers of units with prices below THB 35 million.
Looking forward, the Phuket villa market will not see big improvement in activity levels until foreign demand fully returns. However, we expect to see gradual recovery in foreign demand after Phuket island is reopen under the Phuket Sandbox scheme later in the second half of this year.
For further information on the Phuket property market, download our latest Phuket Residential MarketView
Phuket Property Purchase Guidelines
Phuket Property Payment Terms
The majority of properties in Phuket are sold off-plan or in a partly built state. Buyers will always be asked to pay a reservation fee. This secures the property which will then be taken off the open market. Then, some time (usually 30 days) is given to allow for legal work to be completed before the first payment is due on signing of the contract. Thereafter payments are usually split according to construction milestones.
Here is an example:
- Signing of agreement: 20%
- Completion of villa footings or pilings: 20%
- Completion of columns, floor slabs and roof frames: 20%
- Completion of villa shell, including external doors and windows: 20%
- Substantial completion of the villa and upon of the transfer of the ownership: 20%
In a new villa or condominium project, each owner will pay an initial amount into a sinking fund on transfer of ownership of the property. This will be used for major renovations in the future and on repairs which are outside the operating budget.
Common Area Management Costs
In a Phuket villa, house for sale or condo development, specifically appointed property managers such as CBRE, will normally be responsible for managing all aspects of the common areas. This service normally includes:
The property management company reports directly to the owner's committee on management issues and the financial status of the project. Phuket Property Management.
- 24-hour onsite security
- Maintenance and irrigation of all common area landscaping
- Cleaning and maintenance of all the communal areas
- Management office and staffing as well as ancillary costs, accounting and Insurance.
- Electricity and water supply in the common areas, Refuse collection and Pest control