CBRE's MarketView Phuket Residential 2H 2017 report identifies that while villa sales improved by 21% YoY, condominium sales were somewhat subdued due to limited launches. 

CBRE Semi-Annual Highlights - Villas at a glance

• 155 villas sold in 2017, the highest number of units sold per year since 2015.
• 52 villas were sold in the 2H 2017, a decrease of 7% YoY.
• 50 villas sold from the lower-end segment with a price of THB 5-35 million per unit.
• 6 out of 10 newly launched villa projects in 2H 2017 offered rental schemes with a 5-7% yield per year.

CBRE Semi-Annual Highlights - Condominiums & Apartments at a glance

• A total of 633 condominium units were sold in 2H 2017, decreasing by 26% YoY.
• 1,070 units were sold in the whole of 2017.
• 75% of the total units sold were investment-oriented products that offered some form of yield guarantee and rental management.
• Buyers at all price levels want potential rental income for property they only use less than 60 days per year.

The report indicated that across 2H, property sales were concentrated in investment-oriented or income-producing products for both villa and resort condominiums.

Investors preferred resort condominiums due to the lower lumpsum price and ability to rent out.

At least 80% of condominium units sold came from projects with rental guarantees and lumpsum prices of less than THB 5.5 million. 

Luxury segment sales above THB 90 million for villas and above THB 20 million per unit for condominiums were limited, but CBRE remain confident that there is still interest in the luxury sector, with one villa at the Layan Residences by Anantara and one in Avadina Hills by Anantara sold at prices ranging between THB 200-500 million per unit in the last six-month period.

For condominiums, there were two luxury projects launched during H2 2017:

• Sheraton Phuket Grand Bay Resort & Residences at Ao Po
• Angsana Oceanview Residences at Bangtao beach

The resort property-for-sale market will continue to be dominated by investors in the lower-end segment.

CBRE believes growth in tourist arrivals will also continue to be a key driver of demand in both the residential market and hotel market.

Click here to view CBRE MarketView Phuket Residential 2H 2017 report. 

For more information or to discuss the report, email James Pitchon, Executive Director of Research, CBRE Thailand via the contact details listed below. 

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