Villa prices in Phuket may only be slightly impacted by the COVID-19 crisis, according to Knight Frank Thailand.

In a recap of the Phuket villa market for 2019, Knight Frank Phuket Executive Director Nattha Kahapana said while the effects of the pandemic were already beginning to show, villa sales were coming off a relatively strong performance in 2019.

"Although the sales rate decreased (in 2019), the number of new units sold in Phuket in 2019 marked the highest figure in eight years, with a total of 459 new units sold compared to 250 units, the average number of units sold per year over the past seven years," he said.

Source: Knight Frank

"The villa market in Phuket in 2020 should slow down due to the COVID-19 situation with the number of expatriates travelling to Phuket has decreased from the past year. 

"It is expected that villa project launches in 2020 will definitely decrease.

"In addition, while demand declines, the selling price of villas in Phuket is likely to stay the same or decrease slightly."

According to Knight Frank, 2,965 villas were sold out of a total supply of 3,908 units in 2019, representing a sales rate of 75.9 per cent.

The sales rate decreased from the 80.5 per cent rate of the previous year, as the supply of new villas in 2019 increased by 794 units. 

Source: Knight Frank

Mr. Nattha said the type of villas that sold well in 2019 included 2-bedroom villas with prices between 15 to 25 million baht, followed by 1-bedroom villas at a price level of 7 to 10 million baht.

"These villas are located in Bang Tao Beach, Kamala Beach, Patong Beach and Rawai Beach, as the areas have many amenities and convenient facilities like shopping centres, restaurants and pubs," he said.

"The best-selling villas in Bang Tao Beach, Kamala Beach and Rawai Beach were 2-bedroom villas, while the best-selling villas in Patong Beach were 1-bedroom units.

"Most of the buyers in Phuket have been foreigners, mostly living in Asia, including China, Singapore and Hong Kong.

"There were also foreigners from Russia, the Middle East, Europe, Australia and New Zealand." 

Source: Knight Frank

Research from Knight Frank Thailand found that the highest number of new villas sold was up to 794 units from a total of 23 projects in 2019.

Of the new villas that entered the market in 2019, Kamala Beach had as much as 44 per cent of the supply, followed by Bang Tao Beach and Patong Beach at 20 per cent and 13 per cent, respectively.

The surge in supply at Kamala Beach reflects the launch of a large villa development with up to 300 villas.

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