Sino ThaiIn this article I would like to talk about the doubts that some investors have, namely: is it worth investing in Phuket real estate?
This is a painful state of doubt, when we do not understand what to do and, the worst thing is, we lose precious time and the best conditions for entering into a deal! If you have been in a state of doubt for several months, you must definitely sort this out and finally make a decision.
If you are looking to buy real estate in Phuket, but are not sure whether to buy now or wait until prices fall, then, in short, buy now, prices will not fall!
Phuket is a small island, which is bordered by the sea on all sides. In addition to natural factors that limit development, there are legislative restrictions: high-rise buildings over 24 m are prohibited, as well as development on hills and in national parks – and this is 70% of the island’s area. Thus, there is very little land left for development in Phuket, which stimulates price growth against the backdrop of increasing demand for rent. Every year, the starting price of new buildings is growing and there are no objective prerequisites for this growth to stop in the near future, which is confirmed by authoritative analysts such as C9 Hotelworks.
For example, in 2019, an apartment in a condominium with good infrastructure and a favorable location could be purchased for 2.5 million baht (73 thousand dollars). Now the cost of similar apartments has grown to 3.5 million baht (100 thousand dollars) and higher.
The average yield from short-term rentals in Phuket is about 5-8% per annum, and for long-term rentals – up to 5% per annum. Phuket offers a number of programs from developers providing installments or the opportunity to profitably invest funds in the early stages of construction. At the same time, the Thai economy is growing, and the national currency (baht) maintains a stable rate against the dollar, which makes such investments less susceptible to inflation risks. The inflation rate in Thailand is low, and in recent years it has been maintained at about 2%, which helps maintain the stability of purchasing power within the country and maintain the confidence of international investors.
Given the growth of tourism and demand for rentals during high seasons, apartments and villas in Phuket continue to bring a stable income from rentals, even taking into account possible fluctuations in the economy. Thailand also offers low property taxes.
So what is the current price level for Phuket real estate? It depends on several factors, such as: type of property, location, stage of completion, developer.
The most budget options are apartments from 2.6 million baht. In this budget, you can find studios in projects under construction in the areas of Kathu, Chalong, or Phuket Town far from the sea.
The average price segment for apartments is small one-bedroom apartments or studios from 3.5 million baht in tourist areas near the sea, usually at the pre-sale stage. For premium apartments from well-known developers, prices start from 5 million baht.
Luxury apartments are located as close as possible to popular beaches and are distinguished by their views, high-quality finishing and large square footage. The price range is from 8 million baht to several million dollars.
Villas: the most budget options for houses without a private pool for 2-3 bedrooms can be found in the center of the island and the price for them starts from 12 million baht.
The middle price segment – spacious villas with 3-4 bedrooms 3-5 km from the beach with high-quality finishing and a private pool on the plot. The minimum price is 20 million baht.
Luxury villas are primarily distinguished by walking distance to the beach, views and a large plot area. Prices for such villas start from several million dollars.
If you are still in doubt and are missing the opportunity to profitably enter into a deal to buy real estate in Phuket – write to us and we will definitely select for you a profitable investment property based on your budget!