Based on market research done by Thailand consulting group C9 Hotelworks, Thai buyers who sought refuge during the pandemic have reignited Phuket’s property sector of mega villas by multi-millions, with over THB 5 billion (approx. USD 167 million) in primary and secondary high-end properties have changed hands. While the broader marketplace remained flat, it was the top-tier transactions that reached their peak in five years in 2020. Thais with strong pecuniary abilities indulged in expanding their real-estate portfolio by splurging on buying tropical mega villas with four or more bedrooms.
Bill Barnett, C9‘s Managing Director and 2020 judge for the PropertyGuru Asia Property Awards (Greater Niseko), said, “Country living and estate villas in the age of pandemic are a strong reaction driven by both internal and external factors. Thailand’s wealthy have been effectively stranded in the country for nearly a year and the impact has seen them revisiting and falling in love with Phuket.”
Barnet also added, “Resort real estate remains an emotional proposition and this is a contributing factor in reigniting luxury property sales.”
When studying Phuket’s real estate market, it was the major discounting of mega villas to foreign buyers that caught their eyes. Most of these investors weren’t looking at off-plan and completed properties of the primary market.
These millionaires favoured properties on the West Coast of Phuket namely Kamala, Layan, and Nai Thon Beach. In fact, even on the East Coast, the new Headland project in Cape Yamu is also sought-after. In the findings, it was also noted that proximity has been identified as a key to success, and there is often one degree of separation between buyers in mega-villa estates.
“One of the most successful twinning of projects last year has been the ultra-luxury Layan Residences by Anantara and Avadina Hills by Anantara. The synergy of having a hospitality overlay and hotel-style management to the developments has helped enormously,” Barnett added.
Avadina Hills by Anantara also recently clinched the Best Luxury Housing Development (Phuket) and Best Housing Development (Thailand) awards at the 14th PropertyGuru Thailand Property Awards. Read about Thailand’s property outlook here. With the opening of its tourism industry on 1 July 2021, things might get rosier.
In addition, as the Thai government mulls over the upcoming “Travel Bubble” plans, the province will be prepping for potential tourists, which might also drive the demand for luxury villas or mega villas. Foreseeing Phuket’s luxury property market in 2021, Barnett expresses optimism for primary residences. “We are seeing considerable interest from Bangkok high-networth individuals and key regional capitals like Hong Kong and Singapore who are drawn to the island by clean air and space, quality international schools, and strong support infrastructure.”