Phuket Villa Information

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Phuket Villa Information

Phuket has established itself as a global resort destination, offering a range of luxury villas, condominiums and apartments for sale. Phuket luxury villas 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 villa, condo and apartment market. The CBRE team has some of the broadest market knowledge in the industry and is able to offer valuable insights (Phuket Villa Research) for buyers and investors interested in purchasing a Phuket Villa.
 
Phuket villas beachfront
Beachfront Phuket villa
 

Phuket Villa Types: Definitions

A “villa” is a common term referring to landed properties, often a one or two-storey structure built on a private ground. Most villas in Phuket are located within a resort or a gated development, with a limited number of standalone villas on the market.

Most quality villa developments in Phuket 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:
phuket beachfront villaPrime location villas are luxury villas located in beachfront locations with panoramic sea views. Prices of these villas 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. Phuket Beachfront Villas.
2) Luxury Phuket Villas: 
Luxury Phuket VillasPrices of luxury villas in Phuket 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 include prime locations, either on hillsides or close proximity to the beach with some offering sea views. These villas offer a high standard of construction and finishing. Most luxury 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:
Phuket Houses & TownhousesThere are a number of developments offering semi-detached houses and townhouses 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:
Hotel Villas PhuketPhuket has an increasing number of villa developments operated by four and five-star branded hotel operators for example The Pont 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 in Phuket starts from approximately USD 750,000 for a four-star brand and from USD 2 million for a five-start branded villa. A selection of our Branded Hotel Villas on Phuket.

Phuket Villa Locations

There has been a diversification in locations being developed in Phuket. The west coast was the original centre of development where many luxury villas 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 outlaying islands in the Phang Nga Bay. (View Phuket Map)

Phuket Map
 
West Coast 
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, the centre of luxury villa developments in Phuket today.

East Coast 
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.

South Coast
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.

North Coast
With the shortage of west coast beachfront land, a number of property developers have moved up to the beaches on the north of the island, these offer close proximity to Phuket International Airport.

Inland
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 budget conscious villa buyers. 

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. (more on Phuket Villa Locations)

 

Phuket Villas - Purchase Options

1) Re-sale villas:
Resale Villa PhuketRe-sale 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 re-sale villas as most buyers tend to be long-term investors and occupiers of their villas upon completion. However, the market for re-sale villas is a growing and maturing market.
2) Completed villas:
Completed villas PhuketVillas 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 villas:
Luxury Phuket villas saleOff-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:
Investment Villas PhuketThere are a number of developments positioned as investment properties. Investment properties have owners’ usage restrictions as the units. 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.

Investing in Phuket

Investing in PhuketMost 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 properties have seen the value of their asset rise by as much as 100% between the launch and completion.
Lifestyle/ Leisure/ Infrastructure
Lifestyle Phuket Beachfront Phuket currently has over 150 hotels & resorts along with an 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.
Weather
Phuket WeatherPhuket 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. Furhter info on Phuket Weather.

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)

Quarterly Highlights:
  • Sales performance increased in Q2 2016 compared to Q2 2015.
  • The increase in this quarter’s sales was driven by higher-end villa projects with prices of THB 35 million and above.
  • There were no new projects launched in Q2 2016.
Phuket Villa Supply:


phuket villa sale

Prior to 2004, the villa market had total stock of approximately 220 units. From 2004 onwards, both the supply of and the 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, the potential buyers started to reconsider their financial position which led to a decrease in demand. Additionally, developers faced financial difficulties resulting in the postponement or suspension of a number of projects. Consequently, the number of villa completion slowed down.

In Q2 2016, there were 22 villas completed increasing the completed supply of villas to 3,433 units. There are 978 units of villas which are planned or under construction. There are 290 villas which are due to be completed in 2016. However, as many developers will only start building a unit after it is sold, not all of the scheduled projects will actually be completed.

Phuket Villa Market Summary:

In Q2 2016, villas sales increased compared to the same period last year. The increase in sales performance in this quarter was driven by the rise in the number of higher-end villas sold; five higher-end villas were sold compared to only one sold in Q2 2015.

We believe that the demand for entry-level and mid-range villa properties has been driven by income-seeking investors.  

We do not think that the shift in the buyer profile of resort properties is permanent and when the global economy recovers and the global wealth level improves, more holiday home buyers will return to Phuket.

Going forward, we believe that the overall Phuket villa market will remain stable with limited project launches and a slight growth in sales of certain market segments. We think that Chinese investors will participate more in the Phuket property market; but condominiums will be more active than villas, especially in the entry-level and mid-range market.

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%
Sinking Fund
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 future and repairs which are outside the operating budget.

Common Area Management Costs
In a villa 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:
  • 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
The property management company reports directly to the owner's committee on management issues and the financial status of the project. Phuket Property Management.

 

Contact Us

For information or any advice,
please contact
Prakaipeth MeechoosarnDirector - Resort Property

Phone: +66 81 538 6879 (mobile), +66 76 689 991
Fax: +66 76 689 919

CBREThailand
Director - Resort Property
prakaipeth.meechoosarn
Sales Staff

Useful Research

Phuket Hotel MarketView Q3 2016 More
Phuket Residential MarketView Q3 2016 More