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Phuket Villa Analysis & Research
Phuket Villa Research: Data Source
This is an extract of the CBRE Phuket Property Report, is a quarterly subscription report. The report brings professional analysis and transparency to the growing Phuket Villa market which can, for the right projects, generate some of the highest returns in Thailand. Full Phuket Property report
The Phuket villa section of the report provides detailed information and analysis from CBRE Thailand's comprehensive and unrivaled Phuket and Thailand property databases, combined with our own exhaustive market and property surveys, coupled with the latest and most reliable secondary data from governmental agencies and private operators. The reliability and value of the research is the market understanding and expert opinion drawn from over 20 years of CBRE Thailand's full-scale operations in Thailand.
The data focuses specifically on the Phuket Villa market - incorporating villa information specifically.
Phuket Villa Classifications
We classify a Phuket villa into one of four categories based on price per unit. Classifications are based on the maximum number of units in a project that fall into a category; for example, a project with three luxury, five high-end and two mid-range units would have all units classified as high-end, because we consider the project to be high- end, since the greatest number of units in the project are high-end. For the purposes of this report, we have excluded housing projects that are aimed primarily at the Thai domestic market.
Above THB 90 million
Between THB 35-90 million
Between THB 15-35 million
Below THB 15 million
A Phuket Villa classified as high-end and above generally demonstrates common characteristics such as:
Good panoramic sea view
Easily accessible locations
Good and secure neighborhoods, ensuring privacy of residents
Good building design, layout and decoration
Good standard of construction using high-quality materials and specifications
Comprehensive range of facilities, including swimming pool, gym, and/or squash and tennis courts, etc.
Professional management / Hotel management
Rental program provided
Phuket Villa Areas: Definition
West Coast (North)
Northern area along the West Coast, including Mai Khao Beach and Nai Yang Beach
West Coast (Central)
Central area along the West Coast, including Nai Thon Beach, Bang Tao Beach, Surin Beach and Kamala Beach
West Coast (South)
Southern area along the West Coast, including Patong Beach, Karon Beach, Kata Beach, Kata Noi Beach and Nai Harn Beach
East Coast (North)
Northern area along the East Coast, from Sarasin Bridge to Siray Island
East Coast (South)
Southern area along the East Coast including Phuket Bay, Ao Chalong and Rawai Beaches
Area in the island's center
Phuket Villa - Quarterly Highlights
Sales in 2012 by total value and unit increased by 19-20% from 2011 to 2012.
The number of completed villas as at Q4 2012 reached 2,789 units.
We believe that the outlook for the villa market will be positive in 2013. Demand will continue for affordable villas.
Phuket Villa Supply
Prior to 2004, the villa market was limited in with a total stock of approximately 224 units. Both the supply and demand of villas grew significantly from 2004 because of the expansion tourist market in Phuket and regional economic performance. Demand for villas dropped sharply in 2008 affected by the global financial crisis. Potential buyers started to reconsider their financial position. Developers were faced financial difficulties cause by a rapid drop in sales revenue and a number of projects were postponed or suspended. This resulted in the number of villa completions dropping.
In 2012, 7 villa projects comprising 81 villas were completed, compared to 5 projects comprising 50 villas in 2011. Most completed villas in 2012 were entry-level villas (THB 5-15 million) and were located along the South Coast of Phuket. The total stock of completed villas in 2012 increased slightly to 2,789 units (204 projects) from 2,708 units (197 projects) in 2011. We estimate that there are 1,107 units at 81 projects that are under construction or being planned.
In Q4 2012, one project comprising 9 villas was completed, compared to 46 villas in the previous quarter. This completed villa project is Villas Aelita which is located in the Bang Tao/Laguna/Cherngtalay area.