Phuket Villas and Houses For Sale Information
Phuket has established itself as a global resort destination, offering a range of luxury houses, villas, condominiums and apartments for sale. For people who buy a villa in Phuket, their purchases 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 villas, condo and apartment market. The CBRE team has some of the broadest market knowledge in the industry and with our experienced Phuket real estate agents, we are able to offer valuable insights (Phuket Villa Research) for buyers and investors interested in buying a Phuket Villa.
Phuket Villa Types: Definitions
A “villa” is a common term referring to landed properties, often a one or two-storey house for sale in Phuket built on a private ground. Most villas in Phuket for sale are located within a resort or a gated development, with a limited number of standalone villas on the market.
Most quality Phuket villa developments 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:
Prime location Phuket villas are luxury villas located in beachfront locations with panoramic sea views. Prices of these Phuket villas for sale 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.
2) Luxury Phuket Villas:
Prices of luxury Phuket villas for sale 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 and houses include prime locations, either on hillsides or close proximity to the beach with some offering sea views. These Phuket villas and houses for sale offer a high standard of construction and finishing. Most luxury Phuket 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:
There are a number of developments offering semi-detached townhouses and houses for sale 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:
Phuket has an increasing number of Phuket villas for sale that are operated by four and five-star branded hotel operators, for example, The Point 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 for sale in Phuket starts from approximately USD 750,000 for a four-star brand and from USD 2 million for a five-star branded villa. A selection of our Branded Hotel Villas on Phuket.
There has been a diversification in locations being developed in Phuket. The west coast was the original centre of development where many luxury villas for sale in Phuket 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 outlying islands in Phang Nga Bay. (View Phuket Map)
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, and are the centre of luxury villa developments in Phuket today.
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.
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.
With the shortage of west coast beachfront land, a number of property developers have moved up to the beaches on the northern end of the island. These villas and houses for sale in Phuket offer close proximity to Phuket International Airport.
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 individuals who want to buy a Phuket villa but are constrained by a limited budget.
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.
Phuket Villas - Purchase Options
1) Re-sale Phuket Villas:
Resale 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 resale villas as most buyers tend to be long-term investors and occupiers of their villas upon completion. However, the Phuket property market for resale villas is a growing and maturing market.
2) Completed Phuket Villas:
Villas 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 Phuket Villas:
Off-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:
There are a number of developments positioned as investment properties. Investment properties have owners’ usage restrictions as the units are part of a compulsory rental programme. 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.
Most 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 Phuket properties have seen the value of their asset rise by as much as 100% between the launch and completion.
Lifestyle/ Leisure/ Infrastructure
Phuket currently has over 150 hotels & resorts along with 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.
Phuket 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.
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)
- Phuket villa market continued to slow down due to the COVID-19 pandemic and travel restrictions. Developers continued to postpone new project launches and under-construction projects were delayed.
- A total of 36 villas were sold in H2 2020, a significant decrease of 59.1% Y-o-Y. Products from the upper-end segments accounted for 47% or 17 units sold, which considered a relatively high proportion compared to the historical performance.
- There was only one villa project launched in H2 2020 named The Headland Cape Yamu from the Luxury segment with a total of seven units, while there were only five villas completed.
Phuket Villa Supply:
Note: We have revised our villas database. Please note that the cumulated existing supply includes projects that are sold out and being market. We have taken out projects that are on-hold and cancelled.
Before 2004, the Phuket villa market used to be small with total stock of approximately 200 units. After that, both the supply of and 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, potential buyers started to reconsider their financial position which led to a decrease in demand. Consequently, the number of villa completions had slowed down from 2008 until the year 2014 when we started to see more villa completions. However, the completions of villa projects had slowed down again in 2020 due to the COVID-19 pandemic. The government announced a lockdown and closure of the island while international flights were prohibited from entering the country. Many developers decided to postpone the launches of their new villa projects until the COVID-19 situation improves. The difficulties from curfews and other preventive measures have affected the completion of under-construction projects with some developments postponing their completion dates.
Please note that from H1 2019 onwards, we have revised our villa database and the cumulative existing supply has included only projects that were sold out or being marketed. We have taken out projects that were on-hold and cancelled. In H2 2020, there was total supply of 5,026 villas from 334 projects, which decreased from 5,036 units in H1 2020, including 4,296 completed units (308 projects), 632 under-construction units (25 projects) and 98 planned units (1 project). There were some projects whose status was changed to on hold while some projects came back to the market. It should be noted that the total number of units of each project could change due to the redesign of project’s masterplan or opening up of new phases, therefore we revised the total unit number following the revision from developers.
Phuket Villa Market Summary:COVID-19 Impact on Villa Market
In H2 2020, the Phuket villa market saw slight improvement in activity level as the government announced the easing of lockdown measures imposed due to the COVID-19 pandemic in June 2020. As a consequence of curfews and other restrictions in the first half of the year, the completion of some under-construction projects has been affected with only five units completed in H2 2020 while a total of 524 villas are expected to be completed in 2021.
The number of new villa project launches has significantly dropped from the same period last year with only one newly launched project in H1 2020 as developers still decided to postpone their launches until the COVID-19 situation improves.
With international travel restrictions causing a significant drop in international tourist arrivals, villa developers had shifted their focus towards the domestic and expatriate markets. We have seen many buyers acquiring villa property for their own use instead of for investment while developers have offered heavy discounts to clients especially for the upper-end products.
The Luxury market for both first-hand and second-hand villas remained active, which can be seen from its healthy sales performance as the potential buyers of this villa segment still have the purchasing power as well as the need for a second home. However, the overall sales performance in this half has significantly decreased from the same period last year with only 36 units sold or a decrease of 59.1% Y-o-Y as the lower end of the market had not performed well.
The Phuket villa market remained small due to the decrease in the number of newly launched projects. There were only seven villas from a newly launched project in H2 2020, compared to 91 villas in H2 2019. The new project, The Headland Cape Yamu, is in the Luxury segment (THB 90 million and above), located on a tip of Cape Yamu in the East Coast (North) area.
The completion of villa projects had slowed down in 2020 as there were only five villas completed in H2 2020 from one project, namely, Phustone Villa Kata, increasing the total completed supply to 4,296 villas. The construction of several projects which were expected to be completed within this period was delayed, because of the city lockdown and curfew period imposed due to the COVID-19 pandemic since H1 2020.
A total of 36 villas were sold in H2 2020, a significant decrease of 59.1% Y-o-Y from 88 units sold in H2 2019. Products from the upper-end segments; High-end (THB 35-90 million) and Luxury (THB 90 million and above) combined accounted for 47% or 17 units sold in this half, which was considered a high proportion compared to their historical performance. Nevertheless, products from lower-end segments; Entry-level (THB 5-15 million) and Mid-range (THB 15-35 million) combined still accounted for the largest portion with 53% or 19 units sold of the total half-year sales. After the basket revision, there were 70 villas from the Mid-range segment that were returned to the market in H2 2020 as some developers decided to reconfigure the total unit number of their projects. Still, we believe that new products in the upper-end market will continue to have potential to be successful if they have impressive villa design and good panoramic sea views at the right price.
The outlook of the Phuket villa market in 2021 remains uncertain as Phuket’s economy relies heavily on international tourists. Its recovery and activities will highly depend on the recovery of tourism, international flights, and global financial situation. Nevertheless, there is still demand in the market especially in the upper-end segment where potential buyers are not much affected by the economic downturn and still have purchasing power. Luxury products will continue to draw buyers if they have the right attractiveness due to their high quality or are branded residences located in prime locations with the right price.
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%
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 the future and on repairs which are outside the operating budget.
Common Area Management Costs
In a Phuket villa, house for sale 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:
The property management company reports directly to the owner's committee on management issues and the financial status of the project. Phuket Property Management.
- 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