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)
- A total of 87 villas were sold in H1 2020, increasing 19.2% Y-o-Y.
- Phuket villa market slightly slowed down due to the COVID-19 pandemic and travel restrictions. Developers postponed new project launches and under-construction projects were delayed.
- There was only one villa project launched in H1 2020 named Botanica Modern Loft (Phase 8.2) from the Mid-range segment with a total of 44 units.
- New property sales were dominated by investors who wanted rental income and were looking for lower-end villas priced below THB 35 million, accounting for almost 100% of total villas sold in H1 2020.
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, Phuket villa market used to be small with a total stock of approximately 200 units. After that, 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, 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.
Please note that from H1 2019 onwards, we have revised our villa database and the cumulated existing supply includes only projects that are sold out and being marketed. We have taken out projects that were on-hold and cancelled.
For total supply, there were 5,036 villas from 334 projects as of H1 2020. Total supply includes 4,278 completed units (306 projects), 622 under-construction units (26 projects) and 136 planned units (2 projects). We have revised the total unit number in some projects due to revision from developers such as VIP Galaxy (launched in Q4 2018) from 50 to 100 units.
In H1 2020, 27 villas from three projects were completed, increasing completed supply to 4,278 units from 306 projects. By the end of 2020, we expect to see approximately 200 more completed units. However, as many developers only start building a unit after it is sold, it is possible that not all scheduled projects will actually be completed as planned. Due to the COVID-19 pandemic situation, many projects have experience delays in construction due to the lockdown policy and some developers had to postpone the launch of new projects.
Phuket Villa Market Summary:
COVID-19 Impact on Villa Market
After the government announced a lockdown due to the COVID-19 outbreak and closing of the island, Phuket villa market was quiet for some time, largely from the decreasing number of foreign visitors. Many developers have decided to postpone the launch of their new villa projects until the situation improves. With difficulties from curfews and other restrictions, the completion of under-construction projects were consequently affected and postponed further, although the government announced the relaxation of lockdown in June 2020.
The market started to have movement again later in Q2 2020, after the COVID-19 situation had gotten better in many countries including Thailand. There was a significant decrease in the number of foreign visitors at the sales gallery while local demand was more active than before the pandemic, especially in the High-end and Luxury products. There were more real-demand buyers who became significantly more interested in villas in resort destinations as second homes due to the pandemic situation.
Nonetheless, amid the COVID-19 outbreak where Phuket tourism has almost entirely disappeared, developers were still paying promised yield to purchasers although they were considering postponing payment of guaranteed yield if the situation still had no sign of recovery. This will affect the credibility and confidence that buyers have on those developers.
The activity in Phuket villa market continued to be limited due to the decrease in the number of newly launched project in the first half of 2020. There were only 44 villa units from one newly launched project in H1 2020 compared to 193 units from nine projects in H1 2019. This newly launched project was from the Mid-range segment (THB 15-35 million), namely, Botanica Modern Loft (Phase 8.2) located in the West Coast (Central) area.
There was a total of 87 villas sold in the first half of 2020, a 19.2% Y-o-Y increase from 73 villas sold in H1 2019. The Mid-range segment (THB 15-35 million) had the highest sales performance with 77% of the total unit sold in this half.
After basket revision, there were five villas from old projects that customers forfeited in this half of the year, one unit was from Luxury segment. Phuket villa market has long been undergoing evolution towards becoming more mass market, mainly driven by more affordable products for years after the financial crisis in 2008. Still, we believe there is potential for the upper-end villa market after the pandemic situation - under better conditions - and when global economy starts to recover.
CBRE believes despite lower level of activities and global financial difficulties, there is still demand in the market. The lower-end of the market will continue to attract investors with affordable products that offer guaranteed yields while the top-end of the market will continue to attract buyers with high-quality branded residences in prime locations. However, the future of Phuket villa market for the rest of the year is still uncertain. Its recovery and activities will highly dependent on the recovery of tourism, international flights, and global financial situation.
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