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Income Seeking Purchasers Dominate the Market

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.

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Rathawat Kuvijitrsuwan
Associate Director
Research & Consulting Services
Prakaipeth Meechoosarn
Director
Resort Property
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