September 15, 2025
Phuket's property market is experiencing a transformative shift, transitioning from a conventional tourist hotspot to a dynamic landscape for luxury real estate development.
This evolution is largely fueled by a significant increase in demand for second homes from international buyers, who are primarily investing in upscale pool villas with cash transactions.
According to a recent report by Colliers Thailand, total investment in Phuket's real estate sector remains strong, totaling 34.9 billion baht. This figure underscores the confidence held by both developers and purchasers in the market.
Particularly strong demand is noted in the pool villa segment priced between 30-50 million baht, with prime locations along the western coast—such as Cherngtalay, Bang Tao, Kamala, and Rawai—emerging as key competitive areas.
Kromchet Vipanpong, CEO of AssetWise, emphasized the distinct preferences between foreign and Thai buyers, stating that developers are increasingly favoring pool villa projects due to their higher profit margins and quicker transaction processes. International buyers often pay in cash, which mitigates delays related to securing bank loans. "It's easier to make billions selling villas to foreigners than selling houses to Thais," he remarked.
In this competitive landscape, developers are concentrating on three main differentiators: location, design, and service.
Phuket has also become a coveted battleground for "cash-rich" luxury developers, with major brands acquiring rare plots of land and local companies forming partnerships to develop desirable projects. A notable collaboration is between Botanica Luxury Villas and MontAzure, aimed at creating an upscale development in Kamala that features stunning sea views and world-class amenities.
Despite the surge in new developments, the market does not show signs of oversupply. Most developers adopt a "build-as-you-sell" strategy, which is a departure from the typical pre-construction model seen in the condominium sector. The high price range allows developers to be selective about their target demographic, and interest remains particularly robust from Russian investors.
Successful projects, such as AssetWise's The Title Villa Estella in Nai Yang, highlight the market's vibrancy, as all units were sold out within just two months. This swift turnaround is attributed to its idyllic location, which offers direct beach access and is conveniently close to the airport.