Tourism reopening boosts Phuket residential property market

Tourism reopening boosts Phuket residential property marketNearly 60,000 people visited Phuket under the Sandbox scheme before the island’s full reopening in November. According to CBRE Thailand, the program led to an increase in demand across the Phuket residential property market which continues to increas…January 24, 2022

Tourism reopening boosts Phuket residential property market

Nearly 60,000 people visited Phuket under the Sandbox scheme before the island’s full reopening in November. According to CBRE Thailand, the program led to an increase in demand across the Phuket residential property market which continues to increase.

“The overall Phuket residential market saw a positive movement after the ‘reopening’ under the Phuket Sandbox scheme. During the lockdown period, most of our inquiries have been from local buyers who are looking for vacation or second-home properties,” Khun Prakaipeth Meechoosarn, Head of Phuket Property Sales, CBRE Thailand explains. “After the sandbox model was opened, the inquiries expanded to foreign residents, expatriates and some international tourists, which has led us to believe the scheme has helped bring back returning clients who have had their eyes on properties for the past years but they could not travel due to border restrictions. However, investors have yet to fully return due to uncertainties over the global economic outlook and the rental market.”

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According to CBRE, buyers are after ready-to-move-in properties that they can view immediately. One reason for this is that it can allow them to use the property as a safe haven should the pandemic worsen. The consultancy added units with sea views, beachfronts and modern styles were the most in demand.

Phuket residential property market supply remains low with many homebuilders opting against launching new projects during the COVID-19 pandemic. CBRE Research found the total number of new villa and condominium units declined by 98 percent between 2019 and 2020 and fell a further 34 percent in the first half of 2021 when compared to the same period the year before.

There is hope the Phuket residential property market will continue to rebound as more visitors return. The number of international flights into the island continues to increase with the Phuket Tourist Association estimating up to three million arrivals are possible next year.