PHUKET, THAILAND – A booming luxury property market on the island contrasted sharply with its still-slow mass tourism sector, driven by wealthy foreign buyers and long-stay visitors.
Luxury homes surged as tourism lagged
While mass tourism on Phuket had yet to fully recover, sales of luxury villas and high-end condominiums reached levels not seen in years, according to analysts. Long-stay travellers, digital nomads and affluent foreigners treated the island as both a tropical residence and an investment hub. New figures from CBRE Thailand showed villa transactions alone rose by 23% in 2024, prompting questions over how sustainable the boom might be in the face of potential global economic shocks.
Record villa sales and tight coastal hotspots
More than 600 villas changed hands in 2024, four times the pre-pandemic level, with a cumulative sales value increase of 75% between 2014 and 2024.
“Demand is extremely strong and absorption is high.”
said Prakaipeth Meechoosarn, CBRE expert. The supply of villas had steadily expanded since 2017, and forecasts for 2025 pointed to the largest wave of new projects in years, especially in the segment above 90 million baht, where units still achieved a 76% sales rate.
The south-eastern coast emerged as the key hotspot, recording a striking sales rate of 92.8% and leaving little inventory available. The central west coast followed with a solid 70.8% sales rate, underscoring how quickly prime coastal stock was being absorbed.
Investors dominate, with strong foreign presence
CBRE reported that 68% of buyers acquired villas as investments, while the remainder planned to live in them. Foreigners accounted for 43% of all purchasers, with many coming from the United Kingdom, Hong Kong and the United States. For developers such as Torsak Jaichuen, head of Garden Atlas Bayview Villa, the premium surge had been highly positive.
His latest Makham Bay project comprised 15 luxury villas, each valued at around 150 million baht.
“The area is an insider tip – quiet, exclusive and perfect for yachts,”
said Torsak Jaichuen, developer. The 2‑billion‑baht development illustrated how demand for ultra-luxury properties had increased, with buyers willing to spend more than in previous years.
High-end condos attract a global buyer mix
Luxury condominiums also saw strong momentum, with units selling rapidly to international clients.
“The first five months of 2025 were stronger than 2023 – and that was already a record year.”
said Jason Thelen, head of sales at Princess Villa. He noted a sharp dip in June, which he linked to the low season, global uncertainties and the so‑called “Trump effect”, before demand rebounded strongly in August.
The flagship Sudara Residences project increased its sales rate from under 30% to 50% as interest recovered. Buyers came from a wide range of countries, including expatriates from Hong Kong and Singapore as well as Americans, Australians, Russians and Thais, with developers particularly surprised that one third of new clients since August came from Poland.
Prices soar and yields remain high
Historic data from Phuket authorities showed prices climbing from 20,000 baht per square metre in 2000 to 110,000 baht in 2023, an average annual increase of 6.4% over two decades. Rental yields of up to 10% per year were reportedly achievable, supported by health tourists, expatriates, digital nomads and families. The Bang Tao area stood out, outperforming the rest of the island for years in both price growth and demand.
Large-scale developments such as Gardens of Eden by the Amal Group fed into this trend. Phase 1 had reached an 82% sales rate and Phase 2 stood at 62%, encouraging the launch of Phase 3 with 698 additional units. Roughly 43% of buyers there were Russian-speaking, alongside clients from Singapore, Thailand, India, Sri Lanka, Italy, Hong Kong, the United Kingdom, Germany and the United States.
Experts warn of exposure to global shocks
Observers pointed to a powerful pull created by tropical lifestyle, relatively flexible rules for foreign buyers and strong returns, all of which had propelled Phuket’s luxury segment upward. At the same time, they remained cautious, warning that dependence on international capital flows and geopolitical tensions could quickly cool the market. The year 2025 was seen as pivotal: if demand stayed firm, Phuket could cement its status as the luxury property capital of Southeast Asia, but a major external shock risked turning the surge into a fragile bubble.