Phuket Property Market Bounces Back with 50% Land Price Hike

After the tourism recovery, Phuket land prices have surged over 50% with the real estate market seeing continuous growth. The average price in Patong is 200-300 million baht per rai, and beachfront areas like Kamala are priced at no less than 60 million baht per rai. Investors are buying properties for investment purposes as the competition is high.

Boat Development Co., Ltd.'s CEO, Mr. Boon Yongsakul, one of the largest landlords in Phuket, commented on the situation of land prices in Phuket post-tourism boom. Due to the sudden surge in tourists, businesses and the real estate market have seen tremendous growth and expansion, primarily driven by increased investor interest. The tourism boom in Phuket has significantly improved the province's economy, with income from tourism spreading to all sectors, including real estate, which has also shown considerable growth.

Factors Driving the Rise in Land Prices in Phuket's Property Market

As the real estate business expands, Thai and foreign buyers gain confidence in investing, leading to a rise in land prices which is caused by hotel employees who can afford homes, land developers who are launching new projects and seeking new land to develop. With increased clarity, land hoarding and construction commence, creating intense competition in buying and selling real estate in Phuket.

Mr. Boon, as a landlord in Phuket, has also sold large plots of vacant land to investors, a trend seen among many other large landlords in the province. As land purchases by investors increase, land prices rise accordingly. Currently, land prices have increased by no less than 50% since the COVID-19 outbreak.

The most significant increases in land prices have occurred in tourist destinations and residential areas for foreigners, such as Patong Beach. The average trading price for one rai is estimated to be no less than 200-300 million baht. Additionally, land prices in Kamala, Choeng Thale, Bang Tao, Layan, Surin, Pasak, Kok Tanod and Chalong have clearly increased by at least 50%, with the price of one rai estimated to be no less than 60-70 million baht, depending on the area. These areas are particularly popular among foreign whether it is for investing or residential purposes.

Apart from that, there are several other attractive areas that show a high demand for land and increasing prices. One of these areas is Naithon Beach, which is mostly located on the east coast of the island. Additionally, the new city area like Pa Khlok is also gaining attention. It can be seen that the area is beginning to see investments in luxury villas and housing projects, and there will also be international schools established in the area.

These are positive factors that cause land prices in Phuket to rise. The reason investors choose land investment in remote areas from the city and the beach is that the land in the beach areas is expensive and remote land is suitable for living, peaceful, and not far from shopping areas, plus, it is close to international schools. Meanwhile, land in the city area has not seen much movement in prices yet.