Russian Buyers Fuel Phuket's 2024 Villa Boom

[webfact]

Photo by Abhishek Revis on Unsplash

 

Phuket's villa market is experiencing a significant boom in 2024, thanks to a surge in demand from Russian buyers. In the first half of the year, the number of new villas launched has already surpassed the total for 2023, marking a remarkable shift in the local property market.

 

Phattarachai Taweewong, director of the research department at property consultancy Colliers Thailand, noted the market's strong performance. "Some projects were quiet in May and June because of floods, but activity picked up significantly in July, with sales at one project reaching 400 to 500 million baht (£9.2 million to £11.5 million) in just a month," he explained.

 

In the first half of 2024, Phuket saw the launch of 1,285 new villas across 65 projects, totalling 36.3 billion baht (£830 million). This is a significant increase from around 1,100 units launched throughout 2023. The demand remains robust despite the influx of new supply, driven by the buying power and interest from Russians.

 

For the first time in 15 years, the value of new villas has outstripped that of condominiums. During the same period, 4,690 new condominium units were launched, valued at 36 billion baht (£830 million).

 

The total combined value of condos and villas launched in the first half of the year stands at 72.3 billion baht (£1.7 billion), with projections suggesting it could reach 150 billion baht (£3.4 billion) by year-end, up from 110 billion baht (£2.5 billion) last year.

Phattarachai pointed out that the usual number of villa projects in previous years was around 30 to 40, with 100 to 150 new units. This year, there are 170 villa projects with units available for sale, most launched in the past two years.

 

Looking ahead, a substantial amount of new supply is anticipated in the fourth quarter. Notably, Sansiri Plc plans to introduce four new projects in the second half of the year, valued at around 4 billion baht (£92 million).

 

These include a luxury pool villa project with units priced between 30 and 50 million baht (£690,000 and £1.15 million), a condo project in Cherngtalay, and a new single detached house project in Koh Kaew.

 

Phattarachai also noted that locations like Bang Tao, Cherngtalay, and Rayan have the highest absorption rates for villas, with two to three units sold per month.

 

In contrast, other areas recorded sales of one to 1.5 units per month. For condominiums, the absorption rate in the first half was 5.8 units per month, indicating they could be sold out in under two years, particularly those priced below 2 million baht (£46,000) per unit, which are considered affordable.

 

The surge in Phuket’s villa market highlights the evolving dynamics of the local real estate landscape and underscores the growing influence of international buyers, particularly Russians, in driving this change.

 

-- 2024-09-05

 

 

Get the ASEAN NOW daily NEWSLETTER - Click HERE to subscribe

[Tropicalevo]

17 minutes ago, webfact said:

Phuket's villa market is experiencing a significant boom in 2024, thanks to a surge in demand from Russian buyers.

 

Lots of nominee shareholders?

Or lots of Russians with work permits and businesses?

Edited September 5 by Tropicalevo

[JoePai]

1 minute ago, Tropicalevo said:

 

Or lots of Russians with work permits and businesses?

So if you have a WP for a biz you can buy land now ?

[mokwit]

Are you allowed to run a business from a pool villa? I thought you had to have commercial premises as part of the WP regulations.

[ChipButty]

11 minutes ago, mokwit said:

Are you allowed to run a business from a pool villa? I thought you had to have commercial premises as part of the WP regulations.

Not been long? 

[Gottfrid]

They not call it Little Russia for nothing.

[hotchilli]

3 hours ago, webfact said:

Phuket's villa market is experiencing a significant boom in 2024, thanks to a surge in demand from Russian buyers. In the first half of the year, the number of new villas launched has already surpassed the total for 2023, marking a remarkable shift in the local property market.

pricing out the locals will eventually come to a head

[simon43]

Koh Phangan has gone the same way.  Loads of Russian-financed villa projects, loads of Russians on the island.  I gave it a miss!

[RichardColeman]

Sometimes I wonder why I stay in a place filled with nationals from 3 countries I really cannot stand - India, China and Russia..................then I think about Bradford, Romford, Birmingham, Slough and London, etc  and it really does not seem so bad 

[ChipButty]

1 hour ago, RichardColeman said:

Sometimes I wonder why I stay in a place filled with nationals from 3 countries I really cannot stand - India, China and Russia..................then I think about Bradford, Romford, Birmingham, Slough and London, etc  and it really does not seem so bad 

Oldham when you walk down the street you dont hear anybody speeaking English

[Scouse123]

2 hours ago, RichardColeman said:

Sometimes I wonder why I stay in a place filled with nationals from 3 countries I really cannot stand - India, China and Russia..................then I think about Bradford, Romford, Birmingham, Slough and London, etc  and it really does not seem so bad 

 

 

Bradford now is in a bad, bad way.

 

The place has been ruined.

 

A sad reflection of its former glory these days’ unfortunately.

[Scouse123]

1 hour ago, ChipButty said:

Oldham when you walk down the street you dont hear anybody speeaking English

 

Halifax is not much better, not only Pakistanis, who are not a nice bunch by and large, but now Romanians, Albanians, Afghans, and others, as well as a massive influx of asylum seekers dumped in all the B and Bs, hotels etc

 

Pockets of Halifax now no-go zones, especially after teatime.

 

Add back, Bradford, Oldham, Dewsbury, Huddersfield, Keighley, Burnley etc

 

Town centre of Halifax is full of druggies, beggars and shoplifters.

 

A sad memory of what the North of England used to be.

 

Of course, your Keir Starmer and Boris Johnson brigades don't care, hanging out in their leafy suburbs, unaffected by what's going on.

 

 

 

 

 

Edited September 5 by Scouse123

[Cameroni]

If you go to Harlow you'll think you're in a dystopian future urban nightmare landscape, with fried chicken.

 

Sad what's happened to the UK.

[Scouse123]

20 hours ago, Cameroni said:

If you go to Harlow you'll think you're in a dystopian future urban nightmare landscape, with fried chicken.

 

Sad what's happened to the UK.

 

 

But, the Swedes, Danes, French and Germans are all saying the same as the British.

 

All this saturating us with immigrants, and their nonsense about multiculturalism, has been thrust upon an unsuspecting population of the relevant countries, who were quite happy with the systems as they were.

 

It's not fleeing war or asylum seeking, it's an invasion bringing their 7th century outdated ridiculous superstitions and religions with them.

 

They HAVE NO INTENTION of blending into, and accepting, the local norms and cultures.

[john donson]

magical thailand, farang cannot own land, but as always, lawyers, corruption, nominees, ...

[Tropicalevo]

On 9/5/2024 at 9:41 AM, mokwit said:

Are you allowed to run a business from a pool villa? I thought you had to have commercial premises as part of the WP regulations.

 

I have run my business from my pool villa for more than 20 years.

[mokwit]

On 9/5/2024 at 12:53 PM, RichardColeman said:

Sometimes I wonder why I stay in a place filled with nationals from 3 countries I really cannot stand - India, China and Russia..................then I think about Bradford, Romford, Birmingham, Slough and London, etc  and it really does not seem so bad 

Lower Sukhumvit isn't as bad as Oxford St yet.

[mokwit]

53 minutes ago, Tropicalevo said:

 

I have run my business from my pool villa for more than 20 years.

With all paperwork - four/two actual employees? I would be interested in what type of business. I always understood that the regulations would not allow you to run a business from home because they wanted to force you to rent commercial premises- everything is done to benefit the Thais, if they don't benefit then it can be closed off.