In this article, we will delve into how the pandemic has affected property prices in Phuket and explore the trends and factors that have emerged in its aftermath. From fluctuations in demand to shifts in buyer demographics, we will uncover the evolving landscape of Phuket’s property market in the wake of the pandemic.
Have the house prices in Phuket really changed since the pandemic?
According to the Thailand Property Market Index, the Bangkok residential property price index has declined since the fourth quarter of 2021.
It dropped from 197 points to 190 points in the first quarter of 2022, to 183 points in the next quarter, and 178 points in the third quarter of 2022. However, until 2019, prices only increased. So after the full recovery of the country, prices will begin to rise upwards.
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The Uniqueness of Thailand
If you have ever been to this country, then, of course, you already know about the amazing climate. It is summer here in winter, and in summer, it is good, despite the rains. The average annual temperature in Thailand is 30-33C (in the south of the country).
The chic Andaman Sea, which cannot be compared with the beaches of Europe, has stunning tropical nature, good ecology, and an abundance of seafood and tropical fruits. At the same time, even though Thailand is in Asia, the influence of Europe is very strong here, which has affected the infrastructure and way of life in this country.
Although located in Asia, Thailand stands out as a more refined and comfortable place to live compared to its neighboring countries. Phuket, in particular, is often referred to as Asian Miami due to its appealing characteristics. The region boasts excellent international schools, top-notch healthcare facilities, modern infrastructure, outstanding dining options, expansive shopping centers, pristine coastlines, and a state-of-the-art airport. In essence, Phuket offers everything needed for a comfortable and enjoyable lifestyle.
Thailand has become one of the world’s most popular resorts for these and many other reasons. The Thai government is investing a lot of money in infrastructure development to create even more comfortable conditions for tourists to stay in the country and to attract even more foreign investment.
The value of real estate in Thailand has steadily risen for many years, but you can still buy your house on the coast here for a very reasonable price.
Furthermore, owing to its distinctive geographical location, favorable climate, and economic conditions, real estate in Thailand is highly sought-after for rental purposes and offers significant rental income potential.
Price Growth Factors
Over the past 15 years, the condominium market has grown particularly rapidly, largely due to the growth of tourism. Tourism is the main engine for the development of the island. In Phuket, there will be a shortage of land and new real estate shortly. After all, there are areas on the island where building is prohibited. In the island’s center, mountains and jungles are land unsuitable for construction.
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Demand for Real Estate
Previously, the main real estate buyers in Phuket were Europeans and Americans. But when the volutes got stronger, foreigners became the main buyers at the beginning of the 2000s. Before the pandemic, the main buyers were:
- Europeans,
- Chinese
- Thais.
Now the picture has changed a lot. Real estate sales have dropped significantly, so developers hold promotions, promotions, and lower prices to attract customers. This could be the perfect time to buy property in Phuket, as prices will rise.
Profit From the Purchase of Real Estate
Due to Thailand’s year-round tourist season, the demand for apartment rentals remains consistently high. You will receive passive income when buying a property for further renting out. Many companies that help organize property rentals offer owners a period for personal use. Then you can spend holidays on your property and the rest of the time to receive passive income. Income from real estate in Thailand is, on average, 5-7% per annum, which is considered quite high.
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Help in Buying Real Estate
The dedicated specialists at Thailand-Real.Estate aggregator are available to assist you in finding your ideal property in Thailand. Their website features a comprehensive selection of properties sourced directly from developers and local agents. The catalog exclusively showcases up-to-date offerings with prices listed in various currencies.
Managers will tell you everything about promotions and great deals; they will not let you get confused in Thai law and will point you to the best deals. Contact Thailand-Real.Estate today and start your search for the perfect accommodation in Phuket!
