REIC warns of a looming oversupply in Phuket’s property market, with over 10,000 units unsold despite strong foreign demand and
rising new launches.
The Real Estate Information Centre (REIC) has issued a warning to property developers about a potential oversupply of housing and condominium units in Phuket, despite the market showing strong performance with over 70% sales this year.
In its latest report on the property market in the popular tourist destination, the REIC noted that while the market has heated up with increased supply and sales, there are still 10,159 housing and condominium units left unsold. The value of these unsold units is estimated at 77.078 billion baht.
Supply Risks Outpacing Demand
The REIC cautioned that the high number of unsold units is a strong signal that supply may soon outpace demand in Phuket’s property market. It urged developers to implement well-planned sales strategies to manage this risk.
According to the report, the current market surge is reflected in the introduction of 10,613 new units this year—a year-on-year increase of 79.5%.
Condominiums Dominate the Market
The REIC reported that the majority of residential units currently on sale in Phuket are condominiums—15,511 units in total, valued at 126.622 billion baht. This compares to just 2,116 housing units.
Prime locations for these properties are in the Bang Thao Beach and Surin Beach areas, where 3,428 units have been sold so far, valued at approximately 40 billion baht. However, there are still 4,466 unsold units near these beaches.
The REIC attributed the popularity of Bang Thao and Surin beaches among foreign buyers to the availability of lifestyle amenities such as golf courses, beach clubs, and international schools.
Rawai Beach and Kata Noi Beach are also emerging as property hotspots, with 790 units sold so far, amounting to 5.611 billion baht.
Meanwhile, at Kata Beach and Karon Beach, 707 units have been sold, with a combined value of 4.3 billion baht. The REIC observed that condominium units near beaches appear especially attractive to foreign tourists and retirees.
Source: The Nation
