Phuket’s real estate markets are still growing because they do not directly depend on Bangkok or the country’s economy, but mainly on tourism. Let’s see land price changes in different beaches compared to the government-assessed value. Let’s check out the real estate market situation and see the changes in land prices.
Dr. Sopon Pornchokchai, President of Real Estate Information Center, Agency for Real Estate Affairs Co., Ltd. (www.area.co.th) on behalf of FIABCI (the International Real Estate Federation or FIABCI-Thai) together with FIABCI-Thai, Phuket, organized the seminar Updates on Phuket Real Estate Markets for Developers, Brokers and Industry Professionals, on Wednesday, May 21, 2025 at the Pearl Hotel, Phuket.
Agency for Real Estate Affairs found that in the first quarter of 2025, there were 728 real estate projects on the market in Phuket Province, totalling approximately 72,000 units for sale, with a development value of 460 billion baht. 62,000 units have been sold, and about 10,000 units remain for sale. Dr. Sopon said that the data center has been surveying the Phuket real estate market since 1994, or 30 years ago. At that time, banks did not have any real estate data.
Overall, Phuket has a provincial GDP of 110.648 billion baht, while Phuket real estate activities are valued at 6.281 billion baht or 5.7%. However, in reality, real estate development in Phuket is worth much more than this, perhaps similar to the Florida death case, where Florida’s real estate GDP is as high as 24% of the state’s total GDP.
Phuket Real Estate Projects
In 2023, Phuket received 8,376,464 tourists, an increase of 152.29% from the previous year. Compared to Bali, Phuket had more tourists, with Bali having only 5,273,258 tourists, an increase of 144.61%. Moreover, compared to the Maldives, which had only 1.8 million tourists, Phuket is considered the most popular tourist destination in this region and is considered a leading tourist destination in the world.
For real estate projects, about half are in Thalang District, with a total of about 32,000 units, of which 25,000 have been sold, leaving 7,000 units remaining for sale.
In Mueang District, there are 190 projects, totalling 28,000 units, of which 26,000 have been sold, leaving about 1,200 units remaining for sale. The district with the fewest projects is Kathu District, with only 70 projects, totalling 12,000 units, leaving only 700 units remaining for sale.
The real estate products for sale include single houses, duplexes, townhouses, shophouses, condominiums, land plots, resort buildings and villas or holiday homes. Dr. Sopon made the following observations:
1. Most real estate is for leisure companies, including resort condominiums and villas or holiday homes, which amount to 320 billion baht, with a total development value of 470 billion baht, or about two-thirds of the total. Residential properties, which are for local people or Thai expatriates working in Phuket, are only a small part of the real estate.
2. Only resort condominiums have the highest development value of 210,000 million baht, approximately 45% of the total. These condominiums have an average price of 7.7 million baht per unit. The data center surveyed 130 projects with 27,000 units, and currently, there are 4,500 units left for sale. Each month, about 7.2% are sold, which is considered very high and is expected to be sold out in the next 14 months.
3. The largest number of projects are villas or holiday homes, of which there are 149 projects, but there are still only 3,300 units left. In one project, there are only 22 houses, with an average of 36 million baht per house. This type of project will be a small project. However, there are still 1,200 houses left for sale, indicating that about 60% have been sold, and about 7% of the units are sold per month. It is expected that they will be sold out within the next 14 months as well.
4. As for general residential condominiums, there are about 50 projects totalling 17,000 units. On average, one project has 340 units, which is a general characteristic of condominiums sold mainly to local people or Thais who come to work in Phuket. The average price is 2.4 million baht per unit. There are still 1,300 units left. If calculated as a proportion of the development value, which is a total of 40 billion baht, it is about 9% of the total development value of 460 billion baht. Each month, about 7% is sold, so it is expected that it will be sold out in about the next 15 months.
5. There are about 85 single-detached house projects totalling 6,700 units, meaning that there are about 80 units in each project, with a development value of 39 billion baht and an average price of 5.7 million baht. There are currently 1,100 units left for sale, but the sales rate is quite low at only 2.2% per month, and it is expected that it will take about 4 more years to sell out.
6. It is strange that semi-detached houses are almost as numerous as single houses, but their development value is only 23 billion baht, or about 5% of all developments. They have an average price of 3.5 million baht, but there are only 500 units left for sale, and it is expected that it will take another three and a half years to sell out. Dr. Sopon commented that since semi-detached houses have less land (not less than 35 square wah, while single houses are not less than 50 square wah), they are sold at a lower price than single houses. Therefore, people prefer to buy semi-detached houses, which have more privacy than townhouses and are similar in size to single houses.
7. There are also townhouses, developed in 100 projects totalling 10,000 units. But only 700 units remain for sale, with a total development value of approximately 27 billion baht, or 6% of the total development value, with an average price of 2.7 million baht per unit, a sales rate of 3.1% per month, and taking about two and a half years to sell out.
It can be said that all real estate has an average price of 6.4 million baht per unit, with general residential units priced at 3.5 million baht per unit, while leisure properties, consisting of holiday condos and villas, have an average price of 10.7 million baht per unit. The cheapest project is called Baan Ekkachai Villa, Thepkasattri Road, Lipon area, a single-storey townhouse priced at 0.999 million baht, with 45 units, but has just sold out. The Estates at Mont Azure, Kamala area, is the most expensive project, priced at 262 million baht per unit.
If we separate the prices by development type, we find that.
1. The largest group of single-detached houses is sold at prices of 5 to 7 million baht, followed by prices of 7 to 10 million baht per unit.
2. Twin houses are sold at prices of approximately 3 to 5 million baht per unit, followed by those sold at prices of 2 to 3 million baht per unit.
3. Townhouses are sold at prices of 2 to 3 million baht per unit, followed by prices of 3 to 5 million baht per unit.
4. Shophouses are sold at prices of 3 to 5 million baht per unit, combined at prices of 5 to 7 million baht per unit, and one group at prices of 7 to 10 million baht per unit, depending mainly on location.
5. The largest group of general-advertised condominiums are mainly sold at prices of 2 to 3 million baht, followed by prices of 1 to 2 million baht.
6. For the resort condos, the largest group sells for 5 to 7 million baht, followed by 3 to 5 million baht, and one group sells for 7 to 10 million baht.
7. In the case of villas, the largest group is sold at prices of 20 to 40 million baht, followed by the 40 to 60 million baht group, and the third largest group is sold at prices of more than 100 million baht. This group of buyers is likely to support buying real estate in Thailand.
Dr. Sopon said that if we consider each district separately, we will find some different details such as:
1. In Muang Phuket District, residential condominiums for Phuket residents and Thais who work in Phuket have been developed and sold the best, with 10,000 units worth a combined 26 billion baht or an average of 2.6 million baht per unit. However, there are only 500 units left for sale, with a sales rate of 8.1% per month, and it is expected that they will be sold out within a year from now.
2. In Amphoe Kathu, the main product is the resort condominium, which has about 4,000 units, totalling 28 billion baht, and there are fewer than 100 units left, so it is expected to sell out quickly.
3. In Thalang District, resort apartments and villas are the highest developments, totalling about 86% of the total. Residential units for locals are only a very small part. The total development value is 290 billion baht, with resort apartments accounting for 150 billion baht and villas accounting for another 100 billion baht.
Both product groups sell very well, accounting for about 8% of the total per month. Therefore, it is expected that they will sell out within a year from now.
For new launches in the first quarter of 2025, the data center found that there were approximately 25 new launches, totalling 4,000 units, with a combined value of 54 billion baht, or an average of 13 million baht per unit. The majority of the products launched were resort condominiums, totalling 45 billion baht, or 83% of the total, and almost all of the new launches in the first quarter were launched in Thalang District.
In the past year, Phuket real estate has sold around 10,000 units worth a combined 90 billion baht, or an average of 9 million baht per unit, and most of them have been sold in the Thalang district. The products that sell the fastest are holiday condos and villas, while Thai-owned residences sell more slowly.
For land prices in Phuket, Dr. Sothon revealed that from 2004 to 2024, land prices increased by an average of 7.47 times, or an average increase of 10.7% per year, which is considered very high when compared to land prices in other areas of Thailand.
The highest increase was at Rawai Beach, increasing by 14 times, followed by Bang Tao Beach, increasing by 10.67 times, and Mai Khao, increasing by nine times. The slowest increase was at Ao Spa, Karon Beach, and Koh Sire.
Dr. Sopon also revealed that the highest market price of land is at Patong Beach, where the data center assessed it at 350 million baht per rai or 875,000 baht per square wah. The next closest areas are Bang Tao Beach, Surin Beach and Karon Beach, which are assessed at 80 million baht per rai or 200,000 baht per square wah. The market price of land is much higher than the government’s assessment price.
One of the surprising things about Thailand is that government appraisals are significantly lower than market prices, which has many negative effects, as seen in the example of Phuket.
1. Mai Khao Beach, one of the first beaches in the northernmost part of Phuket Island, has a land price according to the market price of 45.00 million baht per rai, but the government appraisal price is only 6.80 million baht per rai or only 15% of the market price.
2. Bang Tao Beach, which is one of the most popular beaches and whose prices have adjusted very quickly, found that the market price was 80.00 million baht per rai, but the government assessment price was only 15.60 million baht per rai or 20% of the market price, which is quite low.
3. Kamala Beach, which is also a very popular beach, found that the land price according to the market price is 70.00 million baht per rai, but the government assessment price is only 10.00 million baht or 14% of the market price, which is considered the third lowest after Ao Po.
4. Patong Beach, which is the beach with the highest land price at 350.00 million baht per rai, but the government appraisal price is only 70.00 million baht per rai or 20% of the market price, which is considered quite low.
5. Karon Beach, which is also a popular beach, has an appraisal price of 70.00 million baht per rai, but the government appraisal price is 12.00 million baht per rai, or only 17% of the market price.
6. Rawai Beach, which is also a popular beach, has a market appraisal price of 70.00 million baht per rai, but the government appraisal price is 11.40 million baht per rai, which is close to Karon Beach, or the government appraisal price is only 16% of the market price.
7. Ao Chalong, which is an area with affordable prices because it is on the east side, has a price of 45.00 million baht per rai, but the government’s appraisal price is only 4.60 million baht per rai, which is only 10% of the market price, which is considered the lowest.
8. Laem Panwa, where Laem Panwa is located, has a land price of 50.00 million baht per rai, but the government appraisal price is only 10.00 million baht per rai, or 20% of the market price (there is not much government information about this area).
9. Ao Po, which is an area with affordable land prices, has a land price of 20.00 million baht per rai, but the government appraisal price is 2.18 million baht, 11% of the market price, which is considered the second lowest after Ao Chalong.
10. Ao Maphrao is an area with a not very beautiful view. The land price is still cheap at 15.00 million baht per rai, but the market price is 4.20 million baht per rai, or only 28% of the market price.
On average, government appraisals are lower than market prices by only about 18% of market prices. What are the negative effects of this?
1. Making tax collection insufficient for local areas, causing insufficient repair and development of public utilities.
2. Makes local areas dependent on the central government, causing local areas to be dominated and interfered with in budgeting.
3. Nowadays, there are more foreigners living in Thailand. The registration of rights and legal transactions based on the government’s appraisal price puts Thailand at a disadvantage because in other countries, the government’s appraisal price is similar to the market price, and the tax rate in Thailand is very low.
4. Make the government’s land valuation system in vain because if it can be assessed based on the actual price, it will give the people a database for fair trading and prevent them from being deceived.
The solution is
1. Make the government’s appraisal price close to the market price.
2. Let local authorities assess the value of property themselves. If the assessment is low to please big investors, they will receive less tax for local development. In this regard, local officials should be trained to assess the value of property or hire a property assessment company.
3. Transfer of property at a price lower than the market price will incur a fine.
If we can make government assessment prices comparable to market prices, it will also create transparency in the government system.
