There has been a continued drop in demand levels since the onset of the global economic crisis last year, coupled with Thailand’s political instability, according to CB Richard Ellis.
– Our view now is that the market has probably reached a bottom in terms of transaction volume and prices, says the authors of the recently released “MarketView Phuket Residential” from CB Richaird Ellis.
The total existing supply of condominium units in Phuket increased to 2,203 units in Q1 2009, up 6% q-o-q and 27% y-oy. 16.7% of the units are high-end. There are no existing luxury units which are completed at present. Four luxury projects are currently under planning and construction, with the first one to be completed in Q2 this year.
Thailand’s tourism sector suffered the worst in the first quarter in recent history, and Phuket has seen significant slumps in tourist numbers despite being the island’s high-season. This resulted from the combined effects of the global financial crisis which escalated in the latter part of 2008 and has reduced leisure travel, particularly long-haul journeys and the impact of the Bangkok airport closures in December.
For High-end projects, the highest average price per unit was in the East Coast (North), at an average of THB 31 million, with a range of THB 21.7 to 55 million. The top price units in this area are located at Royal Phuket Marina (Phase 2), where the Aquaminium condominiums are currently under construction, with the largest units featuring its own private yacht berth.
There were 54 villas units in five projects which were completed during Q1 2009, increasing the total existing villa units to 3,300 units. There is a noticeable slow down in new completed supply coming on to the market, as this quarter’s completed supply is 66% less compared to Q4 2008. It represents only a 1.6% increase q-o-q in completed supply level. This is due to slower construction progress and project delays.
“We have identified 61 projects with a total of 1,790 units
that are in various stages of planning and development and are
expected to be completed within 2011. This represents a 54%
growth on existing supply by 2011. Of the total future units, 421
units (in 28 projects) construction progress is dependent on sales”, according to Prakaipeth Meechoosarn of CB Richard Ellis in Phuket.
