Luxury property in Phuket recorded THB 1.1 Billion sales

Luxury property in Phuket recorded THB 1.1 Billion sales
Dec 30, 2009 - PropertyGuru.com.sg

Phuket Luxury property market accounted for transactions worth THB 1.1 billion from July to November this year, according to a market research done by C9 Hotelworks. The resale sector made up the 50 percent of the total sales.

According to C9’s managing director, Bill Barnett, “this year has seen the absence of new high end product which has propelled the secondary segment, while off plan product remains sluggish.”

“The failure to launch new projects is a key constraining factor limiting volume in the marketplace. Despite demonstrated sales of a number of ‘super’ high end villas from THB 165 – 330 million, developers remain on the sideline more out of negative risk concern then fundamentals,” he added.

Market data shows that a rising numbers of early buyers in developments are now cashing out at significant profit levels, thus, driving up pricing point for several existing products. Geographically, ‘Millionaires Mile’ in Kamala experienced the highest level of activity.

Without the important new product entering the supply market, H2 2009 saw a growing volume of premium lots acquired by buyers who committed to develop their own luxury residences.

Bill Barnett noted, “Traditionally the period of December to April remains peak sales season, and feedback in the past few weeks has seen sales traction. Ultimately the market desperately requires new launches to stimulate broader interest if there is to be a return to stabilized trading.”