Phuket Becomes 'Cash-Rich' Battleground for Luxury Developers
The island's real estate market is seeing a boom in high-end pool villas, driven by a surge in cash-rich international buyers, particularly from Russia
- Phuket's real estate market is being fueled by a surge of international buyers purchasing high-end pool villas predominantly with cash, which speeds up transactions and increases profit margins for developers.
- This has created a competitive "battleground" among luxury developers, who are vying for prime land on the western coast and using strategies like partnerships and unique designs to differentiate themselves.
- The market, which is not currently oversupplied, is expected to become even more competitive as major developers from Bangkok are predicted to launch new projects in Phuket in 2025.
Phuket's property market is undergoing a significant transformation, evolving from a traditional tourist destination into a high-stakes arena for luxury real estate developers.
This shift is being driven by a powerful surge in demand for second homes from international buyers, who are predominantly purchasing high-end pool villas with cash.
A recent report by Colliers Thailand reveals that total investment in Phuket's real estate sector remains robust at 34.9 billion baht, reflecting strong confidence from both developers and buyers.
This confidence is particularly strong in the 30-50 million baht pool villa market, with prime locations on the western coast—including Cherngtalay, Bang Tao, Kamala, and Rawai—emerging as key battlegrounds.
Kromchet Vipanpong, CEO of AssetWise, highlighted the stark difference between foreign and Thai buyers.
He noted that developers are favouring pool villa projects because of their high profit margins and the speed of transactions, as international clients often pay in cash, eliminating the delays associated with bank loans.
"It's easier to make billions selling villas to foreigners than selling houses to Thais," he stated.
In this competitive market, developers are focusing on three core differentiators: location, design, and service.
Major brands are securing rare plots, while local players are forming partnerships to develop projects in highly sought-after areas.
For example, Botanica Luxury Villas has partnered with MontAzure to create a high-end project in Kamala with sea views and world-class amenities.
Despite the influx of new projects, the market is not facing an oversupply issue.
This is largely because most developers follow a "build-as-you-sell" model, which contrasts with the mass pre-construction common for condominiums.
The high price point also means that developers are selective about their target audience, and demand, particularly from Russian investors, remains consistently strong.
Successful projects, such as AssetWise's The Title Villa Estella in Nai Yang, have demonstrated the market's intensity, selling out all units in just two months.
This success was attributed to its secluded location with direct beach access and proximity to the airport.
According to developers, foreign buyers prioritise practical functionality over cultural beliefs like feng shui.
The most critical feature is the swimming pool, which, according to one developer, "must be at least 12 metres long... they use it for swimming, not just for dipping their feet."
Colliers predicts that in the second half of 2025, more major developers from Bangkok, particularly those listed on the stock exchange, will launch new projects in Phuket.
The island is no longer just a tourist destination; it has become a high-stakes "cash-rich real estate battlefield," where success is determined by financial resources, strategic vision, and the ability to capture a market for luxurious, premium-designed villas.
