2 days ago
- Business
- South China Morning Post
Bangkok's housing glut spreads to Phuket as developers rush for tourist demand
The housing glut in Bangkok is spilling over to Thailand's southern island of Phuket as property developers capitalised on demand from tourists and retirees after buyers from mainland
China and Hong Kong retreated from the market.
Some 10,000 new flats will enter the market this year, according to property consultancy Colliers, and new project launches are taking place on a weekly basis on the holiday island, according to property agents.
'Developers are counting on the upcoming high season to bring new buyers to the island,' said Nasupha Suwansri, a vice-president at Juwai IQI, a real estate broker with more than US$4 trillion in property listings globally on its platform.
The fresh supply could worsen the glut as unsold inventory reached 4,982 units across 16 projects at the end of the fourth quarter last year, Colliers said in a report. New launches hit a record 14,718 units from 56 projects last year, it said, with buyers taking up only 64 per cent of them, it added.
The problem highlights the fierce competition among Thai developers, after the crisis in Bangkok took a turn for the worse as sales growth cooled and mortgage rejection rates climbed. Thailand's economy grew at an annual pace of 3.1 per cent last quarter, slowing from 3.3 per cent in the final three months of 2024, according to official data.
02:11
In weed-friendly Thailand, island of Phuket crowns fastest joint-roller at inaugural event
In weed-friendly Thailand, island of Phuket crowns fastest joint-roller at inaugural event
A number of big Thai developers have pivoted to Phuket because of slowing sales of flats in Bangkok, according to Stuart Reading, managing director of group property development at Banyan Group Residences, a Singapore-based resort developer.
