BANGKOK: Despite positive sales results, the Real Estate Information Center of Thailand (REIC) has warned developers about an oversupply of houses and condos in Phuket.
The REIC noted that the market has heated up, with both supply and sales increasing. However, Phuket still has 10,159 unsold houses and condos worth 77.07 billion baht.
The source warned that the high number of unsold units is a sign that supply may be outpacing demand in the Phuket property market. In this context, the REIC urged property developers to implement better sales strategies to manage the risk.
The REIC reported that most of the houses for sale in Phuket are condominiums, with a total of 15,511 units worth 126.62 billion baht.
Most of these condos are located in Bang Thao and Surin Beach areas, with 3,428 units sold so far, worth a total of around 40 billion baht. However, there are still 4,466 unsold condos near these beaches.
According to the Real Estate Information Center, foreigners are most likely to buy condos near Bang Thao and Surin Beach because of the golf courses, beach clubs, and international schools in these two areas.
Meanwhile, Rawai and Kata Noi beaches are also emerging as attractive destinations for property buyers, with 790 units sold for a total of 5.61 billion baht.
Meanwhile, 707 units in Kata and Karon beaches have been sold for a total of 4.3 billion baht. The REIC Center observed that condos near the beaches are particularly attractive to foreign tourists and retirees. Source: The Nation.
