Russian and Chinese investors have a strong influence on Phuket's real estate market

PHOTO: Phuket's real estate market is booming thanks to Russian villa buyers and Chinese investors (via FazWaz).

The real estate market in Phuket is booming right now with Chinese and Russian investors. Chinese buyers are reportedly increasing their investments, buying up villas, stores and even gardens to please Chinese tourists. Russian investors are also boosting demand for villas and houses in Phuket. While Russians are interested in buying pool villas, Chinese investors prefer any type of real estate to offer full service to Chinese tourists. They will bring tourists and provide lodging, restaurants, stores and even tours of the durian orchards. According to Natta Kahapana, executive director of consultancy Knight Frank Thailand, we can expect even more demand growth in the coming months. "Russians buyreal estate in Phuket to live. They intend to buy outright as they want to start moving right away. More Chinese investors are expected to come in seven to eight months after the return of tourists. "

The Phuket Real Estate Association is reporting huge demand and says all finished apartments and pool villas have been sold out.

With the pandemic gradually abating, sales of apartments and luxury villas have started to pick up strongly. The association's president anticipates that 2023 will be considered a "golden year" for Phuket's real estate market and this trend will continue. They expect another year or two of high demand from Russians looking for the best location and price from reliable developers.

The pool villa market in Phuket is thriving, but the apartment sector has not fully recovered.

In 2022, apartment sales fell from 78.3 percent to 76.9 percent year-on-year. However, Knight Frank predicts that Phuket's apartment market will recover to pre-pandemic levels in the coming years. Bangkok also saw an explosion in the apartment rental market in the first quarter of this year. In areas from Ploenchit to Ekamai, rental units sell for more than 50,000 baht per month. Apartment occupancy in the area has increased from 10% during the pandemic to 40% now. Frank Hahn, executive director and head of residential real estate at Knight Frank, believes the global business market is helping to support rental growth. He sees this as a good sign for the rental market for the rest of the year. "Many multinational companies and their executives are returning, especially expatriates from Singapore, Taiwan, Hong Kong and Malaysia. The apartment market will see strong growth in the second half of 2023, with key drivers being statewide elections and a new cabinet likely appointed by the third quarter. "