Why Phuket’s Property Rally Could Close the Gap with Bangkok by 2026

Phuket’s rapid rise: what the property surge means for real estate Thailand

Phuket’s property surge reads like a market case study. In the next two years the island may see prices approach levels typical of Bangkok and other major global cities, according to Colliers Thailand. For anyone tracking real estate Thailand, this is both an opportunity and a warning: fast growth, heavy new supply and shifting buyer profiles are changing the investment equation.

A two-sentence hook for investors

If you are considering Phuket property, know this: developers launched 45,066 units between 2021 and 2025, backed by THB469.72 billion (about USD13 billion) in investment. That kind of capital inflow reshapes demand, pricing and project design across the island.

Megaprojects and branded stock are changing Phuket’s market

Big public and private schemes are moving Phuket away from a seasonal holiday market and toward a serviceable year-round property hub. Projects such as ICONSIAM Phuket and a wave of branded residences are not minor additions; they are repositioning parts of the island to attract wealthier, longer-stay visitors and global investors.

This is not abstract. Branded product typically commands higher prices and different buyer expectations: premium finishes, hotel-style services, professional asset management and marketing aimed at international buyers. The arrival of major Bangkok-listed developers including Sansiri and AssetWise, alongside local names like Botanica Luxury Phuket, shows the market is maturing and attracting mainstream capital.

The data: supply, investment and sales velocity

Colliers Thailand’s analysis gives concrete numbers that explain why local sentiment has shifted.

• 45,066 newly launched residential units between 2021 and 2025, with a total investment of THB469.72 billion (USD13 billion).
• At the end of 2025, developers launched more than 72 new projects, totaling 10,312 units and over THB81.64 billion in investment.
• In 2025 the holiday home segment saw around 1,100 new units in 40 projects with investment of THB27.22 billion; 58% of that supply concentrated in Cherng Talay.
• Despite a tourism dip, international arrivals fell 5.38% to 10.47 million in 2025, and tourism revenue dropped 4.49% to THB545.87 billion, yet real estate demand remained strong.

Sales velocity has been striking. Colliers notes several major projects sold out completely, and others achieved 50–70% sales within a month of launch. That kind of absorption points to robust buyer appetite but also signals how quickly product can become commoditised if differentiation is weak.

Who is buying and where they want to be

Understanding buyer origin and product preference is essential for pricing and exit planning.

• Primary international buyer sources: Russia, Australia, India, China, Kazakhstan.
• Buyer types include high-net-worth overseas purchasers seeking holiday homes or second residences, Thai domestic buyers seeking investment or lifestyle upgrades, and investors targeting rental income from long-stay visitors.

Location hot spots are clear. Colliers identifies the following as key demand nodes:

• Bang Tao
• Cherng Talay
• Rawai
• Kata
• Karon
• Phuket Town

Cherng Talay dominates the holiday home pipeline. More than half of 2025 new holiday stock was concentrated there, and Russian buyers showed particularly strong interest in that submarket.

Pricing dynamics: where the market may go and why

Colliers expects condominium supply to moderate in 2026 to 6,000–8,000 units, after a two-year surge approaching 25,000 units. That moderation could temper immediate pressure on prices, but another factor matters: the composition of new supply.

• Branded residences and high-end holiday homes help push average prices upward because they sell at premium rates and attract international demand.
• Mid- to upper-end condominiums face the strongest pricing competition, as many projects target the same buyer segments.

The holiday home price band THB30–50 million remains particularly attractive for buyers. Developers who can deliver quality, clear title arrangements and service-oriented ownership models will find buyers in that bracket; those who can’t will face longer sales cycles and higher discounting risk.

Risks that buyers and developers must weigh

Growth is impressive, but it is not free of risk. We flag several practical concerns for investors.

• Oversupply and price competition: The sheer volume of launches in 2024–2025 risks softening resale values and rental yields, especially if 2026 supply ends up at the higher end of the forecast.
• Market segmentation: Too many similar mid-tier condos will pressure net effective prices and may raise marketing and incentive costs for developers.
• Land scarcity and inland shift: Beachfront plots are scarce and expensive, pushing holiday home development inland. Inland locations can reduce immediate rental demand and require stronger product staging to attract buyers.
• Tourism dependency: While Phuket has attracted long-stay, high-spending visitors, a cyclical decline in arrivals or changes in flight connectivity could reduce short-term rental performance.
• Regulatory and title issues: Foreign buyers must navigate leasehold vs freehold structures, strata title systems, and tax implications; any ambiguity slows sales and reduces resale pools.

We recommend buyers plan for a realistic exit and test rental yield scenarios under both peak and off-peak occupancy.