A wave of foreign demand is reshaping Phuket’s condo market, with Bangkok-based developers increasingly pursuing diversification amid softer local demand. The spotlight is on Sansiri’s Canvas Cherngtalay, a new Phuket condominium project valued at 1.8 billion baht, as an emblem of this shift. The island’s property scene has been elevated by sustained interest from international buyers, propelled by robust tourism and a growing expatriate community. Industry observers say Phuket’s momentum over the past two years has been remarkable, driven by multiple intersecting factors—from resilient visitor arrivals to shifting buyer preferences in the mid-to-upper price bands. This synthesis of tourism vitality and investor appetite is redefining Phuket’s position as a premier market for both wealth preservation and lifestyle living, while reorienting portfolios for Bangkok developers seeking new engines of growth.
Market drivers and foreign demand
Phuket’s condo market has entered a phase of intensified foreign demand, with buyers drawn not only from overseas wealth but also from the constant inflow of international visitors who see opportunities for longer-term investments beyond mere holiday stays. The core idea is straightforward: foreign buyers who initially arrive as tourists end up converting their vacation plans into property investments, anchoring demand for residential condos, particularly in high-demand submarkets around Cherngtalay, Bang Tao, and Patong. This transformation—where vacation dreams evolve into real estate holdings—has become one of the defining features of Phuket’s current market cycle, according to leading analysts who track the island’s residential sector. The shift reflects both the strategic positioning of Phuket as a global leisure destination and the broader trend of cross-border capital seeking stable, income-generating assets in resilient markets.
The momentum behind this demand is reinforced by measurable indicators of tourism growth and related economic activity. For the first nine months of 2024, Phuket’s airport welcomed 6.2 million arrivals, representing a 24% year-on-year increase. This surge in visitor traffic signals a strong and continued appetite for travel to the island, which in turn sustains demand for high-quality condo products that appeal to foreign buyers and expatriates. The sustained influx of travelers translates into a broader ecosystem that supports property investment, including the availability of premium services, international schools, and lifestyle amenities that align with the expectations of international residents. Taken together, these dynamics underpin the viability of condo projects with international appeal, ensuring not only shorter-term sales momentum but also longer-term rental and capital appreciation potential.
Beyond raw visitor numbers, the composition of Phuket’s foreign demand is shaped by the origin markets that consistently drive tourism and, by extension, property interest. The top five foreign source markets visiting Phuket include Russia, China, India, Kazakhstan, and Germany. These markets contribute not only to recurring tourist flows but also to the propensity of buyers to consider Phuket as a home or investment base. The persistence of these markets, despite global volatility, underscores Phuket’s attractiveness as a diversified leisure destination with reliable accessibility and a favorable quality-of-life proposition. For developers and investors, this translates into a relatively predictable pipeline of foreign buyers and tenants, especially for projects that offer international-standard amenities, security, and service levels that align with expatriates’ expectations.
Another critical factor in sustaining foreign demand is the island’s growing footprint of international education, which serves as a practical indicator of a deeper, longer-term expatriate presence. The number of international schools in Phuket has risen from 11 in 2019 to 16 today, reflecting a broader appeal to expatriates and foreign residents seeking high-quality schooling options for their children. In 2024, student enrollment at these international schools increased by 17% year-on-year, reaching 4,901 students. This growth underscores the significance of an educated, cosmopolitan community for property markets, as families seek stable residency and long-term investment opportunities that align with their children’s educational needs. The expansion of international schools not only enhances Phuket’s livability but also contributes to a more predictable demand base for condo developments that cater to family-oriented layouts, safety, and community facilities.
CBRE Thailand has highlighted a notable surge in condo sales in Phuket during the first half of 2024, with the island recording 3,000 units sold—an increase of 142% year-on-year. This performance surpassed the previous full-year benchmark and positioned Phuket as a standout market within the Thai condo landscape. Last year, Phuket achieved a record high with 3,300 units sold, illustrating sustained momentum across multiple cycles. Contextually, the long-run average for condo sales in Phuket between 2014 and 2019 stood at 1,148 units per year, underscoring how the last few years have exceeded historical norms. The revival of demand, driven by foreign buyers’ interest and the reinvigorated tourism sector, has been a central pillar of Phuket’s current real estate renaissance and a key differentiator from Bangkok’s more price-sensitive segments.
Rental yields and occupancy dynamics add further depth to the foreign demand narrative. With rental yields observed at historically elevated levels around 9–10% per year and occupancy rates remaining robust, investors have found Phuket condo assets particularly attractive for wealth storage and steady income generation. These yields, coupled with capital appreciation potential and the island’s enduring appeal as a leisure and lifestyle destination, reinforce Phuket’s status as a premium choice for international capital seeking stable returns. The favorable economic backdrop, combined with strong occupancy and demand indicators, mitigates some risks associated with price volatility and macroeconomic headwinds, supporting a long-run thesis that Phuket can absorb fluctuations more gracefully than many other markets.
A significant feature of the market’s evolution is the shift in buyer preference across price bands, reflecting a strategic recalibration by both developers and acquirers. Demand has migrated toward units priced at 8 million baht or less, which now accounted for 63% of total condo sales in 2023–24—up from 45% during 2014–22. Meanwhile, the share of units priced between 8–15 million baht dropped sharply to 17% of total sales in 2023–24, compared with 49% in the preceding period. This indicates a consolidation of demand at a lower price tier, while the luxury segment has not collapsed but has become a relatively smaller slice of the overall market. The implications are multifaceted: developers are recalibrating supply to target the higher-volume, mid-tier market given its resilience and accessibility to foreign buyers, while still pursuing premium projects that attract high-net-worth clients seeking exclusivity, composition, and premium services. The shifting price mix also reflects broader macroeconomic dynamics in Thailand and regional competition, as buyers weigh exchange-rate considerations, financing terms, and the comparative appeal of Phuket relative to other resort destinations.
In tandem with these shifts in demand, developers have begun reassessing their geographic focus in response to relative market strength. The Bangkok condo market, which has historically been a major engine for supply and sales, appears to be cooling as developers confront slower local demand and tighter financing conditions. As a result, many developers are pivoting toward Phuket, where growth remains comparatively resilient, and where foreign quotas on condo towers—though varied by project—tend to be more favorable than in Bangkok’s mass market sectors. This realization has fed a broader trend of cross-market capital allocation, with Bangkok based developers actively seeking opportunities in Phuket’s buoyant marketplace, leveraging the island’s allure as a global leisure destination and lifestyle hub. The strategic repositioning is not merely about chasing higher sales velocity; it also reflects a disciplined approach to risk diversification, product segmentation, and portfolio balance in an evolving regional market.
This amalgamation of foreign demand, tourism vitality, education infrastructure expansion, and pricing dynamics has culminated in a robust macro narrative for Phuket’s condo market. The sector’s resilience, coupled with the ongoing influx of international buyers, creates a foundation for sustained growth that extends beyond episodic sales cycles. The market’s maturity is increasingly defined by the depth of its international ecosystem: flight connectivity, diversified buyer origins, expatriate settlement patterns, and the availability of projects that blend luxury living with practical investment fundamentals. For developers, this environment signals the importance of delivering projects that offer a compelling blend of location, amenities, service standards, and price positioning aligned with buyers’ expectations. The conclusion is clear: Phuket’s condo market is becoming a more globally integrated, investment-grade segment within Thailand’s real estate landscape, guided by foreign demand, tourism resilience, and strategic capital allocation from seasoned developers.
Phuket tourism momentum, occupancy, and lifestyle integration
The tourism backbone of Phuket’s condo market is reinforced by occupancy trends and destination branding that reinforce investor confidence. The hospitality sector’s performance, as indicated by rising occupancy rates, complements the condo market’s demand dynamics by ensuring a steady stream of potential tenants and high-quality end-users who value consistent service standards and a vibrant resident community. Occupancy figures, particularly those observed in the first half of 2024, point to a favorable environment for rental yields and capital growth. When coupled with the island’s international school expansion and the presence of a growing expatriate population, these indicators reinforce a feedback loop: higher tourist arrivals feed investment, which in turn broadens the housing stock and stabilizes long-term demand through rental and occupancy consistency.
Phuket’s status as a premier leisure destination underpins the market’s longer-term outlook. Ongoing infrastructure projects promise enhanced accessibility, further strengthening Phuket’s appeal to foreign buyers who value efficient travel to and from the island. The interplay between tourism dynamics and real estate investment yields a compelling proposition for investors seeking diversification away from Bangkok’s market, where the mass market segment has faced headwinds. The result is a more balanced, multi-layered market that harmonizes tourism recovery, expatriate settlement, and affordable-to-mid-priced condo segments—creating a durable demand base for new developments and a sustainable path for capital appreciation.
Key incentives for developers and buyers alike stem from the island’s ability to maintain high occupancy alongside steady rental yields. The long-run viability of Phuket’s condo market rests on the continued alignment of supply with international buyer preferences, the persevering strength of tourism, and the cosmopolitan lifestyle features that attract expatriates. With each data point—whether it’s the surge in airport traffic, the expansion of educational infrastructure, or the introduction of new projects by prominent developers—the market’s trajectory becomes clearer: Phuket is transitioning from a tourism-driven market to a more mature, investment-grade landscape that balances growth, diversification, and wealth preservation for foreign buyers.
In parallel with these developments, the market’s adaptability is evident in how a major Bangkok developer narrative is reshaped by Phuket’s opportunities. The island has become a testing ground for new product configurations, partnerships, and exit strategies that appeal to an internationally minded buyer base. The result is a more resilient Phuket condo market that can weather macroeconomic fluctuations, supported by a diversified buyer mix, better educational infrastructure, and a stronger value proposition for both primary and secondary residence buyers. The implications for investors are clear: Phuket’s condo segment offers a credible, long-term investment thesis anchored by foreign demand, tourism momentum, and a widening expatriate footprint, while continuing to serve as a lifestyle nucleus for affluent buyers seeking a resilient, high-quality living environment.
Notable market indicators and comparative performance
In the broader context of Thai residential real estate, Phuket’s performance stands out when compared with Bangkok and other regional markets. The island’s condo sales in the first half of 2024, driven by foreign demand and robust tourism, show a trajectory that diverges from Bangkok’s slowing, mass-market dynamics. The data reflect a market that continues to reward quality projects in high-demand locations, with amenities and services that cater to both international buyers and long-term residents. The pricing shift toward a larger share of affordable units signals a stabilization of demand within a more accessible price bracket, making Phuket an attractive entry point for foreign buyers seeking value within a globally connected destination. The ongoing expansion of international schools further cements Phuket’s reputation as a place where expatriates can build long-term lives, which in turn stimulates demand for family-friendly condo layouts, community facilities, and safe, walkable neighborhoods.
As developers watch the market, the emphasis remains on product differentiation, service quality, and the integration of lifestyle amenities that enhance value retention. Projects like Canvas Cherngtalay embody this approach, offering a blend of luxury design, strategic proximity to beaches and amenities, and a strong investment narrative that links the tourism cycle with durable residential demand. The long-term outlook for Phuket’s condo market remains positive, supported by a combination of foreign buyer interest, rising educational infrastructure, and ongoing improvements to transport infrastructure and accessibility. The result is a market that is not only capturing the attention of international investors but also providing a model for how regional resort markets can achieve sustainable growth through sophisticated product strategies and a robust, multi-faceted demand base.
Developers and projects expanding Phuket’s market footprint
The Phuket condo market’s expansion is characterized by a robust mix of international developers and local groups that are actively capitalizing on the island’s appeal. Capstone Asset Co, a Bangkok-based developer, has entered the Phuket scene with high-end projects that underscore the island’s aspirational luxury segment. One notable example is Peylaa Phuket Bang Tao, a project that debuted recently and comprises 408 units valued at 3.4 billion baht. Capstone Asset’s chief executive, Titiwat Kuvijitsuwan, emphasized Phuket’s growing reputation as one of the world’s premier leisure destinations. He highlighted the island’s infrastructure upgrades, which are poised to enhance accessibility and convenience for residents and visitors alike. The company’s strategic entry signals a broader push by Bangkok-based developers to reallocate capital toward Phuket’s buoyant market, where demand remains robust across different buyer profiles.
Infrastructure improvements, including the phase 2 expansion of Phuket airport and the Kathu-Patong expressway, are central to this narrative. These developments are expected to significantly improve travel times and connectivity, thereby augmenting Phuket’s attractiveness as a residential and investment destination. The enhanced accessibility dovetails with the island’s existing strengths—world-class beaches, hospitality offerings, and a lifestyle that appeals to international buyers seeking a superior quality of life. The Capstone Asset move aligns with a wider pattern of strategic diversification among Bangkok-based developers who are seeking to balance exposure across markets and mitigate regional risk by tapping into Phuket’s resilient demand drivers.
Phuket’s market resilience has not occurred in isolation; it has attracted significant attention from other major developers, including Sansiri, Origin Property, AssetWise, Central Pattana, and Veranda Resort Plc. Colliers Thailand has observed that both listed and non-listed Bangkok-based developers have increasingly redirected attention toward the Phuket condo market in recent years, signaling a shift in investment focus alongside the island’s rising prominence. Sansiri, the largest player in Phuket’s market, has outlined ambitious plans to launch 27 projects with a total value of 25 billion baht between 2025 and 2029. Sansiri’s Phuket footprint extends back 13 years, during which it has developed 22 projects worth a combined 22.6 billion baht. This track record demonstrates the scale and confidence of Bangkok-based developers in Phuket’s long-term potential.
The presence of multiple major developers signals a healthy, competitive marketplace with depth and diversity in product offerings. Origin Property plc has five active projects in Phuket, AssetWise plc has four, and Central Pattana and Veranda Resort Plc each maintain one project in the island’s condo mix. This distribution illustrates how different corporate strategies are mapping onto Phuket’s market opportunities: some players focus on mid-range mass-market viability, while others target premium segments with boutique or resort-adjacent living concepts. The overall effect is a more dynamic market where diverse product strategies can coexist, supported by Phuket’s attraction as a global leisure destination and its expanding expat and educational ecosystems.
In addition to the strategic movements of individual developers, the market’s broader financing and capital deployment environment plays a critical role. The mix of new project announcements and the ongoing performance of existing assets is helping establish Phuket as a reliable wealth-storage option in the Thai real estate universe. Rental yields, occupancy, and capital appreciation prospects are all shaped by a confluence of tourism momentum, expatriate residency patterns, and macroeconomic stability—factors that the island has demonstrably weathered through multiple cycles. For investors and developers alike, Phuket represents a nexus where lifestyle appeal and investment fundamentals converge, creating a compelling case for ongoing capital allocation and project development across a spectrum of price bands and product types.
Infrastructure progress and future outlook for Phuket
A core element of Phuket’s ongoing market expansion is the enhancement of its physical infrastructure, which serves as a fundamental driver of sustained demand. The phase 2 expansion of Phuket International Airport is a pivotal project designed to increase capacity, reduce congestion, and improve flight connectivity for both residents and visitors. This upgrade promises to shorten travel times, broaden the island’s international reach, and improve overall accessibility for foreign buyers who rely on efficient, dependable transport networks when selecting a long-term property investment. In tandem with the airport improvements, the Kathu-Patong expressway is planned to streamline travel along one of Phuket’s busiest corridors, further enhancing the island’s appeal for condo buyers who value easy access to beaches, shopping, dining, and entertainment options.
These infrastructure enhancements dovetail with Phuket’s broader growth trajectory as a premier leisure and living destination. They reinforce the island’s ability to attract high-net-worth buyers and family-oriented expatriates who seek a balanced lifestyle that combines resort-style amenities with practical everyday conveniences. The impact of such improvements goes beyond short-term sales velocity; it shapes the long-term attractiveness of Phuket as a place to own an asset that can be used for retirement, a second home, or a diversified investment vehicle. As the market becomes more mature, access to premium services, reliable logistics, and efficient transit networks will likely translate into stronger rental demand, improved occupancy stability, and more resilient price growth in core submarkets.
From a strategic perspective, Phuket’s resilience in the face of broader economic challenges has attracted attention from analysts and developers alike. The island’s performance is characterized by a pronounced reliance on foreign buyers and a continued ability to attract investment despite tighter local demand in Bangkok’s mass-market segments. The Bangkok condo market’s slower pace and higher sensitivity to domestic cycles have prompted many developers to pivot toward Phuket, where demand remains robust and less exposed to domestic macro pressures. The Colliers Thailand view reinforces this trend, highlighting how both listed and non-listed Bangkok players are embracing Phuket’s opportunities, diversifying their geographic footprints, and aligning with investors’ appetite for international markets that offer rental income potential and long-term capital appreciation.
The long-term trajectory for Phuket is shaped by a convergence of factors: sustained foreign demand, ongoing tourism resilience, the growth of an expatriate community, and infrastructural investments that improve accessibility and quality of life. As new projects come online and existing assets mature, Phuket’s condo market is likely to exhibit more sophisticated product differentiation, including mid-market offerings that broaden ownership opportunities, alongside premium developments that target high-net-worth buyers seeking exclusivity and expansive amenities. The island’s ability to blend lifestyle with investment value will continue to define its competitiveness relative to Bangkok and other regional markets. While Singapore, Malaysia, and other destinations compete for cross-border investment, Phuket’s unique combination of sea, sun, services, and infrastructure—coupled with a strong, diverse buyer base—offers a resilient platform for growth that is propelling the island toward becoming a core pillar of Thailand’s real estate investment strategy.
Conclusion
Phuket’s condo market is undergoing a transformative phase, driven by persistent foreign demand, rising tourism momentum, expanding international schooling, and a broad shift in buyer price preferences. The island’s appeal as a global leisure destination, combined with strategic investments by Bangkok-based developers and supportive infrastructure upgrades, is creating a sustainable growth runway that benefits both buyers and investors. The introduction of high-profile projects like Canvas Cherngtalay by Sansiri and Peylaa Phuket Bang Tao by Capstone Asset highlights the market’s capacity to attract premium product offerings that meet international standards while still aligning with mid-market demand in 8–15 million baht ranges. The data points—from airport arrivals to condominium sales, from occupancy rates to rental yields—collectively underscore Phuket’s resilience and its potential to remain a magnet for wealth storage and lifestyle living in Thailand’s real estate landscape. As Bangkok’s market recalibrates, Phuket stands out as a diversified, globally connected destination whose future growth is anchored in tourism, expatriate settlement, and ongoing infrastructure development. The island’s trajectory suggests a sustained cycle of demand that can support a broad spectrum of projects and investor strategies, reinforcing Phuket’s status as a premier, investment-grade real estate market within Southeast Asia.
