Phuket has long been a hotspot for high-end property development, especially luxury villas aimed at overseas buyers from Russia and China. This demand drove rapid growth, with many villas selling before construction even started and prices steadily climbing.
However, in 2025, the market experienced a significant slowdown. According to the Real Estate Information Centre (REIC), only 298 new villa units were launched in the first half of the year — a 74.3% decline from the previous year. Sales also dropped over 70%, with just 231 units sold. Meanwhile, unsold inventory has surged to 1,908 units worth around THB 73.73 billion, causing the absorption rate to fall from 5.5% to just 1.8% per month. At this pace, it could take more than four years to sell off the remaining villas.
Methapong Upatising, President of the Phuket Real Estate Association, explained the slowdown isn’t solely due to global political issues or China’s economic woes, but also because of an oversupply created during the COVID-19 period. Many projects were rushed to market, assuming demand from wealthy relocatees would continue indefinitely, leading to a flood of villas priced between THB 10-40 million. The early-year boost from tourist inflows faded mid-year when Chinese visitors stoppedcoming, further halting sales.
Market analysis of key locations shows varied performance. The Thepkrasattri-Sri Sunthorn area had the highest sales but also the highest unsold stock—924 units. Villas priced THB 10-40 million there could take over five years (61 months) to sell. Kamala, once a luxury hotspot, still offers relatively healthy absorption rates, with 6.8% remaining stock—about nine months’ worth of sales.
Conversely, areas like Bang Tao-Surin, known for luxury villas above THB 40 million, have 249 unsold units and only 20 sales so far. It could take approximately 77 months (over 6 years) to clear these. The slowest market is Rawai Beach, where villas priced THB 20-40 million would require over 20 years (244 months) at current sales rates to be sold out.