The market for renting residential real estate in Phuket this year demonstrates an impressive annual income exceeding 10%. This is due to increased tourism and boom of housing demand, which in turn arouses a high interest in short -term and long -term lease in popular areas. A press release from Prakaipeth Meechoosarn, Phuket Property sales head at Consultant Cbre (Thailand), confirms that this year a number of new projects were launched in Phuket, including both villa and apartments. This variety of new offers, in her opinion, was the result of the return of foreign buyers in the high tourist season.
According to Ms. Prakaipet, the growth of residential real estate sales has a positive effect on the rental market. The need for rented housing has increased significantly, and this phenomenon has been observed since the pandemic, when the demand for housing has increased steadily. The peak of interest is especially noticeable this year, due to a limited supply in the market. The situation that has developed in Phuket demonstrates strong tendencies for restoration and growth, which creates favorable conditions for investors and tenants.
In the main areas with high demand, such as Bang TAO or near Laguna Phuket, rental profitability exceeds 10%. The best example is housing of 50-60 square meters with one bedroom, which can be a rent of 1000-1200 baht per square meter. m. per month or from 50,000 to 60,000 baht per month.
According to her, the demand is primarily coming from foreigners who are looking for both at home to holiday houses and professionals for business moving to Phuket. “The profitability of the lease in Phuket is an average of 9-10% per year, twice as guaranteed revenue rates previously offered or guaranteed by the Kondo projects, which have currently left the market in tandem with Chinese investment customers,” said Ms. Praokipet.
Angkana Saeloo, Banyan Group Residence Sales Director at Property and Hospitality Bany Group, said the housing rental market has grown in tandem with the tourism sector. “During the peak of tourism in the post-pandemic of Phuket, the average employment in Laguna Phuket was 80% over the past few years compared to 70% over the first 30 years,” she said.
In Skypark, one of the Kondo projects in the Laguna Phuket group, the size of one bedroom size of 30 square meters. According to Mr. Angkan, this lease rate gave rise to a high rent for buyers, as the units were issued before the sale of about 4 million baht. She said that most tenants are expanses working in the hospitality sector. According to Mr. Angkan, some buyers are business owners who visited Phuket to work and looked for rental units, and then moved to residential buyers.
