Real estate

The report: Phuket’s ultra-prime market settles into a more measured phase after post-pandemic surge

Gaël Ovide-Etienne, co-founder of Ocean Worldwide Real Estate, offers a grounded view of Phuket’s ultra-prime property market as it settles following the post-pandemic boom. The picture that emerges is of a market that remains solid but more deliberate: buyers are taking their time, supply at the very top end is still limited, and demand continues to be driven by a mix of second-home ownership and a growing number of buyers choosing to spend longer periods, or even live, on the island.

This is part of a series of interviews for our Phuket ultra-prime feature—go further with the Phuket ultra-prime market report.

Phuket’s ultra-prime market finished 2025 in good shape. Villa transactions were up over 20 per cent year-on-year, and demand from wealthy buyers stayed strong throughout.

That said, the post-pandemic rush has clearly settled down. Buyers are taking their time now, being more selective, and there’s more supply to choose from—so we’re back to a more normal market rhythm rather than the frenzy of the years 2022 to 2023.

A trophy oceanfront address with sprawling resort-like grounds in Cape Yamu features soaring ceilings and spacious living areas, plus an expansive pool terrace with bay views (top).

For the next 12 months, I expect steady but not spectacular growth in the market. The fundamentals haven’t changed—Phuket is still a premier luxury destination with limited prime supply—but we won’t see the crazy price jumps of the boom years. Well-located, quality properties will hold their value and likely appreciate modestly. Sellers just need to be realistic on pricing because buyers today are more value-conscious. It’s a healthy market, just a calmer one.

More than just a resort destination

Phuket’s lifestyle offerings punch well above its weight. What sets it apart from places like Bali and other Southeast Asian resort islands is its ability to combine tropical beauty with genuinely world-class infrastructure. You get pristine beaches and lush hills alongside international hospitals, top-tier private schools, luxury marinas, championship golf courses, Michelin-starred restaurants and high-end beach clubs, all supported by a well-established expat community and an international airport with direct flights to global hubs. For UHNW buyers, this means being able to live here without compromising on healthcare, education, connectivity or day-to-day comfort.

“Phuket is still a premier luxury destination with limited prime supply—but we won’t see the crazy price jumps of the boom years.”

Phuket caters equally to those seeking ultra-private seclusion and those drawn to a vibrant social scene. Competing destinations may match its natural beauty, but few can rival the breadth of services or the ease of year-round living. That balance is what keeps UHNW buyers choosing Phuket. It is a place where you can holiday and live long-term with equal ease, and that remains its strongest competitive advantage.

Significance of foreign demand in Phuket’s ultra-prime market

Foreign buyers do not just have a significant effect—they are the market. Without foreign demand, the luxury segment in Phuket would be a fraction of its current size.

Nearly 4,000 condo units were transferred to foreigners in just the first quarter of 2025 across Thailand, and Phuket claims a big share of those high-end purchases.

The post-pandemic boom was essentially fuelled by international capital, with Russian, Chinese and European money poured in and driving the surge in luxury villa sales.

A beachfront tropical retreat with direct marina access in Cape Panwa.

When particular groups are active, you see it immediately: Russians dominated the years 2022 to 2023, and certain areas sold out fast. On the other hand, when Chinese economic activity slowed in mid-2025, the market cooled noticeably.

The good news is that the buyer base is diverse—UK, Russia, China, Australia, US, Italy and more—so the market isn’t dependent on any single nationality. But make no mistake: the vast majority of ultra-prime transactions involve a foreign buyer, and international demand is the engine that drives this entire sector.

The UHNW buyer profile and their evolving expectations

Phuket attracts UHNW buyers from all over the world. Russian buyers have been particularly active, often snapping up large west coast villas near international schools—which signifies that they are planning to actually live in the region with their families.

Chinese buyers tend to lean toward condos and manageable properties as holiday homes or rental investments.

On the other hand, European, Australian and American buyers usually want a mix of vacation retreat and long-term investment, valuing privacy and the option to rent the property out when they are away.

Lifestyle is definitely the primary driver of these clients. They fall in love with the beaches, the climate and the relaxed luxury of Phuket. But they are not naive about money. They understand that Phuket’s luxury real estate has a solid track record of appreciation and can generate rental income through managed programmes. Most are cash buyers who see Phuket as a safe, enjoyable place to park part of their wealth. The investment upside matters, but it is the cherry on top rather than the main reason they buy.

This beachfront retreat in Cape Panwa combines contemporary architecture with subtle Thai influences, featuring light-filled interiors and floor-to-ceiling windows, as well as manicured exteriors.

Increasingly, buyers are also viewing Phuket as more than just a second-home destination. While the traditional model of using a property as a holiday home still exists, there is a clear shift toward longer-term stays and even permanent relocation. The island has evolved from a purely resort-driven market into a place where people genuinely live and work.

As a result, we are seeing a broader mix of residents: retirees settling by the beach, entrepreneurs using Phuket as a home base while travelling for business, remote professionals staying for extended periods and families relocating with their children.

The idea of “lifestyle migration” captures this shift. Buyers are not just purchasing property as an investment or holiday retreat. They are relocating for a better quality of life. This is gradually transforming Phuket’s luxury communities into more vibrant, year-round residential environments rather than purely seasonal enclaves.

When supply is inherently limited

The ultra-prime segment today, especially for beachfront or sea-view properties, is extremely constrained. There’s only so much coastline in Phuket, and most of the prime land in established luxury areas has already been developed. While the broader market has tens of thousands of units in the pipeline, truly ultra-prime properties are a tiny fraction of that.

“Lifestyle is the primary driver—clients are drawn to Phuket’s beaches, climate and relaxed luxury, while recognising its strong appreciation and rental income potential.”

Most beachfront plots are gone. Developers are actually being pushed inland because the coastal land is so scarce. If you’re looking for a panoramic oceanfront villa, you may have to wait for an existing owner to sell—and many won’t, unless the price is very attractive. The few exceptional properties that do come up often change hands off-market because they’re that rare.

This scarcity shows up in pricing: sea-view and beachfront properties carry a 20 to 25 per cent premium over comparable inland homes. In hotspots like Surin, demand for luxury villas outstrips supply, making it highly competitive when something good appears. The bottom line is that limited supply against persistent international demand underpins the long-term value of Phuket’s top-tier real estate. For ultra-prime beachfront, it’s essentially a seller’s market by default.

Deals done behind closed doors

We’re seeing more off-market transactions at the top end, and it comes down to privacy and exclusivity. When you’re dealing with US$10 to 20 million estates, both sellers and buyers prefer discretion. Many owners don’t want their trophy property listed publicly or to deal with unvetted inquiries. Instead, they work through trusted brokers who quietly show the property to qualified buyers in their network.

A refined oceanview estate, set within the private and amenity-rich Layan Residences by Anantara, in Phuket.

For sellers, it keeps the process confidential and ensures only serious buyers are involved. For buyers, off-market access means getting a first look at the most exclusive opportunities others don’t even know about. There’s also a practical element—ultra-prime properties are unique, so pricing can be tricky. Sellers sometimes prefer to test the waters quietly rather than have a property sit publicly for months.

A significant portion of big-ticket villa sales in Phuket now happens this way—behind closed doors, facilitated by brokers who specialise in the UHNW community. It suits the nature of this market perfectly.

A more measured pace of demand

Ultra-prime properties typically stay noticeably longer in the market than during the real estate boom in 2021. In that year until 2022, a well-priced luxury villa could sell in weeks—buyers moved fast, and there was almost no negotiation. That urgency has faded.

The numbers tell the story. In the first half of 2025, only 231 new villas were sold while unsold inventory climbed to nearly 1,900 units. The absorption rate dropped from about 5.5 per cent per month to just 1.8 per cent.

“Increasingly, buyers are viewing Phuket as more than just a second-home destination. While the traditional model of using a property as a holiday home still exists, there is a clear shift toward longer-term stays and even permanent relocation.”

In some areas like Bang Tao and Surin, analysts calculated it could take over six years to clear current luxury villa stock at today’s pace. That’s a dramatic shift.

However, it varies a lot by property. Truly exceptional villas in A+ locations still move relatively quickly.

Kamala, known for ultra-luxury trophy properties, had a much healthier absorption rate of around 6.8 per cent per month. So a one-of-a-kind beachfront villa in the right spot might sell within months, while more generic luxury homes could take a year or more.

The key takeaway: sellers now need patience, realistic pricing and a willingness to negotiate. Properties are still selling, but the days of near-instant transactions are behind us. It’s a more normal, buyer-informed market.

Go further with Gaël Ovide-Etienne luxury property listing: