Phuket property market is moving away from the old pre-construction boom, with the secondary segment now taking the lead as new villa supply slows sharply in 2025.
Phuket property market conditions in 2025 show a clear shift: the island is no longer defined by rapid off-plan sales of luxury villas, but by a resale segment that is now outperforming new launches.
A market that has cooled
For several years, Phuket attracted heavy foreign capital, especially from Russia and China. Buyers often committed to villas and apartments before construction even began, and prices rose month after month. That pattern has changed.
According to the Real Estate Information Centre (REIC), new investment volume fell by more than 74% year on year. In the first half of 2025, only 298 new villas reached the market, while just 231 were sold. The monthly sales rate dropped to 1.8%, compared with 5.5% a year earlier.
At the current pace, it would take more than four years to clear existing stock worth a total of 73.7 billion baht.
Where oversupply is most visible
Phuket is not behaving as one single market. The REIC analysis highlights sharp differences across four key areas.
- Thepkrasattri–Sri Sunthorn had the highest sales in the first half of 2025, but also 924 unsold villas. Clearing stock could take 61 months.
- Kamala posted the best absorption rate at 6.8%, suggesting the market may clear in less than a year.
- Bang Tao–Surin, once a “millionaire zone,” is now dealing with surplus luxury villas above 40 million baht, with only 20 units sold.
- Rawai Beach is the weakest case, with a sales pace that implies 244 months, or more than 20 years, to absorb the existing offer.
For buyers and investors, the message is simple: each district now requires its own analysis.
Why the resale segment is winning
While the primary market struggles with oversupply, the secondary market has taken 63% of all sales. Its main advantage is price. In many cases, used homes cost up to half as much as new ones, and they often offer more space.
In the same locations, new apartments average 121,000 baht per square metre, while resale units average 68,000 baht per square metre. That gap is pushing buyers toward ready, furnished properties instead of off-plan projects.
What developers may need to change
Phuket Real Estate Association president Methapong Upatising said the slowdown reflects mistaken assumptions made during the COVID-19 period. Many developers believed demand from wealthy foreigners would last indefinitely.
He said the year started well, but when Chinese tourist numbers fell, the market effectively stalled. The result was a wave of villas priced at 10–40 million baht, creating major oversupply.
Experts say luxury villas still have value, but sales strategies must become more flexible. Pricing may need to be adjusted, and offers may have to appeal not only to wealthy foreign buyers but also to Thai long-term investors focused on realistic returns.
The key takeaway from the Phuket property market in 2025 is that the luxury boom has not disappeared, but it has become far more selective. The centre of gravity has moved from new projects to resale homes, and buyers are now chasing value rather than hype.
