Phuket's Economic Boom and Land Price Surge

Phuket, Thailand's premier island resort in the Andaman Sea, is experiencing an unprecedented economic boom, significantly driving up land prices. Leading property developer Sansiri Plc reported on Friday that the island's economy, primarily fueled by tourism, is estimated to be worth around 500 billion baht, making it the second largest economy in Thailand after Bangkok.

Sansiri's CEO, Uthai Uthaisangsuk, revealed that the growing economy has led to a 30-40% increase in land prices this year. Notably, beachside land in rarer zones is now being sold at nearly 100 million baht per rai (1,600 square metres).

Five Key Businesses Fueling the Trend

Uthai identified five key businesses contributing to this trend: restaurants, residential property projects, international schools, hospitals and health-related centers, and marina businesses. These sectors have thrived post-Covid-19, attracting both tourists and investors, making Phuket an ideal second home for affluent individuals and businesspeople.

The government's policy to transform Thailand into a regional and global hub for logistics, tourism, aviation, and healthcare, along with infrastructure developments such as seaplane and cruise terminals, Andaman Airport, and the expansion of Phuket Airport, further supports this trend.

Future Prospects and Investment Plans

Sansiri anticipates sales of projects in Phuket to reach 2 billion baht in 2024 and double to 4 billion baht in 2025, positioning Phuket as the second most profitable province after Bangkok. The company has allocated 25 billion baht for 27 new projects over the next five years, including 11 condominium projects worth 14 billion baht and horizontal properties worth 11 billion baht.

Sansiri plans to launch 2-3 new condo projects and 4-5 horizontal projects annually, priced between 8-9 million baht per unit. Luxury buildings like pool villas could see prices as high as 50 million baht per unit. After 13 years in Phuket, Sansiri now boasts 27 property projects with a total of 8,300 units worth over 26 billion baht.