By Phuket News Property Editorial Team · January 12, 2026
Phuket’s property market enters 2026 showing clear signs of normalisation after a period of unusually rapid growth that began following the island’s early reopening to international travel. While buyer interest remains, the pace and structure of the market have shifted as rising costs, expanded supply, and more deliberate decision-making reshape conditions across multiple segments.
This transition reflects a maturing cycle rather than a downturn, following several years of accelerated activity driven by reopening momentum and lifestyle migration.
Reopening and early recovery in 2021
Phuket became one of the first destinations in Asia to reopen to vaccinated international visitors in July 2021. That milestone marked the beginning of a gradual recovery in travel confidence and long-stay demand, particularly from overseas buyers already familiar with the island.
While transaction volumes remained relatively subdued during the second half of 2021, renewed mobility laid the foundation for a broader market recovery the following year.
Acceleration phase through 2022
By 2022, the effects of reopening became more visible across the property market. Pent-up demand, lifestyle relocations, and cash-driven purchases accelerated activity, particularly in residential villas and well-located condominiums.
During this phase, pricing increases were largely supported by value comparisons with other international lifestyle destinations. Inventory levels were still manageable, and buyer urgency was elevated, especially for properties suited to long-term living.
Peak activity and expansion in 2023
Confidence across the property sector strengthened further in 2023. Many real estate companies and developers reported highly active years, supported by continued foreign interest and strong sentiment around Phuket’s long-term appeal.
Land prices rose sharply as competition for development plots intensified. At the same time, construction activity expanded, with developers launching new projects based on expectations that elevated demand would continue.
This period marked the high point of market momentum following the post-Covid rebound.
Rising costs and shifting demand dynamics
As the market moved beyond the rebound phase, cost pressures became increasingly influential. Land values continued to rise, while raw materials and labour costs increased, pushing development budgets higher across the island.
In response, many new projects launched at higher price points. However, buyer demand did not accelerate at the same pace. Decision cycles lengthened, price sensitivity increased, and value differentiation became more important.
Despite these changes, development momentum largely continued. Land acquisitions at higher prices and ongoing construction meant new supply kept entering the market even as demand became more selective.
Supply growth outpaces demand momentum
One of the defining characteristics of the current cycle is the divergence between supply growth and demand velocity. While demand remains present, buyers in 2025 and into 2026 are taking longer to commit and are more focused on fundamentals.
At the same time, the number of active developments remains elevated compared with pre-pandemic levels. This has reduced urgency in certain segments and placed greater emphasis on realistic pricing, product quality, and long-term usability.
The equilibrium that emerged in the immediate post-Covid period has gradually been stretched, not by falling demand, but by rising prices combined with sustained supply expansion.
What normalisation looks like in 2026
As Phuket enters 2026, the market shows signs of settling into a more measured rhythm. Buyers are informed, selective, and less influenced by short-term momentum.
Well-located and differentiated properties continue to perform, while generic or price-led offerings face greater resistance. Resale activity has become more visible, and negotiation has returned as a normal part of transactions.
This phase reflects a healthier and more sustainable market environment, where pricing realism and long-term fundamentals matter more than urgency.
Phuket’s property market has not lost its appeal. Instead, it is transitioning into a more disciplined cycle following several years of rapid expansion, shaped by the realities of cost pressures, supply growth, and evolving buyer behaviour.
