By Phuket News Property Editorial Team · January 13, 2026
Reports of a slowing property market across Thailand have become more frequent in recent months. National data points to softer residential demand, tighter credit conditions, and declining transfer volumes in several key urban centres.
However, Phuket’s property market operates under a very different set of conditions, and those differences matter.
A national slowdown with regional contrasts
Across much of Thailand, residential property activity is closely tied to domestic borrowing. High household debt levels, stricter lending criteria, and reduced purchasing power have combined to slow transactions, particularly in markets where buyers rely heavily on mortgages.
Bangkok, in particular, has felt the effects. New condominium supply, longer sales cycles, and cautious domestic buyers have shaped a more subdued market environment.
This national picture, however, does not fully reflect what is happening in Phuket.
A foreign-driven, cash-based market
Phuket’s west coast property market is structurally different from most of Thailand. A significant proportion of buyers are foreign nationals, and foreign buyers do not access local mortgage finance in Thailand.
As a result, much of Phuket’s market, especially villas and higher-value residential property, functions primarily as a cash market.
This distinction is crucial. When borrowing conditions tighten nationally, Phuket is less exposed than markets dependent on domestic credit. Buyer behaviour may become more selective, but purchasing power itself is not constrained in the same way.
More comparable to island markets than urban centres
In this respect, Phuket is closer in character to other resort-driven markets such as Koh Samui than it is to Bangkok. Demand is influenced by lifestyle choices, long-term residency plans, and international capital flows rather than interest rates and loan approvals.
That does not make Phuket immune to broader economic cycles, but it does change how those cycles are felt.
Rather than sudden stops, the market tends to experience slower decision-making, longer due diligence periods, and greater emphasis on quality and location.
Selectivity rather than contraction
Current conditions suggest that Phuket’s property market is entering a more selective phase rather than a period of outright decline. Buyers remain active, but they are taking more time, asking more questions, and comparing options more carefully.
Properties that are realistically priced, well-located, and aligned with long-term living continue to attract interest. Those reliant on optimistic assumptions or short-term momentum are facing longer selling periods.
This filtering process is typical in maturing resort markets.
Why national headlines can be misleading
National property headlines often aggregate data from markets that behave very differently. Applying the same conclusions to Phuket without recognising its unique structure can lead to misunderstanding.
Phuket is not driven by mass domestic borrowing, nor is it reliant on rapid turnover of entry-level housing. Its core demand is international, lifestyle-led, and often long-term in outlook.
That difference does not guarantee perpetual growth, but it does provide resilience.
A market adjusting, not retreating
Phuket’s property market has weathered multiple cycles over the past two decades. Periods of adjustment have often resulted in healthier pricing discipline, more considered development, and stronger alignment between supply and genuine demand.
In the current environment, the island appears to be adjusting rather than retreating.
For buyers and observers, the key is to understand the distinction between national trends and local realities. Phuket’s market does not move in isolation, but it does not move in lockstep with the rest of Thailand either.
