By Phuket News Property Editorial Team · January 7, 2026
Phuket’s property market has always been closely tied to tourism, even when that connection is not immediately visible. Visitor numbers, travel patterns, and regional competition all influence confidence, rental demand, and buyer behaviour in ways that often surface months before they appear in transaction data.
Recent tourism signals suggest that the market is entering a more selective phase.
Tourism and property have always moved together
For decades, Phuket’s growth has been underpinned by tourism. Holidaymakers become renters, renters become buyers, and repeat visitors form the backbone of long-term demand. This relationship has shaped everything from development patterns to pricing expectations.
When tourism accelerates, property activity tends to follow. When tourism softens, property markets rarely collapse, but they do slow, recalibrate, and become more cautious.
That process appears to be underway.
Signs of hesitation during peak season
While Thailand continues to attract large numbers of visitors overall, several indicators suggest that momentum has softened compared with previous years. Industry reports point to revised national arrival forecasts and weaker-than-expected performance in certain segments.
In Phuket, villa rental operators have reported noticeably slower bookings for January compared with the same period last year. Because January is traditionally one of the island’s strongest months, this change is being closely watched by those connected to the property sector.
Peak season hesitation tends to affect sentiment before it affects pricing.
Regional competition is intensifying
One factor increasingly shaping travel flows is the rapid growth of tourism in neighbouring countries. Vietnam, in particular, has emerged as one of Southeast Asia’s fastest-growing tourism markets.
In 2000, Vietnam welcomed just over two million international visitors. By 2019, that figure had risen to around 18 million. In 2025, international arrivals are on track to exceed 19 million, representing growth of more than 20 percent year on year and surpassing pre-pandemic levels.
Beach destinations such as Phu Quoc Island, Nha Trang, and the Da Nang and Hoi An coastline are now competing directly with established regional resort markets. More competitive hotel pricing, expanding air connectivity, and simplified visa access have increased Vietnam’s appeal to cost-conscious and experience-driven travellers.
Importantly, some of this growth reflects travellers who might previously have chosen Thailand and Phuket during the strong pre-Covid expansion years.
What this means for property demand
Shifts in tourism do not immediately translate into falling property prices. Phuket’s market is diverse and supported by lifestyle buyers, long-term residents, and repeat visitors. However, changing travel patterns can influence where demand concentrates and how buyers assess value.
Properties and locations that depend heavily on short-term rental demand tend to feel these changes first. Areas that attract long-term residents and owners focused on liveability rather than yield tend to remain more stable.
As tourism becomes more competitive regionally, property buyers are increasingly distinguishing between lifestyle-led purchases and those reliant on sustained visitor growth.
A more selective phase for the market
Rather than signalling weakness, the current environment may reflect a period of adjustment. Slower tourism growth encourages more realistic pricing, measured development activity, and a clearer separation between speculative and long-term demand.
For buyers, this can bring greater choice and less urgency. For sellers and developers, it places greater emphasis on location, quality, and suitability rather than assumptions of perpetual growth.
Looking ahead
Phuket’s property market remains fundamentally linked to tourism, but that relationship is evolving. As regional competition increases and travel patterns shift, confidence will be shaped less by headline visitor numbers and more by the quality and consistency of demand.
Understanding these dynamics is becoming increasingly important for anyone assessing Phuket’s property market in 2026 and beyond.
