As a renowned tourist destination in Thailand, Phuket has witnessed an explosive growth trend in its real estate market in recent years. However, behind this prosperity lie numerous potential risks and challenges that have garnered widespread attention from the industry.

Firstly, the rapid growth of the Phuket real estate market has led to soaring property prices, with some high-end villas reaching astronomical prices. Last year, a beachfront villa in Kamala was sold for a record-breaking 180 million baht, highlighting the overheated market. Particularly in popular areas like Kata and Bang Tao, prices of luxury apartments and pool villas have surged, with many villas selling for over 30 million baht. Foreign investors, especially from Russia and China, have been drawn to Phuket's natural beauty, high rental returns, and Thailand's lenient visa policies, investing heavily in the area.

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However, behind the market boom lurk many risks. Firstly, the sluggish property market in Bangkok has sounded the alarm for the Thai real estate market as a whole. As a barometer of the national real estate market, apartment prices in Bangkok have fallen by 22% over the past year, which may indicate a cooling period for the entire Thai real estate market, with Phuket potentially following suit. Secondly, Thailand's high household debt, which accounts for 88% of GDP, has left many Thais lacking the purchasing power to compete with foreign investors, potentially limiting future domestic demand.

Moreover, Phuket's infrastructure construction faces significant challenges. Existing infrastructure is struggling to cope with the current population pressure, let alone the rapid expansion of the real estate market. Issues such as water scarcity and strained transportation systems are potential crises that urgently need to be addressed. Additionally, developers borrowing in US dollars for construction face increased repayment pressure due to the depreciation of the Thai baht. Whether sales targets for new development projects can be achieved has also become a focus of market attention. Some developers may resort to price reductions to meet annual return commitments to buyers, potentially triggering vicious market competition.

Despite these challenges, some experts remain optimistic about the outlook for Phuket's real estate market. They believe that with the strong recovery of the tourism industry and the Thai government's large-scale infrastructure upgrade plans for the island, the fundamentals of Phuket's property market remain solid. Senior real estate consultant Natalia Pashkova stated that with the expected growth in tourism revenue, the long-term prospects for Phuket's real estate market remain positive.