Is it Time for Developers to Rethink Their Current Model Ahead of Upcoming Rule Tightening?

Phuket’s real estate market has always thrived on its ability to evolve. Over the decades, the island has shifted from a sleepy retreat to a global lifestyle destination, attracting investors, retirees and digital nomads from every corner of the world. Today, however, the property sector finds itself at another turning point. 

While demand remains strong, the models used by developers in the past may not be enough for the future. A new generation of buyers is looking for something more: confidence, flexibility and long-term security. The question is whether developers will adapt quickly enough to capture this demand.

A Market Still Powered by Foreign Demand

Foreigners remain the lifeblood of Phuket’s property market. Villas with pools and private gardens continue to be in high demand, particularly in the island’s southern and western coastal areas. But while the appetite is there, so too is a growing awareness among buyers that the structures of yesterday may not provide the security they seek tomorrow. 

For years, international buyers accepted workarounds, lease agreements or company ownership models, that provided access to land but didn’t always deliver peace of mind. Increasingly, however, this approach no longer matches expectations. Today’s buyers are more informed, more cautious and more interested in ownership models that feel safe, transparent and future-proof.

The Changing Profile of Phuket Buyers

It is no longer just short-term investors looking to park money in a holiday villa. Phuket now attracts a diverse group of foreigners: retirees searching for a permanent home with healthcare and lifestyle amenities, families prioritising international schools and safe communities and digital nomads seeking homes that combine privacy, space and high-speed connectivity. 

This diversification of demand means developers need to think more broadly. The old one-size-fits-all model of luxury villas aimed at a narrow investor base is giving way to a wider audience with more varied expectations.

Why Rethinking the Model Matters

At the heart of the discussion is ownership confidence. Buyers want to feel that their investment is safe, transferable and legally clear. Leasehold, while still a legitimate option with good legal structuring, often falls short of providing that sense of pride and permanence. 

This creates both a challenge and an opportunity for developers. Those who continue building in the same way may struggle to persuade buyers to commit. Those who innovate, on the other hand, can create products that comply with regulations while exciting buyers with a blend of lifestyle and security.

The Villa-Condo Hybrid: A Path Forward

One of the most promising solutions lies in adapting the Condominium Act to villa living. Traditionally, foreign freehold condos in Phuket have meant apartment blocks. But the law allows significant flexibility, enabling developers to design villa-style condominiums that give buyers the space and privacy they crave while offering the security of freehold ownership.

Imagine a gated, landscaped estate with all the hallmarks of a luxury villa project, private pools, walled gardens and generous outdoor living areas – but legally structured as a condominium. Each unit is part of a registered condominium, making it eligible for foreign freehold ownership within the allowable quota. 

Phuket has already seen glimpses of this concept. A handful of luxury hillside projects have incorporated terraced designs with private pools, and in some cases even small lawns, by stepping units down the slope. These developments prove that blending villa features into a condominium structure is entirely possible. What has been missing is the ambition to take the idea further: to create expansive villa-condos on larger, flatter sites, each with full-size pools, generous gardens, and even engineered lawns on sky terraces. With the right engineering, waterproofing, drainage and lightweight soil systems, lush gardens and private lawns can be elevated into the sky, giving owners the true villa lifestyle within the secure framework of a condominium. 

Tiered or pyramid-style designs add further potential, where multi-level residences sit on different tiers of the same project. Each home retains privacy, while the top tier might feature a signature penthouse with larger grounds and panoramic views. 

For buyers, this approach ticks every box: lifestyle, security, and long-term value. For developers, it ensures compliance while opening the door to a fresh segment of the market.