Increasing supply and higher selling prices will be the key drivers, while demand is forecast to improve slightly. The number of launches in Phuket is predicted to mount continuously and Thai developers as well as joint venture developments will be key players in the market.

According to research, demand across the market will continue to be driven by international homebuyers, investors and expatriates, especially those from China, Russia and Australia.

“Besides, the expectation to see a larger portion of buyers from South Korea. Average asking prices per sqm are anticipated to rise in all areas, while increasing demand for luxury condominiums may see prices approaching a new high in 2018, especially properties by the sea,” Knight Frank said.

It said one factor that is expected to significantly help boost the property market in Phuket is the Smart City project that aims to develop the province and to set the city up as the hub of the digital industry. The project is due to be completed in 2020.