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Buyer interest in Thailand luxury homes to continue

By Shabnam Muzammil:Despite last year's floods, Thailand's property market remains resilient, with Bangkok recording a growth of 9.4 percent last year, while demand for Phuket's luxury properties climbed 4.7 percent. In particular, condominiums in Bangkok proved a hit with buyers. Knight Frank's Prime International Residential Index revealed that 16,810 of the 27,084 condo units launched in 1H2012 were sold, translating to a take-up rate of 62.07 percent.As demand increased, so did condo prices which moved up 3.5 percent by end-2012. Knight Frank noted that this trend is expected to continue due to more condos being released in the market. Property developer Beach Projects also attributed the strong interest to rising tourism. Last year alone, Thailand saw some 22 million tourists, with Phuket emerging as the top destination.

"Tourists quickly convert to property investors as they fall in love with the year-round 30 degree sunshine and legendary scenery," said Roy Hanif, a partner in Beach Projects.

"Also living costs are a third of those in Europe and HSBC ranks Thailand number two in its Expat Explorer Survey, especially praising its quality of life. Whilst capital appreciation is currently minimal on land and villas, according to the Bank of Thailand condos have increased on average in value by ten percent over the past five years, so the investment potential is massive." Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@allproperty.com.sg Related Stories:China property bubble will burst in 2013: analystIskandar property prices may surpass Klang ValleyNew London project launching in town

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