Why buy Thailand property, and why buy now

PropertyGuru

31 October 2014 at 1:30 am

If any property buyers and investors felt prices would decline as a direct result of Mays coup and on-going martial law in Thailand, they would have been very much mistaken. Seasoned investors who know Thailand well will also know this is the way things tend of happen in the Land of Smiles, and the fact is that property demand more than 95 percent of which comes from Thais remains largely unaffected. Without doubt what is affected is the demand from overseas buyers who read newspaper headlines and see television coverage that exaggerates the situation. Thats exactly when the wait-and-see option comes into play. Singaporeans, being just a two-hour flight from the Thai capital, are close enough to see for themselves that tourists and investors have never been a target. Indeed Thais have gone out of their way to welcome them and portray the business as usual mantra. And thats what has happened. Its been very much business as usual, certainly in Bangkok, where listed property developers who had previously adopted a cautious approach to new launches, have now announced plans for more than 120 residential property launches before the end of the year. That doesnt sound much like a country with problems, does it? Evidence of strong demand is everywhere. Just last month queues formed overnight at the pre-sales launch of one central Bangkok condominium, and the project was subsequently sold out within hours. The same weekend more than 1,000 units were sold at another development some eight miles from the city, but adjacent to a mass transit station highlighting the importance of location when buying in Thailand. Most of those sales come from Thais, but savvy foreigners are active and purchased the entire foreign allocation of units at one Bangkok condominium in less than two hours earlier this month. That wait-and-see mentality has already disappeared. More overseas investors and buyers are looking beyond Bangkok for their Thailand property purchase. The resort markets of Pattaya, Phuket, Krabi and Hua Hin have all been attracting significantly more interest than even six months ago. Pattaya, in particular, is predicted to pick-up significantly on the back of several world-class theme parks which are being developed between now and 2016. Prices have continued to rise, and all the evidence points to the fact that they will continue to rise going forward. If you take central Bangkok as one example, there is very little land available so whats there is expensive, and any development that takes place there will also, naturally, be more expensive. Thailand is also trying to position itself at the heart of the ASEAN Economic Community 2015 (AEC 2015), and that alone will see the need for more expatriate-standard properties for the rental market. Whats notable is a shift in Bangkok buying patterns. Whereas a few years ago foreigners would largely stop their search at Asoke, now were seeing far more activity from non-Thais much further away from the centre of the city in conjunction with the spread of the mass transit network. Its not uncommon now to see foreigners buying in places like Bearing and Bang Wa two terminal stations where prices are significantly less expensive but are still just a 45-minute commute to the central business district. Thailand is also home to some of Southeast Asias best properties. At the recent Southeast Asia Property Awards that took place in Bangkok, Thailand scooped three of the top five Best in Region awards, and numerous highly commended accolades. Thats even more evidence that Thailand is booming and now is the time to fully explore what the kingdom has to offer by way of adding to your overseas property portfolio. Highlights of the Thailand Property Show 2014November 1 - 2, Orchard Hotel, Singapore One of Bangkoks best luxury condominiums will be exhibiting at the forthcoming Thailand Property Show in the form of Magnolias Ratchadamri Boulevard which won the accolades of Best Residential Architectural Design and Best Residential Interior Design, as well as being Highly Commended in the Best Luxury Condo (Bangkok) category at last months 2014 Thailand Property Awards. The 54-storey development and its 316 private residences are expected to be completed at the end of next year, with prices for one- and two-bedroom units at what is considered to be one of the last prime development sites in the centre of Bangkok, starting from THB220,000 per sqm. Woraluk Property will be showcasing its Le Luk Condominium and Sky Walk Condominium, both of which are freehold properties on Bangkoks Sukhumvit and are ready-to-move-in. Prices will start from S$225,022 and the developer is offering six percent rental returns for two-years, subject to conditions. Prolific listed developer Sansiri, which has been extremely successful selling its Bangkok properties, will be exhibiting three Phuket projects The Base Uptown, The Base Downtown and dCondo at the Thailand Property Show. With tourist numbers expected to boom on the island, properties here can benefit from strong rental demand, capital appreciation or a decent place for a family holiday home. Prices will start from S$80,000 upwards. From the north of Thailand, and Chiang Mai recently voted the fourth best place in the world to retire comes The Astra from North Home. This is the only luxury property development in prime downtown Chiang Mai, Thailands second city that has been seeing rising demand in recent years from Chinese, Japanese and other foreign investors. The freehold 17-floor project on Chang Klan Road is also offering both five percent guarantees for three years as well as 10 percent discount exclusively for the show. Interested investors will also be able to learn more about a Fly to Thailand to check out the showroom for free promotion. Prices start from THB2.77 million. Savannah Sands from Universal Property in Pattaya is a resort-style condo that has been inspired by the wild open spaces of the African plains. It benefits from the prime location on Jomtien beach, and next months opening of the Cartoon Network Water Park is widely expected to drive both tourism and property demand. Amari Residences at Amari Phuket offers a different form of property ownership to Thailand investors. Located on the west coast of the island, the hotel-branded investment offers six percent guarantee yields for three years, subject to conditions. The project is managed by the vastly experienced Onyx Hospitality Group. Prices will start from S$319,000 upwards. Image: The interior of The Base Uptown in Phuket, being showcased by Sansiri.Andrew Batt, International Group Editor ofPropertyGuru Group, wrote this story. To contact him about this or other stories emailandrew@propertyguru.com.sg