Why buy property or invest in Thailand's real estate market
Thailand has guaranteed sunshine and perfect weather most of the year, some of the best food in Asia if not the world and world-renowned beaches, Thailand continues to enter the sights of savvy real estate investors looking for new opportunities away from the traditional European and Caribbean markets.
Thailand's real estate market is incredibly diverse, offering buyers everything from high-end villas in Phuket overlooking the Andaman Sea to luxury high-rise condominiums in the playground of Bangkok executives – Pattaya. Also rising in popularity among investors is the Gulf of Thailand-based island of Koh Samui and Koh Phangan fast becoming a preferred destination for those seeking holiday homes as its infrastructure develops and word of its natural beauty spreads. Bangkok, meanwhile, remains a key investment location for regional and expatriate executives, drawn to the city's affordable market that offers much better value when compared to markets in other Asian capitals, such as Singapore or Hong Kong.
Major property investment regions
Pattaya, Phuket, Bangkok, Koh Samui (Property Report)
Rental returns With the current rate of Exchange for the Thai Baht giving European buyer in particular more room for investment, and the resurgent Thai economy and tourist markets, buying a property in Thailand is certainly an option worth considering. Good quality rental properties are currently enjoying 10% to 12% returns. In 2007 The Finance Ministry is considering regulating the brokerage business to protect consumers and raise their confidence in the quality of resale homes coupled with the high standards of construction quality and property management services the market is very attractive.
Tourist industry The Tourism Authority of Thailand (TAT) is repositioning the country's image from cheap to high-end and expects to reach a annual target of 14.8 million arrivals by 2007
TAT has been repositioning Thailand from a low-price destination to the upper level. In fact they have stated it does not concern them regarding growth in numbers but rather TAT is focusing on the quality of visitors to the Kingdom. Of course this has also directly influenced Thailand's real estate market. With some of the most high end and exclusive properties to be found in Asia in resort destination such as Phuket and Koh Samui. (Property Report)
 
Resale Market
October 2007 According to the Real Estate Information Centre, 90,000 people visited the resale home fair, most of them looking for existing homes in the Bangkok districts of Phra Khanong, Lat Phrao and Bang Kapi.
Sales of townhouses represented 35 per cent of sales at the fair.
The real estate information centre at the fair took 47,877 enquiries, 32 per cent of which were for single family homes priced between Bt1 million and Bt2 million. Searches for townhouses priced under Bt1 million made up 31 per cent and those for condominiums going for under Bt1 million were 12 per cent. Only 7 per cent looked for land.
Almost half of visitors said they planned to buy a resale home in the first half of next year. (The Nation)
condominium market Property experts believe foreign buyers will snap up a significant chunk of the Bt 40 billion worth of new condominiums completed or coming on the market in resort destinations. Raimon Land said condominiums sold last year in Pattaya, Phuket, Hua Hin and Samui were worth Bt 15.8 billion - an almost 40 per cent increase on 2005.
In comparison, Bangkok developments recorded Bt 42.5 billion in sales. Foreigners are expected to take sizeable share of new condominium market. Property experts believe foreign buyers will snap up a significant chunk of the Bt 40 billion worth of new condominiums completed or coming on the market in resort destinations.In terms of value, resort destinations accounted for 27 percent of condominiums sold in Thailand in 2006.Property developers are planning even more accommodation at popular beach resorts.
Condominiums are the most popular option for foreigners, because of ownership laws and shared maintenance and security expenses.With total sales of Bt 6.9 billion last year, Pattaya accounted for 44 per cent of total property sales.
As at December 2006 the average Pattaya per-square-metre price was up 29 per cent compared with the same period in 2005.
Phuket represented 38 per cent of sales of resort condominiums last year at Bt6 billion. Most were northwest-coast buildings at Mai Khao, Bang Tao and Surin beaches. Projects located in south Phuket near Kata and Karon beaches and on the east coast accounted for 25 per cent of 2006 sales.
Most Phuket properties offer sea views and beach access but only a few are beachfront. As at December, the average selling price in Phuket was up 59.3 per cent from the previous year - a strong rebound by the post-tsunami market.
With sales of Bt 2.2 billion last year, Hua Hin makes up 14 per cent of the resort condominium market.
There is limited new supply but buyers like the lower average prices. Sales forerunners include beachfront developments all by developers with a good track record in Hua Hin. The average per-square-metre price as at December 2006 was Bt 62,990 - up 16.9 per cent from 2005.
Samui accounts for just 4 percent of the total market although this is expected to rise as more condominiums become available.
There are five projects for sale now with an average price of Bt 88,670 per square metre as at December 2006.
Sales in Phuket and Hua Hin this year are driven by the supply of completed units, which allow buyers to move in quickly with a guarantee of construction quality, while Pattaya sales are mostly off-plan.
As at December 2006, 4,129 of 6,595 units coming on the market since 2003 have been sold, according to their developers.
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