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Whats affecting the Thai Property Market?
There are many people asking the question why has after a step and prolonged rise in the Bangkok property market are prices slowing? There are a number of factors, usually these are attributed to rise in interest rates or slowing of the economy but in the case of foreign buyers these factors hardly contribute to their purchases. In September 2006 the Thai military staged a popular coup to depose the popular but corrupt Prime Minister Mr.Thaksin.
‘The coup caused little stir in Bangkok’s popular tourist districts, where foreigners packed beer bars and cabarets just a few miles from where the tanks were posted’, AP reported
Many thought this would have an effect on foreigners buying property in Thailand but the opposite occurred more deals went through. However many thought the draconian visa rules would be relaxed but they were not, ‘The Thai government on Friday announced new visa regulations for tourists limiting the foreign visitors to a maximum stay of 90 days each every six months in order to ease social problems and crime in the country.MCOP reported. This contributed to buyers lessening but not by much. There were also changes made to the company formation where rules were enforced that made buying a house or land under a Thai company, this shook the popular costal resort market greatly. Another event that caused major confusion was the central bank imposed a 30% rule due to capital inflows that meant you had to park this percentage of your funds with the bank for one year.
The Thai government could install confidence again by offering longer lease to foreigners buying land/house as suggested by various chamber of commerce’s, to increase options for visa status of property owners and of course to institute a new democratically elected government.
Atricle by Chris Heath, Soho Properties.
http://www.soho-properties.com
Thailand, one of the most prosperous countries in Southeast Asia, is currently among the top destinations for foreign investors. The metropolis of Bangkok is probably the city with the fastest evolving real estate market in the country. The unique combination of the ancient and modern worlds makes Bangkok attract a large number of tourists as well as investors every year. With a thriving economy and solid infrastructure, the demand on Bangkok development property is constantly rising. Forbest Properties has been a Thailand real estate broker and consultant since 1990, having accumulated a great deal of experience in Thai real estate. The company is dedicated to assisting its clients in locating prime Bangkok investment property.
The number of foreign investors in search of Bangkok development property has dramatically increased over the past few years. The explanation of this unprecedented wave of investors is quite simple – the city of Bangkok has solid growth potential, providing a practically unlimited number of business opportunities. Recent studies conducted by the Thailand Board of Investment reveal that Thailand boasts the largest growth market anywhere in Asia. Furthermore, the country has excellent infrastructure and strong business ties with China. Investors are also drawn to the reasonably priced properties in Bangkok and the good rental potential. One of the main goals of Forbest Properties is helping investors acquire the best Bangkok investment property.
Foreign investors are drawn to Thailand not only because of its growth potential but because of the country’s tax policies as well. Unlike most western countries, Thailand doesn’t have inheritance or gift taxes. Furthermore, the capital gains tax is charged as the income tax, at the standard rates. Rental policies are also advantageous, as the yields are maintained around the 8% mark in Bangkok. Foreigners can also own freehold condominium if the purchase is done in cash and the building does not exceed 49% of the foreign ownership ratio. Forbest Properties has been in the real estate business for over 17 years – it is the most indicated real estate brokerage firm to aid investors in locating Bangkok investment property.
Investments in foreign real estate must be done with great diligence and the support of an experience real estate broker and consultant. Forbest Properties, the leading real estate broker and consultant in Bangkok, is the most experienced firm in Thailand. With over 17 years of experience in the Thai real estate market, the company has extensive knowledge on every aspect of the market. Forbest Properties is dedicated to assisting foreign and local investors in any real estate transaction. The company supports investments in Bangkok, assisting investors in purchasing prime Bangkok development property.
Potential investors who are looking for Asian property with high development potential will probably choose Bangkok. The Thai metropolis is predicted to become one of the most economically evolved cities in Asia in the next 5 to 10 years. Bangkok investment property in the Central Business Area is currently the main attraction for foreign investors. Forbest Properties is the real estate broker and consultant with the most experience in the Bangkok market. The company offers assistance every step of the transaction, supporting investors in locating Bangkok development property.
City of Angels
Bangkok, also known as Krung Thep which literally means the City of Angels, is located west of the Chao Praya river and now boasts some of the finest examples of modern architecture in the South East Asia region if not the world today. With its new-age skyscrapers, it is currently ranked 17th in the list of the world’s tallest city.
Infrastructural development throughout the capital and indeed the rest of Thailand over the past twenty years has helped Bangkok emerge as one of the most important commercial hubs in Asia. Its new rapid transport systems and the development of high speed global communication networks is now attracting more businesses and more industries, which, from an investor’s point of view has made Bangkok a highly attractive investment port.
See for yourself
If you take public transport or even drive just about anywhere in and around Bangkok, it won’t take long for you to come across new housing and land developments for sale. Convenient access to and from the city via its elevated trains and expressways has surely lead to the influx of new companies and businesses. Not to mention new residents-which have fuelled high growth rates- and in turn spurred land price rises that currently range from a few thousand Baht per square wa, to some of the highest land prices in the Silom Road area which recently topped a massive 655,000 Baht per square wa. (1 square wa is equivalent to 4 square meters). With these increases which have all occurred within the last decade or so, how can anyone resist such an investment opportunity?
Safe, secure and profitable
Having said all that of course, you should also be seeking the best advice possible when investing in properties or land in Thailand. Moreover, current laws and other bureaucracy that restricts the flow of some direct investment into the Thai property market may also create an uphill task. But nowadays with the aid of the reputable lawyers and property consultants available such as Forbest Properties based in Bangkok, you can now obtain a virtual new key to the city which can present you with numerous choices and the opportunity to join the Bangkok property ladder in a simple, safe, secure and profitable method.
Abundant choices
Are you or your business in search of some of the larger properties or land that is currently available, i.e. land acquisitions for industrial site and commercial purposes? Or are you interested in investments in high end modern high rise condominiums, which boast stunning views of the city. Forbest Properties have much to offer in the way of choices. Land or properties for sale may be found anywhere within the fifty districts which make up the divisions of the city. To name just a few of its most important central business areas; Pra Nakong, Silom, Sathon, Bangrak, Pinklao, Phra Ram 2, New CBD and the Phra Ram 3 Financial Centre not to mention MTT are all part of the intrinsically balanced structure which create a unique blend of new-age modernization and ongoing urban development in the capital.
City of Angels-Thailand or LA?
Whenever the name City of Angels is mentioned, most people especially from the west would automatically assume we are talking about Los Angeles in the USA. However, Bangkok or “KrugThep” also has the literal translation of the “City of Angels” and hence is named so. But apart from the high rise properties and skyscrapers, this is where the similarity ends. Bangkok-The City of Angels, located west of the Chao Praya River in Thailand, has a population of approximately 8 million, and with some of the finest examples of modern architecture in the world today, boasts class status and ranks seventeenth in the world’s tallest city.
Goodbye Old-Hello New
The development of infrastructure throughout the city is second to none and has helped Bangkok clear the path to enable its emergence as one of the most dynamic commercial hubs in Asia. A new rapid transport system which includes the ultra-high tech Skytrain has been developed. A new state- of-the-art international airport was also completed last year along with upgrades to high speed global telecommunications and communication networks serving Thailand and the world proudly. A sure reason why investors are starting to raise their eyebrows once again.
Window Shop
Take the Skytrain, the bus or drive around Bangkok and see new development in land and housing created by the influx of new willing investors. Convenience and access is another factor lying behind the interest. Not only amongst business people, but also among private investors. These in turn have lead to the fuelling of high growth rates spurring land price rises from such tiny proportions just a few decades ago, to a fantastic three fold or more in some areas today. With statistics like these, can anyone resist the investment opportunities?
Parts of the city
Although land or properties for sale can be found in just about any one of the fifty districts of Bangkok,
some of its most prestigious names can be found among the likes of MTT,Pra Nakon, Silom, Sathon, Bangrak, Pinklao, Phra Ram 2, New CBD and the Phra Ram 3 Financial Centre. Here as with many other districts contain sales for land acquisitions and include an extensive range of other properties such as high-end sky rise condos with their gorgeous skyline views and other general properties for sale. Whether it be a personal venture or a business venture, or whether it be land or land with properties. Be sure to list your goals and do some homework before climbing the Bangkok property ladder.
Safety before profits
I’d like to say that the days have gone when you could lose fortunes investing in property and land sale scams. It still goes on and they still exist. Which is why, when it comes to “your money”-seeking the most prolific advice possible is an absolute essential! Moreover, like it is anywhere else, it’s sometimes tough dealing with the bureaucracy and the red tape that goes with buying and selling property and land-especially in a foreign language. Companies like Forbest properties based in Bangkok can help you clear these hurdles. They are professionals who know the business inside and out and can help you with all your needs.
Most people want to go to a place where the weather is nice and the prices are opportune. Bangkok is the ideal place for those of you who want to get away from the stress at work, for retired people and even for businesspersons. A property in Bangkok has more than reasonable prices, when compared against prices regular in London, New York and other cities.
If you are interested in such a property, which is not only at a convenient price, but also has its location in a magnificent area, a professional Bangkok real estate agent will offer you all the information needed. An expert agent will know what recommendations to offer you in order to take care that, by renting or investing in a property in Bangkok, you will make a good deal.
Since living costs in Western and European countries are much higher when compared to Bangkok, most people realize that, with a decent amount of money, they could buy a luxurious property in Bangkok. A specialized Bangkok real estate agent will tell you that whether you wish to move permanently in Bangkok or whether you are here just for your holiday and you wish to invest in a property in Bangkok, you should not think twice about it, since it will turn out to be a profitable business.
Thailand continues to draw more and more people from all over the world due to its pleasant climate, accessible prices and interesting attractions. Bangkok is a multicultural town, which provides several attractions that are worth seeing. If you happen to visit Bangkok, do not forget to visit Lumpini Park. The park is located in the center of the city and park received its name after Buddha’s birthplace in Nepal. It is easily accessible from the Silom Subway Station.
Another place definitely worth visiting is the Grand Palace in Bangkok. This amazing palace complex was built in 1782 and it is comprised of several interesting buildings. The Temple of Dawn is an architectural building and one of the most photographed temples in Bangkok. Foreigners can also try Thai cuisine, which can be very tasty and full of flavor. One of the most interesting activities in Bangkok is the elephant show.
Undoubtedly, a specialized Bangkok real estate agent will tell you that there are plenty of things to do and see in Bangkok and that people coming here never get bored. Why should you not invest some of your money in a profitable business, in a property in Bangkok situated in a wonderful location? As one of the world’s leading tourist destinations, Thailand represents the ideal place for investment.
In addition to numerous modern buildings, in Bangkok there are about four hundred Thai temples that one cannot miss during there staying in Thailand. In Thailand, traditions always mix with modernism and nowhere in the world will you find tradition and development as close to each other as you will find them here. The modern infrastructure, the wealth of natural resources, and the convenient prices make Thailand the ideal destination for people all over the world. With adequate recommendations from a specialized Bangkok real estate agent, you will find out information about the properties that are worth investing in and about the best manners of increasing your profit.
It is never easy to invest money properly but the best way is to invest in real estate. If you want to invest your money in foreign then Bangkok is the best option. You can easily buy Bangkok condos as you can’t buy land in Bangkok. Purchasing Bangkok condo will be a great deal and it will be called a home from home. There are so many developers who are selling and leasing out Bangkok condos so you have lot options to select. Today all developers are creating Bangkok condos for upper class range so investing in condos will be a great deal for discriminating buyer.
Bangkok government has restricted on purchasing land so you can also invest your money in Bangkok apartment. If you don’t want to invest in condos then Bangkok apartment is also a great option. Today real estate is only that field which has a great potential to provide you great profit in short time. For this particular reason Bangkok real estate investment is increased.
So many complexes are available to select for Bangkok real estate investment. You can find various amenities like swimming pool, gardens, shopping complex, parking arrangements and much more. All the complexes have unique construction space so you have to choose the suitable Bangkok condos for you and your family. You can make comparison between two complexes and can choose the right one for you. Investment in Bangkok real estate will be truly fruitful for you as Bangkok is offering rich life style.
Bangkok is a great attraction for tourists also. The beauty of Bangkok is attracting people. So if you want to visit Bangkok for a small time period then you need to rent out Bangkok condo or Bangkok apartment. To stay in it will be more comfortable instead of hotels. You can also rent a Bangkok apartment or can rent Bangkok condo for a longer time. Bangkok serviced apartment offers the same comfort and services which you will find in high class hotels. You can have flexibility to book Bangkok serviced apartment for a single day or for twelve months. The main advantage of staying in Bangkok serviced apartment instead of Bangkok condos or Bangkok apartment is that it offers great room facilities and services. You will find fully equipped kitchen, dining room, living room as like your own home. So it will make you feel that you are at home away from home in Bangkok.
Bangkok, a rapidly growing metropolis, represents Thailand’s economical, cultural and diplomatic nucleus. With a population of approximately 7 million people and covering an area of 1,500 square kilometers, the sophisticated metropolis offers impressive investment opportunities. The Bangkok real estate market has flourished over the past few years, attracting thousands of foreign and local investors. Forbest Properties has been a leading real estate broker company for over 17 years, catering to the needs of real estate buyers and sellers in Bangkok. Our company offers an extensive array of real estate brokerage services, including Bangkok resale property suggestions.
Situated in the Southern Asian region, Thailand’s strategic position opens up a world of investment opportunities. The booming metropolis of Bangkok serves as a gateway to China, India and the countries of the Association of Southeast Asian Nations. With a highly developed infrastructure, Thailand has exceptional investment potential. The Bangkok real estate market is constantly attracting foreign investors as the city has recently been listed among the top twenty tourist destinations of the world. Forbest Properties has over 17 years of experience in Bangkok real estate, providing everything from Bangkok resale property deals to guidance from experienced property professionals.
Most foreign buyers are attracted to investing in Bangkok condominiums and vacation property. According to a survey conducted by the CBRE, a total stock of 48,128 condominium units was available in the first quarter of 2007. Approximately 21% are situated in the Central Business District area – Bangkok’s thriving economical hub. Holiday resorts and other vacation real estate is very sought after for investment purposes, especially in the ChiangMa and Phuket regions. The best way to go about investing in a Bangkok resale home or any other piece of Bangkok real estate is soliciting the aid of an expert in local real estate. Forbest Properties is among the first real estate brokerage companies in Thailand and is dedicated to assisting its clients throughout every phase of the real estate transaction process. With Thailand having a largely unregulated system of directives, a Forbest Properties Bangkok resale home expert is the most indicated person to help you make a successful transaction.
Founded in 1990, Forbest Properties is a well-established name in the Thai real estate brokerage market. The company acts as a broker and consultant for both real estate buyers and sellers. Bangkok resale home buyers will have access to extensive listings and remarkable property deals. As a buyer, you will also receive the advice of a professional consultant every step of this intricate process. Forbest Properties also caters to the needs of sellers, making sure their property is fully promoted to every possible buyer. Whether you are in search of Bangkok resale property, condominiums, villas or commercial real estate, Forbest Properties is prepared to meet your every need.
The thriving real estate market of Bangkok presents incredible investment opportunities. If you’re planning to purchase a Bangkok resale home as an investment you should look for specialized assistance. The key to making successful real estate transactions in Thailand is having a highly professional broker and consultant. With over 17 years of experience in the real estate market, Forbest Properties is the most accredited choice for any real estate transactions in Thailand, including finding Bangkok resale property.
The exotic country of Thailand has recently become the fastest developing nation in Southeast Asia. Thailand’s tourism opportunities are being strongly promoted on a global scale, attracting millions of visitors and investors every year. Although the country is not yet open to full foreign ownership of real estate, investors are completely aware of the incredible business opportunities Thailand has to offer. With the country’s booming economy, investors are more and more interested in finding Bangkok retail space for rent. Forbest Properties is the leading real estate brokerage firm in Bangkok, offering excellent deals on prime Bangkok income property.
A recent survey conducted by the Japan External Trade Organization has listed Thailand as the most optimal country for establishing a production or sales venture. The survey also revealed that Thailand will show great investment potential in the coming 5 to 10 years. The thriving metropolis of Bangkok represents an intelligent choice for those who wish to invest in Thailand. Bangkok has recently attracted a large number of foreign investors and has developed into one of Asia’s economic leaders. Forbest Properties is prepared to assist you in finding Bangkok retail space for rent and in conducting any real estate transactions. With over 17 years of experience in Bangkok real estate, Forbest Properties is the most indicated choice in providing real estate brokerage services.
Buyers and investors are clearly inclined towards the middle end of the Thai real estate market. The large number of newly launched units in the middle and low sections of the market are clear evidence of the segment’s investment potential. In the year 2005, 2688 new units emerged in downtown Bangkok while in 2006 the number skyrocketed to 7630 newly launched units. The increase of 184% per year and the 1367 units launched at the beginning of the year 2007 alone are a clear statement of the market’s unprecedented evolution. In the search for the best Bangkok income property, the assistance of Forbest Properties specialists is mandatory. Company experts will place their extensive experience in your service, helping you select the most adequate Bangkok retail space for rent.
Any real estate transaction in Thailand should be approached with the proper research and the assistance of a real estate broker. Forbest Properties has accumulated experience in the Bangkok real estate market for over 17 years. The company offers an extensive list of specialized services, including residential and commercial listings, a database of potential buyers, development projects and spaces for rent. A Forbest Property real estate consultant will make sure every stage of the transaction runs smoothly. The company is prepared to cater to the needs of investors looking for Bangkok income property, buyers, sellers and property developers.
The city of Bangkok is ideally located to host western businesses. With a population of over 7 million and a massive local economy, Bangkok is predicted to continue developing at an incredible rate. Many foreign investors are looking for Bangkok retail space for rent as it presents a great deal of promise in the current economy. Forbest Property, Bangkok’s leading real estate brokerage company, offers assistance in locating exceptional Bangkok income property.
Signs of a recovery in Asian Property values continues as record prices are achieved in the region. The sale of what is the most expensive priced property in the world on a per square metre basis recently took place in Hong Kong. A 5 bedroom 572 sqm condominium sold for the equivalent of THB 1.8 billion or more than THB 3.2 million per sqm, which when you consider that high end Luxury Condominiums in Phuket sell for THB 100,000-150,000 and similar Condominiums in Bangkok in the region of THB 200,000-400,000 it makes Thailand, Bangkok Property and Phuket Property especially, look seriously undervalued. While Singapore Property has returned to the high prices it was realising before the recession Thailand Property still remains undervalued. The route cause for this appear to be the uncertainty with which the rest of the world see as being the current governmental situation. Ongoing issues between pro-Taksin supporters, the red shirts, and their direct opposition, the yellow shirts, often gives outsiders the incorrect impression that there is a struggle for power taking place in Thailand that may and sometimes appears to be seen to degenerate into violence on the streets. This is highly exaggerated by the media and in fact to 99% of the population, Thais and ex-pats alike, there is no problem at all. Even so, this together with an ageing and seemingly frail King to whom the Thai people idolize leads people to show concern for Thailand’s future prosperity. History has proven on most occasions that these factors have very little bearing on real estate values but can have the affect of slowing the market recovery. This can be greatly advantageous to the prospective buyer who may be able to capitalize on this if he is prepared to not “follow the sheep”.
Without doubt Bangkok Property is the most undervalued capital in the world from a property value perspective, let alone South East Asia. A vibrant capital with great connections to the world, an industrious labour force, a cheap and efficient transport system, great restaurants and nightlife and friendly people. Prices of Bangkok Apartment which were considered undervalued at one sixth of similar properties in Hong Kong and Singapore are now at around one tenth of the value. Compare “The River”, an iconic twin tower condominium development on the banks of the Chao Phraya river in an unparalleled location positioned next to The Peninsular Hotel and directly opposite The Shangri-La and Oriental Hotels. A 1,000 sqm Penthouse in Bangkok on the 62nd floor recently sold for as little as 250,000 baht per sqm. Can it be realistic that this is one twelfth of the cost of the similar condominium in Hong Kong?
Property in Phuket is even more undervalued when one considers Phuket is considered to be amongst the Top Ten locations in the world in which to live. With its fabulous marinas and surrounding waters, magnificent golf courses, world class hospitals and schools, fantastic restaurants and nightlife, and an international airport increasingly being seen as the South East Asian hub for many regional airlines it is easy to see the attraction. Nevertheless property in Phuket continues to look cheap even by the standards of other tropical islands in the region that have traditionally always played second fiddle to Phuket,. Bali Property, for instance, has shown continual growth during the past 12 months even though its problems are historically far more significant than any problems Phuket Property may have faced. Sea view condominiums in Phuket range from about 80,000 to 150,000 per sqm depending upon proximity to the sea and view. A typical example would be a 210 sqm Apartment in Kata with magnificent views and direct walkway to the beach for as little as 19.5 million Baht or 92,850 baht per sqm.
Villas in Phuket range from pool villas in what may be an attractive development priced at about 50,000 baht per sqm, a typical example being Anchan Villas in Layan situated about one km from Layan Beach and within the proximity of the highly regarded Laguna community. The standard for this development is far better than one would expect for the price of about 13 million baht with many designer features. For those to whom a Budget is just something that takes place in the UK once a year there are many multi-million dollar Villa developments to look at. These include the Philip Stark designed Villas at Cape Yamu or the Gary Fell designed development, Istana in Nai Thon. Neither would leave the discerning owner wanting.
Phuket Property be it Phuket Condomiums or Phuket Villas offers fantastic value and endless pleasure to the fortunate buyer. There will be many who, in a relatively short time, will regret not having jumped in and bought now!
The condominium and industrial sectors were the best performers in the Bangkok property market in 2007. Medium priced condominiums continued to attract a new generation of purchasers in locations near mass transit stations. Luxury condominiums in the downtown area performed well with prices of newly launched projects increasing. Industrial properties were the other star performer, with 40% increase in land sales in the first nine months of 2007 and rental factories attaining high occupancy rates in 2007.
The office and retail markets were slow due to weak domestic demand. Bangkok hotels suffered lower-than-average occupancy rates. There was a 22.7% drop in the number of developer-built single-detached houses completed and a 15.7% drop in developer-built townhouses completed in the first six months of 2007.
The prospects for office property will principally rely on the economic prospects after the election and the new government’s policies. There is latent demand for houses in good locations shown by high sales rate for new projects launched this year. The completion of the final section of the outer ring road will provide new areas for future residential development. There will also be more housing projects along the Airport Rail Link, which is scheduled to be opened next year or early 2009.
Condominium prices in the downtown area will continue to rise next year. Prices of newly launched condominiums in mid-town locations will increase at a slower rate as end-users tend to choose newly completed condominiums rather than condominiums sold off-plan. The market for serviced apartments in downtown Bangkok will be competitive since there will be a number of new serviced apartments due for completion next year. The luxury hotel market in Bangkok will perform well next year if there are no more security issues in Bangkok. The market for industrial properties looks bright as the government’s eco-car policy has already started to spur transaction activities.
The housing market was weak with 7,054 developer-built single-detached houses completed in the first six months and 4,560 developer-built townhouses, representing 22.7% drop and 15.7% drop, respectively. The total new residential supply is expected to drop by about 20% in 2007, compared to that of 2006.
For 2008, the completion of the Outer Ring Road has opened a new area for development that will now have convenient access to the city centre. Consumer confidence will be critical to the performance of the housing market next year.
The overall performance of upscale hotels (luxury and first-class hotels) in Bangkok was weak throughout the year 2007. Hotels in resort destinations, such as Phuket and Koh Samui, outperformed their peers in Bangkok. The average occupancy rate of upscale hotels in Bangkok is expected to be only 70% by the end of year 2007, compared to 75% in 2006. Although the Average Daily Rate (ADR) increased 12.1% y-o-y in dollar terms to US$158 in Q3 2007 and is likely to reach US$170 by the end of this year, the increase was only about 2% in Baht terms.
The forecasts that more than 2,000 new upscale hotel rooms in Bangkok will be completed in 2008, raising the supply by 24% from 2007. Competition will be intense if demand does not recover from this year’s level. Resort hotels in tourist destinations will continue to perform well as the number of tourist arrivals continually increases.
Industrial Property Market – 2,611 rai (1,044 acres) of Serviced Industrial Land Plots (SILPs) were sold in the first nine months of 2007, a 40% increase on the same period in 2006. The market for Ready-built Factories (RBFs) has been performing well throughout the year, with 86% occupancy rate. Like the SILP market, Japanese businesses continued to be the major tenants for the RBF market.
The market is expected to be active in 2008. With the total value of the Board of Investment (BOI)-approved projects increased by 99% y-o-y in the first three quarters of 2007. New supply of SILP of about 3,251 rai at the end of this year is expected to be quickly absorbed by the rising demand. The eco-cars are likely to be the next driver of the automotive sector, spurring the industrial property market in 2008. Favourable investment policies of the new government will be crucial to carry on the momentum into next year.
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