Are you thinking about selling property fast in Thailand?
The Thailand property market is a complex and ever-changing landscape. Here are some of the key factors that are currently shaping the market:
- The rise of foreign buyers: Foreign buyers are increasingly interested in investing in Thailand property, particularly in the luxury end of the market. This is due to a number of factors, including the country’s strong economic growth, its beautiful beaches and islands, and its attractive tax regime for foreigners.
- The growing middle class: Thailand’s middle class is growing rapidly, and this is creating a demand for more affordable housing. This is particularly evident in the major cities, such as Bangkok and Chiang Mai.
- The government’s infrastructure plans: The Thai government is investing heavily in infrastructure, such as roads, railways, and airports. This is expected to boost economic growth and create jobs, which will in turn drive demand for property.
- The political situation: The political situation in Thailand has been relatively stable in recent years, which has helped to boost investor confidence in the property market. However, there are some concerns about the upcoming elections, which could have a negative impact on the market.
Overall, the Thailand property market is expected to remain strong in the coming years. However, there are some risks that could dampen growth, such as the political situation and the rising cost of living.
Here are some of the key trends that are currently shaping the Thailand property market:
- The growth of condominiums: Condominiums are becoming increasingly popular in Thailand, particularly in the major cities. This is due to the fact that they are relatively affordable and offer a convenient lifestyle.
- The rise of the rental market: The rental market is also growing in Thailand, as more people are choosing to rent rather than buy. This is due to a number of factors, including the rising cost of property and the increasing availability of rental properties.
- The focus on sustainability: There is a growing focus on sustainability in the Thailand property market. This is evident in the increasing number of green buildings and the development of new technologies that can help to reduce energy consumption.
The Thailand property market is a diverse and dynamic market. There are opportunities for investors at all levels, and the market is expected to remain strong in the coming years. However, there are some risks that could dampen growth, such as the political situation and the rising cost of living.
The property market in Thailand is generally driven by local buyers, but when it comes to luxury properties which are worth over $300,000, overseas buyers dominate. In the posh neighbourhoods of central Bangkok, for example, over 20 percent of the luxury apartments and condos have been purchased by wealthy Chinese buyers.
Buyers from mainland China and Hong Kong figure very prominently in the Thai real estate market. Many Thai developers have started special joint ventures to target these buyers.
One such developer is Derek Muhs, Founder of Global Edge Investment (GEI). He says, “People love Thailand, the beaches, the diving, the food and of course the kindness of the people – it sells itself. The real estate market is set for tremendous growth over the next decade. We are achieving 8-10% percent returns just from rental income on holiday homes and in many tourist areas the capital increase has been over 15 percent per year.”
There is a lot of interest in Thai real estate coming from overseas buyers since 2016. During this period, tourism in Thailand has gone up by 13 percent. Over 7.5 million tourists from China have travelled to Thailand during this period. The numbers are expected to get even better this year.
China is Thailand’s biggest trading partner and this means there are a number of Chinese business executives who spend a lot of time in Thailand. There is a real demand from them to buy properties here.
Kitisak Jampathippong of Century 21 (Thailand) Co, agrees that more and more property purchases in Thailand are made by overseas investors from China, Hong Kong, Malaysia and Singapore. He says, “Condo demand in the lower to mid-priced segment from Thai buyers is limited these days, as the property market slows and many buyers are rejected for mortgages. Some developers have shifted to overseas buyers and recorded a good sales rate.”
Indeed, Thailand’s biggest overseas property destinations such as Pukhet, Bangkok and Pattaya are directly connected by flight to Singapore, Beijing, Shanghai, Kuala Lumpur, and Hong Kong.
Phuket is the most developed tourism hot spot in Thailand, which has come a long way over the last decade and a half. It now attracts significant overseas property investment.
If you are keen on selling property quickly in Thailand, be sure to get in touch with an overseas property agent or specialist first, who has extensive ties with rich foreign investors from countries such as China, Germany, Sweden, Norway, Switzerland and Russia, to name just a few.