Thailand "The Asian Expatriate Favourite Second Home Market"
Thailand is internationally recognised as a highly popular tourist destination and its position as the preferred location in Asia for second home ownership has fueled demand for resort properties. Asian-based expatriates have formed the largest buyer sector to date, and while this sector still provides a solid fundamental to the market, the investment base has now expanded to include buyers from Northern Europe and Scandinavia.
Strong Property Investment Potential
Thailand's property investment potential looks strong. Cost is an important underlying factor with property in Thailand costing as little as one-third that of other major tourist hotspots.
Add to this Thailand's democracy, its reputation for warm, friendly people, its low crime rate as well as a wide range of high-end leisure activities (such as water sports and golf) it's easy to see why investors are increasingly looking at Thailand as an exciting property investment opportunity.
Year Round Tourism
The country's climate and geographical location means that Thailand can maximise its potential for year-round residential tourism. Charlotte Filleul of CB Richard Ellis has highlighted how the advantageous climate attracts retirees from Europe; Thailand's rainy season being in European summer time means they are able to make the best of both climates.
Strong Rental - Buy to Let Property Market
The "Buy-to-Let" market in Thailand is growing in line with the government's drive to entice tourists to new resorts on the island. The Thai Buy-to-let property investment opportunity means a high occupancy rate all year round because of the need for more short-term accommodation to complement the increase in tourist numbers. The growth in tourism is forecasted to be in access of 10% per annum for the next 3 - 5 years. Rental yields for buy to let property in Thailand are ranging between 6% and 9%.
A Healthy & Growing Economy
Thailand's economic growth and stability are very appealing for foreign investors. Thailand boasts an impressive GDP of an USD 197.7 billion and a growth rate of about 5%. The economic stability is quite encouraging for investors looking at Thailand for their next property investment.
Emerging Property Investment Market
Although Thailand has been a favourite tourist destination, today, with a sustainable economic growth Thailand is a true emerging investment property market. Investors will find that potential is very high to achieve excellent return on their property investment here. It is still possible to buy off plan for under €30,000 and detached villas can be had for about €100,000 in some areas. As more investors, holidaymakers and expats look at this market, the potential for property price growth is also high. Estimates are between 10% and 15% per annum on price growth.
Property Hot Spots in Thailand
- Bangkok, the metropolis of Bangkok has been experiencing a property boom over the last couple of years. Prices in the central areas have soared. There is a high demand for apartments near Bangkok's city centre.
- Pattaya, Thailand's most popular and most developed holiday destination, is being driven by its proximity to Bangkok, and the forthcoming Suvarnabhumi airport. Pattaya is popular with both Thai & foreign property buyers. Increasingly more people from Europe, US and Australia are buying property in Pattaya for retirement.
- Phuket Island is in high demand for its luxury ocean view property and investors are cashing in at all levels with land prices doubling, on average, every three years. The direct air links with Phuket International airport, has made Phuket Island successful in attracting a cosmopolitan blend of Asian and Internationally based investors which has led to incredible stability in Phuket property prices at times when other areas in Asia have been suffering economic slowdowns.
- The island of Koh Samui is experiencing a growing interest from investors and buyers from across the globe as it has practically everything it needs to compete with other locations. Many holiday home buyers and property investors prefer Koh Samui for the laid-back, casual experience of the tropics.
Thailand Weblog
