Thai real estate remains attractive to foreign investors, says Sansiri research
June 02, 2017 13:23 By The Nation 13,185 Viewed
The Thai real estate market has enormous potential and remains attractive to international investors, according to Sansiri’s Global Luxury Property Market Research 2017.
The research was based on analysis from local and international survey firms, including Global Property Guide, Knight Frank, Numbeo and Plus Property.
The findings tout the distinctive appeal of 98 Wireless, the flagship property of Sansiri, and considered by many to be the best in Thailand and Southeast Asia.
Uthai Uthaisangsuk, senior executive vice president at the Business Development and Project Development Division of Sansiri Public Co Limited, said that “purchasing super luxury property at a prime location is a popular investment alternative of ultra-high net worth individuals [UNHWIs]. Normally UNHWI investors, both in Thailand and overseas, prefer property investment in world-famous cities due to their remarkably high capital gains rate".
He said prices of penthouses in the world’s major real estate markets have seen a sharp increase during the last five years (2011-16), like in New York where price difference of its most expensive property project hits 41 per cent, from Bt2,855,134 per square metre to Bt4,022,163 per sqm; while up to 71 per cent is seen in the prime location of The Peak in Hong Kong, and 68 per cent in London.
“Alternatively, Thailand is fast becoming a major property market among international investors. For example, the price of 98 Wireless’s most expensive penthouse unit has reached Bt666,666 per sqm, representing a 65-per-cent increase over the penthouse of the most expensive property project in Thailand in 2011. Both projects are located in Bangkok CBD, reflecting the influence of location on capital appreciation,” he said.
“For international real estate buyers and investors, Thailand has all the same favourable fundamentals as other major real estate markets around the world – the geographic location as the gateway to Asean, readiness of transportation infrastructure for both living and investment in diversified industries as well as the high number of real estate on offer in the market. More importantly, Thai property law has provisions that do not allow foreigners to buy and own freehold land. Bangkok is also the capital with highest demand and supply for real estate among major cities in the Asean region,” added Uthai.
According to www.globalpropertyguide.com, property prices in the world’s top real estate markets like the US, UK, as well as in Asia, eg Singapore, Japan, Taiwan and Hong Kong, are far more expensive than in Thailand – by 2-6 times. Therefore, real estate investment in Thailand offers a higher return. The high-end segment possesses even higher prospects, with growing demand and price aligned with the country’s advancing economic competitiveness.
Taking into account the super luxury property in prime location, the price per sqm of property in this segment in Bangkok is lower than that of other major cities in Asia and other parts of the world. For example, 98 Wireless, Sansiri’s flagship condominium costs Bt70 million for a 121sqm unit. The same amount of money can afford only a smaller-size condominium in other CBD areas of major real estate markets, like a 40sqm unit in Hong Kong, a 52sqm unit in New York, a 60sqm unit in London, a 86smq unit in Singapore and a 116sqm unit in Beijing.
According to www.realist.co.th, in the highly sought after location where land plot for new property development is scarce, land and property price increase in the area is sharp. This can be seen in the location of Wireless Road where land price has constantly and sharply increased recently, comparable to Hong Kong and Singapore. Capital gains on sale of land in the Wireless road area during 2011-15 has increased by 36 per cent, from Bt1,400,000 per sq wah to Bt1,900,000 per sq wah, representing the highest land price in Bangkok CBD.