Real Estate Outlook
Real Estate Outlook for Thailand
Thailand Real Estate & Property Development has a huge appeal for foreigners wishing to purchase investment, holiday and retirement properties, partly due to favorable exchange rates, low building costs, relative low cost of living and the thriving tourist market. Current average capital growth for Thai property is set at between 10 and 15% per annum.
The residential market will remain more or less the same as the previous year. The Bangkok CBD condominium market is still generally a saleable market but this will mainly be focused only on quality products in good locations as the market is now more sophisticated and investors becoming savvier.
Prime real estate location developments
Opportunities however, are still ample for the low to medium end market particularly for condominium projects located along the MRT and BTS lines. More MRT extension projects planned recently by the government will support more of this product development type in the near future.
Resort home developments in Koh Chang, Hua Hin, and Pattaya earmarked for both the Thai and expatriate markets offer a lot of opportunity for property players. This is despite the fact that a number of projects have already been launched over the recent years.
From research, the rate of sales or take up rates in this market segment have shown good results with the developers pricing seemingly very competitive.
Potential real estate buyer
For this kind of development, it is necessary for the developer to understand the basic requirement of the potential buyer. The development itself must be able to provide the resort style and concept as required by current market forces. Simply said, they have to make sure the buyer will feel relaxed in an environment which will induce them to want to stay in the resort home at all times. On the other hand the developer needs to develop a differentiation of the product concept.
The foreign buyer may also require top quality management from an international property consultant firm which can offer international class property management, unit management (to manage owners individual units) and rental management to ensure their investment provide a good return and maintain its property yield.
Koh Samui’s real estate development
Apart from Hua Hin and Pattaya, Koh Samui is now one of the most popular resort destinations and has lately become more international in terms of a tourist spot on the east coast of Thailand. After the Tsunami adversely affected the west coast of the country, Koh Samuis real estate development had improved greatly as a result. On the flip side, rapidly increasing speculative land prices may jeopardize the potential developments on the island.
The key issue may also be the lack of good beach front real estate available for sale. Generally, Koh Samuis real estate market is mainly targeted on the overseas market and not so much on the local Thai market. Both life style and investment product types which sorely need good management support by well known international property consulting firms have also become another key issue on future developments on this hot island. It is essential that the developer must fully understand the needs and requirement of this special group of buyers/investors. Having an excellent marketing channel or network especially regionally and globally is another main key factor for the developer to consider.
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