Buyers From Abroad Leading Thailand Condo Market Turnaround
Thailand’s condo market has begun to recover and an increase in foreign demand is helping lead the turnaround, shows new research from Plus Property. Having witnessed the market shift first hand, more Thai developers are changing their tactics and holding road shows abroad to tap into this demand.
Foreign buyers are attracted to Thailand because of low prices, good rates of return when compared to neighbouring countries, the central location within ASEAN, and quality after-sale services.
“Amidst the economic uncertainties and the high household debt level during the past few years, developers have shifted their focus more toward the mid- and high-income segments. Developers have also expanded into foreign markets to attract purchases by foreigners and foreign investors, both of which currently pay significant interest in properties in Thailand because of its geographical advantages,” says Anukul Ratpitaksanti, Managing Director of Plus Property.
Pie charts showing different portions of specific purposes and room types demanded by expats and overseas consumers
Price has also played an important role in this trend. Thailand’s central business district areas are 5-times cheaper than that of Hong Kong and 2-times lower than that of Singapore despite having similar or in some cases better features.
“Thailand’s condominiums, especially those in Bangkok, have significantly lower prices than units in Hong Kong or Singapore and have good rates of return when leased and resold. These provide the positive factors which draw the interest of foreign buyers who make the purchases for both residential and investment purposes,” says Anukul.
Supalai and Eastern Star Real Estate are among the companies to have hosted road shows in China while Ananda Development has targeted buyers from Hong Kong, Singapore and Taiwan. Sansiri was among the 1st Thai developers to venture into foreign markets and has sold a great number of units to buyers abroad. Despite the potential, there are also challenges developers face when selling to foreign buyers.
“Currently, businesses involved with administration of real estate properties need to make significant adjustments to accommodate the aforementioned foreign demand. There is a need for customer care personnel to be able to communicate in languages other than English – Chinese being an example. Customer service that understands each culture will provide a competitive advantage as we proceed towards the ASEAN Economic Community, an important link to the foreign demand that will contribute to the future growth of the real estate market,” says Anukul.
Source: http://www.ddproperty.com/th/%E0%B8%82%E0%B9%88%E0%B8%B2%E0%B8%A7%E0%B8%AD%E0%B8%AA%E0%B8%B1%E0%B8%87%E0%B8%AB%E0%B8%B2%E0%B8%A3%E0%B8%B4%E0%B8%A1%E0%B8%97%E0%B8%A3%E0%B8%B1%E0%B8%9E%E0%B8%A2%E0%B9%8C-%E0%B8%9A%E0%B8%97%E0%B8%84%E0%B8%A7%E0%B8%B2%E0%B8%A1/2017/3/149024/buyers-from-abroad-leading-thailand-condo-market-t/?utm_source=pgth-newsalert&utm_medium=edm&utm_campaign=dailynews-23Mar2017&utm_content=links
