Thai investors in London should look beyond their comfort zone

[webfact]

Thai investors in London should look beyond their comfort zone
THE NATION

BANGKOK: -- LONDON has long been the destination of choice for Thai investors looking overseas. However, Thais tend to focus on areas they are familiar with, namely those surrounding Hyde Park such as Knightsbridge, Mayfair, Kensington and the West End.

Properties in these areas have become even more expensive, with prices now ranging from 2,500-3,000 pounds per square foot (Bt1.35 million to Bt1.63 million per square metre) in the Kensington area and well over 5,000 pounds per square foot for a top-end development such as One Hyde Park.

If people can still afford Mayfair or Knightbridge's premium pricing, then they can focus their purchases in these areas. However, investors focused on maximising returns and capital appreciation should explore new development areas that are beyond their obvious choices such as the City, King's Cross, Victoria and areas on the other side of the Thames River such as Southbank.

Many areas perceived as unattractive have gone through regeneration and overhauls and have now become or are becoming areas with great capital appreciation potential. One up-and-coming area that has been transformed over the last decade is the City and its fringes.

The City is still thriving as a business district, but now boasts an impressive array of bars, restaurants and diverse retail offerings. New residents are being drawn into the area and it is becoming a highly sought-after residential location.

Households in the City and surrounding areas are expected to rise substantially over the next decade.

CBRE Research in London estimates it will exceed the rate of construction by 60 per cent. Given that demand is ahead of supply, we expect absorption rates to continue to rise.

While the City has underperformed traditional areas of West London, this is now changing as price growths have outpaced prime Central London, with further room for growth.

Prices have passed 2,000

pounds per square foot. In 2008, average values in prime London were 60 per cent above those in the City. Today, the gap is closing at just 30 per cent.

Shoreditch is another area on the City fringe that has undergone one of London's most marked revivals in the last 25 years. Previously characterised by print workers, clockmakers and metalworkers, the area is now occupied by information-technology, media and creative professionals.

It is becoming a popular rental district and innovation hub, home to everything from technology start-ups to small architectural firms. Prices of new development schemes under construction in this area range from 760-1,300 pounds per square foot.

Other areas surrounding the City worth looking out for are Clerkenwell, Wapping, Bethnal Green and Whitechapel.

King's Cross on the other hand is the best-connected transport hub in Europe.

With an investment of 4.5 billion pounds for the area, there will be up to 30,000 people studying, living and working in King's Cross by next year.

Google is also relocating its headquarters to this area next year, reinforcing London's position as a leading technology and research centre.

It is clear that traditional prime boundaries are being pushed to new areas and Thai investors should not ignore these opportunities.

From a purely investment perspective, regardless of where your child studies in London or the convenience and lifestyle factor or personal preferences, it would make sense for investors to look beyond their comfort zone in terms of investment locations.

The timing in terms of exchange rate is also favourable with the baht appreciating against the sterling and currently valued at 50 per pound.

In terms of basic market fundamentals, London has always been a safe haven for investment with a strong legal structure, asset |protection and multicultural society.

While there are tax considerations to keep in mind, the investment benefits tend to outweigh these concerns.

Aliwassa Pathnadabutr can be reached at [email protected].

Source: http://www.nationmultimedia.com/business/Thai-investors-in-London-should-look-beyond-their--30254483.html


-- The Nation 2015-02-20

[bruceybonus]

The British govt should take back all land and property owned by Thais. That would upset a few people

[Ricardo]

Does anyone else think that this article might be a hint, to anyone in particular ? Smirk !

[shirtless]

Thais should not be allowed to buy land in our countries until we are allowed to buy land here., when are western governments going to put a stop to this double standard.

[chooka]

Thais must really be laughing at farangs, we can buy yours but your not getting any of ours you bloody bread eaters.

[Ricardo]

But just look at how much we charge Thais, for a small condo/house in central-London, when they do buy one !

[Robby nz]

One wonders if any Thai politicians are among those 'investors', perhaps the anti money laundering office should take a look.

[Tatsujin]

But just look at how much we charge Thais, for a small condo/house in central-London, when they do buy one !

Yes, the same price as anyone else pays, locals or not, not double the price cos they are "foreigners".

[noitom]

Thais should be blacklisted from property ownership in any country where property ownership is not reciprocal. The article doesn't make sense.

[NCFC]

London is all foreigners anway. No locals left these days.

[Keesters]

The British govt should take back all land and property owned by Thais. That would upset a few people

The Thai government should disallow Thai citizens from owning land overseas the same as it disallows overseas citizens from owning here. What's good for the goose......

[Ricardo]

But just look at how much we charge Thais, for a small condo/house in central-London, when they do buy one !

Yes, the same price as anyone else pays, locals or not, not double the price cos they are "foreigners".

But if it's a daft price, which no sensible Brit (who ever had to earn their own money) would dream of paying, then 'up to them' ?

And our house here in Thailand, owned in my wife's name, didn't cost us double the price because one of us is a foreigner.

Although I'd be happy to sell it to a farang, at double the worth, if there are any rich mugs out there ?

Just PM me, if you're interested !

[docshock13]

Now the Nation is pitching property for Coldwell Banker? Strange "article." Author must have a family member at the paper.

[chooka]

The British govt should take back all land and property owned by Thais. That would upset a few people

I believe Prayuth was telling thais a few months ago to invest and buy land in foreign countries.

[Keesters]

The British govt should take back all land and property owned by Thais. That would upset a few people

I believe Prayuth was telling thais a few months ago to invest and buy land in foreign countries.

That is just so hypocritical. We can't buy here but they can go buy anywhere.

[chooka]

The British govt should take back all land and property owned by Thais. That would upset a few people

I believe Prayuth was telling thais a few months ago to invest and buy land in foreign countries.

That is just so hypocritical. We can't buy here but they can go buy anywhere.

My Thai wife owns four properties in Melbourne Australia, bricks and land.

[Jonmarleesco]

'It is clear that traditional prime boundaries are being pushed to new areas and Thai investors should not ignore these opportunities.' Perhaps an opportune time for the media to 'remind' the Thais of the glaring disparity between their outdated and nationalistic property laws, and those of, for example, the UK. Pre-empting the predictable Thai response: the land area of the UK is less than half that of Thailand, yet with a similar size of population. And that's not to say I wholeheartedly agree with the UK's far too laissez-faire approach to foreigners UK-property ownership.

'... with the baht appreciating against the sterling and currently valued at 50 per pound.' The pound has been depreciating; big difference between depreciation, and appreciation.

[Keesters]

The British govt should take back all land and property owned by Thais. That would upset a few people

I believe Prayuth was telling thais a few months ago to invest and buy land in foreign countries.

That is just so hypocritical. We can't buy here but they can go buy anywhere.

My Thai wife owns four properties in Melbourne Australia, bricks and land.

IMO Thai law should forbid her that right the same as it forbids you or I to own land here. Hypocrites.

[Thai at Heart]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

[Keesters]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

That's 100? 50? too many.

[Commerce]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

That's not the principle at Heart here TA. It doesn't matter whether Knightsbridge or the scum of Birmingham; what does matter is that they are permitted to invest and buy British property AND LAND with 100% ownership. Please, you tell me of any single farang who owns, even a Thai resident granted farang, any property and land 100% outright. I bet my bottom dollar you cannot. Thus, in all areas of the UK Thais can, and do, buy property and land with full ownership, and the numbers are in their many thousands. Therefore, it is not nonsense; it is a pointer to Thailand changing its rules[laws] to be appropriate in conjunction with Western democracies, which it detests!

[angiolo]

Knightsbridge ? Well the Arabs own Harrods so spend lots of BAHT in my country. I am happy to rent in yours.

[Keesters]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

That's not the principle at Heart here TA. It doesn't matter whether Knightsbridge or the scum of Birmingham; what does matter is that they are permitted to invest and buy British property AND LAND with 100% ownership. Please, you tell me of any single farang who owns, even a Thai resident granted farang, any property and land 100% outright. I bet my bottom dollar you cannot. Thus, in all areas of the UK Thais can, and do, buy property and land with full ownership, and the numbers are in their many thousands. Therefore, it is not nonsense; it is a pointer to Thailand changing its rules[laws] to be appropriate in conjunction with Western democracies, which it detests!

Maybe the UK should change its law forbidding ownership to citizens of countries who don't reciprocate. Knowing what I know now I most certainly wouldn't sell any UK property to a Thai. Might get them to pay me the 200% of the current value of the property and give them a 30 year lease however.

[wabothai]

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Thais should not be allowed to buy land in our countries until we are allowed to buy land here., when are western governments going to put a stop to this double standard.

I have raised the issue with my embassy.

Answer, during trade negociations with Europe, Thai can do whatever they please in their own country.

[Thai at Heart]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

That's not the principle at Heart here TA. It doesn't matter whether Knightsbridge or the scum of Birmingham; what does matter is that they are permitted to invest and buy British property AND LAND with 100% ownership. Please, you tell me of any single farang who owns, even a Thai resident granted farang, any property and land 100% outright. I bet my bottom dollar you cannot. Thus, in all areas of the UK Thais can, and do, buy property and land with full ownership, and the numbers are in their many thousands. Therefore, it is not nonsense; it is a pointer to Thailand changing its rules[laws] to be appropriate in conjunction with Western democracies, which it detests!

I don't care about that to be honest. The only people being hurt by this are Thais. The wealth creation they miss out in is enormous so, their failure.

I have a family home in Thailand in wife's name because they needed a bolt hole. Thats it. Just lease or rent and look at it as though the Thais are losing out through their xenophobic nonsense.

The Thai Chinese own all the good kabd already and Thais think they are keeping the foreigners out by preventing farangs from buying. Dumb dumb dumb.

[Thai at Heart]

What a load of nonsense.

They devote a whole article to trying to advise Thais whether to invest in Knightsbridge. How many of them are there? 100? 50?

That's not the principle at Heart here TA. It doesn't matter whether Knightsbridge or the scum of Birmingham; what does matter is that they are permitted to invest and buy British property AND LAND with 100% ownership. Please, you tell me of any single farang who owns, even a Thai resident granted farang, any property and land 100% outright. I bet my bottom dollar you cannot. Thus, in all areas of the UK Thais can, and do, buy property and land with full ownership, and the numbers are in their many thousands. Therefore, it is not nonsense; it is a pointer to Thailand changing its rules[laws] to be appropriate in conjunction with Western democracies, which it detests!

I don't care about that to be honest. The only people being hurt by this are Thais. The wealth creation they miss out in is enormous so, their failure.

I have a family home in Thailand in wife's name because they needed a bolt hole. Thats it. Just lease or rent and look at it as though the Thais are losing out through their xenophobic nonsense.

The Thai Chinese own all the good kabd already and Thais think they are keeping the foreigners out by preventing farangs from buying. Dumb dumb dumb.

[ggold]

The British govt should take back all land and property owned by Thais. That would upset a few people

Thai's should not be able to buy land in the UK! and they should be charged double for taxi's and places of interest, not forgetting making a 90 day report and proving they bring 20K GBP each year into the country.

[davehowden]

As a Brit they can buy the whole damn lot for all I care. Hope they enjoy living next door to all sorts from all over, would the last Brit to leave the UK turn the lights out please.

[Keesters]

As a Brit they can buy the whole damn lot for all I care. Hope they enjoy living next door to all sorts from all over, would the last Brit to leave the UK turn the lights out please.

I think the light bulb in Westminster blew out a long time ago.

[SantiSuk]

So they should broaden their horizons from investing in property in Mayfair to investing in property in Kings Cross eh?

Wow - such diversification! What excellent investment advice. Plonker!