Thai real estate remains attractive to foreign investors, says Sansiri research

[snoop1130]

Thai real estate remains attractive to foreign investors, says Sansiri research

By The Nation

 

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.

 

Source: http://www.nationmultimedia.com/news/business/property/30317034

 

-- © Copyright The Nation 2017-6-2

[clockman]

One day it will be underwater!

[trogers]

I would not comment on a market where the international buyers are those who may buy an artificial island build from sand...

[funandsuninbangkok]

Another property schill schlepping her goods. 

 

CBRE real estate presentation earlier this year, Director said there are lots of unsold luxury units.  Price depends on yield and last year they only had 5 rentals that went for over 150,000 baht a month. 

 

Unless rich people suddenly got really stupid, why the heck would they pay 100 million for a place they can rent for 150,000 a month?

 

Plus, most rich people got better things to do than waist time in Nana Plaza. 

 

 

 

[Senechal]

... Says Sansiri research.

 

In other news, Levi's research says bluejeans are very popular with cool people.

[trogers]

5 hours ago, funandsuninbangkok said:

Another property schill schlepping her goods. 

 

CBRE real estate presentation earlier this year, Director said there are lots of unsold luxury units.  Price depends on yield and last year they only had 5 rentals that went for over 150,000 baht a month. 

 

Unless rich people suddenly got really stupid, why the heck would they pay 100 million for a place they can rent for 150,000 a month?

 

 

 

 

 

Because they believe some rich fool would buy it over later for 150 million for the opportunity to earn that 150,000 a month?

[williamgeorgeallen]

confusing. foreigners are not allowed to buy houses in thailand so they must be talking about condos which are over supplied in almost all of thailand. what am i missing?

[trogers]

16 minutes ago, williamgeorgeallen said:

confusing. foreigners are not allowed to buy houses in thailand so they must be talking about condos which are over supplied in almost all of thailand. what am i missing?

Not oversupply in that location for large unit sizes. It's quite a good location for Thai boxing fans, within walking distance...

 

But at least 30 mins travel for a meal.

[RichardColeman]

I wish they would do a survey as to how much condos are actually occupied per year. There is a block near me that has about i guess 300 condos. There are lights on in about 10 per night, and at least 50 plus are for sale. 

 

 

[KamnanT]

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.

Well, there's one of today's more spectacular leaps of logic. "Condo prices are lower in Bangkok than in other cities therefore, ipso facto, you will make more money from a condo here." More tripe from industry-published promotion rags.

[Fulwell53]

11 hours ago, trogers said:

I would not comment on a market where the international buyers are those who may buy an artificial island build from sand...

So all international buyers are chinese?

Told you a million times not to exaggerate.

 

[steven100]

it must be so miserable for alot of farang living here ....   especially when they turn every piece of news on Thailand around ....  all they see is bad ...  instead of good ..

 

sad .... 

[KarenBravo]

.......says a Thai property developer. What a surprise.

[Fulwell53]

22 minutes ago, RichardColeman said:

I wish they would do a survey as to how much condos are actually occupied per year. There is a block near me that has about i guess 300 condos. There are lights on in about 10 per night, and at least 50 plus are for sale. 

 

 

I love stats that are pulled directly from the top of one's head.

[Fulwell53]

1 minute ago, steven100 said:

it must be so miserable for alot of farang living here ....   especially when they turn every piece of news on Thailand around ....  all they see is bad ...  instead of good ..

 

sad .... 

Yes it has me utterly baffled.

Reminds me of the marvin the paranoid android character from the wonderful hitchhikers guide series.

[Fulwell53]

2 minutes ago, KarenBravo said:

.......says a Thai property developer. What a surprise.

Only thai developers revel in hype?

Developers in the likes of the usa are such shy types who would never dream of spruiking the market or projects they are associated with

[trogers]

12 hours ago, trogers said:

I would not comment on a market where the international buyers are those who may buy an artificial island build from sand...

 

29 minutes ago, Fulwell53 said:

So all international buyers are chinese?

Told you a million times not to exaggerate.

 

 

See:

http://www.telegraph.co.uk/news/worldnews/middleeast/dubai/8271643/The-World-is-sinking-Dubai-islands-falling-into-the-sea.html

[KarenBravo]

25 minutes ago, Fulwell53 said:

Only thai developers revel in hype?

Developers in the likes of the usa are such shy types who would never dream of spruiking the market or projects they are associated with

Did I claim otherwise?

[JSixpack]

49 minutes ago, steven100 said:

it must be so miserable for alot of farang living here ....   especially when they turn every piece of news on Thailand around ....  all they see is bad ...  instead of good ..

 

sad .... 

 

No. This is merely one of those little fantasies with which our renters entertain and console themselves.

[natway09]

It would surprise me if more than 60% of total units in Bangkok are occupied, let alone sold.

If you are in the market to buy,,, just hang on a couple of years

[hhinhh]

The key point is the return on investment. That is only around 5% in BKK for rentals. This is lower than in other cities in Asia. Price comparisons to Singapore or Hongkong are not feasible as income in these cities are a multiple of the ones in Thailand. Next aspect is future value. As the income of potential tenants is not raising dramatically and the supply of new condos is huge the market for condos will not allow too much price increases within the coming years. The next political crisis may even cause a significant skid in prices.

Edited June 3, 2017 by hhinhh

[trogers]

1 hour ago, hhinhh said:

The key point is the return on investment. That is only around 5% in BKK for rentals. This is lower than in other cities in Asia. Price comparisons to Singapore or Hongkong are not feasible as income in these cities are a multiple of the ones in Thailand. Next aspect is future value. As the income of potential tenants is not raising dramatically and the supply of new condos is huge the market for condos will not allow too much price increases within the coming years. The next political crisis may even cause a significant skid in prices.

But developers have already priced their products 10 years into the future...?

[JSixpack]

On 6/3/2017 at 0:35 PM, natway09 said:

It would surprise me if more than 60% of total units in Bangkok are occupied, let alone sold.

If you are in the market to buy,,, just hang on a couple of years

 

Yeah that's what our ace TVF Analysts said, oh, maybe 10 years ago.

[trogers]

6 hours ago, JSixpack said:

 

Yeah that's what our ace TVF Analysts said, oh, maybe 10 years ago.

Like a besieged fort. Those on the outside trying to get in, and those on the inside trying to get out.

 

Problem is, they couldn't agree on the price.

Edited June 5, 2017 by trogers