Bangkok and Pattaya are competing with each other for Chinese investment.
Chinese investors are increasingly turning to Thailand’s real estate, fuelled by the country’s tourism appeal, as well as its strong yields and affordable property values, particularly when compared to Chinese property.
Indeed, Thailand was the sixth most popular country among Chinese travellers heading abroad this year, above France and Singapore, according to Chinese portal Juwai.com.
Charles Pittar, CEO of the site, highlights Pattaya and Bangkok as the top two hotspots among investors.
“The real battle over the past 12 months has been between Bangkok and Pattaya,” Pittar tells Property Guru.
Pattaya is currently in pole position. In the year to Q2 2016, Pattaya rose from 209 to 100 on Juwai.com’s Chinese Purchasing Intent Index and now generates twice as many buyer leads as Bangkok.
Knight Frank has also highlighted an increase in the take-up rate of new condos in Pattaya during the first half of this year, compared to the same period in 2015.
Chinese investors turn to Thailand
27th September 2016
Chinese investors are turning to Thailand, thanks to the high yields available from its competitively-priced property.
Property developer Sansiri PLC says that investment from foreign buyers rose 135 per cent in 2015 and is expected to grow again in 2016. This rise is driven by buyers from Southeast Asia, who made up 80 per cent of buyers for Sansiri last year. China, Hong Kong and Singapore accounted for 15 per cent, 45 per cent and 20 per cent of revenue respectively.
Cobby Leathers, Head of International Business at Sansiri PLC, says: “Thailand’s property market remains very attractive, offering higher yield returns, and yet 5 times cheaper than first tier cities in Mainland China. Lower sales prices in Thailand for first hand units, as compared to China, are particularly attractive to Chinese middle class investors who are seeking good rental investments and planning for retirement.”
Bangkok is particularly sought-after, as it is perceived as one of Southeast Asia’s most stable markets, but other hotspots include Pattaya, Chiang Mai and Phuket.
Chinese interest to climb in Phuket
17th May 2016
Interest from Chinese investors is forecast to increase in Phuket, according to Juwai.com.
Chinese buyers are already one of the main targets for luxury developers in Bangkok, but they are now expected to look towards the coastal hotspot, predicts the portal’s CEO, Charless Pittar, as they increasingly discover the area.
“The past 12 months have seen strong growth in Chinese interest in Phuket, which they have really only discovered in big numbers during the last couple of years,” Pittar tells The Phuket News. “The real estate industry in Phuket should use this time to improve its ability to reach and to service buyers from China.”
Chinese overseas investment has surged in recent years, from $5 billion in 2010 to $52 billion in 2014, with Juwai.com highlighting Thailand as a popular target market for investors due to its proximity to their homeland.
“Overall, our buyers prefer new property rather than existing homes. They are looking for as much in terms of luxury finishes and services as they can get for their money,” explains Pittar. “Thailand is almost purely a lifestyle and investment destination, unlike say the US or the UK, where one of the top motivations is to purchase a home for their children to live in while in the country for their education.”
Most enquiries come from investor-minded buyers, he notes, with their main priorities return on investment, ease of management and quality of facilities and neighbourhood.
Investors return to Bangkok property
10th May 2016
Investors are increasingly returning to Bangkok’s property market.
Condo sales have been slow in the Thai capital, amid the country’s economic slowdown, but demand from wealthy and overseas investors is still strong, particularly for prime properties.
Surachet Kongcheep, associate director of research at Colliers International, tells the South China Morning Post that foreign buyers from China, Hong Kong and Japan are now the main targets for luxury developers, with projects along Sukhumvit Road selling out 49 per cent of the flats within days of going on the market.
Notable developments under construction at present include the Ritz-Carlton Residences and Marque Sukhumvit, while The Residences at Mandarin Oriental and Bangkok on the Chao Phraya River has also recently launched.
Bangkok property investment set to continue
21st March 2016
Investment in Bangkok’s property is set to continue, according to Knight Frank.
The company’s latest report forecasts that the Thai capital’s prime condo market will remain attractive to major investors in 2016, with hotspots singled out as the CBD, Sukhumvit, Ratchadapisek and Paholyothin areas.
The high end of Bangkok’s condo market performed well last year, with 1,350 units sold out of a total supply of just 1,814. Thais, Taiwanese, Singaporean-Chinese and Hong Kong-Chinese investors remain central players, primarily purchasing real estate with an eye for capital growth. Indeed, Frank Khan, Executive Director, Head of Residential at Knight Frank Thailand, expects that Bangkok’s super prime condo prices will increase by at least 10 to 15 per cent this year.
Khan warns that with stock levels high along the Purple Line (of the city’s transit system), developers should be careful and focus on locations with fewer units.
Phuket has a slightly less positive future. Nattha Kahapana, Executive Director at Knight Frank Phuket, notes that there is currently a total supply of 11,177 units, 1,654 of which were launched in 2015, thanks to weakening demand from Russia (due to the Ruble’s depreciation) and the global economic slowdown.
Chinese and Russian buyers, however, are expected to return to Pattaya in the second quarter of 2016.
Bangkok: A property investment you can bank on
10th February 2016
Bangkok remains a property investment buyers can bank on, according to experts.
Research from DTZ highlights the capital growth still available to investors in the Thai capital, despite economic headwinds.
The report shows that new condos in both the central business district and other zones enjoyed price rises of 17 per cent year-on-year in the second half of 2015.
In the CBD, average sales prices are around $5,786 per square metre, according to Dot Property, while those in non-CBD locations are around $2,902 per square metre, up 17.6 per cent and 17.7 per cent year-on-year respectively.
“Even in times of instability and economic difficulties, this latest data shows that investment in Bangkok condominiums will, in almost every situation, result in capital appreciation,” Adam Sutcliffe, managing director for Dot Property Group (Thailand), tells Whatsonsukhumvit.com.
Indeed, factors such as ongoing development of public transport infrastructure, in addition to a lack of suitable land, have both combined to continue pushing up values.
“This is testament to the fact that the city still remains a very safe and secure investment,” adds Sutcliffe.
While condos are popular investment objects, though, REIC notes that many developers are considering homes and townhouses as alternative projects, to avoid the volatile nature of a sector that has always proven attractive to speculative investors.
Demand for Thailand property from investors certainly remains strong: the country has been a frequent presence in TheMoveChannel.com’s Top of the Props chart. In December 2015, Thailand rose seven places in the rankings to become the seventh most sought-after property destination in the world.Google+