Photo: Not That Bob James
Measures introduced by the Thai government to fuel investment from overseas are expected to grow the country’s real estate market by as much as 10 per cent.
The measures include reducing housing transfer and mortgage fees from 2 per cent and 1 per cent respectively to 0.01 per cent each for six months for properties priced at €75,000 or less and the allowing of first-time buyers purchasing property below the same threshold to deduct 20 per cent of their home’s value from their personal income tax over five years. Property Showrooms reports that economist expect the measures to boost the market by 5 per cent to 10 per cent this year.
Indeed, the country is already seeing a strong surge in investment in its popular hotel sector, where many units fall below the new threshold.
Research from hospitality consultants C9 Hotelworks reveals there are over 28,000 branded residential units for sale across the region, with 44 developments in Thailand, primarily in Phuket, Bangkok and Pattaya.
“The historic pattern of hotel and real estate marriages has moved away from the beach and leisure destinations and is gaining traction in urban city offerings,” comments C9 managing director Bill Barnett. “Traditional lifestyle buyers are being supplanted by end users, with Asians representing the largest transaction segment. Bangkok’s stirring success story at the St Regis Residences demonstrated this, while the more recent Four Seasons offering has struck a chord with both local and overseas buyers.”
Thailand accounts for 37 per cent of the hotel project residences, ahead of Indonesia, with 25 per cent of the market.
The measures from the government follow similar efforts from one particular developer, with Kingdom Property recently offering a 20-year visa to those who purchased its condos at a Pattaya Southpoint project.
According to CBRE, developers remain cautious in the second half of 2015, but four condominuim projects were launched in Phuket the third quarter of the year, with double the number of units than last year.
“We continue to see evidence of Chinese investors and the return of Western expatriates based in Asia to the market,” said the firm’s report.
Demand for Thai property has already been evident this year on TheMoveChannel.com, with enquiries for the country’s real estate surging 87 per cent in real terms, taking Thailand bank into the portal’s top 10 most popular destinations for September 2015.