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Thai property is no 'white elephant'

Jaimie Kanwar

The Thai property sector has suffered a chaotic recent history but it has ultimately triumphed over adversity.

The devastating Tsunami in December 2004 and military coup in September 2006 certainly gained the ‘land of smiles' global attention.

However, the Thai government and its people have worked hard to utilise this interest positively.

Far from being a white elephant (which are incidentally sacred and a sign of prosperity in their native SE Asia), there is continued interest in Thailand as an investment opportunity.

Thailand has progressively recovered its former economic vigour, strengthened by increased government spending, moderate export growth, real GDP growth of 4.5% (in 2005) and substantial inflows (US €7.9 billion in 2006) of foreign direct investment.

Recent economic growth in Thailand registered a healthy 4.3% increase in the fourth quarter of 2006 with projections of a solid 5% growth in 2007.

The number of tourists visiting Thailand has almost doubled over the last decade with the Tourism Authority of Thailand (TAT) predicting continued growth for the remainder of 2008.

Excellent and varied opportunities

A solid economy coupled with a renowned reputation as an attractive tourist destination is having a positive affect on the Thai property market, providing some excellent and varied opportunities for the overseas property investor.

Resort developments such as those in Pattaya, are proving particularly popular not only with foreign buyers but also Thai residents, the thriving ex-pat community and the emerging Asian middle classes especially the Chinese for whom Thailand is the 4^th most popular destination for foreign travel.

As a consequence of shifts in worldwide tourism trends, Thailand's tourism market is experiencing a dramatic increase in demand for longer-term rentals in villa and condominium accommodation as opposed to traditional hotels. 

Kevin Prior, Sales Director of Obelisk International, commented: "This is where the Thai property market is prospering. Property costs a third of other tourist hot spots and when combined with impressive capital growth shown to have been maintained over several years and a year round rental season with consistently high returns there is significant attraction for investors.

"We at Obelisk International believe Thailand has a future of prosperity and success ahead of it. This is just the beginning."