Despite several years of economic instability both within the country and in the global market, the real estate market in Thailand has remained steady. Part of that can be owed to the ever-growing demand for luxury properties across Thailand, and particularly in Bangkok. Research shows that demand for these properties often remains steady in high-demand locations, even in times of change, and Bangkok is certainly in demand for both locals and foreign investors. In fact, Knight Frank, the London-based independent global property consultancy that releases the Prime Global Cities Index for each economic quarter, recently listed Bangkok 12th on its list of in-demand global cities. It beat twenty-five other hugely popular global cities, including New York, Hong Kong, and London.
High-End Bangkok Condominiums In Demand despite Economic Woes
Economic and political woes in Thailand have done little to slow the number of high-end condominium developments being built in and around Bangkok. Many buyers are foreign, with the majority hailing from China and Japan, and particularly from Hong Kong. In fact, many developers go straight to Hong Kong and other major cities in China and Japan to market new properties. Experts say that buyers from Hong Kong are often looking for high-end properties priced at 200,000 baht per square foot and higher, while many of those from China seek lower-priced properties. In total, around twenty-percent of luxury condos in Bangkok are owned by foreigners, and that number continues to grow as more developments are built and sold.
High Demand for Luxury
The city has a quota placed on the number of units that can be sold to foreign buyers, and many developments reach that quota within days of opening up to sales. This demand has created an under-supply in the luxury property market. Foreign investors can hardly keep up with the demand for luxury condominium spaces in this popular capital city. Recent years in particular have seen an incredible number of new developments underway. In 2014, just 367 new properties were built in Bangkok. But in 2015, more than 950 new developments were added. In 2016, that number may be even higher. But even with this new growth, demand continues to increase and the under-supply continues.
Now is the Time to Invest
The most recent Prime Global Cities Index report from Knight Frank also lists the property price changes in Bangkok during the last quarter. Bangkok saw increases of just .01% and .02%, some of the lowest price increases for any of the thirty-seven global cities included in the list. That means that now, more than ever, foreign and domestic investors looking to buy property in Bangkok can get in at a low price. The city also has plans for a number of infrastructure improvements, including some high-profile additions to its public transportation system that will increase the value of downtown properties. In 2016, it is projected that the city will host more than 20 million tourists, which will help to drive the economy, and therefore real estate values, upwards in the coming months and years.
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