It’s no secret that Thailand’s economy has seen its share of ups and downs in recent years. A decrease in trade around the world and a slowly recovering global economy, as well as an overall slight decline in Asia’s economy overall has caused trouble in a number of industries within Thailand.
Spurred by these events occurring both within the nation and worldwide, tourism, one of Thailand’s leading industries, has taken several hits, particularly in 2015, but has risen time and time again. Investment in infrastructure slowed down temporarily, but has begun to increase again in recent years, particularly in Bangkok. However, throughout these turbulent times, Thailand’s real estate market has overall remained resilient.
Foreign investors continue to purchase luxury real estate
Across Thailand, and particularly in downtown Bangkok, luxury condominiums and other kinds of properties have long been popular with foreign investors. In the last few years, the market for these properties has steadily increased, fuelled by the expansion of Bangkok’s public transportation system, as well as a number of other factors.
Chinese investors in particular have flocked to the city despite economic trouble across Asia. Wealthy Chinese and those with commercial investments in Thailand continue to seek foreign vacation homes and residential real estate in the nation’s cities and near its pristine beaches. Part of this trend can also be blamed on an increase in tourism to Thailand among Chinese tourists. Experts estimate that Thailand will host an incredible 10 million tourists from China in 2016, up from the 7.9 million that visited during 2015.
These investors, who are primarily from Hong Kong, though a number hail from Singapore, typically buy into properties valued at US$300,000 or more. Property developers have taken notice of the steady growth of the foreign market. A number of new developments have broken ground around the city and across the nation, making it an excellent time for investors to buy property in Bangkok and elsewhere in Thailand.
New developments abound in and around Bangkok
A number of foreign and domestic developers have already begun multi-million and multi-billion dollar projects in and around the city of Bangkok. In fact, by the end of 2016, ten major developers will have launched a combined two-hundred-and-thirty-three projects. Townhouses dominate these projects, with ninety-two new townhouse projects slated to be built this year. Seventy-four detached-housing projects are also underway or soon to be started, while condominiums account for sixty-seven of those projects.
Local buyers dominate the market
Despite the popularity of high-end condominiums and other luxury properties for foreign investors, local buyers and owners continue to dominate the market in Thailand. In fact, in central Bangkok where many luxury properties are being developed, just 20% of high-end condominiums are owned by foreigners. Even with the economic roller-coaster that the nation has been on, its people continue to invest in property, causing a steady rise in the market over the years. Local buyers help to bolster the economy during times when the tourism industry sees a decline. As Bangkok’s economy, and Thailand’s as a whole, begins to improve, both will continue to see a growth in infrastructure and new developments that are sure to draw both local and foreign investors.
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