In what can only be good news for Thailand’s property markets, new research has identified how real estate investors are seeking opportunities in more peripheral locations and higher-yielding secondary property as an alternative to first-tier cities
Research published by real estate firm Savills looking at World Residential Markets this year and the year ahead also noted how resort property markets are regaining their attraction for investors – yet more good news for Thailand
In the report, Savills said that overall, it sensed the global property market cycle is now moving on a stage. Both occupiers and investors have been clinging to first-tier cities and prime property like limpets to a rock in times of global turmoil and economic uncertainty but, as this abates, they are becoming more adventurous.
The firm added that property investors are now beginning to peel away from the expensive centres and seeking alternatives in more peripheral locations and higher-yielding secondary property.
It said they are also looking at cheaper and higher-yielding second-tier cities, especially in places where there may be prospects of economic outperformance and high population growth. Non-city property such as resorts that were popular in the nineties and noughties are also regaining their attraction, particularly at the discounted values of the post 2008 market.
Those looking at the longer term will find an increasing number of new opportunities in resort property, both established locations in which Asians start buying and in new locations and leisure property types within Asia, Savills said.
“We foresee an increasingly diversified global residential property market offering considerable opportunity …” it concluded.
The read the full Savills World Residential Markets research report click here.
