Increasing number of Hong Kong investors snapping up Thai property.
Thailand’s property market is continuing to receive global attention. A popular place to buy a second or holiday home, the appetite for property in the Kingdom remains strong. Having welcomed international purchasers for a number of years, today this includes an increasing number of Hong Kong investors. Many of whom who are looking to diversify their assets abroad thanks to spiralling values at home. Thailand has been tipped as the number one choice for investors due to yearly returns of five percent. This is according to general manager of Siam Commercial Bank’s Hong Kong branch, Theerapan Nunthapolpat.
Purchasing condominiums that fall into the price bracket of THB 5 to 10 million in Sukhumvit in Bangkok, as well as Phuket and Pattaya. Investors from Hong Kong are lured by the lower prices on offer. When compared to their home turf, the highest values found in the Thai capital are at the lower end of what can be spent in Hong Kong. This is complemented with low interest rates offered by Hong Kong banks. Plus investors want to ride on the back of Thailand’s success as a place to invest as Sukhumvit is consistently is at the forefront of the city’s development due to high demand.
The increasing number of Thai property exhibitions held internationally are cited as the reason for the heightened interest. Leading Thai property developer Sansiri started marketing their properties overseas three years ago. Since then they have drawn in investors from Hong Kong, Singapore, Taiwan, and mainland China. Sansiri will be keeping up this momentum this year to continue targeting these markets.
This growing international attention has contributed to Bangkok’s healthy 2016 luxury condominium market. Strong demand for this sector has meant that it has performed well whilst other sectors of the market have slowed. Additionally, those purchasing at this end of the market are less likely to require a mortgage for the purchase of property. Another contributing factor to the slowdown of the market.