Thailand property developers and real estate agents take note – the number of London property buyers and investors from the Kingdom is growing, while those from nearby Singapore have fallen significantly due to tougher financial regulations from the city-state’s monetary authority. Bangkok especially is now a clear target destination for many U.K. and global developers keen to showcase their properties in Southeast Asia.
Demand for London property from Singapore-based buyers and investors, which accounted for 4 percent of buyers a year ago according to real estate firm Knight Frank, has fallen by three-quarters in the last six months alone.
One reason – Singaporean authorities have imposed restrictions on mortgage borrowing to prevent a domestic property bubble, and the knock-on effect is a curtailing of Singaporeans’ ability to fund international real estate purchases.
But the likely temporary departure of Singaporean buyers is being offset by growing interest from elsewhere. As well as increased inquiry from Greece, we continue to see growth in demand from China and, to a lesser extent, from Thailand, according to Camilla Dell, Managing Director of London property buying agency Black Brick.
The pick-up in interest in London from Thai buyers is something that has been growing for more than a year, and is evidenced by the increasing number of London property exhibitions in Bangkok.
Thailand property developers will do well to take note if this trend, and the competition it is already providing to their existing and potential customer base. This is even truer at the higher end of the market where a personal investment decision may well rest between buying in Thailand or investing in London. Even at the lower sub-THB5 million level, Thais are opting for an overseas revenue-generating investment than one at home.
Property in general, and London in particular, remain squarely in favour among the worlds rich. A survey of wealth managers from Savills and Wealthbriefing found 90 percent of clients are planning to increase or maintain their allocations to real estate. According to another recent study of ultra-high net worths, London remains second only to New York as a destination for prime residential property investment.
