New York was in focus for Thai property buyers and investors at a recent event held by a real estate company in conjunction with Bangkok Bank.
Plus Property took pa in a seminar under the topic of “Property Investment Opportunity in New York”, exclusively held for the bank’s BuaLuang customers.
The event was hosted by Settha Taweesin, President of Sansiri, Wanchak Buranasiri, Chief Operating Officer of Sansiri, Thaweelap Rittapirom, Director and Executive Vice President of Bangkok Bank, Pochanee Kongkalai, Executive Vice President, Consumer Banking of Bangkok Bank and Poomipak Julmanichoti, Managing Director of Plus Property.
Plus Property revealed: “The current economic slowdown has affected various types of investments including stocks, gold, and oil, which offer lower returns.
“Investors, therefore, are interested in making good returns on low-risk investments. Buying real estate overseas is another choice that is attracting investors’ attention because it can diversify the investment risk, as seen from the fact that many Thai investors have bought prime locations in many big cities, especially New York City, which enjoy large inflows of real estate investment.”
The price of real estate in New York City has increased steadily over the past years. By mid-2015 prices rose 9 percent which is considered very attractive to investors. Meanwhile, prices of other types of investments such as commodities, such as oil, fell by 30 percent. Stock indices in both the U.S. and Thailand also fell. Stock market returns in Thailand are down 14 percent, while gold also fell more than 9 percent.
The real estate firm noted that the rental real estate market in New York City has also gains much attention of investors. The rental price for a one-bedroom unit has increased to around US$ 4,000 per month, a rise of 3.5 percent compared with the previous year.
Occupancy rates stand at 2 percent which is a very low considering with the rental time over months. In Manhattan, there is an amazing situation where rental seekers will have to pay a commission, as in contrast to other cities in where owners have to pay commission to find tenants.
More interestingly, it noted that the real estate market in New York City has been continuously expanding, with the strong government support for new construction to serve ever-increasing market demands. Many parking areas and gas stations have been turned into residential projects, many of which are in the construction phase and are expected to be completed within three years.
Plus Property said the door of great overseas investment opportunity is wide open. It has conducted a market study to seek new opportunities for its customers to invest overseas.
The has company signed a Memorandum of Understanding (MoU) with Corcoran Group Real Estate, a leading broker in New York City, as a global partner to help facilitate and offer new options for Thai customers to invest in the real estate New York City market.