Thailand is a country in Asia where the prospects of Thai property value seem heading upwards and is expected to continue as the country is set to spend approximately GBP 44.8 billion on infrastructure over the next five years.
Even with the increase in property prices, Thailand still has a competitive property market as the prices have not matched up to the overall inflation. Also, the Thai government has relaxed ownership rules making it more attractive for investors to place their money on Thai real estate. Even as the political and economic condition of the country is not stable, investors are viewing this as a golden opportunity for investment as Thailand’s property outlook looks good according to international property analysts, saying that the residential properties and the office building sectors still promise good returns.
Despite the positive market overview, some experts are concerned about the fast growth of residential projects in Bangkok and other major provincial cities in recent years, worrying that such activity was spurred by unsustainable gains in people’s wealth from the stock market.
The Chairman of the Housing Finance Association, Kitti Patpongpibul, told a forum on property trends as an economic indicator, that property prices have continued to rise over the past ten years and could steadily rise over the next five years. His concerns have always been about the economic stability of bank lending per appraised value – the loan-to-value-ratio, of 90% for condominium units worth 10 million baht and less, and 95% for single houses.
Overall, amidst the rising prices of property in Thailand, continuing growth could ensure Thailand to maintain its status as a good option for overseas property investors, if you are to consider the economic turbulence in other parts of the world.
The market for condominiums in Pattaya is generally healthy, with growing demand from domestic buyers supporting the sector. While local purchasers are targeting North Pattaya and the Wongamat district for property investments, South Pattaya is more popular among overseas buyers, with a notable increase of Russians investing in properties in this area.
It is also noteworthy that investors are increasingly geared towards condominium buildings in Pattaya. Those looking for investment property are still heading to Thailand, particularly Pattaya as the property market here remains flourishing. Property developers are seeing a boom in the Thai condo market, particularly in the Jomtien Beach and Pattaya regions. In the days to come, more property development are expected to rise in these areas to respond to the increasing demand from foreign investors.
And as long as the Thai government continues to encourage foreign investment in the country, there are no reasons why foreign investors will not look at the Thai properties as prime investment. Property prices, despite the upward trends remain to be much lower than many comparable destinations. And add to that the lovely mountains, world-class resort hotels and facilities, attractive beaches and dense forests, and a tropical climate, who wouldn’t want to have a property in this Kingdom?
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