Future of Investing in Thailand Property
For the last few years, the Thai real estate market has maintained a constant growth pattern. Similar to 2016, the Bank of Thailand has reported a 3.2% growth 2017. Just like any other market, the Thai real estate market presents its own challenges and opportunities. Below are few of the aspects that will have a direct impact on the future of investing in Thailand property.
Threat from External Factors
Due to the change in the trade policies of the US towards China, the Thai economy might have to suffer. As the volume of exports from China to US will be reduced, there will be a less demand for Thai shipments. This will lead to a lower percentage of revenue for the Thai economy.
Price of Premium Land Sites Will Increase
Due to the high demand of condominiums in cities like Bangkok, the price of land in the Central Business District (CBD) will see an upward curve. There is even a possibility that the prices of certain lands in the CBD location will see a record jump. There will be a rise in the acquisition of older properties that possess value. Hotels, offices and apartment buildings will be on the top of the list of the prospective purchasers.
Rise in Demand for High-end Condominiums
The demand for the high end condominium projects is going to remain strong in 2017 and in the coming years. However, the buyers will be selective about the purchase they end up making. A large portion of the buyers will be from the local Thai nationals which will be close to 85%. There are numerous projects in 2016 that were marketed successfully internationally. Building on the success of these projects, the developers will look to explore more opportunities.
Increase in Rental Value
Due to the limited new supplies and healthy demand, the rental value of the properties is going to escalate in the coming years as well. There will be a rise in the occupier interest in the workplace strategies. The demand for pre-leasing will be on a rise for the top quality office projects. There will be a rise of up to 5 to 10 % in the coming 12 months.
More Focus on the Planning & Design of Public Places
The retail landlords will be focusing more on placemaking that will project such destination experiences which are hard to match by the online sales. This will lead to a fierce competition and the strongest centres will only get a move forward. The food and the beverage sector is expanding which will support this cause. Bangkok which is the capital of Thailand is moving towards building its reputation as a popular food destination.
In The End
After going through the above points it can be said that the future of the Thai property market looks very positive. The present state of the Thai economy is expected to remain rock steady for the coming years until and unless something drastic occurs. The changes of such events are really very minimal.