A major property consultancy has reported that the property market in Thailand enjoyed a lucrative 2012. Condominiums in Bangkok and prime property in Phuket have been particularly popular, according to Knight FrankÃ¢â¬â¢s head of residential property in Thailand.
We look at the current state of the Thai property market.
Increase in tourist numbers as developers attract overseas buyers to Thailand
Frank Khan, executive director and head of residential at Knight Frank Thailand, reports that condominium projects launched in the Sukhumvit area and central business district of Bangkok were particularly successful in 2012.
Prime locations were popular and demand was strong in Sathorn, Chidlom, Ploenchit and Ratchadamri partly thanks to the shortage of available land for development. Property Report also says that Ã¢â¬Ëlimited space generated benefits for the resale market where high demand for units in Sukhumvit and BangkokÃ¢â¬â¢s central business district contrasted with the supply of new units.Ã¢â¬â¢
Limited supply of prime properties helped push up prices in 2012, Knight Frank report that rental returns in 2012 were around 5 to 6 per cent, a perfectly satisfactory return for overseas investors.Ã¢â¬Â
Knight Frank expect 2013 to yield a positive response from local and overseas buyers, many of whom come from Hong Kong, Russia, America, China and Europe.
Knight Frank also reported that, in 2012, 100 per cent of investors in PhuketÃ¢â¬â¢s luxury residential market were from overseas. Many are choosing prime property in Phuket as tourist visitors to the region increase. Property Report quotes figures stating that in 2012 there was a 13.57 per cent increase in tourist numbers year-on-year year while the number of flights to Phuket rose 1.02 per cent to 29,033.
Higher volumes of tourists can only help the potential for price growth and strong rental demand, Developers have been proactively attracting more overseas investors to Phuket to demonstrate the property potential of this island.
Author Nick Marr