More foreigners buying Thai condos
A SIGNIFICANT change is taking place in the Thai condominium market as it is now attracting more foreign buyers with units at 5 to 15 million baht pricing point appealing to these overseas mass markets, Aliwassa Pathnadabutr, managing director of CBRE Thailand said at a press conference at St Regis Hotel this morning.
However, Thai buying power is strong and locals generally take up all the units at newly-launched projects in good locations.
“Developers who have taken their projects abroad have been able to sell well.”
Although some 5 to 15 million baht condos might not be in locations these foreigners are familiar with, they still opt for them if they are near a train station. If prices are very high they would ensure that they are in a city center location.
The maximum yield foreign investors could get is 3-4% a year but the capital gain is substantial.
In kicking off the fifth CBRE Elite Living exhibition which starts tomorrow at Siam Paragon and runs till June 5, 2016, Ms Aliwassa said that overall this is a very challenging year for developers.
“With over 10 years of experience in selling projects, I have to say this is a very challenging year.”
Although government stimulus measures helped the property market in the first quarter, she observed that there is still a lot left to be transferred.
However the picture is different in the prime downtown market because only around 2,000 units were launched in the first quarter of this year, compared to 2,800 units introduced during the same period last year, with the new supply being completed totaling just 9,400 units There are currently 120,000 units in this key area of the city.
The 2,000 units unveiled in the first quarter are from eight projects positioned from high-end upwards with prices starting from 150,000 baht a square meter.
A detailed look shows that 55% are at the high end, 10% luxury level and 35% upscale. The majority, 69%, are located in Sukhumvit, 26% in Silom-Sathorn area and 5% central Lumpini.
A total of 13 luxury projects are being showcased that this year’s event ranging from prime luxury properties in Bangkok such as Magnolias Ratchadamri Boulevard, Marque Sukhumvit and Issara Collection Sathorn, new launch projects such as Beatniq, Craft Ploenchit and AP Sukhumvit 39, to pre-sales of resort projects such as Baba Beach Club Cha-am Hua Hin and Sheraton Phuket Grand Bay Resort and Residences.
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