According to analysts, now is a good time for foreign property buyers to invest in one of the most promising markets in Southeast Asia – Thailand.
After years of project launches, the market has slowed, thanks in part to the coronavirus. This has seen developers in the short-term reducing sales prices and offering flexible payment terms or discounts for upfront cash purchases.
Additionally, private sellers, who have ridden the rise in the value of the baht during the past decade, are also willing to offer bigger discounts to ensure their property sells quickly.
As a result, discounts are available on anything from unsold developer stock, off-plan resale contracts to second-hand condos. Amazing deals are now suddenly available for investors willing to move fast and take risks, especially those with a long-term view or who intend to live in Thailand.
Here Come the Chinese
Chinese tourists are now the biggest demographic group to visit Thailand.
The boom of Chinese tourists visiting and exploring Thailand has inevitably led many to prospect and consider investing in the country’s real estate especially in Pattaya.
A general trend has shown that many Chinese buyers are seeking to invest closer to home rather than in Europe and the US.
Thai real estate offers relative affordability, especially when compared to the sky-high prices of China’s first-tier cities such as Beijing, Shanghai, and Guangzhou.
Buyers also find Thailand’s good healthcare standards, excellent universities, and comprehensive property ownership laws for foreigners, appealing.
For those who plan to retire abroad, Thailand is one of their favourite destinations.
“I see a massive influx of Chinese buyers for land & houses as well as condominiums. I know of a few prominent condo developers gearing up for this imminent surge who want to be ready for when the time comes. Sitting back and waiting for flights to start up again will be too late. Western buyers are also still well in the game with several of our more recent sales going to folks from Australia, the US, and Switzerland – and these were a few substantial sales.” Stu Sutton, Serenity Developments
Sustainability and wellness in building design, as well as lower-density living, may become a priority for developers while large mixed-use projects with all-in-one amenities could become the main attraction for investors.
An acceleration of flexible working practices will also lead more people to work from home which should also aid in the upturn of the rental market.
Now’s the Time
Many industry experts believe the Thai real estate market will pick up and next year 2021 could see a real boom in property sales. Others are predicting a surge in activity later this year, suggesting the market is resilient enough to rebound as it is not hindered by high debt levels and there are reserves available.
In short, the prospect of real estate in Thailand post-pandemic is promising. Although the world is going through tough times, real estate remains an attractive asset class as “everyone will always need a home. Now is the time for buyers to rethink asset management and to take advantage of the promotions that are offered in Thailand’s residential property market.