Foreign buyers boosts Thai property market growth in 2017, says consultant
Thai residential market received additional investment from mainland Chinese despite stricter outbound investment rule, says Knight Frank Thailand
The Thai residential market benefited last year from foreign buyers, as new supply hit the market with innovative designs and modern facilities helping to grow property investment, according to property consultant Knight Frank Thailand.
Frank Khan, executive director and head of residential projects said an appealing investment climate gave foreign investors the chance to capitalise on their purchases without being affected by high taxes and stamp duties.
Last year also witnessed several listed developers significantly capitalised on their market shares because of the influx of foreign buyers.
Mr Khan said the Thai residential market obviously received additional investment from mainland Chinese, even with stricter outbound investment rules.
The Bangkok metropolitan area in particular was a prime investment location. Several mid-priced condos in the capital have as much as 40 per cent Chinese uptake. That uptake was actually quite slow until the second half of 2017 because of more strict controls from the Chinese authorities on transferring money.
Roadshow expansion throughout Asia-Pacific, including China, marked an important part of marketing activities last year, a trend that should grow in 2018, he said.
Knight Frank foresees a healthy uptake from foreign investors across Asia-Pacific.
Mr Khan said developers should note that investors aimed for three basic criteria in their final purchase decision.
Location: the main factor for overseas buyers, particularly areas that have recognisable landmarks or mass transit accessibility.
Price: this is in direct correlation with the location, with grading of the development a second factor in price determination.
Product: amenities, facilities and fixtures – does the overall functionality match with the grading?
Marciano Birjmohun, associate director of international project marketing for Knight Frank Thailand, said with Thailand's expanding mass transit system, BTS lines remain the key influencer of urban development.
Mass transport is the most important aspect of a community's infrastructure, he said. In particular, interchange stations such as Bang Sue Grand Central Station, which is under construction, have become a focal point for overseas investors.
More overseas investors are also looking at peripheral areas of Bangkok, providing low entry levels for investment but benefiting from a direct connection to tourist areas and business districts.
With Tao Poon interchange completed and Samrong interchange station nearly finished, these areas have been classified as future hotspots.