Tropical dream
Thailand offers attractive investment with high yields, writes Peta Tomlinson
Some holidays promise more than they deliver. The same can be said for property purchasing decisions: it's one thing to love an exotic destination, quite another to invest there. The notion of buying an offshore property that can be rented out, will appreciate in value and can also be there for one's own personal use doesn't always have a happy ending.
Thailand is no exception. The fact is that property markets in the "Land of Smiles" are booming, and foreign investors, who are not allowed to own land but can buy condominiums, are returning to the fold after a noticeable absence.
It's likely linked to rebounding tourism: a record 21 million visitors arrived in Thailand last year, a 15 per cent increase on 2011, according to official data, with 25 million expected this year. China accounts for the biggest market sector (13.8 per cent), with its nationals ranking along with Hongkongers among the top 10 spenders.
According to Colliers International, it's not just the lure of an exotic location. In the capital Bangkok, improving infrastructure is fuelling a condominium boom. Prices rose by 12 per cent in 2012, and are projected to increase another 10 per cent this year, the firm says.
Thai holiday resort towns are also experiencing an upswing. Colliers' data shows Pattaya to be the most popular location for residential investment outside of Bangkok, especially since local publicly listed and foreign developers began launching projects in 2011.
Surachet Kongcheep, senior manager of the research department for Colliers International Thailand, says that as most buyers in Pattaya are Thai, developers tend to target the mid- to low-end of the market (less than 3 million baht, or HK$790,370 per unit).
