The 2106 financial year in Thailand was one of positive growth and the 2017 year is on course to be similarly productive if not greater. No country’s economy has ever gone without challenges within a given year and the same is true of Thailand. Despite the minor challenges, there are many positive developments in Thailand’s and more specifically Bangkok’s property market which will see 2017 being a very lucrative year for real estate. Here are a few of the positive happenings on the landscape of Bangkok’s real estate market.
Rising Demand for Condos
Bangkok’s central business district has seen and is expected to continue seeing a rising demand for condo units. This increased demand will also see a steady rise in prices of these units, which is good news for those in the business of property sales. This demand also positively affects existing condo properties, as they are compelled to make improvements to boost the value of these properties. This is good news for sellers who will be able to fetch better sale prices for these properties and equally good news for buyers who may not be able to afford top dollar for units in a new development. These upgrades will enable them to be able to acquire property which is more up to date and at an affordable cost.
Interest from Overseas Investors
Thailand engaged in much overseas property marketing in the previous year (2016). For investors abroad, Bangkok is viewed as one the most sought after destinations for tourists, offering world class accommodations and experiences. As a result a great amount of interest has been garnered from the overseas market and particularly for properties in Bangkok valued below ten million Thai Baht. What particularly sweetens the deal for foreign investors is the fact that they stand to receive exemption from paying stamp duties on their purchases. These factors create a strong pull of foreign investors toward the Bangkok property market.
Development of Serviced Apartments
With the many projects coming on stream for serviced apartments in Bangkok, there will be more than enough accommodation for visitors who come into Thailand with permits for work. These accommodations offer convenient lodging for them and are also usually ideally located close to the main transportation rails, making the commute to work quite easy. The number of developments is set to steadily rise as the year marches on. These accommodations represent consistent income for apartment owners, who usually have tenants on extended contracts and also bode well for the general economy.
Demand For Office Space
The great demand for office spaces in 2016 has continued over into 2017. This results because the development of office spaces is not currently as popular on the Bangkok market as for residential or hospitality spaces. Most office buildings are located very close to the main transportation system which makes the demand for them exceptionally high based on sheer convenience. The high end design and modern features of these spaces also adds to the increased demand which will make rental prices quite competitive.
Demand for Retail Space
The need for retail spaces continues to rise in Bangkok as many spaces undergo construction with completions expected for this year. The greatest tenancy is found in the busiest locations which without a doubt attract higher rental costs than in the areas further away from the central business area. Some of the best restaurants in the region of Asia and in the world can be found in some of these same retail spaces in Bangkok.
Demand for Luxury and Sub Luxury Hotel Spaces
The demand for greater luxury hotel accommodation in Bangkok has been on a steady increase since 2015. Most of the hotels currently under development in Thailand are located in the central areas of Bangkok and are scheduled for total completion by 2019. The main sites of these hotels are in Lumpini, Sukhumvit, Riverside, Sathorn and Silom. Bangkok is also rising in popularity as a prime location for delectable cuisine and beverages, an important part of the vacation experience of visiting tourists wherever in the world they go.
Bangkok’s Prime Position Near to Emerging Markets
With Thailand’s prime position right in the middle of Cambodia, Laos, Myanmar and Vietnam, the potential exists for Thailand as a more developed country to provide assistance to boost the economies of these neighbours in the areas of agriculture, technology, and industry. This along with the combined economic growth of these other countries will make the region a more attractive one for tourism and trade, favouring Thailand as a main port for logistics exchanges to take place. Implementing measures to make this kind of partnership will only benefit and boost the economy of Thailand, enhance the property values and demand for the prime area of Bangkok as well as improve Thailand’s neighbour relations in the region, creating an even greater international appeal.
Author Bio – This guest post is a work of Jon Smalling promoting CBRE Thailand.