Economic Factors In Thailand

Economic Climate

The Economist confirms: “Ongoing concerns over political stability will continue to prevent any major improvement in consumer and investor sentiment in the next year or so. However, towards the latter part of the forecast period, there will be a shift back to stronger domestic demand growth, but real GDP growth will still be slow”.

Export growth is also set to decline in the wake of the economic slowdown in important export destinations such as the USA. Thailand inflation hit 9.2 percent last month, its fastest pace since 1998. The Bank of Thailand raised interest rates for a second month in a row in order to fight inflation.

Tourist Figures

The government is concentrating on ambitious new marketing efforts to attract luxury tourism and meet its target of 10% annual growth in tourist numbers.

New construction in luxury resorts is expected to attract vast numbers of tourists on short term holidays, while generating excellent rental yields for investors who own these properties.

Cost of Living

The cost of living in Thailand is still much lower than in most European destinations while the facilities available to tourists and visitors are modern and of international standard.

Property is lower priced in Thailand than in many other worldwide locations, and an increase in overseas interest is strengthening the country’s economy.

Suvarnabhumi-Bangkok International Airport (SBIA)

The completion of the airport has boosted the commercial property markets in eastern Bangkok and has made travelling to Thailand even easier.

Due to its popularity as a tourist destination, Thailand is one of the cheapest places to fly to in Asia, with direct flights readily available to Bangkok from many international airports.

Property Market

Today, the government sees foreign investment as great asset while the dropping of certain financial requirements now make investment in Thailand an easier option than ever before.

Some investors are seizing the opportunity to purchase property now while prices are low. They buy safe in the knowledge that they will be generating long term returns when political and economic conditions eventually improve and the market builds fresh momentum.

Tax

There is no capital gains tax for private investors and low ongoing property tax applicable. Stamp Duty and transfer fees have been waived temporarily in a bid to attract more real estate investors to Thailand – all positive news for today’s buyers.

Economic Reasons Why Thailand is an Intelligent Property Investment Location

• Thailand property prices remain far below those in the more established European markets
• Thailand is the largest growth market in Asia. Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia
• Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region
• The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) boosts growth in commercial property markets in eastern Bangkok as well as makes Thailand even more accessible by air
• Thailand is one of the cheapest places to fly to in Asia
• The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns
• Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand
• Rental potential is high, due to increased government spending luring growing numbers of tourists
• No capital gains tax, stamp duty or transfer fees for private investors. Low ongoing taxes
• Today foreigners are regarded by the government as a big investment opportunity in Thailand

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