Thailand Market Growth

With a thriving tourist industry and new investment in marketing, property in Thailand is experiencing a quiet revival since the recent Tsunami disaster. New construction in resorts less affected by the disaster is expected to attract a vast numbers of tourists on short term holidays, while generating excellent rental yields for the investors who own these properties.

In order to meet the target of 10% growth in tourist numbers per annum, the government is concentrating its marketing efforts on high-end international tourists with higher purchasing power, especially those from the European Union, the United States, Japan and China. New markets are also being penetrated, especially Russia and India in 2006.

New focus is on areas such as Koh Samui where land prices have increased by 20% in the last year. Other projects in the resorts of Hua Hin and Lanta Island are also attracting substantial interest. It is important to focus your search on popular areas in order to benefit from maximum investment growth.

About 33% of the Thai population is aged between 25-44 years, which is a very good demographic figure for the growth of the domestic housing market, especially in the middle-end investment sector.

Capital Growth Predictions:

While returns on investment are relatively slow compared to those in other emerging property markets, Thailand has a huge appeal on the basis of its already thriving tourist trade and the great potential of its future: Today, the Thai Prime Minister, Dr Thaksin Shinawatra, and his government see foreign investment as great asset while the dropping of certain financial requirements now make investment in Thailand an easier option.

Current average capital growth for Thai property is set at between 10 and 15%.

Rental Yield Predictions:

The best investment returns are to be found in apartments in the major cities which rent out to the domestic market and which have been enjoying increased rental rates, as well as apartments in resorts built for development and resale to overseas second homers, retirees and expatriates. Many property developers are planning new projects in the Sukumvit area of Bangkok, where demand is dominated by expatriates.

If you select a property in a suitable location, it is expected that mortgage payments and bills can be partly or totally covered for the year from the rental income achieved from the peak season months alone (November to February).

Reasons Why Thailand Is An Intelligent Property Investment Location

An exotic long haul destination, Thailand is also a sophisticated tourist destination with a great universal appeal.
For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar.
Retirement visas are available for foreigners over 50 years of age, according to financial means.
Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit.
Thailand boasts beautiful mountains, dense forests and stunning beaches.
With a tropical climate and cities teeming with culture and colour, Thailand entices visitors back each year.
Warm weather for winter holidaymakers between November and February.
The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are growing quickly and strongly (around 10-15% a year).
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) is expected to spur growth in commercial property markets in eastern Bangkok as well as make 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. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.
Rental potential is great, due to increased government spending luring growing numbers of tourists.
No capital gains tax for private investors, and low ongoing taxes.
Today foreigners are regarded by the government as a big investment opportunity in Thailand.