Infrastructure developments boosting Thai condo market
Ambitious infrastructure plans have resulted in an upsurge in Thailand’s property investment potential with Pattaya and Bangkok having the potential to become real estate hot spots, it is claimed. Some US$72 billion is being spent in the next four years on major projects such as a new system of rail networks connecting Thailand’s major Northern provinces, including Chaing Mai and Bangkok.
Plans from the Association of Southeast Asian Nations’ (ASEAN) to eliminate tariffs and to open new Free Trade Areas, are also likely to encourage more foreign investment into Thailand, according to global property investment specialist Knight Knox International. New infrastructure is set to improve accessibility across the country and boost the tourism trade. The Ministry of Tourism and Sports reported that over 22 million tourists visited Thailand last year, holidaying mainly in the popular regions of Pattaya and Bangkok.
Knight Knox International describes Pattaya as ‘a vibrant beachfront city lined with mind blowing architecture and luxury hotels’. It says that the condominium market is extremely popular with investors in the area, with the second half of 2012 seeing the launch of over 7,000 new units and a take up rate as high as 69%. It believes that this rate is set to rise with the imminent arrival of the Cartoon Network water park which is set to open later this year.
Quote from PropertyCommunity.com : “I am wondering if Phuket is still a good place to live and has good investment in a long term though many people sell their properties a lot lately (not sure if something going on with the safety or natural disaster that may happen?).”
In its view Bangkok is a city abundant with magnificent palaces, grand temples and traditional street markets that make it very attractive to investors and tourists. Travel & Leisure Magazine voted it the best city to visit in the world in 2012. Bangkok has benefitted from a number of new infrastructure projects including a new rail system with five mass transit extension lines. Developers are building condos along the rail network and real estate companies claim that people selling units bought in 2011 can sell then at prices some 12% higher than a year ago.
‘The Thai condo market is booming at the moment. The country’s new infrastructure project has helped transform the condo market in cities like Bangkok and Pattaya,’ said Lee Chettoe, sales manager at Knight Knox International. ‘Over the past 12 months we have also found that investors are broadening their horizons and starting to look more further afield than the traditionally popular regions in Pattaya, towards the more tranquil area of Bang Saray, either looking to retire or for a peaceful holiday destination,’ he added.
The condo market is certainly active in Bangkok with activity mostly centered along the BTS train routes which run along the Sukhumvit line. There have been extensions to the route either way now reaching as far as Bangna, and this has attracted many Thai's looking for small units to invest, either for rental income or perceived capital growth. Also the market is attracting couples and singles looking for a condo to live in and then take the BTS to the more central areas to work. Condos close to the BTS stations tend to be priced the highest. There are a number of projects close to BTS On-Nut under construction, and further out to Udomsuk seems to be an interesting area. The degree of infrastructure improvement can be seen by the BTS train line extension.