Mr. Frank Khan, Executive Director and Head of Residential Projects, Knight Frank Thailand expressed his opinion that “2017 stands as an outstanding year for foreign investors, new supply with innovative designs, modern facilities and investment growth. An appealing investment climate like Thailand gives foreign investors the chance to capitalize on their investment without being affected by high taxes and stamp duties.
The year 2017 also witnessed several listed developers being able to significantly capitalize on their market share due to the influx of foreign buyers. Thai residential market has obviously received an additional investor stream from the Chinese, even with imposing stricter outbound investment. Bangkok metropolitan areas in particular are their prime investment locations. Several mid-priced condos in the capital have as much as 40 per cent Chinese uptake, but this uptake until the second half of 2017 was quite slow because of more strict controls from Bank of China on transferring money.
Road show expansion throughout Asia Pacific, including China, marked an important part of the marketing activities, a trend that will grow in 2018. And we foresee a healthy uptake from foreign investors across Asia Pacific.
Developers should note that investors always aim at these three basic criteria for their final purchase decision:
- Location : the main factor for overseas buyers, particularly areas that have recognizable landmarks or mass transit accessibility
- Price : this is in direct correlation with the location, with grading of the development a second factor in price determination
- Product : amenities, facilities and fixtures – does the overall functionality match with the grading?
Mr. Marciano Birjmohun, Associate Director of International Project Marketing, Knight Frank Thailand, added that “With Thailand’s expanding mass transit system, the BTS lines remain the key influencer of urban development. Mass Transportation is, in many ways, the most important factor of a community’s infrastructure. In particular interchange stations, such as Bang Sue Grand Central Station that is currently under construction, have become a focal point for overseas investors. More overseas investors are also aiming on the peripheral area of Bangkok, providing low entrée levels of investment but benefiting from direct connection to the tourist and business districts. With Taopoon interchange completed and Samrong interchange station nearly complete, these areas have classified themselves as future hotspots. If we only look at the existing traffic at interchange stations like Asoke and Siam, we can be certain that Taopoon and Samrong will become major transit stations by 2020.
Furthermore, the quality of infrastructure systems in Bangkok, including its transportation and telecommunications systems, is an important factor that influences real estate investment and development decisions similar with other big cities around the world. Infrastructure developments have direct impact on property values, especially the way that transport infrastructure positioning has serious impacts on people, communities and property values. This is clearly visible along the BTS lines Sukhumvit and Silom.
Residential properties located close to transportation infrastructure tend to be labelled as “premium” and it’s common for real estate prices to appreciate in line with the development of infrastructure.”
