Bangkok’s condominium market enjoyed a lucrative year in 2012, according to Frank Khan, executive director and head of residential at Knight Frank Thailand.Condominium projects launched in the Sukhumvit area and central business district of the city were particularly successful, reported Khan.
Strong take up rate in areas like Sathorn, Narathiwas, Chidlom, Ploenchit and Ratchadamri highlighted the advantage of prime locations in Bangkok, as well as the shortage of available land for the development of high-rise buildings in these areas.
Awareness of limited space was advantageous for other areas including Ratchadapisek and Ladprao, according to Knight Frank. Limited space generated benefits for the resale market where high demand for units in Sukhumvit and Bangkok’s central business district contrasted with the supply of new units.
Some investors were more concerned with rental yield and capital growth in 2012, as opposed to resale statistics, reported Knight Frank. Rental rates in the last 10 months were positive, and returns were approximately five to six percent per year.
Thailand’s prominent role in the integration of ASEAN (Association of Southeast Asian Nations) countries contributed to the positive growth, as many European professionals migrated to Bangkok as Europe’s economic outlook remained gloomy.
Other investors, particularly Thais, aimed to retain asset holdings and awaited future developments.
The residential market in 2013 is expected by Knight Frank to yield a positive response from local and overseas buyers, as Thailand’s economic growth, government projects and the role of ASEAN continue to influence the market.
Overseas investors in Thailand are expected to come from Singapore, Hong Kong, Japan, China, Russia, Taiwan,India, America and Europe, according to Khan.
In 2012, 100 percent of investors in Phuket’s luxury residential market were from overseas, reported Nattha Kahapana, executive director of Knight Frank Phuket Co. Ltd.
In 2012 there were 29,033 flights to Phuket, an increase of 1.02 percent year-on-year. The number of tourists totalled19,761,794, a 13.57 percent increase year-on-year.
Official launches of new homes and condominium projects increased from October to March alongside higher volumes of tourists during Phuket’s peak season, as developers tried to attract more investors to the island.
Most investors who purchased in Phuket’s high end market were expatriates living in Hong Kong and Singapore, according to Nattha.
Investors in Phuket’s residential market also came from Russia, China, Sweden, Australia, South Korea, Finland, Malaysia, Denmark, Germany and France.