Still smiling! Thailand property market thriving in the Kingdom

thailand-property-market

Thailand – the Land of Smiles – is an old Kingdom strategically located in the heart of Southeast Asia and has been the center of trade for the region for hundreds of years.

Thailand property market growth has slowed since the 2014 military coup. Condo and townhouse prices rose to 4.7% and 3.1% in 2016, respectively — while respectable, it is a  drop from the heady increases  of up to 9%

In business, a non-Thai may only own up to 40% of a company. Americans can own 100% of a firm under the Thailand-US Amity Treaty but the process is bureaucratic and requires approval from multiple government agencies. Non-Thais cannot own land in Thailand and only condominium units and apartments above the ground floor and not more than 40% of all units in total of the entire building.

Thailand is a large nation of almost 70 million inhabitants and there are a number of places where investments are worthwhile. Bangkok is the nation’s capital and political and economic center — it is a key Asian city. Bangkok is a true megapolis – with numerous neighborhoods to choose from – although new and upcoming areas are sprouting up, Sukhumvit, Lumpini and Thonglor are still favorites. Real estate near the BTS Skytrain stations and MRT are at premium prices of US$545 per square foot (sq. ft.). Rental yields in Bangkok are also reasonably good in the city center.

Chiang Mai is Thailand’s second largest city and boasts low rise condos that average costs US$150 per sq. ft. Phuket is also hugely popular and is world-renowned for its white, sandy beaches, pristine waters and high standard, but low cost of living. While the properties are cheaper here compared to the homes in the cities, Phuket thrives in high season and rentals are profitable during high season.

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