Thailand Properties

Global Property Market Supply

Hong Kong people are keen to invest in real estate. The market is heavily supplied to overseas properties in places such as the United Kingdom, Japan, Australia, the United States or Canada. Many local investors will only tend to invest in properties in these developed countries because they lack knowledge of overseas property markets. Under the massive supply of properties, the local demand for property has grown at different rates, which has often led to a far worse return on rents and property prices than the property market in Hong Kong. All kinds of rental matters require the owner to visit the local area personally. Therefore, there are certain difficulties in managing the property.

Recently, the Hong Kong market has also significantly increased the supply of property projects in Bangkok, Thailand, to enjoy luxury decoration and electrical appliances in the whole house, or to be close to railway stations to attract Hong Kong people's investment. However, due to the oversupply of luxury residential rental market in Bangkok, it is difficult to attract a large number of local citizens or multinational corporations to rent properties in a short period of time, often resulting in the difficulty of finding tenants and vacant property for a long time, which seriously affects the rental return.

GPD is a leading provider of global hotspot tourism cities - Phuket Island's quality property projects. Phuket, Thailand is a world-renowned top tourist paradise. In recent years, the number of visitors has increased significantly, and the average annual number has recently increased significantly, especially for domestic tourists. Therefore, the strong demand for buildings has become a heaven for keen investors. Property prices rose steadily and the rental of buildings was stable. The rate of return was even more global. As a large number of visitors from Phuket Island have a strong demand for high quality property leasing, they can strive for the highest and most stable rental returns for the owners.

Global property rental return ranking

Thailand ranks second in the world with an average national rental return of 5.13%. Phuket Island is the region that mainly drives high rental returns. The rental return of the strata housing can reach 6 to 7% per year, and the rental return of some high quality villas is even higher each year. Can exceed 10%. The sun and the beach add to the temperate climate throughout the year. The warm climate of Phuket Island in Thailand from December to April each winter attracts tourists from all over the world to go on holiday. The former travelers from France, Germany, Britain and Australia have gradually expanded in recent years. Travelers from Asia, including China, Taiwan, Hong Kong, and Singapore, have demanded a large number of tourists for holiday rentals in Thailand's Phuket resort area. In recent years, Thailand’s economy has not been optimistic and the rental recovery rate has remained strong.

Phuket Island Asset and Rental Returns Continue to Rise

Thailand's Phuket Island Government has continued to implement large-scale infrastructure investment projects. Mature tourism and service packages attract a large number of tourists each year. Inbound passengers on Phuket Island reached 8.5 million in 2017, an increase of 11% year-on-year, accounting for 25% of the total number of passengers in Thailand in 2017. Since the total surface area of Phuket Island accounts for only half of Hong Kong, and the limited supply of high-quality properties, the rents of property and hotels in the region have continued to increase. International investors have accelerated their entry into the market in recent years and local properties are in short supply. The average price of private condominiums in Phuket increased by 3.51% in 2016, of which non-sea-view private apartments recorded an increase of 7.31%, making it the best performer in private condominiums. In addition to investors from Southeast Asia and Europe and the United States, Russian high-end investors also stabilized with the exchange rate of the ruble, and funds are rushing into the property market in Phuket. The stable economic growth of Thailand's Phuket Island and the steady appreciation of the Thai baht against foreign currencies have provided Hong Kong and overseas investors with an opportunity for stable asset growth.

Non-sea-view private apartments have the highest increase

Private villas and villas in Phuket Island are the two most important types of international investors. The properties are divided into sea view, partial sea view and non-sea view households. The closer the beach is, the more expensive the sea view is. However, according to the statistics of housing prices in Phuket in recent years, in the private housing sector, the fastest rising property prices are non-sea-view households.

Non-sea-view households were favored by the change in the positioning of Phuket's developers and the change in the structure of investment guests. There are more and more investment customers from international emerging markets in Phuket's property market. Developers newly promoting non-sea-view households are attracting investors through the provision of rental return guarantees. This has made private-owned apartments on Phuket Island transition from 2012 to 2012. Most of the apartments are larger than 100 square meters (about 1076 square feet) or more, and they have been transformed into small one-bedroom properties. The best sales of privately-owned apartments are in the Kamala and Karon districts on the west coast of Phuket. ) One-bedroom apartments in Patong, Rawai and Kata. In addition, as investors pay more attention to rent-receiving needs, properties with professional rental management services are expected to perform better.

Shortage of villas drives up prices

The Phuket villa market, especially the sea view villas, still has good fundamentals. After the financial crisis, the supply of local villas dropped from 200 to 250 units per year to 60 to 80 per year. Until 2011, supply rose gradually to 131 units. By the end of the first half of 2016, 165 new units had been supplied. The new villa supply in the market is mainly 4 bedroom villas and inland areas far from the beach.

As developers develop more inland areas, which means that there are fewer and fewer new projects with sea views, so the price of second-hand sea-view villas has risen, but the market is still very healthy. The Phuket villa market is still far from being excessive. For supply, developers can only sell uncompleted flats in advance. Similar to private condominiums, Europeans and Russians are the main buyers. Asians, especially those from mainland China, Hong Kong, Taiwan, South Korea, and Singapore, are increasing. These investors who buy villas are often globally Two or more properties.

Huge amount of infrastructure investment

Whether or not the new US President Trump will launch a trade war has added uncertainty to the Southeast Asian economy. However, the demand for tourism and vacations has acted as a barrier for the Phuket property market in Thailand. According to past performance, Phuket Island can successfully avoid the negative impact of political turmoil and economic slowdown in Thailand and has a great relationship with infrastructure investment in Phuket Island. Reasons include the launch of the new passenger terminal at Phuket International Airport in September last year. Currently, it can handle more than 70,000 flights a year and bear 12.5 million passenger flows. The transportation facilities will be upgraded. In the future, the LRT connecting Phuket Airport to the south will be built, which will make the Phuket market look promising after 2017.

Light Rail will connect downtown to Phuket Airport

The Governor of Phuket Island, Chamroen Tipayapongtada, held a traffic and transportation committee on July 25, 2016, announcing that the construction of the Phuket Light Rail (LRT) project will begin in 2017. A 60-kilometer light rail line will drive north and south, connecting Phuket Airport and the downtown area. . In the future, it will only take 45 minutes to take the Phuket BRT from the south of the island to the North Phuket Airport in the south of Phuket. The current plan will build 23 stations. The next Phuket Light Rail will connect the city center, sightseeing spots and shopping malls. At present, the property price in Phuket does not reflect the potential increase after the large-scale transportation infrastructure. When the railway passes through major tourist attractions and shopping malls, more international investors will enter the investment property in Phuket Island.