The Economist confirms: “Ongoing concerns over political stability will continue to prevent any major improvement in consumer and investor sentiment in the next year or so. However, towards the latter part of the forecast period, there will be a shift back to stronger domestic demand growth, but real GDP growth will still be slow”.
Export growth is also set to decline in the wake of the economic slowdown in important export destinations such as the USA. Thailand inflation hit 9.2 percent last month, its fastest pace since 1998. The Bank of Thailand raised interest rates for a second month in a row in order to fight inflation.
The completion of the airport has boosted the commercial property markets in eastern Bangkok and has made traveling to Thailand even easier.
Due to its popularity as a tourist destination, Thailand is one of the cheapest places to fly to in Asia, with direct flights readily available to Bangkok from many international airports.
The government is concentrating on ambitious new marketing efforts to attract luxury tourism and meet its target of 10% annual growth in tourist numbers.
New construction in luxury resorts is expected to attract vast numbers of tourists on short term holidays, while generating excellent rental yields for investors who own these properties.
Today, the government sees foreign investment as great asset while the dropping of certain financial requirements now make investment in Thailand an easier option than ever before.
Some investors are seizing the opportunity to purchase property now while prices are low. They buy safe in the knowledge that they will be generating long term returns when political and economic conditions eventually improve and the market builds fresh momentum.
There is no capital gains tax for private investors and low ongoing property tax applicable. Stamp Duty and transfer fees have been waived temporarily in a bid to attract more real estate investors to Thailand – all positive news for today’s buyers.
The cost of living in Thailand is still much lower than in most European destinations while the facilities available to tourists and visitors are modern and of international standard.
Property is lower priced in Thailand than in many other worldwide locations, and an increase in overseas interest is strengthening the country’s economy.
The information below highlights the economic structure of Thailand today and outlines why Thailand’s investment potential it is turning the heads of many investors.
With the aid of a thriving tourist industry, property in Thailand is experiencing a quiet revival despite the temporary effects of today’s political and world economic unrest. New construction in resorts areas is still expected to attract vast tourist numbers for short term holidays, while generating strong rental yields for the investors who own these properties.
In order to meet the target of 10% annual growth in tourist numbers, the government is concentrating its marketing efforts on high-end international tourists with strong purchasing power, especially those from the European Union, the United States, Japan and China.
Focus is on areas such as Koh Samui where land prices have seen the most significant increases. Other projects in the resorts of Krabi and Lanta Island are also attracting substantial interest and it is important to search for property in popular areas in order to benefit from maximum investment growth.
About 33% of the Thai population is aged between 25-44 years, which is a very good demographic figure for the growth of the domestic housing market, especially in the middle-end investment sector.
Capital Growth Predictions
It is undeniable that the “Credit Crunch” has damaged property values in Thailand, as in other worldwide destinations. Many Asian economies have seen enormous growth and are expected to experience a correspondingly dramatic fall in their economies, with property developers being hard hit. However, Thailand’s slower growth in the property sector, accompanied by its continued appeal as a top holiday destination are now allowing it to weather the current financial storm better than many. Property in Thailand, particularly in off-plan developments, remains a relatively stable longer term investment opportunity.
DEVELOPMENT OF KRABI
In the last few years the market for Krabi real estate has grown significantly and the types of real estate Krabi has to offer have grown in equal proportion. From luxuries resorts, multi-million dollar mansions to tidy beach-properties, Krabi real estate is available to suit all pockets. Of course, Krabi real estate finds easiest to sell, and therefore fetching the highest prices, is the high ground lots overlooking the Andaman. This Krabi real estate is also where you will find the grandest properties and finest hotels. However, that is not to say that other properties offer less advantages, for any real estate Krabi has to offer is prime.
The growth in tourism industry in Krabi has been steady and present figures of great interest to investors. At present many foreign investors are conducting feasibility studies to make investments either in luxurious resorts, hotels, bungalows or private homes and golf courses. Many projects have been realized such as Sheraton Hotel at Klong Muang Beach or Marriot Hotel now under construction, or luxurious resorts at Ao-Nang. At the same time there still are many projects under study that will be realized in the near future.