Is Thailand Still a Good Investment for Condominiums?
In loose brush strokes the Thai property market is still a vibrant investment vehicle with some attention needed to discern between the commercial and personal property market. Distribution of property sales is uneven through Thailand, although the macro view is robust and proceeding well from an international perspective.
The following factors are probably the most urgent when a client is considering investing in the Thai condominium market.
Phuket, Pattaya and Hin are the three major coastline destinations in Thailand. Despite the political troubles of earlier this year 2014, a minor construction boom is still taking place. Projects that were put on hold are now rekindled. Many of the completed projects may seem vacant, but are actually second homes for affluent buyers.
This can give a location the appearance of a down market but in actuality, the economic indices are more consistent throughout the year for these locations.
The primary topics to bear in mind for a new coastline condominium are:
- Identify new projects that will complete within your schedule. The older condominium projects are unlikely to hold their value as well as newer completions.
- There is no better indicator for a condominium project than to observe how busy construction is. A quiet construction site often indicates a lack of funds. Quite a few developers are invariably waiting for an additional injection of funds, so try to identify those developers with a healthy cash flow, as these enterprises are eager to complete their projects and grab market share when demand emerges.
A decent rule of thumb or principal of buying condominiums is to avoid reviewing properties where just one language is spoken by the residents apart from Thai. For example a significant Scandinavian presence is evident in Hua Hin, and Jomtien Beach near Pattaya, features a high concentration of Russian condominium owners.
The key purpose here is to find the highest resell value. Homogeneous ethnic properties are harder to sell because the potential customer pool is more restricted for properties that tend to have similar nationalities dwelling in them.
The ideal property can and should be sold to a wide spectrum of international residents that in turn places a higher demand than condominiums that are inhabited by only Germans, Scandinavians, Russian or lately Chinese for example.
Krung Thep the nation’s capital still remains the foremost and optimum condominium investment by a county mile. The inner city heartland estates have largely been fully developed and thus additional condominium construction will solely happen toward land that has existing properties, which in all likelihood will require razing to the ground or demolishing.
These remaining inner city locations with development potential make for sanguine condominium investments that can seldom be a loss maker. This is because the infrastructure and services offering of the proposed unit are already in situ and create enticing buyer incentives such as proximity to popular night locations, and ease of transport.
Most condominium construction currently takes place within the suburbs of Bangkok and if these units are placed within reasonable access to mass transit transport, they ought to be safe and healthy property investments for the longer term. It is however vital to confirm before purchasing a property that all possible checks and inspections of the area unit are completed before purchase.
It’s your investment and nobody is better placed to raise questions and ask as many cross checking issues that are pertinent to the sale of a condominium.