Foreign investors from Asian countries are flocking to buy middle- to upper-market condominiums in Bangkok’s central business districts (CBDs) thanks in part to the Asean Economic Community having taken effect as well as the baht’s continued weakness.
In order to take full advantage of this increased foreign demand, Thailand’s property developers have been setting up road-shows for their residential projects overseas, especially in China, Taiwan, Singapore, Hong Kong and the Middle East.
“We plan to road-show our luxury condominium projects in Taiwan, Hong Kong and Singapore this year, having witnessed foreign demand to buy in these projects last year,” SC Asset Corp’s chief executive officer, Nuttaphong Kunakornwong, told The Nation.
The company’s luxury Saladaeng One project has recorded sales of THB900 million from foreign investors that include Hong Kong, Singapore, China and Taiwan buyers. The company noted that up to 30 percent of the customer target for Saladaeng One is the foreign market.
Sansiri is another company hoping to take advantage of the increased interest in Thai property from buyers across Asia. The company’s president Srettha Thavisin explained to the newspaper that condominium demand among foreigners wishing to buy had picked up strongly with luxury units priced above THB5 million being the most in demand. Sansiri earned THB3.5 billion in presales from foreign customers, and it is estimating that figure to jump to THB5 billion this year.
The AEC’s implementation this year along with the Thai Baht continuing to weaken against the US dollar from THB33 per USD1 to THB36 to USD1 are the main factors boosting foreign demand for condominiums in Bangkok’s CBDs.
“Although luxury condominiums in Bangkok’s CBDs have high prices, they are still lower than for condominiums in many other Asian economies, especially Singapore, Hong Kong, and Taiwan,” Srettha stated.
