Singapore, Malaysia, Thailand, and Indonesia have investment potential, but the luxury home markets in the capital city of each country are the most interesting to investors, according to new research from Knight Frank. Bangkok and Jakarta had the most growth when it came to 5-year capital gains of prime residential property at the end of 1st quarter of this year.
The performance of prime residential properties located in Bangkok’s central business district has been very strong in the past few years. There is now a range of projects that have set new benchmarks for quality, facilities, and price per sq. metre. The 5-year capital gains from the 1st quarter of 2012 to the 1st quarter of 2017 for luxury homes in Bangkok were more than 51 per cent.
“Thailand remains a very positive long-term investment option as source markets for buyers seem to be expanding continually, giving investors plenty of scope for yields and capital returns. Condominiums have become the highlight of the Bangkok property scene. The commuting cost and the rapidly changing lifestyles of Thais are the driving forces behind the boom, especially in the down- town condominium market. They attract not only the young, but also the elderly,” says Knight Frank Thailand Research and Consultancy Director Risinee Sarikaputra.
There will only be limited supply growth in prime residential property in Bangkok. A lack of suitable land available for reasonable prices has forced developers to take a more cautious approach. This will see the selling prices of properties in the segment increase further in the coming years since demand will remain high even as the supply remains stagnate.
Knight Frank’s research also shows that the prime residential property markets in Singapore, Jakarta, and Kuala Lumpur also have potential and investors will likely keep an eye on these cities as well.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
