EXCLUSIVE: By Andrew Batt:
Thailand’s first student property investment exhibition has been hailed a success after 15 units were snapped up by local buyers last weekend.
This was the first event to specifically offer student accommodation property investments to property buyers and investors in Thailand, and the interest was described as “exceeding expectations” according to Century 21 Thailand, the real estate agency which organised the event.
Units at Crown Place in Leicester, U.K., were being sold for £57,500 (THB 2.82 million) with guaranteed net returns of 6 percent for five years.
Chana Nunthachantoon, Managing Director of Century 21 Thailand, told DDProperty.com: “More than 90 percent of the prospects we saw were Thais and many of them have never invested outside the country. They were interested in the guaranteed rental yields.”
Chana noted that some potential buyers expressed concerns about tax implications and confidence in the developer.
“We are planning to hold a seminar to talk about property investments outside Thailand, and to educate buyers about all aspects of buying property abroad,” Chana added.
Student accommodation property investment opportunities in the U.K. are regularly exhibited in Singapore and have attracted strong interest from buyers there.
Leicester’s DeMontfort University has invested £20 million as part of a 10-year initiative while Leicester University is currently undergoing a £300 million upgrade of its facilities. Leicester is recognised as a leading city for education and sport, ranked number one in The National Student Survey for satisfaction. For every place there are 6.5 applicants, with satisfaction overall rated at 80 percent. Student numbers have increased by 4 percent in the last year and international students by 11 percent, however there is a lack of supply of good quality student accommodation in the city.
James Pullan, Head of Student Accommodation at Knight Frank in the U.K., said: “The student accommodation sector is now recognised as forming a critical component of a balanced investment portfolio.”
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