By Andrew Batt:
Foreign property buyers and investors were back in force last year, with more than one in five luxury property purchases in Bangkok made by overseas buyers during 2012.
Prior to the start of the global financial crisis in 2009, foreign buyers were responsible for as much as 35 percent of demand for Bangkok condominiums. This dropped to single digits but according to research from CBRE the percentage rose to 21 percent in the THB10 million-plus sector during 2012.
The outlook is continuing to improve on the back of strong sales at overseas property exhibitions – especially in Singapore and Hong Kong. More than 60 percent of foreign buyers are purchasing Bangkok condominiums for investment purposes, according to CBRE.
Singaporeans are clear market leaders alongside Hong Kong, but Bangkok has also seen its popularity extending to other overseas markets such as the United Arab Emirates and Europe.
Foreign buyers virtually disappeared from Thailand in 2010 when the violence on the streets of Bangkok made newspaper and television headlines around the world.
During the past 12 months there has been a noticeable correlation between the stable political situation and an increase in foreign property buying interest.
As other markets in the region start to slow – whether through government controls or economic conditions – foreign buyers are looking at alternative markets in Southeast Asia. Thailand is already seeing the benefits with reports of strong interest and sales at exhibitions in Singapore and Hong Kong during the first month of 2013.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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