Overseas buyers accounted for 100 percent of investors in Phuket’s luxury property market last year, according to research published by Knight Frank Thailand.
Over
in the Thai capital Bangkok, condominium launches in the Sukhumvit area
and the central business district (CBD) were particularly successful,
noted Frank Khan, Executive Director and Head of Residential at Knight
Frank Thailand.
Other hotspots were Sathorn, Ploenchit,
Ratchadamri and Chidlom, which saw robust demand due to a shortage of
available land for development. Media reports said that with limited
space, there is higher demand for resale units in Sukhumvit and
Bangkok’s CBD compared to new supply.
Knight Frank noted that
the limited supply of prime properties helped to push prices up last
year. Rental returns were satisfactory to foreign investors at around
five to six percent.
Strong interest for prime property in
Thailand is supported by a vibrant tourism sector. Higher tourist
arrivals help to push up prices and rental demand. As a result,
developers have increased efforts to attract more overseas investors to
Phuket.
Moving forward, Knight Frank said properties in Thailand
are expected to attract sustained interest from local and overseas
buyers from Russia, Hong Kong, China, Europe and the US.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@allproperty.com.sg
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