Thai buyers looking at London are being urged to consider making their purchases ahead of the introduction of a capital gains tax in April 2015.
Frank Khan, Head of Residential for Knight Frank Thailand, explained there is limited supply of prime London property while there is a huge demand from all over the world. He noted that annual price growth in prime central London is currently running at between 7 percent and 8 percent.
He said: “There is diverse demand for London property. This is due to the great connectivity of the city and the strong legal structure. This demand is not depend on any one country. Many buyers from Asia are coming from Singapore, Hong Kong and Malaysia, while the Chinese are also a fast growing buying sector.
Khan predicted that prime central London will perform well in the future. There are opportunities, especially for non-GBP buyers, he said, but buyers need to study the market.
“This is because of the currency advantage of Thai Baht at the moment, while there is also no capital gain tax at this moment,” said Khan.
Knight Frank knows there will a capital gain tax starting from April 2015, but we do not know how much it will be. What is interesting to note is that for any transaction that happens before April 2015, the capital gain tax is zero.
London is a true global city, added Khan, where there is under-supply in the capital but strong demand.
Image: http://en.wikipedia.org/wiki/User_talk:Mewiki
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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