With returns on investment reaching as high as 5 per cent, investors from Hong Kong have flooded Thailand’s condo market looking for potential deals, reports local media. Sukhumvit Road in Bangkok is the most popular area with tourist location, such as Pattaya and Phuket, also drawing interest.
“Condominium units priced between THB 5 million and THB 10 million are popular with Hong Kong investors in Thailand’s property market,” says Theerapan Nunthapolpat, General Manager of Siam Commercial Bank’s Hong Kong location to The Nation.
The reason Thailand is popular with Hong Kong investors is due to the fact that condo prices in the Kingdom are a lot less than Hong Kong residential projects. Average prices for Hong Kong condo units per square metre are double what units in the mid-to-upper-range segment in Bangkok go for.
Lower interest rates in Hong Kong have also encouraged many investors there to look for ways to generate higher returns with Thai condos being a method gaining in popularity, according to Theerapan. A number of Thai developers have already held roadshows in Hong Kong to take advantage of the interest and it is a trend likely to continue.
“We see strong demand from Hong Kong investors interested in buying condominiums in Bangkok’s central business district, especially Sukhumvit Road, focusing on condos priced at no more than THB 10 million. All of them also buy our projects with cash. They also need a property-management service if they open their condos for rental, which generates a return on investment averaging 5-8 per cent a year,” says Sansiri President Srettha Thavisin.
In addition to being active in Hong Kong, Sansiri actively promotes its projects in China, Singapore and Taiwan and has been doing so for many years. Sansiri has set a foreign buyers presales target of THB 7.5 billion for this year. The company’s total presale target for 2017 is THB 36 billion.
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