Singapore, Malaysia, Thailand, and Indonesia are the countries with the greatest investment potential with the luxury segment being the strongest. While all 4 luxury property markets are performing well, Bangkok is the one city to watch, according to Knight Frank Head of Research Asia-Pacific Nicholas Holt.
The 5-year capital gain of prime residential property at the end of the 1st quarter of 2017 grew by more than 51 per cent in Bangkok while Jakarta also record significant growth, shows research from Knight Frank. Kuala Lumpur only had minimal growth and capital gain decreased in Singapore during this time, but those markets are still of interest to real estate investors.
High-end properties located in Bangkok’s central business district continue to perform well. Even demand for developments in the city fringe has been strong. The reason for the solid performance is due to projects impressing buyers with exclusive features that offer quality, innovative facilities and attractive prices.
“Thailand remains a very positive long-term investment option as source markets for buyers seem to be expanding continually, giving investors plenty of scope for yields and capital returns,” says Knight Frank Thailand Research and Consultancy Director Risinee Sarikaputra to The Edge Markets.
However, there will only be limited growth in supply of prime properties in Bangkok due to the lack of suitable land. Another issue facing developers is high land prices in central locations. Property prices in this segment are likely to increase in the coming years, as there will be no new supply added to the market. Meanwhile, demand is expected to stay high despite a lack of new projects.
“Condominiums have become the highlight of the Bangkok property scene. The commuting cost and the rapidly changing lifestyles of Thais are the driving forces behind the boom, especially in the downtown condominium market. They attract not only the young, but also the elderly,” says Risinee.
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