Foreign Investors’ Interest Increases In Thailand’s Real Estate Sector
As tourist arrivals to Phuket continue to rise, this is taken as an indication that the condominium market is becoming a beneficiary to the increased numbers.
The county’s tourist numbers have been hovering around the 22 to 24 million-mark between 2012 and 2013, showing a 15% increase from 2011. A significant percentage of the arrivals are from Russia, Eastern Europe, Malaysia, Singapore, South Korea, Australia, Japan and the UK.
A new demographic of property seekers has emerged where they are gravitating toward a tropical condo-lifestyle, where quality tourists whom many convert into buyers is outweighing the ‘quantity factor’.
Whether it’s the balmy year round weather or the less expensive cost of living compared to their home countries, tourists are rapidly turning into investors following their initial visit/s to Phuket. And speaking of cost of living, life in the Kingdom is considered a third less than expats’ EU countries with Thailand ranking number two in HSBC’s Expat Explorer Survey.
There’s been a 20% growth in the Phuket condo market in the last two years according to recent investment reports, with the Russians and Chinese being out in front of the pack. Interestingly, Russians represent 30% of property buyers, while investors from India are also beginning to show substantial numbers as prospective condo shoppers.
Asians overseas are also continuing to make their presence as big property spenders in Phuket due to the close proximity to their home countries. Their preferences typically consist of luxury with spaciousness and the highly sought after sea-view locales.
Additionally, the selection of the latter preference is becoming much more difficult to find due to the increasing lack of availability and high demand. It appears however, that even with prices having escalated in recent years, these aforementioned demographics of buyers still feel that their money is well spent in comparison to their native countries.