Following a two-year downturn, optimism is returning to the Thai real estate market, according to the latest Bangkok Real Estate Market Outlook 2018.
The report, published by CB Richard Ellis (CBRE), has found that renewed spending in the Thai real estate market by both Thai and overseas property investors can be seen. At the same time, foreign investment in property grew more than tenfold, from just four projects in 2013 to 52 this year.
Thailand was found to be the preferred destination in the Asia region for overseas property investors following Hong Kong and Singapore.
Furthermore, the return of political stability is also attracting Japanese and mainland Chinese buyers to the Thai real estate market again.
Thai real estate regulations are also clear and consistent. Foreign investors are protected and can be legal owners of freehold condominiums, comprising up to 49 per cent of one project. In leasehold purchases, there is no limit.
A destination becoming popular for both Thai and overseas property investors is Hua Hin.
The city is known to be safe, easy to travel to and reasonably priced. There is an abundance of leisure activities, good restaurants, shopping malls, night markets, cinemas, and other entertainment outlets.
There are also sandy beaches to enjoy within easy access of most developments.
Proximity to Bangkok and international airports is another advantage of Hua Hin, a benefit that is due to be enhanced by the development of new high-speed rail links that will link Bangkok to Hua Hin, making the commute pleasant and quicker. Currently, bidding for the mega rail project is underway.
Strong rental returns with average yields of around 6 per cent can be achieved in Hua Hin. Higher quality accommodation commands premium prices in the city.
It seems that the Thai real estate market is on the up again.