NEWS & EVENTS
Thailand 2021: Why to Invest in High-Rise Luxury Condominiums
Any time the word Southeast Asia pops up more frequently or not, Thailand will be one of the first countries mention. Thailand is one of the most attractive tourist countries in the world. Bangkok and Phuket are both significant cities having more tourists than important cities in the West. To enter the region of Southeast Asia, Thailand is not a bad start to invest and have a new permanent home.
For one, the “Land of Smiles” brings happiness and smiles to families, friends, and tourists who previously visited Thailand. You hear all the excellent environment, people, and food about Thailand from your neighbor who probably had seen before or from your local news and entertainment programs. Thailand is one of the names frequently mentions anywhere when someone is describing the region of Southeast Asia.
Arguably, to start investments, it is better to embark on a place you are familiar with. As stated, Thailand is one of the most heavily visited places on this planet. Everyone is aware of Thailand and knows where it is. Still, with all the ongoing pandemic and how Thailand has not yet had it under control, is it an excellent way to start your investments into real estate in Asia.
It is not where Thailand is geographically located in the region, but also locations of condominiums in Thailand are very optimal. In Bangkok’s capital city, most condominiums are located near primary public transport such as BTS and MRT lines. Most high-rise and luxury condominiums are near BTS and MRT lines because of how land prices in Bangkok are high, and most are high-rise to maximize returns to the developer. On the other hand, investors provide suitable investments of how prices will mainly rise to pre-pandemic levels. Bangkok is a buyer-friendly real estate market and a buy-and-hold market. So when proper vaccination rollout is better managed in the country, your real estate investment will yield you profits by next year.
Locations near primary public transport with bus and MRT line support condominium near the central business district. Most businesses are around public transportation for easy access to the public. As stated above, land prices are high in Thailand, so the majority are high-rise luxury condominiums that are to foreing investment because of how some Thai buyer’s incomes are not as high as yet. But these are changing times; foreign buyers now can look at high-rise luxury condominiums and now expect more promotions. In the pandemic, prices of condos have decreased to around 0.4%. Many developers halt new significant projects and launches to clear stocks. There are still many unsold units in Thailand and Bangkok in the primary central business district. To remove unsold units, developers have to be creative in marketing unsold inventory. Thai developers are creative to lure in foreign investments at times of a buy-friendly market.
Thailand’s real estate market caters to investors from China and Hong Kong with mainly high-rise luxury condominiums. Locations of luxury condominiums are near the BTS line of Sukumvit Line, where high-rise condominium prices are high. As the ongoing pandemic is still affecting Thailand and its economy, demand has fallen in many industries, and of course, one of them is the real estate industry. In a state of confusion and disarray, there is always an opportunity for both the producer and the consumer. The chance to see the investment value and wait of return of investment in something that will yield you profit in the short and long term is real estate. As property developers having to clear unsold units, it’s time to be creative in marketing. One of the primary ways to market and lure investors will start with prices.
Luxury condominiums are near major transportation, and of course, luxury prices are now in decline and stable. As hard as visiting your property, one significant way to market is a video and 3D models. Many luxury condominium developers are turning to social media and video to promote unsold units. It is not a way to encourage, but also a way to virtually visit your property before purchasing, such as a unit in the Thonglor district, stated in South China Morning Post. Many promotion discounts affected prices of standard fees or common areas to decreased by 50%. Luxury condominium inventive are they are to ready to move in, but with increased unsold units, developers are focus on selling unsold units at pre-launched prices. With this, a luxury condominium gives you a period to save and make quicker decision-making and gives you less time to return on investments in a shorter period.
Bangkok? Phuket? Thailand? Your Second Home
Thailand can be your permanent second home, and it could be in different cities in Thailand, such as Bangkok, Phuket, and Chiang Mai. Chiang Mai, the old capital of Thailand, is in the North of the country and less populated. Phuket, another major city in Thailand, brings lots of tourism and contributes to Thai’s GDP. The majority of Thai populated around Bangkok, or Central Thailand estimated to be around 40% of the population. With a pandemic, consumer behavior changes to have more personal working space, privacy, and nature. The luxury condominium does offer plenty of private working spaces, such as libraries and standard rooms, and of course, privacy for you and your families. But sometimes, it can be a bit tight, and not as many open spaces. Hence luxury condominiums around Phuket and Chiang Mai. Both cities mainly consist of low-rise luxury condominiums, but offers and discounts and still the same as high-rise condos. Plans to have more foreign investments as Phuket’s “Sandbox” scheme is open to foreign visitors but not yet for investments. One primary marketing tool to bring in assets is “Pay Less Get Triple.” Incentives of investors to purchase real estate in Phuket for a better price and reduce standard fees and maintenance fees.
Secondly, how Thailand can be your new home is how its changing laws or ownership. Now Thailand is coming up with new visas and foreign ownership laws. Previously, foreigners can own 49% of condos, but with new rules and regulations, it could increase 75% by lowering income tax to 17%. Thailand wants to bring highly-specialized digital and technology workers to promote and enhance its digital business space. Thailand wants to be a powerhouse in technology and digital in its region. To attract foreign investors to find a second permanent home in Thailand is to offer ownership and more extended visas, such as Malaysia.
However, with new marketing tools, the decline in prices, good locations, Thailand has seen real estate sales drop this year as in many regions. But Thailand has more incentives to offer to foreign investors of its geographical areas of being the hub of Southeast Asia and a digital nomad paradise. As a result, condos prices are declining, which is an excellent opportunity to invest in luxury condos in a buy-and-hold market in Thailand, where you can enjoy your property at the beachside in Phuket with a potential yield of investors to renters and tenants later.