Thailand wooing back foreign investors
The relative dearth of international buyers in the last four years has lifted as sentiment around politics and global economics improves, and the situation is helped by market cooling measures in places such as Singapore and Hong Kong
The residential property market has been waiting for signs of a return of foreign investors after a few lean years following the 2008-2009 financial crisis. Now, with statistics from our residential sales activities showing favourable trends of foreign interest, it appears the time has come to welcome back these investors to the condominium market.
Historically, foreign buyers have played a crucial role in driving the local property market, accounting for up to 35% of the demand for condominiums in Bangkok's main commercial districts prior to 2008. The global economic crisis was undoubtedly one of many factors reducing foreign investment to well below 20% over the past four years, during which time the Bangkok residential market has relied very much on local demand. While prices have consistently moved up, a real push in demand and prices, particularly in the luxury market, will only be achieved with inbound foreign investment.
Based on our own statistics, 21% of luxury units sold in Bangkok in 2012 by CBRE were sold to foreign buyers. This is an improvement from 14% in 2011. The trend is expected to continue this year.
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