Some recent property news reports have revealed some extremely interesting statistics about Thailand’s property market.
Sadly, these nuggets of information were buried deep within the stories and were probably missed by most readers seeking valuable property news.
The first property news story focused on an interview with the deputy managing director of real estate firm Plus Property
The firm said it is currently handling 13 condominium projects for which it has been appointed sole sales agent.
The firm revealed that this year, the majority of foreign investors it is seeking are Japanese.
That’s significant. Every other agency and developer research has indicated that Chinese nationals are by far the largest nationality buying Thailand property at the moment.
Most of the real estate agency’s projects are based around mass-transit lines and on Sukhumvit and are in the THB 130,000 per sqm or THB 200,000 per sqm price range.
Plus Property noted that sales rates at its projects are between 50 percent and 70 percent, adding the some projects sold quickly but other encountered problems at transfer.
It said that more than half its buyers are what it called “real demand” which we assume is buying for own use.
Confirming that investors are still active, the agency added that the rest of its buyers are investors who are looking for rental income.
Elsewhere, more property news revealed that AP Thailand is seeing continued growth in property sales to foreign buyers from overseas roadshows.
Hong Kong buyers are the most prominent for the listed developer with Vittakarn Chandavimol, the chief of the business group for condominiums, saying the popularity of Bangkok condos among buyers in Hong Kong, China, Taiwan and Singapore is rising because they generate attractive capital gains and higher yields than property in their own countries.
Bangkok Citismart, the property agency owned by AP, said average condo prices in Bangkok increase by between 6 percent and 8 percent per annum, depending on location.
A 10 percent rise in condo price is possible in locations where a new mass-transit lines or extensions line are under construction, said Kayon Tantichatiwat, the agency’s Managing Director.
Last year, sales in Singapore, Hong Kong, Tokyo and China by the real estate firm and its appointed local agents rose to THB 4 billion and made up 30 percent of combined sales.
Foreign buyers represented 40 percent of the company’s total sales, with that 40 percent made up from buyers from Hong Kong (40 percent), China (30 percent), Japan (15 percent) and Singapore (10 percent).
So, for this developer at least, just 5 percent of its foreign buyers are coming from countries other than those mentioned above.
Kayon said buyers from Hong Kong were looking for property in Bangkok priced below THB 5 million.