- Thailand tourism sector to grow by 6.7% per annum for next decade (World Travel and Tourism Council)
- Condominium prices leading overall residential market growth (Colliers)
- Pattaya flagged up as leading regional market for 2018 due to low prices and stable yields (Property Frontiers)
New Year is always a popular time for investors to look afresh at global property markets and seek out the most promising opportunities for the year ahead. 2018 looks set to be an interesting year for investment, with Asian markets – in particular Thailand – coming to the fore once more, according to property investment experts Property Frontiers.
“Thailand is expected to continue its resilient growth over the course of 2018. The country is blessed with an outstanding natural environment, which combines with its fascinating culture to drive a thriving tourism sector. At the same time, property prices are some of the most stable and reliable in the region. Their steady rise has been seemingly immune from economic and political fluctuations, which makes for a promising environment for investors from around the world.”
Ray Withers, CEO, Property Frontiers
According to the World Travel and Tourism Council, Thailand is expected to achieve average annual tourism sector growth of 6.7% over the coming decade, making it the world’s tenth fastest growing tourism market. The country has actively diversified and expanded its tourism sector, transforming from a backpackers’ mecca to a well-developed tourist infrastructure ideal for family holidays. Thailand has now set its sights on the business travel market as well, positioning itself (most notably Bangkok) as a regional economic hub.
Visitor numbers back the aims of the country’s tourism sector. International arrivals increased by 6.69% between January and October 2017 when compared with the same period a year earlier, according to the Department of Tourism. Meanwhile, the number of tourists has increased by 222% between 2001 and 2016. Spending by tourists in 2016 was up 11% when compared with 2015, based on Tourism Authority figures.
“Thailand’s hospitality sector is going from strength to strength. Interestingly, though, it is the country’s residential and short-stay accommodation sectors that look particularly exciting from an investment standpoint for 2018. In the same way that we’ve seen here in the UK, regional markets are going to throw up some superb opportunities and will be the areas that bear watching most closely over the coming months.”
Ray Withers, CEO, Property Frontiers
The Property Frontiers team cites Pattaya as one such example. As global interest hones in on Thailand and its stable, consistent property market growth, rental income in regional cities looms large on the agenda. Governmental intervention has created a mature rental market that is increasingly friendly to international buyers and locations like Pattaya are reaping the rewards. Lower investment prices than Bangkok, but equally attractive returns are the cornerstone of such regional markets.
Condominium prices are rising at a faster rate than other types of development, according to Colliers. In the popular coastal city of Pattaya, sea-view condominium prices rose by 2% during the first six months of 2016, based on data from Knight Frank.
While domestic buyers account for a healthy 85% of purchases, demand from overseas buyers is increasing.
Chinese investors are driving much of that demand, with Reuters reporting that Thailand is now the third most popular destination for Chinese buyers and the Asia Times reporting that Pattaya is their preferred location.
The Peak Towers in the Cosy Beach area of Pattaya typifies the kind of investment opportunity that international buyers are seeking.
The completed 30-storey apartment building offers luxurious living with a range of top end amenities, including three swimming pools, a rooftop infinity pool, a zen relaxation/fitness zone and a plethora of other on-site benefits.
The individual apartments are spacious and stylish, with quality finishes and good-sized balconies. As a regional city, Pattaya’s affordable prices mean that studio apartments at The Peak Towers are available from as little as £60,617, with up to 6% yield expected.
With opportunities like this on the market, Thailand looks to be the country to watch as 2018 gets underway.