Kevin and I wanted to give our clients a little something so we got you an Entertainer 2019 account. There are loads of restaurants and offers on the app and we hope that you will enjoy it. You will receive a VIP key and here is how to activate it.
Something that we have constantly mentioned was the strength of the Thai Baht. Many of our clients have purchased properties in Bangkok and sold them off and enjoyed not only capital appreciation but the appreciation against their home currency extrapolated their gains. An example would be an Indonesian client who purchased a property in Bangkok for 13.15 million Baht about a decade ago and sold it at 13.85 million Baht recently. Recent transactions in the development were transacting for about 10 per cent more than what he sold off the property for but he wanted a quick sale and thus marked down the asking and sold it in two weeks. He might have made 5 per cent in terms of price appreciation in terms of Baht but Baht had appreciated about 40 per cent against the Indonesian Rupiah and thus he made more than 50 per cent gains when he converted the Baht back into Indonesian Rupiah.
This is something which we have often advocated when looking to invest overseas. The fundamentals of a country do play a significant role in whether the investment will turn out well. Thailand’s fundamentals are strong and in comparison with countries in the region, it sticks out as a safe haven together with Singapore.
Here are two Business Times articles which may be useful for potential investors of Bangkok properties:
Here is an article which I wrote previously. In it, you can see the 10-year history of how the Thai Baht has appreciated. In fact, it is the best performing currency in South East Asia in the past decade.
I have always maintained that never has there been a period in history whereby you have 1.4 billion people getting wealthier by the day. China’s growth and influence in the region are staggering and the Chinese are taking over the Japanese as major investors in Bangkok. Even though the supply of properties is high, the demand from the Chinese is correspondingly high. Of course, there are potential risks to regional growth especially with the trade war and a slowing Chinese economy. These risks are not bestowed on Bangkok alone but to the whole world.
Even though we are positive about the Bangkok property market, we do see a lot of developers launching projects in rather obscure locations. For this reason, we encourage buyers to always look for prime locations and purchase from a reputable developer.
Hi there, thanks for all the support. To our clients from Hong Kong and Singapore, we have gotten Burpple Beyond and Entertainer memberships for you all. (For those clients out of Hong Kong and Singapore, we’re working something out soon.) Here is a short guide on how to activate your Burpple Beyond Annual Membership. Burpple Beyond is a premium dining membership which gives you 1-for-1 dining deals at over 300 restaurants across Singapore!
Here is a video guide:
Alternate method:
Step 1: Download Burpple Beyond from the App Store (iOS) or Google Play Store (Android)
Step 2: Open the Burpple App and click on Beyond at the bottom of the page
Step 3: When you are in Beyond, click on the question mark at the top right of the page
Step 4: Click on Burpple Beyond FAQs
Step 5: Click on “How do I use the gift code to redeem my Burpple Beyond gift?”
Step 6: Click on “here”
Step 7: Enter the gift code which we sent to you and… … ENJOY!
A recent report by Knight Frank Thailand stated that the condominium market in Bangkok in 2018 set a record for the most number of new project launches in the past decade. For 2018, there were about 65,000 units that were released to the market. This represented an 11 per cent increase from 2017 numbers. Most of these units, about 42,000 of them, were released in the 2nd half of 2018. Let us analyse these figures and understand them a little better to make better investment decisions.
1) The bulk of these new launches, in fact about 57 per cent of the 65,000 units, were for developments in the outskirts of Bangkok. These developments are located along the extensions of the Green and Blue train lines.
Our take: We have always advocated buying in prime Bangkok. Most of the supply is happening in the outskirts of Bangkok where land is freely available. As the metro lines are expanded gradually, many developments will market themselves as being close to a train station. Buyers have to be discerning enough to know the locations with rental and resale demand.
2) The proportion of new supply in the Central Business District (CBD) of Bangkok was about 18 per cent or about 11,700 units.
Our take: Land in the CBD is scarce. Prime projects next to train stations in the CBD will sell out fast. The LINE Sathorn, next to Surasak BTS, sold out in 3 weeks. The bulk of which were local Thai buyers.
3) The proportion of new supply in the areas around the CBD was about 33 per cent or about 21,450 units.
4) The locations which developers focused on were
From Asok to Ekkamai
Phahon Yothin (Mo Chit to Khu Khot)
Rama 9 to Ratchadaphisek
Lad Prao to Rakhamhaeng
Charan Sanitwong to Phetkasem
Our take: We still stand by our recommended areas to invest in Bangkok.
5) The take-up rate was about 55 per cent. Condominiums in the CBD had take-up rates of about 51 per cent and the surrounding areas had take-up rates of about 64 per cent.
Our take: These rates are the total rates for all developments. Those that are far away from train stations and from less reputable developers with less quality finishing tend to do poorly in terms of sales as compared to the larger developers.
6) New suburban condominiums enjoyed about 50 per cent sales rate. Popular locations are from Asok to On Nut, Udom Suk to Bearing, Rama 9 to Ratchadaphisek, Phahon Yothin and Thon Buri.
7) The average selling price for all new units in 2018 is THB150,641, down 6 per cent from the previous year. The average price in the CBD was THB250,000, down 8 per cent and the area around the CBD was down 7 per cent to 120,000 baht. The average price of newly launched suburban units increased 3 per cent from 2017 and is up 20 per cent from 2015.
Our take: As Bangkok city expands further outwards, we will see many “cheap” offerings. Many foreigners may find these developments very cheap compared to properties back home. This is especially true for buyers from cities like Hong Kong and Singapore. However, we still advocate understanding the location before making a purchase as some of these locations do not have good rental and resale markets.
On the 28th of January, the Business Times ran a report entitled “Thai property can stay hot in chillier times”. It narrated the demand that is expected to come from the Chinese and how as the Chinese middle class continues to grow and accumulate wealth, the demand for property investments in Thailand will remain strong. These are the factors that will encourage the Chinese to invest in properties in Thailand, mainly Bangkok.
1) Thailand is considered a safe haven
In an era with great turmoil around the world and with the US and China embroiled in a trade war, Thailand is seen as a safe place to park their monies. The Thai Baht has proven to be very resilient over the past decade.
2) Benchmark interest rates are still low
Thailand’s benchmark interest rate is at 1.75 per cent and inflation is at about 0.4 per cent. This means that lending cost is low and this is a huge benefit for the construction industry. Mortgage rates for locals are very attractive. So much so that the Thai government needed to step in to regulate excessive risk-taking in the property market.
3) Tourism is still a very strong driver of the economy
Tourism contributes about one-fifth of Thailand’s Gross Domestic Product (GDP). Bangkok is still the world’s most visited city in the world, even ahead of cities like London.
4) The Thai government is expanding its visa-free entry policy for the Chinese
In a bid to entice the Chinese to visit Thailand, the Thai government implemented a visa-free entry policy for the Chinese. Now they are extending this policy till 30th April 2019. This waiver alone is expected to boost tourism by 30 per cent.
To read the full Business Times article, visit this link:
The team at Invest Bangkok Property is positive of price growth in the medium to long term. In the short term, due to external factors like a slowing global recession and repercussions of a trade war between the two largest economies in the world, we would recommend clients make property investments with a longer horizon. The elections should go along smoothly but if it does not, there is a chance that it will adversely affect the Thai economy. The Thai economy and correspondingly, the Thai Baht has been the standout performer in South East Asia in the past decade. For a narration of how strong the Thai Baht has been, you may refer to this article: My views on the Singapore and Bangkok property markets.
