Nationalities of condominium buyers in the Thai city of Pattaya have changed dramatically since 2010 – from the Europeans and Scandinavians working in the Asia Pacific region to local Thais and expatriates who reside in Bangkok, according to the latest Pattaya Market Report published by Knight Frank Thailand. Nationalities of condominium buyers in the Thai city of Pattaya have changed dramatically since 2010 – from the Europeans and Scandinavians working in the Asia Pacific region to local Thais and expatriates who reside in Bangkok, according to the latest Pattaya Market Report published by Knight Frank Thailand. since 2010, the make-up of buyers has changed to Thais and local expatriates from Russia, Germany, the Middle East, Australia and India. The company’s Managing Director Phanom Kanjanathiemthao said that in the past, condominium projects in Pattaya were attracting buyers from the UK, Sweden, Norway, and Finland – many of whom were working in Asian countries such as Hong Kong, Singapore and China. However since 2010, the make-up of buyers has changed to Thais and local expatriates from Russia, Germany, the Middle East, Australia and India. Most of these expatriates live in Bangkok. “Most Indians buy condominiums for investment, while the Thais tend to buy as a holiday home because Pattaya is quite close to Bangkok. I can say that Thai buyers who buy condos in Pattaya prefer a similar lifestyle as in Bangkok. This is quite different from those who choose to buy condos in Hua Hin,” said Phanom. According to the research, the number of newly-launched condominiums in Pattaya last year was 2,887 units. The majority of sea-view projects was developed in the Jomtien area. In terms of unit types, studios and one-bedroom units seemed to be popular, while projects launched before 2009 offered larger units, with two-bedroom units representing 43 per cent of total supply, followed by the one- and three-bedroom units at 30 per cent and 20 per cent respectively. “The product trends in Pattaya are quite similar to Bangkok; offering a smaller unit size to decrease the selling price,” said Phanom. “From our research, the best selling unit types are one-bedrooms priced between THB3 million (US$97,810) and THB5 million (US$163,020), and two-bedrooms priced between THB6 million (US$195,605) and THB7 million (US$228,205). And of course, people always go for the sea-view units.” Thailand Property market Perhaps it is useful to take a step back to remember that Thailand is the only Southeast Asian nation never to have been colonised by European colonialists and that democracy in Thailand only took root in the 1930s. Clearly there will be lessons to be learned as democracy continues to mature in Thailand. The United States itself underwent numerous civil conflicts and social upheaval in its 230 years of democratic history. More recently, Thailand has proved its resiliency throughout various adverse events that run the gamut from economic crises, political uncertainty, natural disasters, and flu pandemics. Some observers are concerned that the global financial crisis may affect the Thai real estate market. Generally, a real estate bubble occurs when property prices rise quickly in a short period, primarily from speculation – resulting in a supply-and-demand imbalance. When property prices are rising faster than the cost of money and banks continue increasing loan-to-value ratios, funding becomes easier – propelling additional speculation. Thailand is member of the ASEAN (Association of Southeast Asian Nations) trade bloc and has free trade agreements with India and China, two fast-developing economic powerhouses. Consequently, many multinational companies are using the country as a regional base for its operations or a place to station employees who travel around Asia. Foreign investment in Thailand is constantly expanding, supporting the strong economic growth of the country. Real estate developers in 2010 are more cautious and many have professionalized their operations Thailand’s property market was able to rebound from past crises and there is every reason to believe it will be able to absorb the blow of recent political tensions. The taxation situation has actually improved the conditions for purchasing property in Thailand, and if property prices do dip slightly as a result of the current situation it may actually be a good time to buy as there is a very real possibility Thailand property will regain its golden outlook soon. As a result, the financial condition of most major housing developers in Thailand is much more robust than in the past. The development of the local bond markets and increasing domestic savings has the made the industry much less dependent on foreign funds, a significant difference from 1997. The 2008 global financial crisis has directly and indirectly impacted the Thai Real Estate Market . As Global Financial Crisis a result, it has also adversely affect the real estate market even though the industry has strengthened immensely since the 1997 financial crisis. The crisis – caused disposable – income decreases will result in falling consumer sentiment and confidence and the postponement of any purchasing decisions on the Thai Real Estate Market . Although the overall environment may be negative for many housing developers, those with good reputations, strong balance sheets and operating efficiencies may use the opportunity to gain market share. Source:thailand-business-news.com .
The tax breaks was initially introduced on March 2008, when the special business tax was reduced from 3% to 0.1%, and the transfer and mortgage fees cut from 2% and 1% respectively to 0.01%. These incentives were due to end on December 2, 2008, but have effectively been extended until the current May 30 deadline.
The easiest way to own property in Thailand is still by purchasing a condominium. Foreign nationals wishing to buy a condominium have to fulfil one of the following three conditions:
* The foreign national must be a permanent resident, or
* Investment promotion privileges must be obtained from the Board of Investment, or
* The funds used to buy the condominium must originate from a third country.
The last condition means that anyone with sufficient funds is able to purchase a condominium in Thailand. Currently foreign nationals are restricted to buying condominiums only in Bangkok and Pattaya, unless approval has been obtained from the Board of Investment (BOI). There are some restrictions on the number of condominiums in a building that can be owned by foreign nationals. This is usually 49% of the total number of condominiums, but under BOI privileges, this can be waived.
Secondly, the real bargains to be had following the Asian financial meltdown of the late 1990s are becoming more difficult to find, as Thais are aggressively snapping up houses from desperate owners still in negative equity. The effect of inflation means that prices are starting to reflect their proper market value.
Thirdly, real estate prices are predicted to rise steadily over the medium to long-term, as long as the government takes care not to allow the kind of bubble economy that caused so much damage in the 1990s. This is a double-edged sword for the foreign property investor. On the one hand, people who enter the market early enough are likely to see a good return on their investment. On the other hand, getting in on the market is going to cost more.
Condominium homes near a Skytrain, or subway stop, score high on the location factor for both expats and investors. Whether you plan to live or invest in Bangkok, traffic congestion needs to be taken into consideration. There’s no city center as such, but several busy and popular ones. They include the CBD (Central Business District), Sathorn, Central Lumpini, Sukhumvit Road, Pathumwan, and Riverside. They’re all areas which attract expat interest.