While Thailand has always been a much loved tourist destination, last year’s anti-government protests and subsequent coup, although peaceful, may well have made investors nervous. Not any more as things are firmly back to normal says Mark Price, CEO of Savills (Thailand).
“The country has now settled into a stable and safe environment, the economy is back on track and just recently Standard Chartered Bank upgraded their GDP forecast for this fiscal year to 6%.”
Mr Price notices evidence of the pick up in demand in the luxury sector pointing to Bangkok’s prestigious new developments, 185 Rajdamri by Raimon Land and The MahaNakhon by PACE Development, where prices achieved have been around THB 350k per m2.
“A number of luxury projects which had been delayed are now moving forward including the latest spectacular riverside project, Four Seasons Private Residences by Country Group PCL,”
he adds.
The Russian financial crisis seems to have dented certain resorts but Mr Price finds that Phuket still continues to attract the ‘super rich’ while pointing to up and coming Hua Hin where PACE Development’s The Mahasamutr and The Mali Residence by Orchid Palm Homes are attracting attention.
“With an international school expected to be ready by August of this year, and plans for a new airport and high speed rail link, coupled with the charm, history and beauty of the town, we expect prices in Hua Hin to continue rising in the coming years.”
Capital appreciation
The capital Bangkok is also a major draw. Described by The Lonely Planet as the city ‘where the familiar and the exotic collide like flavours on a plate of pàt tai’, the description is a fair one. Few other cities compare to what the Thais tag ‘Kung Threp’ (The City of Angels) which throws up sophistication and local charm in equal measures and this applies too to its real estate. CBRE’s head of Research and Consulting, Thailand, James Pitchon says that overseas investors struggle to know where exactly they should put their money.
“It’s impossible to stick a pin in a map and say that’s where you should buy. It doesn’t work like that here in Bangkok.”
Mr Pitchon has seen many changes over the years and says the city ‘moves and changes’ according to demand. Transport improvements have stabilized the city’s parameters but – with the Thai taste for brand new homes – older style buildings
can quickly lose their appeal with prices dropping as a result. Foreign investment currently accounts for around 20% of purchases according to Mr Pitchon but he feels that strong demand from a domestic market is an enduring positive.
“Foreign money can disappear when political problems are in the news but the local market stays strong,”
he adds pointing to the city’s best-known spots of Lumpini, Sathorn and Sukhumvit as strong areas for investment.
Developers PACE believe that property prices will continue to rise in line with the city’s rapid growth and infrastructure development.
“The luxury end of the sector will still be healthy as demand outdoes supply,”
they say. International business growth is driving the market.
“It is expected that many corporations will choose Bangkok as their hubs as Thailand offers competitive advantage in the region including excellent infrastructure, competitive costs and excellent service standards in tourism and business with transportation linking Singapore and Malaysia to Laos, Vietnam to Myanmar.”
PACE is ‘redefining urban living standards’ by creating design-oriented residential properties located in the most prime addresses. Current developments include MahaNakhon in Bangkok. As well as Bangkok’s CBD being a hotspot, the company also find that Phuket, Pattaya and Krabi are popular with investors.
Silvio Pagliani, President of LuxuryEstate.com, believes Thailand has shown remarkable resilience as it continues to attract tourists and investors.
“Luxury developers such as Sarapoj Techakraisri and Maha Nakhona Bangkok report that, despite the recent coup in 2014, the sale of luxury apartments continues to rise amongst both Thai and foreign buyers,”
he says pointing to a major new Bangkok project, Icon Siam. This is spread over 20 hectares and billed as ‘the largest private sector real estate development project in Thailand’ which will hit the market in 2017.
The Sukhothai Residences, Bangkok
An icon of world-class hospitality and elegant architectural design, The Sukhotai Residences has been masterminded by Kerry Hill and Ed Tuttle, two internationally renowned architects. The most highly anticipated residential development in Bangkok, it offers one, two, three and four-bedroom apartments plus penthouses. It forms a true oasis with over half of the site area dedicated for recreation and landscaping featuring a distinctive 100-metre pool complex comprising two swimming pools and a decorative pond.
From £1.05m / €1.404m / $1.606m
CBRE Thailand +66 2 262 1111
[email protected]
Gaining momentum
Phuket has long been a favourite with its beaches and infrastructure a major draw. Mr Pagliani noticed momentum growing on the island throughout 2014 with several large-scale projects in the pipeline.
“Last year, property acquired by foreigners in Thailand reached 67 billion baht (€1.7 billion),”
he adds. He also tips ‘beautiful Hua Hin’, where you can still buy high-end villas for €700,000.
“Thailand’s resilience and ability to maintain quality of life, while promoting growth, offers interesting development prospects. The infrastructure projects approved just after the recent coup will be another step forward for the country’s entire economy.”
Robert Green, General Manager, Abercrombie & Kent International Estates, agrees that Thailand is very firmly on the up.
“The recent coup and political instability knocked further confidence out of international buyer’s appetite to buy but – as the effects have largely been positive – we are seeing confidence return.”
He says that the islands were less affected than Bangkok and northern Thailand and sees strong interest from Chinese buyers.
“The British have had a long term affinity with Thailand and we have seen an increase in demand by around 20% from this time last year.”
MahaNakhon, Bangkok
Due to become Bangkok’s tallest development on completion, MahaNakhon will be the city’s iconic landmark. It will feature the distinctive design of a three-dimensional ribbon of architectural ‘pixels’ which will circle the 314 metre high tower. This high end, mixed-used development comprises 200 Ritz-Carlton branded residences, a 159-room Edition boutique hotel operated by The Ritz-Carlton, and approximately 9,800m2 of retail space.
From approx £826,000 / €1.1m / $1.25m
PACE Development +66 (0) 2 654 3344
Marque Sukhumvit, Bangkok
This 50-storey development of freehold luxury condominiums has apartments ranging from two to five bedrooms measuring 124 – 623m2. Ideally located on the main Sukhumvit road (near Sukhumvit 39 opposite the Emporium shopping complex), the development has world-class amenities including a gym, fitness suite, sky bar and parking. Completion is set for 2016.
From £719,000 / €961,000 / $1.1m
CBRE Thailand +66 2 262 1111
[email protected]
MahaSamutr, Hua Hin
As the largest villa and country club resort in Hua Hin, MahaSaamutr comprises high-end villas as well as Hua Hin Country Club and Beach Club. The development is set to become a new landmark in this popular resort town.
From approx £925,000 / €1.24m / $1.4m
PACE Development +66 (0) 2 654 3344
Samujana, Bophut, Koh Samui
Located on the north-eastern coast of Koh Samui, Samujana is just a few minutes from Chaweng and Choeng Mon beaches and 10 minutes from the airport. There will be 27 individual villas, of which 18 are completed. The designs are modern with a Thai style and fitted with western fixtures and furniture, designer kitchens and open plan indoor and outdoor living areas. Due to the site’s gently sloping hillside, each villa has panoramic ocean and island views as well as beach access.
Properties in phase two are located higher on the hillside and there is a choice of three to eight-bedroom villas. Amenities include infinity swimming pools, private cinemas, wine cellars and games rooms. Construction of a world-class spa is expected to be completed this year.
From £859,000 / €1.15m / $1.3m
Abercrombie & Kent International Estates +44 20 3667 7016
Soneva Kiri, Koh Kood
A private resort on the island of Koh Kood, close to the Cambodian border, its concept is sustainability and most materials used are found locally or are renewable. There are 15 private residences planned for construction and a further 20 newly built or refurbished residences available to purchase, ranging from one to six-bedroom Beach, Bay and Cliff Villas. Plots sizes start from 1,590m2 and go up to an impressive 6,250m2. All offer a fabulous combination of space, views and facilities with sinuous wrap-around pools
The resort features a Six Senses spa, three restaurants including one in the tree tops, an outdoor cinema, children’s den plus a wide selection of watersports. Owners and guests can also dine at a traditional Thai restaurant off the resort, only accessible by boat.
From £878,800 / €1.18m / $1.33m
Abercrombie & Kent International Estates +44 20 3667 7016
