Property and land transactions in Bangkok during in the first quarter of 2010 showed no signs of a slowdown, according to CB Richard Ellis’ Thailand Investment Market Focus report. The most notable transaction during the period, according to the report, was the sale of 34,000 sqm of strata title offices in Serm Mit tower on Sukhumvit Soi Asoke by Lasalle Investments to S.P. Building Co., Ltd. The transaction price was approximately THB 1.5 billion, or equivalent to approximately THB44,117 (US$1,360) per sqm. Values of prime land plots in the central Phloenchit area have risen above 2008’s record levels, to a new peak of THB1.5 million per square wah. As previously reported Sansiri Public Company Limited acquired 2-rai plot adjacent to the American ambassador’s residence on Wireless Road. The total transaction value was THB1.2 billion (US$37 million), while Raimon Land has apparently sold 2-3-42 rai out of a total of approximately 9-rai on their Ploenchit site. The Thai Commercial Investment Fund (TCIF) plans to launch a freehold property fund investing in the Nation Tower Building, which consists of three office buildings and one car park building during Q2 2010. The subscription period for the IPO was March 15-23, 2010. The fund had a market capitalization at IPO of approximately THB1.96 billion, with par value of 10 baht per unit. The fund will offer a minimum guarantee return of 4-5% for three years. During the first quarter of 2010, the Thai economy continued to improve with many economic indicators showing a ‘V’ shaped recovery. The National Economic and Social Development Board expected GDP in this quarter will increase around 6 per cent year-on-year. Thailand’s equity markets have gained about 7 per cent since the beginning of the year. During the quarter property funds offered investors annualized yield of between 4.8 per cent and 11.2 per cent. There was no new Property Fund listed on the Stock Exchange of Thailand during the quarter. Source : property-report.com .
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No signs of slowdown in Bangkok land, property transactions
Property market in Thailand remained in a strong position thanks to good sales in the first quarter which were not only driven by the incentives. The stock market is risky to invest in, while buying gold for investment has limitations.
The recovering economy is re-building consumer confidence while homebuyers’ purchasing power is also strong, he said. Development of the mass transit network in Bangkok was another boost for the market. Politics has had little impact on condominium sales but it has dampened investment and the industrial, commercial and tourism sectors.
Applicants need to show evidence of solid banking record in Thailand, and lenders may seek additional evidence of long-term commitment to the country, such as having a Thai spouse or dependent children. Obtaining a loan from a Thai finance house is not likely to be easy, and negotiating the maze of foreign property ownership rules will possibly be made even more difficult by the fact that the funds for the purchase originate in Thailand, but the availability of housing loans for foreign nationals is at least a step in the right direction.
At the end of 2002, quality “Grade A” condos in the Central Business Districts ranged from $148 to $170 per square foot. Ongoing projects in the same area now sell for $193 to $273. Both expats and investors mostly seek two- and three-bedroom units. But if you drop down from luxury to “decent” level, you’ll find plenty of resale properties in the $62 to $227 per square foot bracket. As in most cities, the smaller the property, the more expensive the cost of floor space.