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Reasons to invest in Thailand's real estate market

In the last year, international interest in Thai real estate has risen according to experts. Enquiries for property in the country rose 60 per cent in the second half of 2016, compared to the first six months. In 2016 they climbed 37.5 per cent compared to 2016.

These are the reasons why you should invest in real estate market in Thailand:

1. Low stamp duty

Thailand’s stamp duty is relatively low, which has become an increasingly attractive factor for investors. Indeed, other markets in the Asia-Pacific region have stepped up their property taxes, primarily in a move to deter speculative investment and cool price growth.

Foreign investors in Singapore, for example, have to pay 15 per cent stamp duty on any residential purchases. Hong Kong has also raised its stamp duty for non-first-time buyers from 15 per cent to 30 per cent in the last year. Thailand’s 0.5 per cent, by comparison, is highly favourable.

2. Thriving tourism

As with most popular lifestyle destinations, Thailand’s property market is partly tied to its tourism industry. Despite a crackdown on zero-dollar tours in the second half of 2016, Thailand welcomed a record number of tourists last year, with arrivals jumping 9 per cent to 32.6 million. Tourist spending also jumped 12.6 per cent year-on-year to 1.6 trillion baht.

In resort hotspot Phuket, the recent Chinese New Year reaffirmed the country’s appeal to overseas visitors in 2017, with 257,000 Chinese tourists heading to Thailand during February’s Golden Week, up 10.8 per cent on the national holiday in 2015. Chinese spending rose 15 per cent year-on-year in Phuket to top 5 billion baht.

The country’s climbing tourist arrivals also means that the market is attractive to investors seeking both rental income and also a holiday home.

3. Chinese appetite

As is the case in many of the world’s top real estate destinations, Chinese interest in Thai property is climbing. The country’s prominence on the global real estate scene has risen significantly in recent years.

Thailand is one of the most sought-after locations for Chinese investors, thanks to the country’s appeal to middle-class and wealthy buyers. Indeed, Thailand’s lifestyle market has long been a favourite for high-net-worth individuals, but with Chinese property prices climbing, a growing number of middle-class buyers are looking to Thailand as a relatively affordable destination.

4. Developers looking abroad

 Developers in Thailand are increasingly targeting overseas capital, particularly from China. That growing focus is expected to see international buyers step up their investment in Bangkok in the coming year, particularly in the city’s luxury sector.

National bank lending has also become more cautious, which has meant that overseas companies are increasingly entering into partnerships with local developers.

5. High occupancy rates

While Thailand’s strong tourist sector fuels rental demand for residential homes, it also means that the country’s commercial property is increasingly attractive, particularly in the hospitality sector.

Hotels in Phuket, for example, achieved a record high third quarter occupancy rate at 76 per cent.

Despite the low season, Phuket saw an increase in tourist arrivals and record high hotel occupancy. Chinese tourists made up a significant percentage of arrivals and “the number continues to grow”, notes CBRE.

In addition to Bangkok, hotel transactions also covered Pattaya, Phuket, Phang Nga, Koh Samui or more. Institutional investors from Hong Kong and Singapore accounted for 45 per cent of investment volume.

Projects from this area

Oasis Samui, Koh Samui, Thailand

Oasis Samui is a private estate of luxury pool villas, located in the lush tropical surroundings of coconut palms with views over the turquoise blue seas of Lamai Koh Samui has evolved from a magnet for adventurers and backpackers to one of the top boutique island destinations in Asia. Many consider it an ideal time to invest in a vacation property and here are several considerations for investors:

• First direct flights to China schedule for August 2016;

• New “City Status” means more funds for local government and increased spending on infrastructure;

• Higher rental yields and longer rental season;

• Increasing demand and limited supply of high-end villas;

• High density of branded luxury hotels, with Sofitel and Ritz Carlton under construction;

• Ranked 3rd by the New York times “41 Places to Go in2011”.

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Anamaya Samui, Koh Samui, Thailand

A beautiful tropical island sheltered in the crystal clear waters of the Gulf of Thailand with secluded coves and white sandy beaches fringed with palm trees - beaches that holidaymakers dream about. Inland the island boasts lush green rolling hillsides and coconut groves, picturesque waterfalls and magnificent ocean views.

Anamaya is set on the north east peninsula of Samui island, with unequaled panoramic 270° views over the headland, the nearby island of Koh Phangan and the turquoise blue waters of the Gulf of Thailand. Rising to the peak of two hillsides facing both east and west, Anamaya is distinguished by its naturally beautiful setting, striking architecture and dramatic ocean views. Ancient banyan trees, giant boulders and remnant coastal rain forest give the site its special character.

A wide range of villa designs have been created to take full advantage of this exceptional setting, all sharing a contemporary, organic style and approach to tropical living. All villas have between three and seven guest bedrooms and offer expansive living and entertaining areas; generous ceilings give a sense of space and maximize the views while the interiors flow seamlessly to the terraces and infinity pool.

Smart technologies are built into each villa allowing energy efficient control over all aspects of water treatment, ventilation and cooling.

Anamya also features an exclusive private clubhouse, wedding piazza, sports centre, spa and children’s playground, which together with the estate’s five-star management will rival the best hotels - allowing owners and guests to enjoy a luxurious island lifestyle.

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