Thai New Year and Songkran water festival is now behind us and we can all dry out and recover from the 4 day holiday.
In this month's newsletter we will be talking about global comparions and advantages of buying in Thailand.
Thailand: Rental Yields and Property Prices
(Graph Source: www.globalpropertyguide.com) Click Graphs for Larger images.
For a long time now, Thailand’s property market has proven a good investment providing owners with capital gains on their assets and attractive income returns in the form of rental yields. The two charts above clearly show that Thailand has some of the best rental yields not only in SE Asia but globally, whilst also having some of the lowest property prices per sq. m.
Our Phuket Residential Market Report 2014 backs up these findings: we found the average villa rental yields in Phuket to be 5% (see the table below);
* Small quota of data available, data skewed by outliers
Thailand’s economy has proven to be resilient time and time again. 2015 was no different and despite the political situation and military coup the countries airport’s recorded record passenger traffic (Source: AOT Annual Report 2014). With a now more stable political environment Thailand’s economy is expected to return to stronger growth, the IMF has predicted Thailand’s economy will grow 3.7% in 2015 driven by fuel price reduction, private sector investments and the government’s economic stimulus package.
It is no surprise that demand for property in Thailand is strong from buyers based in Singapore and Hong Kong. The price of property in Thailand per sq. m. is less than a third of both Hong Kong and Singapore and rental yields are nearly double in Thailand. With property markets in Hong Kong and Singapore looking to be topping out and with the governments there creating prohibitive property investment taxes to cool the market it is obvious why people are investing here. We are now also seeing a growing trend of Expats moving their families to Phuket and commuting to HK or Singapore for work. Phuket has the necessary infrastructure to allow expats to do this: international schools, first class health care, international airport etc. and for the price of a 2 bedroom flat in Singapore buyers can get a 4 bedroom pool villa in Phuket!
We will send you the latest top 12 properties offering these returns and value in a separate e-mail in the coming days.
Please see our website for the most recent properties for sale in Phuket HERE.
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