A major property consultancy has
reported that the property market in Thailand enjoyed a lucrative 2012.
Condominiums in Bangkok and prime property in Phuket have been particularly
popular, according to Knight Frank’s head of residential property in Thailand.

We look at the current state of
the Thai property market.

Increase in tourist numbers as developers attract overseas buyers to
Thailand

Frank Khan, executive director
and head of residential at Knight Frank Thailand, reports that condominium
projects launched in the Sukhumvit area and central business district of
Bangkok were particularly successful in 2012.

Prime locations were popular and
demand was strong in Sathorn, Chidlom, Ploenchit and Ratchadamri partly thanks
to the shortage of available land for development. Property Report also says that ‘limited space generated benefits
for the resale market where high demand for units in Sukhumvit and Bangkok’s
central business district contrasted with the supply of new units.’

Limited supply of prime
properties helped push up prices in 2012, Knight Frank report that rental returns in
2012 were around 5 to 6 per cent, a perfectly satisfactory return for overseas
investors.”

Knight Frank expect 2013 to yield
a positive response from local and overseas buyers, many of whom come from Hong
Kong, Russia, America, China and Europe.

Knight Frank also reported that,
in 2012, 100 per cent of investors in Phuket’s luxury residential market were
from overseas. Many are choosing prime property in Phuket as tourist visitors
to the region increase. Property Report
quotes figures stating that in 2012 there was a 13.57 per cent increase in
tourist numbers year-on-year year while the number of flights to Phuket rose
1.02 per cent to 29,033.

Higher volumes of tourists can
only help the potential for price growth and strong rental demand, Developers have been proactively attracting more
overseas investors to Phuket to demonstrate the property potential of this
island.

Author Nick
Marr