Posted by & filed under Khanom, Pattaya, Property.

2013 Property Outlook for selected Thailand locations.

By TEN Thai Estate Network Co. Ltd. June 2013.

MP1According to a survey in March 2013 conducted by HSBC Bank, Thailand is the world’s best location for expat property investment.

Buying a property in Thailand results in a far better property in a better location than anywhere else in the world and far better than other Asian countries like Malaysia, Singapore, Cambodia, Hong Kong and Philippines.

One of the major reasons for this is the affordable land prices and labor expenses, which represents best value for money when building or buying your dream home in Thailand.

Another reason for Thailand’s popularity is that many home buyers take advantage of the low prices to buy additional properties as an investment.
In most locations, it is possible to make very good returns from the vacation and long term rental market as well as seeing a huge increase in the value of the property.

BANGKOK

Despite a 26% price increase in the luxury property market and an overall 6% average increase in Bangkok in the first quarter of 2013, the condominium market continues to boom with many new projects under construction and on the drawing table.
Actually 2013 will see far the most new projects launched in Bangkok in many years, even though the government warns of the risk of oversupply.

Bangkok is still the most affordable capital in South East Asia when it comes to condo units, compared to locations like Singapore, Kuala Lumpur, Hong Kong, Jakarta and Manila.

An estimated 25% of sales in Bangkok are expected to be transferred to foreign investors.

The demand for residential condominiums in Bangkok and the city’s vicinity is anticipated to increase at a normal rate between 5% and 10% in 2013, but the demand for houses and villas is expected to achieve a much greater growth above 10%

Average price per sq.m. late 2012 was appx. 63,000 THB for condos.
Current average price per sq.m. is appx. 67,000 THB for condos.
Late 2013 average price per sq.m. expected appx. 71,000 THB for condos.

The square meter price varies of course depending on the location and the views from the condos.

Condos currently for sale from 990,000 THB.

Western style equipped houses currently for sale from 2 million THB.
Town houses currently for sale from 830,000 THB.

Land is extremely expensive in the city center, the most expensive in all of Thailand.
And the prices will increase further during 2013. Current price is appx. 600 million THB per rai!

For those who wish to buy land to build a family home outside the city-center, in the grater Bangkok area, the average price per rai is appx. 1 million THB.

Rental yields in Bangkok range from 4% to 8% depending on property size and will stay at this range for the rest of 2013.

PATTAYA

Pattaya is still the most popular condominium market in Thailand, and especially the Jomtien area will show continual growth due to the abundance of remaining beachfront and inland development sites.

Pattaya City, on the other hand starts facing a scarcity of development sites and those that are available are becoming quite expensive.
However due to improvements, construction and extensions of the roads, many new condominium projects are launched during the remainder of 2013.

Also along the new Jomtien Second Road many new projects are scheduled to be completed during 2013 with more to be launched and completed before the ASEAN market opens in 2015.

Pattaya will continue to be the most affordable location to invest in property in Thailand and it is expected that some 20% of all sales in Pattaya will be credited foreign investors.
At least officially! But when you look closer, you will find that appx. 90% of all condo units are sold to foreigners!

There will still be a strong demand from the Thai middle-class as well.

Overall we saw a price increase of 10% in the whole Pattaya area, but we predict the prices in the area to be stable during the end of 2013 since there will be a heavy competition among the developers. We will maybe even see a slightly decrease!

Average price per sq.m. late 2012 was appx. 57,000 THB for condos.
Current average price per sq.m. is appx. 62,000 THB for condos.
Late 2013 average price per sq.m. expected appx. 62,000 THB for condos.

The square meter price varies of course depending on the location and the views from the condos.

Condos currently for sale from 790,000 THB.

Western style equipped houses currently for sale from 1.5 million THB.
Town houses currently for sale from 900,000 THB.

Land prices at Pattaya Bay and 2nd road average today 150 million THB per rai.
Land for sale off the beach from 1.5 million THB per rai.
Land for sale beachfront from 30 million THB per rai.

Rental yields in Pattaya range from 4% to 10% depending on property size and will stay at this range for the rest of 2013.

PHUKET

A strong demand for property, both condos and villas, in the first 5 months of 2013 is an early indicator that real estate business levels and growth are expected to further rise.

The residential property market in Phuket, one of the most popular Thai locations for overseas buyers, in 2013 is very solid with villa and condo sales increased by 20% and 10% respectively in 2012 and a similar increase is expected for 2013 where the demand for affordable villas and condos will continue, especially entry level and mid range segments.

Despite the fact of a growing demand for property, the prices for new units in Phuket are actually decreasing and at the end of 2013 and start of 2014 the price is expected to be very much similar to Pattaya. But the square meter price will still be more expensive in Phuket than Pattaya, because the Phuket units are becoming smaller with 1 bedroom units replacing the 2 bedroom units.

Foreign buyers are still dominant in Phuket and it is expected that up to 90% of any real estate purchases are foreign.

Thai buyers still find Phuket too expensive but due to new condo projects launched by Thai developers offering more affordable units, Thai buyers are expected to return to Phuket.

The Phuket west coast with Kata, Karon, Patong and Kamala continues to be the most popular location.

Average price per sq.m. late 2012 was appx. 100,000 THB for condos.
Current average price per sq.m. is appx. 110,000 THB for condos.
December 2013 average price per sq.m. expected appx. 121,000 THB for condos.

The square meter price varies of course depending on the location and the views from the condos.

Condos currently for sale from 730,000 THB.

Western style equipped houses currently for sale from 2.2 million THB.
Town houses currently for sale from 1.7 million THB.

Land prices in Phuket are on average appx. 40 million THB per rai.
Land for sale off the beach from 2 million THB per rai.
Land for sale beachfront from 17 million THB per rai.
Beachfront land on one of the smaller islands around Phuket for sale from 6 million THB per rai.

Rental yields in Phuket range from 6% to 8% depending on property size and will stay at this range for the rest of 2013.

KOH SAMUI

Koh Samui is still considered the luxury hideaway destination for property investors, and continues to encourage tourism and property purchases by improving the infrastructure and international air links.

Due to the very restrictive planning laws Koh Samui have in place, to keep the island as a beautiful tropical destination, not hampered with high-rise and excessive real estate development, the Koh Samui market will see a heavily increase in the property sector from Eastern Europe, including Russia but also from the rich Chinese sector.

The general outlook for 2013 is predicted to be a 15% to 20% increase in sold properties of which foreign buyers account for 25%

New developments will continue to enter the market, but the limited availability of sizable land plots will restrict the number of large projects on the island, and the few remainder sea view and beachfront plots will increase heavily in price.

Condo prices increased by 4% from 2012 to currently June 2013 and we expect another 4% increase during the remainder of 2013.

Average price per sq.m. late 2012 was appx. 73,000 THB for condos.
Current average price per sq.m. is appx. 76,000 THB for condos.
Late 2013 average price per sq.m. expected appx. 79,000 THB for condos.

The square meter price varies of course depending on the location and the views from the condos.

Condos currently for sale from 728,000 THB.

Western style equipped houses currently for sale from 1.7 million THB.
Town houses currently for sale from 1.3 million THB.

The current average price for land is 8.9 million THB per rai, and that is actually amazingly considering that Koh Samui is considered a luxury destination for Thailand.
You can currently buy 1 rai of land from as low as 1 million THB and still you can be lucky to find beachfront land from as low as 6 – 7 million THB per rai even the average price is appx. 15 million THB per rai.

Rental yields in Koh Samui range from 6% to 12% depending on property size and will stay at this range for the rest of 2013.

KRABI

Tourists and property buyers flock to Ao Nang and Koh Lanta in Krabi Province, because of the wonderful nature in this amazing part of Thailand.

From late 2012 to mid 2013 we saw an increase in foreign property purchases from both Europe, especially from Scandinavia, Eastern Europe, especially from Russia but also from Singapore, Hong Kong and Malaysia.

Foreign purchases in Krabi will account for appx. 20% in 2013 while for Koh Lanta the expected foreign share is appx. 80% and we expect an increase in real estate sales of between 20% to 30% during 2013.

The prices from late 2012 to June 2013 were stable but for Koh Lanta with a slightly decrease since many developers and private sellers started to discount the sales prices.

Amazingly Koh Lanta does yet now have any apartments for sale with condominium status, and that is indeed a surprise since 80% of the property purchasers there are foreign!
That means lower prices there due to the fact that foreigners can only purchase a condo unit on a 30+30+30 years lease agreement.

Average price per sq.m. late 2012 was appx. 46,900 THB for condos in Koh Lanta.
Current average price per sq.m. is appx. 46,900 THB for condos in Koh Lanta with option to haggle the price further down.
Late 2013 average price per sq.m. expected appx. 46,000 THB for condos in Koh Lanta.

Average price per sq.m. late 2012 was appx. 76,000 THB for condos in Krabi.
Current average price per sq.m. is appx. 76,000 THB for condos in Krabi.
Late 2013 average price per sq.m. expected appx. 76,000 THB for condos in Krabi.

The square meter price varies of course depending on the location and the views from the condos.

Condos currently for sale from 728,000 THB.

Western style equipped houses currently for sale from 1.3 million THB.
Town houses currently for sale from 1.3 million THB.

KHANOM

Khanom is still in the early stage of development and tourism, but excellent infrastructure and the opening of several new 5 Star beachfront resorts and housing projects and of course the new international airport in Donsak and the coming beach road that will connect Khanom with neighboring Sichon guarantee that this location will be a new property hot-spot of Thailand in the coming years.

This location is like Thailand 30 years ago before the mass-tourism and over-development.
If you prefer peace, cleanliness and no overcrowded beaches Khanom is the place to go!

The past year has seen an increase in property prices by 30% and land prices by as much as 70% and this has slowed down a bit on the interest from buyers who now tends to look further south of Khanom towards Sichon and south of Sichon where the prices are more affordable with less price increase.

Here the land price have increased over the past year with 66% but is still far more affordable than in Khanom and has seen an increase in land sales.

We expect the prices in both Khanom and further south to increase with 20% at the end of 2013.

An estimated 10% of real estate is purchased by foreigners in and around Khanom.
This low percentage is because not many foreigners know about this location yet, but this will change over the coming years.

Khanom and further south is still the most affordable location to invest in beachfront land in Thailand.

Average price per sq.m. late 2012 was appx. 35,000 THB for beachfront condos.
Current average price per sq.m. is appx. 41,000 THB for beachfront condos.
Late 2013 average price per sq.m. expected appx. 45,000 THB for beachfront condos.

The square meter price varies of course depending on the location and the views from the condos.

Beachfront condos currently for sale from 3.3 THB.

Western style equipped houses currently for sale from 3 million THB.
Town houses currently for sale from 1.6 million THB.

Land currently for sale from 700,000 THB per rai (1,600 sqm).
Beachfront land currently for sale from 1.7 million THB per rai.

 

12 Responses to “Thailand Property Outlook 2013”

  1. Koh Samui Lamai

    hm… i’m sorry for being somewhat dull but i believe your blog could look slightly better plus a little more easy to the eyes if it got more of a white vibe to it, but that is only me. excellent article anyway! =) Best regards!

    Reply
    • Kristian Olsen

      You are most welcome to link to your website from my blog but please refrain from stupid spam comments…at least you could come up with something original, no?

      Reply
  2. Bill Duncan

    Thank you for this fantastic information. very helpful indeed

    Reply
  3. Bill Duncan

    Thanks Kristian. I’m looking o come out there for a week from the 25th July to look at land investment probably in Sichon. So if you have time to meet at that time maybe you can help

    Reply
  4. lucas

    hello
    I would like to invest in a condominium of 100 units in pattaya or patong…
    what is roughly the price of construction by square meter
    who can help?

    Reply
    • Kristian Olsen

      Hi Lucas,

      Do you mean you want to buy land and build a condominium yourself?

      Price per sq.m. depends on the quality you are aiming at… anywhere from 20,000 THB to 90,000 THB… or even higher…

      Reply

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