Thai Property Market

The Asian economic crisis in 1997 saw the start of a rush to buy cheap overseas homes in Thailand, the market grew gradually until September 2006, when the military coup unsettled the market and put a virtual freeze on property prices in Thailand. The new military regime did not introduce any new laws but did clamp down and began enforcing Thai law regarding ownership of homes, by scrutinizing property transactions involving foreign buyers.

Uncertainty of the rules and regulations caused some potential overseas buyers to withdraw from the market and property price appreciation slowed as the demand for overseas homes diminished. The new government elected in December 2007 has begun to reestablish confidence in the market by removing foreign currency restrictions and reducing land transfer taxes.

Thailand remains a good place to buy a cheap quality home in the sun, potential buyers should not be put off but simply seek good legal assistance and independent professional advise,

Bangkok is a major hub in Asian commerce, condominium and service apartment development has continued to exceed demand and so there are excellent opportunities for rentals in this vibrant capital city. According to Colliers' research department there currently were 10,685 units in 75 serviced apartment buildings in Bangkok with an average occupancy rate of 83.33% last year.

The real estate industry latest figures suggest up to eight per cent annual return. Property prices and the cost of living are generally highest in the capital, though Phuket also has a supply of impressive multi-million dollar homes. In the popular resorts like Pattaya and Hui Hin, prices are generally very affordable for foreign buyers and if you deal with some of the better known property developers build quality for new developments is now up to European standards.

The majority of Thailand’s Tourists come from Europe, Russia, Australasia and other south-eastern Asian countries, and high-quality property in any popular location should offer owners a reasonable return.