Real Estate Investor Confidence with elections

Bangkok Elections Raises Real Estate Investor Confidence

Despite the political unrest brought on by violent street protests that the world saw and heard about in Bangkok, the fairly peaceful elections recently conducted have renewed public faith in the city’s real estate market and again prove Thailands stabilty. Obviously, a calm political atmosphere is a major factor in any city’s real estate market; the more unstable a situation is, the less likely locals, never mind foreign investors, are going to stay and settle down in an area’s high-rise condo units or single-family dwellings for sale. Bangkok can now breathe easier as its launching and building progress continues unhampered by any political difficulties.

Since the dust has settled, so to speak, investors in real estate have reported at least three major deals worth a whopping THB 5 billion (US$ 167.6 million) in Bangkok and Phuket to be closed by the end of this year. Apparently, investors have begun regaining their confidence in Bangkok’s local real estate since the political situation is now stable, something which looks positive for the city and the rest of Thailand.

According to “Property Report Asia,” Jones Lang LaSalle Thailand, one of the country’s biggest developers, is setting the wheels in motion for two office buildings in Bangkok as they currently negotiate with two investment banks. The company is also looking at one Phuket deal with an institutional investor regarding a hotel. The investors in these major projects are based in Hong Kong and Singapore who feel that the past elections have been a good indicator of things to come in Bangkok’s and Phuket’s real estate industry.

Influence of Tourist on Real Estate

Tourism has been helping the city and the country in this aspect as well. Colliers International Thailand’s managing director, Patima Jeerapaet, has mentioned that the influx of tourists has boosted occupancy in high-end hotels and luxury resorts by some 95 percent, especially in the Pattaya area. Among the usual Japanese, British, German, American, Singaporean and Taiwanese visitors have been unusually high numbers of South Korean, Australian, Middle Eastern, Chinese and Indian tourists contributing to the tourism bustle. There are hopes that this activity will drive more interest towards tourists wanting to gain residential property, whether it is in Bangkok or Pattaya. Patima further stated that already, Chinese investors have purchased condo units on Ratchadaphisek Road while many Russians seem to be looking at Pattaya and Phuket for property investments. Real estate investent looks good.

Law changes could come in Bangkok Real Estate

However, Bangkok’s real estate market has yet to face some hurdles in this arena. Foreigners are limited by law to owning only a small percentage of property in the city, and have to contend with the country’s strict regulations regarding the purchase of residential and commercial real estate. In addition, there has been a lack of proper funding for foreign investors and buyers and limiting laws regarding leasing. The silver lining in this cloud is the proposal by the Joint Foreign Chambers of Commerce to update a white paper extending leaseholds for foreigners from 30 to 60 years. Patima has expressed assurance that Prime Minister Yingluck would find the proposal a positive change for Bangkok’s real estate interests and its future.