The Booming Real Estate in Bangkok

Bangkok real estate boom ?

After several years of melancholy, Bangkok's real estate market has been re-awakened now, and it came back with revenge. Real estate properties are now fast surging, with an increase of about 16%, as compared to last year, and this trend is expected to continue in the years to come. With vast building projects now rapidly rising all over Bangkok, the city is now obviously giving new life to the city that was once greatly affected with the 1997 economic meltdown. Major developers are now having great interest on the city and promised to invest over 100 Billion Baht, which is almost equivalent to 2.5 Billion in US Dollars.

And this investment is merely for residential properties and on the central business districts alone which is expected to take place within the next couple of years. In fact, most construction sites are now working twenty-four seven to reach this deadline, the reason behind the noise of those jackhammers all over the city even on the wee hours.

The real estate market in Bangkok has now received a dose of confidence from the continued recovery of Thailand's economy, despite of the relentless slump in their Tourism industry as a result of the 9/11 Tragedy, the bombing in Bali, the SARS epidemic, the never ending war in Iraq as well as the recent military crackdowns against the Red Shirt protesters. In fact, the government is predicting an economic growth of up to 10%, if not for the recent military crisis that the country has faced. However, the Thai government are confident enough that the economy will not only survive these crises, but will in the long run continue to progress even during these uncertain times.

More banks and financial institutions all over Bangkok are still very much willing to lend money to some interested investors for the purchase of property, as evidenced by so many advertising billboards that are found all over the city, offering the best real estate deals available. Led by the Government's Savings Bank, more and more financial institutions are now shredding out millions and millions of Baht in exchange of a cheap credit, that is opened for everyone in the marketplace. The increasing exports from nearby Asian countries and China, has given the government enough cash that stimulates the previously lethargic housing and retail sector.

Right now, more and more real estate companies in Bangkok are focusing further on luxury developments of over 3 million Baht per unit, just to meet the demand of Thailand’s expanding middle class. On the other hand, greater emphasis is now being given to building apartments and condominiums that could meet the budget of an ordinary working Thai family. Prices ranges around 2 -3 million per unit, and real estate developers are now accepting the Thai government’s challenge to build affordable homes that should cost below 2 million Baht.

Thais are now becoming more demanding when it comes to both the quality of the building materials used that is why townhouses and detached homes in the suburb are now becoming popular among them. These are also due to the emergence of the Skytrain and Mass transit subway system, which makes the business districts more accessible from the outskirts of Bangkok's northern districts, like Ram Intra, Rangsit, Nonthaburi, and Chang Wattan. This is basically the reason why these areas are now the focus of housing real estate developers. Those in the downtown areas, particularly in Silom, Sathorn, and Sukhumvit Roads remain the hotspots of sprawling condominiums as well as building apartments.

For foreign nationals interested to buy a property in Bangkok, they must be reminded that they cannot own freehold titles, except if they had invested significant amount of money of more than 1 million dollar in stocks or securities. Another way for a foreign national to own titles is to create a private limited company that owns a title, or to have a Thai national (which, in most cases, their spouse) to hold the title. Legitimately, foreign nationals can hold titles and usufructs only for a period of 30 years, although technically, leaseholds can be obtained for a 90 year period using the "30-30-30" mechanism, which means that 30 year lease must be agreed between the freehold title holder and the lessee and two legally binding extension contracts for another 30-year periods are to be concluded.