The modern hotel in Sukhumvit or in any major Thai city, with its high-class design and furnishing, is rivaled only in quality, it would seem, by the country’s condominium units, if investments made by Hong Kong investors are to be believed.
Investors from Hong Kong have been investing even more money into the Thailand condo market. According to one Theerapan Nunthapolpat, Siam Commercial’s Bank manager for the Hong Kong branch, it’s a result of the investment returns the market gives to the investors, clocking in at about >5% per year.
According to Mr. Nunthapolpat, condo units in Thailand priced between the range of Bt5 M and Bt10 M are popular with investors from Hong Kong, with focus on areas such as Sukhumvit, and Thailand’s other major tourist spots, such as Phuket and Pattaya. He states that prices in Thailand are lower than those in HK, which he points out as the reason why Thai condos are popular to HK investors.
Hong Kong condos cost somewhere between HK$10,000/ft2(Bt450,000/m2) & HK$40,000/ft2(Bt1.8M/m2). For comparison, a Thailand condo ranges from Bt150,000/m2 to Bt 250,000/m2 with the most expensive luxury condo unit in Thailand, from the 98 Wireless development project, costing Bt 550,000/m2.
Furthermore, Mr. Theerapan states that there is also a notably large difference in the interest returns in Hong Kong when compared to Thailand, which further increases the appeal of the Thai market. The return averages at about 5-6% in Thailand, whilst in Hong Kong, it averages at about .02%. This means that the Thai market is very enticing for Hong Kong investors.
The statement is backed up by the real estate company Sansiri, who states that their Thai condos have sold not only in Hong Kong, but also in Singapore, Taiwan and mainland China.
Company president Srettha Thavisin states that the company sees a lot of demand from HK-based investors, who seek out condo units in Bangkok’s financial district, with particular interest on condos priced no higher than Bt10 M. Mr. Thavisin has also stated that these foreign investors pay in full, all cash.
According to Knight Frank, a real estate consultancy, HK investors are interested in Bangkok condos because they see them as a profitable business opportunity.
A modern hotel in Sukhumvit attracts tourists, whilst the condos attract investors. It seems that Thailand has quite a bit to look forward to.