Friday, February 8, 2013

Thailand Real Estate Market Driven by Domestic Demand

Although there is a significant foreign interest in Thailand’s real estate market, the majority of buyers in the residential and resort sectors are Thais, according to CBRE Thailand Chairman David Simister.

Simister said the problem with the current breakdown of Thailand’s real estate buyers between domestic and foreign is that, the foreign entrants in the market are cash buyers. There is no problem at all in the quality of freehold title but if Thailand wanted more foreign buyers, the country may need to allow Thai banks to give mortgages to foreigners.

Thailand is considered to be, relatively, less developed than other Asian capitals such as Hongkong and Singapore. Nevertheless, Simister said, Thailand has captured the car manufacturing market very well and this gives the real estate market a positive future outlook. “For example, you had a small family company making the nuts that put a standard steel wheel onto a standard basic sedan, your business is doing very well, and you are generating wealth and prosperity. That money is going back into the Thai economy and we are seeing a fair portion of it in terms of additional property purchases.” Simister added.

Chaninat and Leeds, Thailand Property Attorneys assist foreign buyers interested in Thailand real estate market.

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