Sansiri, one of Thailand’s leading luxury developers, released their annual Thailand property market research, sourcing results and analysis from several survey firms. The company reports that “ultra-high net worth individuals” (UNHWI), one of their target investors, prefer buying luxury property at central cities or premium spots in Thailand because of the “remarkably high capital gain rate”.
Bangkok’s busy skyline at sunset
“Customers in super luxury property segment usually have more than one residence. Purchasing a new property for them is more than seeking a second home, pied-à-terre or holiday home. It is a long term investment and a heritage to be passed to family members.” Sansiri reported. Investors are now well aware that long-term high capital gains are more significant than monthly rental yields, a report by Bangkok Post said. Currently, luxury condos in Bangkok reportedly have a 3% annual rental yield.
Sansiri also said that investors may continuously be attracted to Thailand due to its convenient geographic location being the gateway to Southeast Asia. Thailand also has easy accessibility through public transportation with its BTS tracks and connecting expressways. Moreover, Thailand is well known for its welcoming laws to foreign buyers.
Financial Times further reports that property developers have recently been stepping up their luxury Thailand real estate investment developments to accommodate the surge in luxury property demands.
For instance, 98 Wireless, Sansiri’s newly launched ultraluxury Thailand property investment at the heart of Bangkok, sold half of the available units before the official launch date.
A planned living room area in a 98 Wireless unit
Sansiri claims that 98 Wireless might be the best luxury Thai condo in Southeast Asia yet. With its grandoise designs and luxe interiors helmed by former Ralph Lauren designer Anne Carson, 98 Wireless has left people breatheless in its exquisite beauty.
James Pitchon, CBRE Thailand’s executive director of research and consulting, doubts how long this trend of luxury Thailand property competition can go on. “We are dealing with a very elite market that is quite finite. Not everybody can afford to spend several million dollars on a luxury condominium in downtown Bangkok.” He said in a interview with Nikkei Asian Review.
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