Property investors focus on Asia

Asia’s real estate markets are outperforming the slowing US and European markets. The main countries benefiting from this trend have been the larger markets such as Japan, Hong Kong and Singapore, and there is now an increasing focus on Thailand, according to leading international property consultants CB Richard Ellis.

Property investment has become a global market with a rapidly increasing number of cross-border transactions.

“ Thailand property markets used to be dominated by local investors but this is no longer the case. In many ways, property investment has become similar to the equity markets with investors looking for worldwide opportunities,” said Ms. Kulwadee Sawangsri, Director of Investment Properties at CB Richard Ellis Thailand.

In many Asian property markets played badly in the last two years, international investors now exceeds Thailand sees the possibility of regional competitors.
In the past year, office rents in Singapore has doubled, while there was almost no growth in the rental of premises in Bangkok. International investors are paying more attention to Thailand because they feel that there is more room for growth.

Investors confidence in Thailand has improved because some of the early policies of the new democratically elected government, such as the abolition of incoming capital controls and tax incentives to help the real estate sector. In escrow law also introduced into place, which will contribute to major property transactions.

In the Thai market is a difficult task, since there are restrictions on foreign ownership of the buildings, and a shortage of revenue available for sale, and many international investors have focused on the development of new, and not for the acquisition of existing assets.

Elite Bangkok condominiums, resort hotels and residential developments were the most active sectors.