With the global economic environment in the doldrums and the instability of the domestic investment market, more and more Chinese investors are turning their attention to foreign countries, eagerly seeking investment platforms that can realize a steady appreciation of their wealth. Thailand is one of the few countries in the world that is not subject to CRS, and with its developed tourism industry and pleasant environment, it has become a new target for many investors. Thailand's property prices are also rising year by year, with Bangkok increasing by an average of 12%-15% per year over the past 10 years. According to the 2017 Global House Price Index report by Vanguard Properties and Hurun Research, Pattaya ranked first in Southeast Asia with an increase of 13.1% last year. Why are Thai house prices rising so fast?
Tight land supply is a major reason for the rise in Thai house prices, according to data showing that Bangkok's new property development will gradually decrease after peaking in 2016, with the number of new developments in the city center and the outskirts of the city dropping significantly. Among other things, Bangkok's city center already lacks developable land, and the remaining land is a scarce resource. In previous years, the increase in land prices was 5-10%, but now it has gone to 10-30%. The increase in the cost of land also has a direct impact on the selling price of new developments. In addition to the scarcity of land, as Thailand is a country with private land ownership, land cannot be developed at will, and demolition and redevelopment can only be done with the 100% consent of the residents. In addition, in 2016, the Thai government passed a budget for several railroads, and the railroad network is expected to be completed by 2020. When completed, it will be four times the size of the current one. Thai properties along the under-construction transportation tracks have high Bangkok property appreciation potential, making them ideal for medium to long-term investment. Real estate is a combination of location, physical property, and equity, and because of the immovability of real estate projects, transportation is particularly important for real estate. The rail transportation network also has a significant impact on the rise of housing prices. Under the condition of very limited land supply and huge demand, it will inevitably cause the phenomenon of rising house prices.
Easy to apply for a Thai senior citizen visa, attracting a large number of senior citizen groups. Why Thailand's western elderly more? First of all, the policy encourages, Thai law provides that foreigners aged 50 years or older can apply for a long stay in Thailand pension visa. In addition, Thailand's climate is pleasant, basically shorts and slippers can be over a year. Thailand has a beautiful natural environment with green mountains and beautiful waters, full of flowers everywhere, basically no environmental pollution brought by industrialization, and the blue sky and white clouds, which are rare in China, can be seen everywhere here. This, coupled with world-class medical services and low prices, makes Thailand an increasingly sought-after retirement destination. Whether it is a year-round residence or a vacation to escape the cold, it is the preferred place. Every year, people from Europe, America and other Asian countries come to Thailand for long term retirement, with expatriates to Bangkok growing by 2.9% last year. The average occupancy rate remained strong at 83.7%. In addition to the group settling in Thailand, the total number of tourists to Thailand is skyrocketing, reaching 32 million in 2016, an increase of 9%, increasing the overall market share. Moreover, many Fortune 500 foreign companies basically set up branches in Thailand, like Bangkok and Rayong Industrial Estate, and these expatriates are the main tenants. So the condominium rental market is continuing to grow both in terms of demand and supply.
Meanwhile, Thailand has a well-developed social system and a stable policy system, excellent natural conditions and welfare benefits, and has been recognized as one of the world's most livable countries and the happiest country in the world for many years. Good economic resilience, even under the global economic crisis. Thailand is one of the few countries in the world that has remained stable and free of inflationary pressures. The yuan, on the other hand, has been very unforgiving relative to the Thai baht, and it has depreciated at a very alarming rate in 2016.
Many most ordinary Chinese people are going to cry as their hard-earned yuan savings shrink all of a sudden, especially for those middle-class people with good savings. "We do not expect appreciation, but only hope that the assets do not shrink" should be the true portrayal of the psychology of many people. Secondly, the current real estate prices in China are not proportional to the source of return such as rental housing. As an example, the rental return rate in first-tier cities is now at 1%-2%, almost at the level of Japan's bubble period, which may signal a considerable depreciation of real estate in the future. The average annual rental return for condominiums in Thailand is in the range of 6-10% of the price of the property, and in some cases up to 15%. Holding Thai baht assets for a long period of time still provides a high level of security for one's own asset stability, so more and more people are investing in Thai real estate to preserve the value of their assets.
Meanwhile, Thailand has a well-developed social system and stable policy system, superior natural conditions and welfare benefits, and has been selected as one of the world's best countries for human habitation and the world's happiest country for many years. Good economic resilience, even under the global economic crisis. Thailand is one of the few countries in the world that has remained stable and free of inflationary pressures. The yuan, on the other hand, has been very unforgiving relative to the Thai baht, and it has depreciated at a very alarming rate in 2016.
Many most ordinary Chinese people are going to cry as their hard-earned yuan savings shrink all of a sudden, especially for those middle-class people with good savings. "We do not expect appreciation, but only hope that the assets do not shrink" should be the true portrayal of the psychology of many people. Secondly, the current real estate prices in China are not proportional to the source of return such as rental housing. As an example, the rental return rate in first-tier cities is now at 1%-2%, almost at the level of Japan's bubble period, which may signal a considerable depreciation of real estate in the future. The average annual rental return for condominiums in Thailand is in the range of 6-10% of the price of the property, and in some cases up to 15%. Holding Thai baht assets over the long term still provides a high level of security for one's asset stability, so more and more people are investing in Thai real estate to preserve their assets.
The Thai government is vigorously building transportation infrastructure, with the economic development, the increase in investors, will lead to steady growth in the real estate economy. ASEAN has 10 countries open, Thailand as the central axis of the 10 ASEAN countries countries countries, it is attracting many investors to invest in Thailand, Bangkok housing prices are still cheaper than other major Asian cities; complete living facilities, high degree of internationalization. Thailand's housing prices have risen considerably, from the statistics of the past 10 years, Bangkok, Pattaya and other central areas of the condominium average annual increase of about 12%. Together with rental returns, the average annual return on investment for condominiums in Thailand is over 18%. Relative to other Southeast Asian countries that have shown good signs of growth in the Thai economy, economists believe that the fundamentals of Thailand's economic recovery prospects remain favorable. Therefore, investing in Thai real estate and with a steady increase in the value of your property is sure to give you a high return on your investment.