The impact of the COVID pandemic has rippled across the globe and impacted most forms of economic activity. Even the property market has not been spared from it.
Prior to this, the Thailand residential property market has always been a top investment destination favoured by Asian investors, in particular Chinese, Hong Kong and Singaporean buyers.
“Foreign buyers consider Thailand to be an attractive investment destination that offers a high quality lifestyle. They believe the EEC and high speed rail will help contribute to real estate price growth in the coming years. More importantly, they believe that the Thai property market will rebound spectacularly when mass tourism resumes and bring greater numbers of offshore buyers eager to make up for lost time” as quoted in the Bangkok Post.
It is therefore unsurprising that Thailand remained the most searched property market by Chinese buyers even in 2020.
Investors are using the downturn to score luxury assets that are of good value
The travel restrictions has resulted in an exodus in visitor numbers and foreign investor activity. Yet, it is undeniable that every down cycle presents opportunity.
Buyers who have committed to deals during the pandemic have benefitted from the high discounts and promotions offered in many projects. Many of these foreign buyers have also secured long-term residency visas in exchange for the property investment, under the Thailand Elite Card scheme.
The luxury segment has benefitted from this, most evidently through an uptick in demand and exceptionally high volume of enquiries for that segment. Aliwassa Pathnadabutr, managing director of CBRE Thailand commented “The luxury housing market has been one of the fastest segments to recover as Thailand’s lockdown restrictions ease. Our sales of ongoing luxury housing projects have also achieved better rates than the pre-COVID 19 period because developers are also offering more discounts”
Confidence in Thailand’s long-term property market remains bullish
Prices of Thailand real estate is still considerably more affordable than many of the other real estate markets in Asia and the country is perceived to be friendly towards foreign investment.
49% of units in condos located in selected areas is made available for foreigners to purchase and there have even been talks of further increasing it. Foreigners are also not required to pay additional property tax, unlike most countries.
Besides the attractive tax structure for foreign buyers, it is also relatively easy for foreigners to sell their Thai home, be it to a local or to another foreigner. There is no restriction, no seller stamp duty or any minimum investment period which is another reason why so many property investors favour Thailand compared to other alternative property markets.
Recovery on the horizon following success in containing COVID
Thailand’s response to COVID-19 has been swift, sharp and responsive. By closing its borders early at the onset of the pandemic, it has managed to contain the spread of the virus. The government has also been fast to respond at any sign of a potential outbreak, including with recent spikes in cases.
Prior to that, there have been talks of opening the country’s border to neighbouring countries and those with close ties to Thailand, such as Singapore, Hong Kong, South Korea and even Japan in a bid to kick start the economy.
For now, Thailand continues to rank as one of the best placed countries to recover from the pandemic in Asia.
Attractive rental yield fueled by tourism bounceback
Tourism has been a major engine for Thailand’s economic growth. Since 2011, Chinese tourists have been the largest demographic group to visit and invest in Thailand. We also saw hundreds of Chinese apply for Thailand’s newly introduced special tourist visas, after it was rolled out in October 2020.
Under the new visa, tourists from low risk countries were allowed to enter Thailand for long stays up to 270 days. The visas are designed to incentivize and foreigners to visit Thailand.
With countries around the world gradually opening their borders, analysts expect an upward of 4% on rental yield for condominiums in central Bangkok, driven by the amount of tourism the city receives.
The Estelle Phrom Phong – Ultra-Luxurious Living
The Estelle Phrom Phong is the ultimate luxury development that are awarded – Best Luxury Condominium Bangkok, People’s Choice Award for project of the year 2020 and Best Luxury Condominium in Southeast Asia.
The developer, Raimon Land, is best known for its track record of landmark developments such as 185 Rajadamri, The River, The Lofts Yennakart, and The Lakes, which won several prestigious awards in Thailand, such as the “Best Luxury Condo Bangkok” award in 2012, and “Best Condo Development” in the same year.
The Estelle Phrom Phong is located off the renowned Sukhumvit Road in the heart of Bangkok, near Phrom Phong BTS station 200 meters away and this location alone makes it a massive selling point as a weekend getaway for both tourists and local tenants. The Estelle rises 37 stories where residents can experience an unimpeded skyline view flanked by greenery in an escape from the inherently hectic Bangkok.
Its bold design showcases the concept of modernity and the best of understated elegance. Featuring multiple pockets of green spaces as well as a Zen garden perfect for evening strolls, The Estelle Phrom Phong offers serenity in the bustling city of Bangkok with contemporary furnishings and sophisticated details.
The condominium also features state-of-the-art facilities of 24 hours concierge services, Mercedes-Benz S Class limousine service, supercar parking, dedicated guest rooms, non-chlorine filtration system swimming pool, salt-water flotation pool, Japanese-style hot bath, cold tub (Onsen), yoga room, and sky gym. For animal lovers, pets are also allowed for this project, making it the perfect family home for you and your loved ones.
It is also a hub of hi-end shopping malls, lifestyle / entertainment districts, and tourist attractions, such as the The EmQuartier, The Emporium, Benjasiri Park, K-Village, as well as several dining and entertainment venues in Thonlgor / Ekamai area. Because of its proximity to these amenities and landmark tourist spots, should you choose to rent it out, you can be sure that it’ll be a popular choice amongst tourists.
With all the convenient amenities this project has to offer, you won’t be disappointed with your investment in The Estelle Phrom Phong. There are only 39 units up on offer, making it a highly attractive opportunity for foreign investors.
For investors who want to find out more about The Estelle and the worthy returns it has to offer, contact us below for more information!