REAL ESTATE MARKET
THE REAL ESTATE MARKET IN THAILAND - A NEVER-ENDING STORY OR JUST A PERSUASIVE MARKETING TECHNIQUE?
Owning a home is everyone’s dream and has also become in recent years an investment option for people who are looking for a smart way to grow their money. Buying a property now as a financial security for the future can be a wise decision. It just depends where you buy the property and at what price.
The real estate market in Thailand, especially in Bangkok and other large tourist areas of the country has been booming over the past years and real estate developers are constantly trying to create new astonishing building projects and architectonic works of art with unique life experiences for home owners.
This has resulted in a situation with cut-throat competition where new buildings are erected everywhere within a few years, which makes other buildings in this area often look as they are in need of renovation. In some cases homeowners even have to find their previously amazing views over the city being blocked for good. With this new situation it seems almost impossible for investors of that time to resell their units again without accepting a financial loss since the prices for new condominiums and houses haven’t really changed that much in recent years.
According to one of the major online platforms for condominiums, homes, and other commercial and industrial properties, there are almost 500,000 listings available for rental and buying alone in the Greater Bangkok Area. The always praised low vacancy rate by real estate agents should therefore be viewed with extreme caution as it merely reflects the vacancy rate of units sold by the real estate developers and their agents.
However, it does not consider units which were bought by individuals for investment purposes and who are now desperately trying to rent out or sell their empty units on the market at overestimated price levels which were initially calculated without considering the real supply and demand balance in this market.
When choosing a real estate agent one has to be clear about their goals. Ultimately, they are salespeople and the goal is to make a quick sale with a high profit. It is therefore questionable whether they are really honest about the market situation and the property value or when making promises for the future regarding the potential return on investment or rental yield of a property. In this connection, one shouldn't underestimate other incurring costs that are associated with property investments, such as management fees, insurances and taxes.
As you would probably like to rent out or stay in this property for a long time and with the possibility to resell the property again at a high price in the future, there is nothing wrong in being a bit picky and to consider your options until you find the right property. You just need to be clear about your own expectations and the reason when buying a property. An independent and targeted market analysis can save you a significant amount in your spending and can also prevent you from making the mistake to invest in a bad property in the wrong area.
If you would like to find the best investment option but don’t have the time for a thorough research or don’t know what really matters, then contact us today. In contrast to real estate agents we only represent the interests of our clients, not those of property sellers. We know the local market through continuous research over the past years and have a responsibility towards our clients to maximize their investments.