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High Rental Yields Attract Foreign Investors

Aug 3, 2017 | Emerging Trends, Thailand

The Thai property market has certainly been experiencing something of a boom in recent years, buoyed by increasing numbers of overseas investors and swathes tourists coming from all four corners of the globe. There is little surprise that many developers are expanding their marketing internationally to reach out to those looking for investment opportunities in Thailand. Little incentive will be needed once investors appreciate the fantastic rental yields that are available.

Speaking to CNBC, Apichart Chutrakul, CEO and co-founder of developer Sansiri said: “(Rental) yield is quite high at 5-8 percent, which is attracting investors from Singapore, Hong Kong and mainland China. In a way, our property prices (in Thailand) are quite low compared to the rest of the region.”

 

The developer is based mainly in Bangkok but has other properties in Pattaya and other regions is looking to sell in the region of THB7,500 million worth of property to foreign investors in the next 12 months, a 40% rise on the previous period. They, along with many other developers appreciate that the vast majority of foreign investors now come from other regions of Asian such as Malaysia, Japan, Hong Kong and mainland China.

Of course, Sansiri are far from the only property company looking to capitalise on the opportunities that present themselves at the current time. The market in tourist hotspots such as Pattaya and Phuket sees a huge influx of western tourists in addition to those coming from Asia. Many of these tourists appreciate that there are plenty of investment opportunities in Thailand with developers and even some of the major hotel chains offering attractive rental yields.

Thailand has continued to perform well on the world stage at a time when there has been stuttering growth in other areas of Southeast Asia. The economy, which is now the regions second largest, saw a 3.2% growth in the last financial year, compared to 2.9% on the previous year. Tourism is a major strength for Thailand with a record 32.6 million tourists visiting the Kingdom in 2016, a third of which came from China. The strong economic performance and high rental yields means many of these visitors are taking note of the investment opportunities that are available in Thailand.

The Thai baht is continuing to grow in strength, appealing to investors looking to take returns back to their home countries. The evidence points to the fact that this trend will continue with concerns over President Trump’s performance in the US, the instability of the EC and the slowing of growth across Asia generally. Thailand is an attractive investment proposition and global investors are definitely impressed.

Those looking to make the most of investment opportunities in Thailand should always consult with a reputable company who specialise in investment properties. The opportunities are vast but unfortunately there are those looking to exploit these opportunities for their own, less than honourable gains.

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