Thailand offers relatively straightforward property ownership laws, granting foreign freehold ownership of Condos (Up to 49% of saleable area of a Condominium). The surprising ease of buying and selling Condos, combined with attractive returns and the pleasant lifestyle of Bangkok has positioned it as a leading property investment destination in South East Asia.

Traditionally marketing efforts of the Capital’s Developers and Property Agencies, have been centered on capturing sales from conventional international markets such as Europe and the US. However in recent years some established Developers has reevaluated their overseas marketing strategy; focusing instead on Asian Investors with a particular emphasis on affluent East-Asian (China, Taiwan, Hong Kong and Macau) and South East Asians (Mostly Singapore).

Several High Profile Developers now have Mandarin Versions of their Websites! (Photo Courtesy: Ananda)

This sales and marketing shift has inadvertently produced an unexpected surge and growing interest from Hong Kong Investors for the Thai Capital’s Condos!

The unprecedented scale of wealthy Hong Kong buyers snapping up off-plan units, has encouraged several high-profile Developers and Agencies to reactively seek ways to gain exposure to this market. With listed developers such as Sansiri, Origin Property, AP (Thai) and Ananda Development even launching road shows, property seminars and even appointing local HK Sub-Agencies to capitalize on the growing trend.

So what is fuelling this sudden investment frenzy?

Relative Affordability

Several sources mention, Hong Kong investors are cash rich and are seeking to diversify their investments into real estate; but the exorbitant property prices of their home market is proving too restrictive and stifling to do so.

Condos in Bangkok even in some of the prime-areas of the Capital, are in comparison offered at attractive price points especially when compared with the cost of equivalent housing back in Hong Kong.

City’s Development and Investment Returns

All four corners of Bangkok is undergoing enormous urban transformation from large-scale mass transit extensions, launch of megaprojects (I.e. The Super Tower, The Singha Complex, One Bangkok, etc.) and gentrification of peripheral areas. This state of flux is proving an attractive selling point for Hong Kongers that generally aim to hold their investments for a minimum period of 3-5 Years. In that time, many are expecting attractive capital appreciation returns complemented by stable rental yields while they hold.

Bangkok My Second Home!

With frequent low-cost flights and a travel time of about 2.5 Hours, travelling from Hong Kong to Bangkok is a convenient affair. In fact, it is not uncommon for Hong Kong holiday makers to travel on Friday evening to spend the weekend in Bangkok (Returning early Monday and going straight to the office)!

Convenience combined with the attractive and affordable lifestyle offered by Bangkok, is encouraging Hong Kong buyers to consider the potential of owning a “Second Holiday Home” and in some cases even the possibility of retiring in Thailand. Another trend emerging are young families considering sending their kids to pursue their secondary education in one of Bangkok’s reputable international schools.

Early-Stages of this Trend!

This growing trend is still in its early-stages; with most of the rising demand being absorbed by a handful of off-plan projects launched by Bangkok’s large developers. However property professionals are expecting this surge to intensify over the coming months, especially as Hong Kong buyers start to familiarize themselves with the local Bangkok marketplace.