With excellent facilities, wonderful beaches, great weather and a low cost of living, it’s no wonder the Thai property market is all smiles.
PROPERTY IS AMAZINGLY cheap in Thailand compared to the UK. A small condo unit can be bought for as little as 300,000 Baht (around £4,700). Sizeable houses are available for as little as £11,000. Build quality is high, as is the quality of fixtures and fittings. The cost of living is equally favourable. And with most major cities having every amenity an expat could want - international schools, high-quality private hospitals, even European supermarkets - many are choosing to buy second, holiday and investment homes in the country.
Despite Thailand’s recent difficulties, property trade for foreigners is still quite healthy. While early 2007 saw things slow a little after fears that the government was going to make it more difficult for foreigners to buy houses, the last quarter of the year saw business speed back up again and at no point did prices go down. And a large range of property is available from plots of land to holiday investments.
The major centres for the expat market are Pattaya, Bangkok, Koh Samui and Phuket, with an up and coming market in Hua-Hin. The resort town of Pattaya is the largest buying area, with a whole slew of property newspapers and magazines published in English.
Some enterprising developers are coming up with creative ideas such as selling plots on a golf course, with membership and green fee reductions built into the deal. Others advertise homes with their own private canal - perfect for mooring the yacht. With the cost of living so much lower than in the UK (around half of that in Malaysia, a quarter of that in Singapore), foreign residents really can access lifestyles of the rich and famous with comparatively little.
If you are buying condo space, the rules for foreigners are simple. The only key restriction is that the condominium must have 51% Thai ownership. Before you buy, you need to check that this ratio is still intact and find out what other options are on offer if it is not. Owning “landed property” is an entirely different matter. The buildings are no problem, but at the moment foreigners cannot own the land they stand on.
Aside from inheritance or becoming a Thai national, the only way of acquiring land outright in your own name is to make a substantial investment into a government bond, which is likely to far exceed the value of the house and land. The situation may change with a more investor-friendly government, but this does not look likely in the short term. Many buyers go for an alternative to outright ownership. For example, those with Thai spouses or partners put the land in their name.
For those without a Thai partner or spouse, there is the possibility to lease the land for a total period of 99 years, although at the moment this requires renewals. There is a government-backed pilot scheme in Samui which will make this the norm if it works. However at the moment this method can cause problems if the house owner leasing the land needs to give permission to sell, renovate or alter the property.
The other popular method is to set up a Thai limited company, which can legally hold the land outright. Until last year this was relatively simple. The majority of the company would be Thai owned, but there would be many Thai partners with only a small slice of the majority each. The foreign partner would own the largest share overall (for example 39%) and be the only signatory of the company (meaning only they could decide to buy or sell), and would hold all the documents.
Last year there was uncertainty over the limited company when the military government made moves to close legal loopholes, raising questions over voting rights. Although they backed away from this, the new government still expects the limited companies to be active rather than dormant. Many agents dealing with foreign buyers will be able to give you a broad outline of the legalities of buying a house in Thailand and we advise consulting a Thai bar lawyer to give you the nitty gritty.
The developments on the market offer luxurious living at great prices. With an increase in flights to the region a second home in Thailand is certainly worth looking at.
WHAT’S AVAILABLE
Viewtalay Marina, luxury Villas with private mooring, Chonburi (around Pattaya)
Prices from around £219,000 This is the highest end of accommodation, a fusion of Thai and Balinese design, with Jacuzzi and swimming pool on every property. The gated community of two and three bedroom houses incorporates a marina with houses on a private canal with access to the ocean. The village is also within easy reach of private hospitals and international schools. The next phase will see four bedroom houses become available.
Jomtien Park Villas, luxury holiday villas, Jomtien (around Pattaya) Prices from around £165,000 A small development of luxury Thai-Bali style villas 800m from Jomtien Beach, within easy reach of the major shopping areas. Each has its own private swimming pool with Jacuzzi, 24-hour security, and a choice of internal finishes. Villa Gaucin has three bedrooms, two bathrooms, fulll european kitchen and single garage , with its own private pool and landscaped garden up to 1,500 square metres. A private villa on a luxury development!
The Heights, 2 and 3 bedroom apartments, Kata (on Phuket) Prices from around £299,000 A high-end condominium situated on the Western coast of Phuket with views over the Andaman sea. As part of a holiday area, it has excellent access to recreational activities.
The development has all the facilities you would expect - pools, clubhouse, gym, security. Each apartment is also fitted with luxury bathroom fixtures and fittings, fitted wardrobes and so on.
Payment is made throughout the construction period, which is expected to be completed in the second quarter of 2008.
Sathorn Gardens, Bangkok Prices from around £55,000 This is one of the first of its kind: a resort-style condominium in the heart of Bangkok’s business district. This luxury project has one of the city’s largest pools, plus a recreation deck and in-house gym. Other leisure activities for residents include tennis courts, snooker room and saunas. The apartments are protected by a security guard and, with all the conveniences of the bustling capital city, should be easy to rent out.
FURTHER INFORMATION
- PPA Property: Tel: 0066 38 420 724, www.ppsasia.co.uk
- One Stop Real Estate (Pattaya): Tel: 0066 38 710 699 or 0066 38 710 725, www.real-estate-thailand.com
- Phuket Property Sales: Tel: 0066 76 238293/0066 87 0500010, www.phuket-property-sales.com
- Ray White Real Estate: Tel: 0066 264 61500, www.raywhite.co.th
- The Park: Tel: 0066 38 303 871-3, email: info@jomtien-park-villas.com
- The Heights Phuket: Tel: +66 76 284 289, www.theheightsphuket.com
- Raimon Land: Tel: 0066 2 651 9600-4, Fax: 0066 2 651 9614, Email: info@raimonland.com
- Azaya Villas: www.azayavillas.com
- Siam Royal View: www.siam-royal-view.com
- Lakestone Property: www. lakestoneproperty.co.uk
- Martello Realty: Tel: 00662 646 1500, www.martellothailand.com
- Foxlea Villas: www.foxleavillas.com
