Looking into various parts of Asia, one might not want to seek out a new home there just right now. Property prices are going through the roof, excuse the pun, and wealthy Thailand is taking advantage. According to an article in the Bangkok Post, a property developer from Thailand, Pace Development, just recently “launched sales of its luxury Bangkok project MahaNakhon to Hong Kong buyers.” Records over a mere three days show of “sales worth 350 million baht.”
On the flip side, for those who have something to sell, now is the time. According to executive director for investment and project marketing of property consultant CB Richard Ellis, Rebecca Shum, now is “the best time to sell property to Hong Kong buyers as prices there were very high.” The prices for property in Hong Kong are really high these days. Indeed, they have gone up around 20 percent in the last year and just haven’t come down at all. Hong Kong and Chinese investors are seeking out properties in other parts.
Hong Kong Prices Peak
Indeed, Hong Kong prices are these days five times more than for the same size in Bangkok. New units are approximately 1.2m baht per sq m. Hong Kong and mainland China investors these days therefore seem to prefer “buying property as an investment as the interest rate for deposits was only 2%, which is unattractive to those who refuse to carry cash.”
The truth is, as Shum has noted, “Bangkok is still a top-two destination for lifestyle in the eyes of investors in Hong Kong. Their interest in luxury Thai property is driven by a lift in optimism about the overall political and economic environment in Thailand.” In addition, the new government has promised to put policies in practice that with “stimulate economic growth immediately.’ This will result in the progression of “major infrastructure projects,” as well as “provide long-term support to economic expansion and be reflected in asset price appreciation, particularly for luxury properties.”