Property in Thailand Update

Far be it from us to say ‘we told you so’ (don’t you just hate people who do?) but regular Amberlamb readers will be well aware that we were chewing over a seeming lack of property profit potential in Hungary long before Ferenc Gyurcsany did a Ratner on his country’s economy.  And so we thought it might be a wise time to offer you all our property in Thailand update seeing as they’ve just had a coup and all!

No, we don’t think we’re too late to offer our advice because the coup was peaceful and the Thai economy and people have withstood the external shocks well…but now is as good a time as any to explore the official and bureaucratic restrictions that are restricting potential for profit and income from property in Thailand.

Basically one has to be aware that an ‘emerging market’ by its very nature is less stable and therefore higher risk than an established marketplace such as Spain, Australia or the UK for example. 

In general terms, on the one hand an emerging market can be a fantastic place to derive strong profit margins, but on the other hand when a bomb goes off in Turkey or a coup goes off in Thailand there will be significant and negative knock on effects throughout the nation affected and these negative effects will likely hit an immature property market particularly hard.

In Thailand’s case the coup - while thankfully bloodless on both the streets and in the stock exchange - should just serve to remind us that although Thailand is a nation with a wealth of immense potential especially from tourism, it is a very complex country with a strong suspicion about intervention – particularly foreign intervention – and that this fact especially will restrict it and will restrict anyone who tries to profit from it.

In terms of Thailand’s property market what does this overriding sense or suspicion mean for investors?

Well, it means that while overseas interest in this stunningly beautiful nation, in this country that could become one of the most significant in Southeast Asia is intense, the (previous) government’s sentiment and the ongoing sentiment of the authorities currently in charge appears to be that foreign investment is NOT a good thing and as a direct result profiting from property in Thailand is difficult.

In terms of percentages, the levels of foreign ownership of property in Thailand is miniscule and when you move away from the most popular haunts such as Koh Samui or Phuket the land is undeveloped, underdeveloped, underutilised – and the Thai people are certainly not benefiting from a boom in the real estate economy. 

But why is this? 

Isn’t Thailand strongly in demand from property investors, holiday home hunters and international developers?  Well, yes it is but while Thailand remains a country suspicious of foreign investment it is going to remain difficult to enter its housing market and tap into any potential for profit.  Furthermore any potential for profit from real estate in Thailand is directly linked to its tourism market – and naturally enough a coup is not a great tourism advertisement for a country in terms of promoting its stability and attractiveness as a peaceful and safe nation…

Special Reports: Property News for Thailand

Thailand Property Investment Potential
Potential for property investors in Thailand is in abundance but dependent on the success of the tourism industry

Thailand Property Buying Guide for Foreigners
The amount of restrictions that apply to foreign property investors in Thailand makes the whole property buying process complicated

Thailand: A Guide for Property Investors
The profitability of investment property in Thailand has increased significantly in recent years making Thailand real estate highly desirable.