7 Reasons to invest in Bangkok

Article abstracted from property guru

Bangkok, in the opinions of many market-watchers, currently offers a potentially lucrative property investment opportunity, although as with all investments buyers should do their due diligence and ensure they are comfortable with their purchase.

What are some of the attractive reasons to buy in Bangkok?

Record prices.
Record-breaking prices were also witnessed in Q3 2014 when CBRE sold a unit at Raimon Land’s 185 Rajdamri development, a project which was completed in Q1 2014, for around THB330,000 per sqm. The firm also sold units at more than THB300,000 per sqm in four other projects.

High numbers of expat tenants.
More than 90 percent of residential tenants in Bangkok with rents in excess of THB20,000 per month are expatriates, and the most recent figures showed that at the end of Q3 2014 there were some 74,000 holders of work permits in Bangkok, a rise of more than 7 percent in the turbulent previous 12 months.

A preference for renting.
The majority of expatriates who work in Thailand prefer to rent rather than purchase property because they are usually only in the city for a few years.

Lack of finance opportunities.
It’s almost impossible for expatriates, even with a solid credit record and work permit, to obtain finance at competitive rates from Thai banks to purchase property in the country. That’s another reason why renting is preferred to buying.

Buy as big as you can.
CBRE predicted that between 30 percent and 40 percent of purchases made at new condominium units in Bangkok during Q3 were made by buy-to-rent investors, with 70 percent of units under construction in downtown Bangkok being one-bedroom units or smaller. Highlighting a significant mismatch in supply and demand, CBRE noted it has seen strong demand for two- and three-bedroom units – with two-bed units are bigger making up a massive 75 percent of its leasing business. It said demand us starting to exceed supply in the bigger-unit.

Join the queue.
For the first time, several agencies have acknowledged the existence of waiting lists at some of the most popular developments in central Bangkok – underlining how the best developments are in demand and are commanding premium prices.

Rates are likely to rise.

Because demand will exceed supply, rental rates that have remained at the same levels for almost 25 years will finally have to rise

Want to know which bangkok property to invest in? Click here.

Where should Singaporeans buy property in 2015?

Post source from http://sbr.com.sg/residential-property/commentary/where-should-singaporeans-buy-property-in-2015

Property is one of the safest investments anyone can make. Bricks and mortar. A roof over your head. Solid and tangible. In most markets, property is surging ahead for good reason - interest rates are low and new stock is plentiful.

Two notable cities that look like having a stellar year in 2015 are Manchester - England's second city - and Los Angeles in California. Here is my outlook of some markets around the world to help you start your search.

United Kingdom: Even with an election pending, property is on the up - gains are the biggest in the G7. London offers the best capital gains (over 22% in some areas in 2014) and Manchester, the UK's second city, is also recording double digit growth - with no end in sight. Outlook: POSITIVE

Click here for London properties or Manchester 

Philippines: A mass of new projects are currently under construction, including a mega casino project, although problems with oversupply may arise, Manila is still a solid buy and prices are increasing. Excellent rental yields too. Outlook: POSITIVE

USA: Uncle Sam is back on his feet, property-wise, and the market has started to accelerate. California is the hottest place for property investors looking at the USA in 2015 - who wouldn't want a piece of Hollywood or a sliver of Silicon Valley? Outlook: POSITIVE

Thailand: While the junta has put back any hope of elections until 2016, the property market is still growing at a good clip. Fears of oversupply appear to be unfounded, and Bangkok and Phuket are still tops. Outlook: POSITIVE

Australia: Low interest rates - forecast to be cut again soon - will keep property buoyant in 2015. Cheaper square foot prices make the Gold Coast and Brisbane attractive. Sydney and Melbourne are set to grow at lower levels than 2014. Outlook: POSITIVE

Indonesia: A new president, a new surge in property prices. While rental yields may not be quite as good as they used to, capital gains are looking promising, with gains of over 10% predicted for Jakarta in 2015. Bali is set to continue its 10% per year increase. Outlook: POSITIVE

Click here for Australian properties.

Why Invest in overseas property?

Seeing that local properties were moving slow due to the cooling measures, i decided to venture to overseas proprieties. Why has investing in overseas properties seen a rise in sales? It because it provides low capital layout and high rental return yields.

Though home prices in most Asia countries are extremely expensive and see slow capital appreciation, emerging counties like Cambodia, Philippines are still great investments.  Just today, news about property prices in Cambodia abstracted from Phnom Penh Post.

"Political stability, economic growth and foreign investment have led to doubled land prices in four of the capital’s central districts compared to 2008, when prices bottomed out due to the financial crisis, according to a report.

From the second to the third quarter of 2014 alone, land prices in the districts of Chamkarmon, Daun Penh, Prampi Makara and Tuol Kork went up by 20 per cent in commercial areas and 30 per cent in residential areas, the Bonna Realty Group study found.

In Chamkarmon’s Tonle Bassac village, high-end condominiums such as The Bridge and Casa Meridian helped push residential land prices up to $2,000 to $2,500 per square metre, while commercial land sold for up to $4,000 to $6,000. 

Tonle Bassac remains cheaper, however, than Chamkarmon district’s Sihanouk Boulevard. On the centrally-located strip of land from Monivong Boulevard to Independence Monument, commercial land is priced at $8,000 to $9,000 per square metre, a 10 to 15 per cent increase from the second to the third quarter of 2014. The high prices have scared off some investors from developing land in Chamkarmon, the report noted.

The riverfront’s Daun Penh district, on the other hand, had a wider variation in prices, with residential land priced from $500 to $4,000 per square metre. The study noted that the district’s price range, along with the fact that there are relatively few high-rises, made it a promising area for hotel development." 
To read more click here.

The hottest selling overseas property in 2014 in Huttons is The Bridge.

11 Reasons why The Bridge is popular amongst investors.

1. FREEHOLD
2. Guaranteed Rental Return of 18% over 3 years!
3. Extremely Affordable from only US$100K+!
4. Low Upfront Payment!
5. Staggering 45-storey high Iconic Integrated Condo with F&B, Retail n SOHO
6. 1st of Its Kind – Mixed Development – Live, Work & Play!
7. FANTASTIC PRIME LOCATION. NEAR CBD
8. Walking distance to NagaWorld, the One & Only Casino/Hotel/Shopping in Phnom Penh!
9. Near Embassy of Australia, Russia & National Assembly
10. Near Phnom Penh’s biggest mall (AEON from Japan)
11. High Demand from Expats & Yuppies with High Occupancy!

More more information click here.