Business

The Booming Housing Industry In Thailand

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The housing property sector of Thailand continues to boom. However, the economic slowdown as well as the political unrest in the country is flashing some red warning signals that the boom might soon come to a halt. The Thai price index for a house rose by at least 4 percent in the year ended 2014. During the third quarter of last year, the prices in houses rose by about 4.19 percent, 4.8 percent in the second quarter and about 5.6 percent in the first quarter. This data is according to the Bank of Thailand.

Housing Indexes

The condominium index also soared to new heights and increased by 14 percent. This particular index is a more relevant one. Condominiums are reportedly what Thai people as well as expatriates and foreign home investors tend to live in. The index for houses which are longer-established represents the rural population. The townhouses’ price index also rose by at least 6 percent while the residential land price index also surge by about 6.3 percent. The prices of the properties in Thailand remain to be very attractive when it comes to international standards. Their prices are at least four times cheaper compared to those in Singapore.

The country’s strong economic fundamentals offers the market good prospects for another year of capital gain with luxury projects and high-end quality projects which are situated in the best locations. These ensure a maximized capital gain in the longer period.

Moderately good yields for properties in Bangkok

The average rental yields in the capital city range from about 5 to 6.8 percent. This is according to the Global Property Guide rental yield. The higher yields come from smaller apartments that are measuring up to 65 square meters and with yields of about 6.8 percent. Those apartments with 350 square meters earns gross rental of about 6.16 percent.

Mortgage lending

The personal housing credits in the city rose to about 12.1 percent on a year on year basis last 2014 to about 1.688 trillion Baht. The total property credits on the other hand rose to 9.8 percent last year.

If you are looking for a property to buy in the city and encounter problems in processing, you can ask the assistance of real estate lawyers in Bangkok.