Despite recent political uncertainties, many buyers are looking for a condominium for personal use that can be later sold or rented out, resulting in healthy returns.

International property consultants, CB Richard Ellis advise that
purchasing a condominium could be one of the safest investments buys in the Thai market right now for foreigners in light of political and
economic uncertainties falling interest rates, the downturn of the stock market, and the falling yields of government bonds.

Foreign purchasers wanting to own condominiums in Thailand are permitted to buy freehold condominium units, but the building must not exceed 49% of the foreign ownership ratio of the condominium and the purchase must be in cash.

According to the latest survey conducted by CBRE. The total stock of existing condominiums in Bangkok is 48,128 units as of the first quarter of 2007, an increase of 9.53% or 4188 units. In terms of area, 21.4% are in the Central Business District area. (Silom, Sathorn and Suan Plu
Roads), 4.4% in Central Lumpini, (Wireless, Ploenchit, Langsuan and Rajdami Roads), 34.6% in Sukumvit (Sukumvit Soi 1-63 and Sukumvit Soi 2-44), 8.2% in Pathumwan (Phaayathai and Phaholyothin Roads) and 29.6% in Riverside. (Rama lll, Charoen Krung and Charoen Nakon
Roads).

The luxury and high-end of the market is a good investment option say CBRE, as there will be limited supply in the future. In 2005 there were
1788 newly launched units positioned at the luxury and high end of the market. While there were 1097 newly launched units in 2006, representing a significant increase of 38.6%. It is expected in 2007 that there will be a similar number of new luxury and high-end condominium launches as there were in 2006.

“Luxury and high-end condominium units in downtown Bangkok, have been attracting a huge amount of interest from long-term investors. Even though the market has slowed down as a result of the political and economic situation,” said Aliwassa Pathnadabutr, managing director of CBRE Thailand.

“However, over the past few years’ long-term investors, who made profits from reselling or earning rental income from their units, have remained keen to purchase condominium properties in Bangkok because of their understanding and confidence in the market. Based on their experience, they are satisfied with investment returns in the form of capital appreciation and rental yields of 5-7%, which is higher than the current deposit account interest rate of 3.5%.”

The picture is not all rosy. Investors in the luxury and high-end markets are not only concerned about their finances, but lack confidence in the market because of negative factors in the political scene, the economy, and in society.

The middle end of the market is dominated by Thai buyers and investors. This was proved by the success of many projects such as Villa Ratchewi by TCC Capital Land, and Life Rachada-LadPrao by Asian Property Development. However Aliwassa says that the large number of new launches in the middle to low end of the market may lead to an oversupply at some stage. In 2005 there were 2688. newly launched units positioned at the middle to the lower end of the market and located in downtown Bangkok. While there were 7630 newly launched units in the downtown area of Bangkok in 2006 representing a soar of 184%. In the first quarter of 2007 alone, 1367 new units were announced.

So with the middle end of the market running the risk of oversupply. The luxury segment appears to be investor’s best bet.CB Richard Ellis, forecasts that there will be a limited supply of luxury and high-end condominium units. Whilst demand for residential condominiums for long-term investment will continue to be strong, particularly among those projects located in the CBD or along mass transit routes.

Prices will rise further especially for those units that meet the standards required by the luxury and high-end markets, and are of investment grade. With sustained yields of 5- 7% and improved historical capital gains acquired condominium units in prime positions are proving to be an attractive long-term investment choice for both Thai and foreign investors in the current economic conditions said Aliwassa.

The metropolis of Bangkok is probably the city with the fastest evolving real estate market in the country. The unique combination of the ancient and modern worlds makes Bangkok attract a large number of tourists as well as investors every year. With a thriving economy and solid infrastructure, the demand on Bangkok development property is constantly rising. Forbest Properties has been a Thailand real estate broker and consultant since 1990, having accumulated a great deal of experience in Thai real estate. The company is dedicated to assisting its clients in locating prime Bangkok investment property.

In search of Bangkok development property, The number of foreign investors has dramatically increased over the past few years. The explanation of this unprecedented wave of investors is quite simple – the city of Bangkok has solid growth potential, providing a practically unlimited number of business opportunities. Furthermore, the country has excellent infrastructure and strong business ties with China. Investors are also drawn to the reasonably priced properties in Bangkok and the good rental potential. One of the main goals of Forbest Properties is helping investors acquire the best Bangkok investment property.

Unlike most western countries, Thailand doesn’t have inheritance or gift taxes. Furthermore, the capital gains tax is charged as the income tax, at the standard rates. Rental policies are also advantageous, as the yields are maintained around the 8% mark in Bangkok. Foreigners can also own freehold condominium if the purchase is done in cash and the building does not exceed 49% of the foreign ownership ratio. Forbest Properties has been in the real estate business for over 17 years – it is the most indicated real estate brokerage firm to aid investors in locating Bangkok investment property.

Investments in foreign real estate must be done with great diligence and the support of an experience real estate broker and consultant. Forbest Properties, the leading real estate broker and consultant in Bangkok, is the most experienced firm in Thailand. With over 17 years of experience in the Thai real estate market, the company has extensive knowledge on every aspect of the market. Forbest Properties is dedicated to assisting foreign and local investors in any real estate transaction. The company supports investments in Bangkok, assisting investors in purchasing prime Bangkok development property.

Potential investors who are looking for Asian property with high development potential will probably choose Bangkok. The Thai metropolis is predicted to become one of the most economically evolved cities in Asia in the next 5 to 10 years. Bangkok investment property in the Central Business Area is currently the main attraction for foreign investors. Forbest Properties is the real estate broker and consultant with the most experience in the Bangkok market.