More Thai millionaires snapping up property abroad: CBRE

SUNDAY, MARCH 10, 2024

One of the investment strategies of Thai tycoons this year is shifting towards increasing investments in foreign real estate to fortify their portfolios.

This move aims to "reduce risk" stemming from economic and political uncertainties both domestically and internationally.

While Thailand's overall economic and real estate market has yet to recover fully, the overseas property market, particularly in the sought-after location of London, United Kingdom, has regained popularity among Thai tycoons.

This resurgence is attributed to a significant number of Thai elites sending their children to study in the UK, particularly high school, leading them to spend an extended period of 7-8 years in the country.

Praphinleeya Phuengkhuankhan, head of the subsidiary residential sales department at CBRE (Thailand) Limited, revealed that the most popular destination among Thai investors in foreign real estate was the United Kingdom.

The majority of customers who buy real estate in the United Kingdom primarily focus on purchasing properties in London. These properties are intended to serve as accommodation for their children while studying. The budgets for such investments typically range from £800,000 to £2 million, equivalent to approximately 36-91 million baht, and the properties usually consist of 1-2 bedrooms.

Japan has become the second most sought-after country for real estate investments. The customer group interested in investing in real estate in Japan, previously concentrated on the popular ski resort town of Hokkaido. The minimum transaction value of properties with at least two bedrooms was around 30 million baht. Simultaneously, there is growing interest in areas like Osaka, suitable for those looking to start real estate investments in Japan, as the price range is approximately 7-8 million baht for a studio-sized property of 20 square metres.

Another destination worth mentioning is Maldives where CBRE (Thailand) Limited has two projects for sale, ranging from US$4 million to $16.5 million. These properties feature 2 to 9 bedrooms, making them suitable for family-oriented customers.

"In terms of projects in the past year, the total transaction value, whether in the resale or primary market, amounted to approximately $80 million or 2.841 billion baht. This is considered a significantly high sales figure for projects under the management of CBRE (Thailand), particularly for Soneva Jani and Soneva Fushi," Praphinleeya said.