| Thailand Rental Market |
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The Thailand rental market has been booming and providing investors good returns, with the strongest returns being for smaller apartments in Bangkok. Fortunately, after some decline in the Thailand rental market during 2009, 2010 saw Thailand’s economy recovering, with a now positive GDP growth rate. Following are points related to the Thailand rental market and services offered by Healy Consultants: | ||||
1.
| According to the Global Property Guide's research, the rental yields in Thailand are around 8% (based on resale apartments and houses). Interestingly, the highest yields of up to 10% have been from small apartments of just 40 square meters in Bangkok.
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2.
| The Global Property Guide's analysis of the Thailand tenancy laws indicates the Thailand rental market favours the landlord. Positive aspects include: | |||
i) Rents are freely negotiated | ||||
ii) Tenants pay a deposit equal to two to three months rent and rent is paid in advance | ||||
iii) A landlord has the right to call the police to evict a tenant for appropriate reasons | ||||
iv) Subleasing can be prohibited by inclusion in a contract | ||||
3.
| Phuket is perhaps the gem of Thailand's tourist destinations. The Phuket real estate market attracts interest from investors all over the world, including Asia, Russia, South Korea, the Middle East and India. Properties in prime locations attract high demand for rental from tourists, especially during the peak seasons. The upgrade of the Phuket International Airport will further support Phuket's tourism market and hence the Phuket rental market (CB Richard Ellis Research). | |||
4.
| Construction of new housing in Bangkok peaked in 1996 with around 127,000 units built. It subsequently declined drastically and even in 2008, new residential property construction was 55% below the peak.
Nevertheless, Bangkok is currently experiencing an oversupply of condominiums. | |||
5.
| Office spaces are currently on an oversupply, with the average rent for prime office space in the central business district of Bangkok remaining just slightly more than Bt740 (US$22) per square metre per month (psm), office rentals in Bangkok are among the lowest in the region, says CB Richard Ellis Thailand. | |||
6.
| Healy Consultants assists investors to manage the process of finding tenants for newly acquired residential and commercial property. This process includes i) appointing a reliable agent, ii) determining the optimal rental for the property, iii) interviewing potential tenants and supervising negotiation of contracts iv) arranging necessary requirements for collection of rental payments v) efficient resolution of tenant issues. | |||
7.
| The Phuket property market is very competitive. Promotions for Phuket investment opportunities which guarantee rental returns are used but should be considered with caution. Appointing and supervising a Thailand lawyer is one service provided by Healy Consultants to help avoid any disputes after commitments are made to investing in Phuket property. |
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8.
| Thailand has taken the longest, of all the East Asian countries to recover from the economic recession; this lag time presents an investment opportunity. Greater capital inflow, and improved country infrastructure points to a growing real estate market. |
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9.
| An increase in buyer confidence from the economic recovery could lead to lower supply and hence increases in rental costs. Sustaining strength in the Thailand rental market will depend on minimizing the impact on the tourism industry, along with government initiatives to encourage foreign investment. |
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10.
| Healy Consultants provides investors with professional tax and accounting advice specific to the Thailand rental market. Thai law requires investors to pay tax on rental income so having the professional guidance ensures tax obligations are met and all deductions allowances and incentives are taken advantage of. |
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| Contact Us | ||||
For further information on the Thailand rental market, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com | ||||
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