Thai properties attracting Hong Kong's super rich

Thailand has been attracting wealthy property investors from Hong Kong, as the city-state experiences continuous property price increases.

“Bangkok is still a top-two destination for lifestyle in the eyes of investors in Hong Kong. Their interest in luxury Thai property is driven by a lift in optimism about the overall political and economic environment in Thailand,” said an executive director for investment and project marketing at CB Richard Ellis (CBRE).

Currently, property prices in Hong Kong are five times higher than in Bangkok, with new condos fetching as much as THB1.2 million (US$40,080) psm. Interest rates for deposits are approximately two percent, thus acquiring property in the city has become a preferred form of investment for wealthy Hong Kong investors, as well as mainland Chinese.

According to the Bangkok Post, Thailand’s Pace Development has recorded a total of THB350 million (US$11.69 million) in sales after a three-day roadshow for its luxury development, MahaNakhon.

The 77-storey luxury mixed-use development comprises 194 condo units priced between THB225,000 (US$7,520) psf and THB345,000 (US$11,523) psf. With a total development value of THB19 billion (US$634.6 million), MahaNakhon will be the tallest tower in Bangkok and will house 27,000 sq m of retail space and the Bangkok Edition hotel, which will be managed by Ritz-Carlton.

Sorapoj Techakrasri, Chief Executive of Pace Development, said interest for the project picked up after the election, with many investors optimistic about new proposed infrastructure projects.

After overwhelming response from Hong Kong investors, Pace is planning to hold a similar roadshow in Singapore, and it aims to sell up to 20 units worth THB600 million (US$20.04 million), from both roadshows.

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