Photo: Gunawan Kartapranata/Wikimedia Commons
Falling currencies in some of Southeast Asia’s most popular real estate markets, including Thailand, has created opportunities for overseas investors to reap significant savings if those purchasing property are willing to accept some of the uncertainties, reported The Wall Street Journal.
Property in Thailand is now ten to 15 percent lower than it was at the beginning of 2015 as the value of the Thai baht has sunk, property agency Engel & Volkers Phuket explained. The Thai baht has fallen 10.5 percent against the US dollar since May 2014.
Barry King, Managing Director at Prime Real Estate Phuket, said that price declines for inland villas has helped him to sell about 20 percent more properties priced at US$3 million or higher during 2015.
At the same time, Andrew Hunter, Managing Director at Hunter Sotheby’s International Realty in Phuket, noted that inquiries for properties priced above US$2 million have increased in the past 12 months, but actual sales have been soft as investors are waiting to see how the current political situation and economic instability plays out.
However, property agents said that the military junta has not created significant upheaval in daily life and it is business as usual throughout the country, including the island of Phuket. The government is also making significant investments in the region’s infrastructure to help enhance the area.
“The tourism sector has benefited from the relative political calm since the military took over,” noted Krystal Tan, Asia Economist at research firm Capital Economics. Tourist arrivals rose 19 percent in 2015 from the previous year, even with the Bangkok bombing. Many analysts believe that tourist arrivals are often a precursor to an increase in foreign buying of property.
Bali in Indonesia along with Malaysia are two other locations experiencing the same currency devaluations that are leading to more foreign interest in property. The Indonesian rupiah dropped 11.3 percent against the US dollar in the past year while the Malaysian ringgit fell over 22.7 percent against the US dollar. This has created some opportunities in the luxury housing market in both countries along with Thailand.
This article was first published on DDproperty.com, Thailand’s leading property site.
