The Thailand Property Awards – Ensign Media’s annual event that showcases the best in luxury Thai real estate – is set to introduce two new categories this year, which will recognise the growth in the country’s high-end villa market.
Both ‘Best Villa Architectural Design’ and ‘Best Villa Interior Design’ categories will debut at the September 19 ceremony. Traditionally, Phuket and Koh Samui had been the favoured destinations for high-end villas, however, the market has gradually expanded throughout the rest of the country and, over the last decade, Thailand has witnessed a significant increase in the development of luxury properties buoyed by demand from both domestic and foreign investors.
“We have long celebrated the achievements of villa developments of three units or more and these new awards give us the opportunity to recognise the quality of standalone projects,” Ensign Media CEO Terry Blackburn said.
Thailand Property Outlook
Although the Thai real estate industry has continued growing significantly since 2008, we have not seen a real estate bubble environment manifesting. The industry seems to have learned its lessons during the 1997 financial crisis and has successfully implemented the following safeguards: The banking industry has become much more cautious providing project financing and mortgage loans.
The completion of the Suvarnabhumi-Bangkok International Airport has spurred growth in commercial property markets in eastern Bangkok as well as in the beach resort of Pattaya. Thailand has become even more accessible by air with a wide range if International carriers using Bangkok as a hub. In recent years, there has also been a surge in budge carriers, offering very competitive prices to both local and international destinations.
Real estate developers are more cautious and many have professionalized their operations
Thailand’s property market was able to rebound from past crises and there is every reason to believe it will be able to absorb the blow of recent political tensions. The taxation situation has actually improved the conditions for purchasing property in Thailand, and if property prices do dip slightly as a result of the current situation it may actually be a good time to buy as there is a very real possibility Thailand property will regain its golden outlook soon.
As a result, the financial condition of most major housing developers in Thailand is much more robust than in the past. The development of the local bond markets and increasing domestic savings has the made the industry much less dependent on foreign funds, a significant difference from 1997.
The real demand for residential real estate stems from local residents and foreigners living or working in Thailand. The latter group will definitely be affected by the weak global economy but what about local Thai residents? The Thai domestic economy will also be adversely affected by the crisis, especially the export sector.