The Thai price index for single-detached houses rose by 12.16% in the year to end-Q2 2011, according to the Bank of Thailand (BOT). When adjusted for inflation, the index actually rose by 7.75% over the same period. This was in sharp contrast with the 16% average y-o-y price falls (17% in real terms) seen from Q3 2009 to Q1 2010.
During the year to end-Q2 2011:
• the price index for townhouses rose 6.6%
• the residential land price index increased 13.4%
• the index for single-detached houses was up by 12.2%, from annual increases of 3.7% in Q1 2011 and 10.6% in Q4 2020
In the second quarter of 2011, there were about 11,000 new launches country-wide; a 9.6% increase from the previous quarter, according to Colliers International Thailand. The launches are mainly in the low to medium end market, with reduced unit sizes, compensating for the increasing land prices throughout the country.
More than 36,000 condominium units are scheduled to be completed by the end of 2011, the highest since the Asian Financial Crisis in 1997. In Bangkok, the total stock of condominium units has already reached nearly 304,000 units.
Total outstanding property credits rose by 7% to THB1.52 trillion (US$49.73 billion), according to the Department of Land, Ministry of Interior.
In 2009, the government implemented tax breaks for homebuyers to boost the housing market, in response to the adverse effects of the global financial meltdown.
In addition, the last election has created a sense of stability, according to the Real Estate Information Center (REIC). The Housing Developer’s Index Sentiment rose by 2.1% q-o-q in Q2 2011. The boost in confidence is mainly due to the expectation that political stability will follow the July 3 election.
During the year to end-Q2 2011:
• the price index for townhouses rose 6.6%
• the residential land price index increased 13.4%
• the index for single-detached houses was up by 12.2%, from annual increases of 3.7% in Q1 2011 and 10.6% in Q4 2020
In the second quarter of 2011, there were about 11,000 new launches country-wide; a 9.6% increase from the previous quarter, according to Colliers International Thailand. The launches are mainly in the low to medium end market, with reduced unit sizes, compensating for the increasing land prices throughout the country.
More than 36,000 condominium units are scheduled to be completed by the end of 2011, the highest since the Asian Financial Crisis in 1997. In Bangkok, the total stock of condominium units has already reached nearly 304,000 units.
Total outstanding property credits rose by 7% to THB1.52 trillion (US$49.73 billion), according to the Department of Land, Ministry of Interior.
In 2009, the government implemented tax breaks for homebuyers to boost the housing market, in response to the adverse effects of the global financial meltdown.In addition, the last election has created a sense of stability, according to the Real Estate Information Center (REIC). The Housing Developer’s Index Sentiment rose by 2.1% q-o-q in Q2 2011. The boost in confidence is mainly due to the expectation that political stability will follow the July 3 election.
Analysis of Thailand Residential Property Market »
RENTAL YIELDS
Last Updated: Apr 04, 2011
Thailand’s strong manufacturing base, combined with its tourist industry, are standing the country in good stead, despite continued political problems. Residential property in Bangkok is worth more in terms of US$ than when we last surveyed the Thai scene. This is partly due to the steady appreciation of the Thai Baht against the US$.
Premier used property in prime districts of Bangkok is worth around US$3,000 per square metre at the lowest sizs, US$3,300 for 120 square metre apartments. Property earns yields of 5.7% to 7.4%, with smaller apartments earning higher yields.
Premier used property in prime districts of Bangkok is worth around US$3,000 per square metre at the lowest sizs, US$3,300 for 120 square metre apartments. Property earns yields of 5.7% to 7.4%, with smaller apartments earning higher yields.
TAXES AND COSTS
Last Updated: Mar 12, 2012
Rental Income: Nonresidents pay tax on income derived from property located in Thailand at progressive rates from 10% to 37%.
Gross rent is subject to 15% withholding tax, which can be credited to the actual income tax due.
Property Tax: The House and Land Tax, levied on rental properties, is payable annually at a flat rate of 12.5% of the assessed annual rental value of the property.
Capital Gains: Gains derived from the sale of immovable property are taxed at standard income tax rates, from 10% to 37%.
Inheritance: There are no inheritance or gift taxes in Thailand.
Residents: Residents are taxed on their worldwide income at progressive rates, from 0% to 37%.
Gross rent is subject to 15% withholding tax, which can be credited to the actual income tax due.
Property Tax: The House and Land Tax, levied on rental properties, is payable annually at a flat rate of 12.5% of the assessed annual rental value of the property.
Capital Gains: Gains derived from the sale of immovable property are taxed at standard income tax rates, from 10% to 37%.
Inheritance: There are no inheritance or gift taxes in Thailand.
Residents: Residents are taxed on their worldwide income at progressive rates, from 0% to 37%.
BUYING GUIDE
Last Updated: May 05, 2008
Total round-trip costs are moderate at around 10% to 12.3% of the property value, inclusive of the realtor’s commission of from 3% to 5%. There are complications surrounding the computation of the buying costs; stamp duty and specific business tax are based on the assessed value or declared value, whichever is higher. Buyer and seller each pay for their own separate lawyer.
LANDLORD AND TENANT
Last Updated: Jun 27, 2006
Given the absence of formal legislation, Thailand is pro-landlord.Rent: The contract prevails on issues regarding the rent, rent adjustments, and notices.
Tenant Security: If the tenant refuses to leave after the contract and/or the notice to vacate expires, the police can be called upon to forcibly remove the tenant. However, landlords are not allowed to take abandoned appliances and furniture as compensation for unpaid rent and damages.
ECONOMIC GROWTH
Last Updated: Sep 04, 2011
Political and economic uncertainty persists
Thailand is a middle income, constitutional monarchy with a GDP per capita of US$3,940 in 2009. It attracts millions of tourists because of its culture, beaches, cuisine, and heart-warming hospitality. Apart from the metropolitan cities of Bangkok and Chiang Mai and and the beach havens of Pattaya and Phuket, most of the country remains rural.
However, political uncertainty remains in Thailand as political tension between pro and anti-Thaksin groups has continued.
Thailand’s economy expanded rapidly in the first half of 2010 due to strong exports. As the global economic recovery faltered in the second half, Thailand also suffered. Aside from slower exports growth, lower manufacturing and agricultural output contributed to the slowdown.
GDP expanded by 7.6% for the full year of 2010, after growth of 10.7% in the first half - lower than government’s target, but most welcome after the contraction of 2.3% in 2009.
Economic growth is expected slowdown further in 2011, in a range from 3.5% - 4.5%, mainly due the fragile nature of the global economic recovery, the baht's appreciation, the risk of natural disasters , as well as political instability.
Meanwhile, the tourism sector is likely to see a drop of 10-15% both in the number of tourists and revenue from a year earlier, according to Prakit Chinamourphong, president of the Thai Hotels Association (THA).
Tourism, which makes up about 6.5% of Gross Domestic Product (GDP), has been badly hit by the violent ‘red shirt’ protests in March. In the second quarter, the tourism sector plummeted by -37.8% q-o-q after it expanded 9.5% from the previous quarter. It has recovered in the third quarter with a 27.4% growth q-o-q but decelerated in October due to the heavy flooding in many provinces.
However, political uncertainty remains in Thailand as political tension between pro and anti-Thaksin groups has continued.
Thailand’s economy expanded rapidly in the first half of 2010 due to strong exports. As the global economic recovery faltered in the second half, Thailand also suffered. Aside from slower exports growth, lower manufacturing and agricultural output contributed to the slowdown.
GDP expanded by 7.6% for the full year of 2010, after growth of 10.7% in the first half - lower than government’s target, but most welcome after the contraction of 2.3% in 2009.
Economic growth is expected slowdown further in 2011, in a range from 3.5% - 4.5%, mainly due the fragile nature of the global economic recovery, the baht's appreciation, the risk of natural disasters , as well as political instability.
Meanwhile, the tourism sector is likely to see a drop of 10-15% both in the number of tourists and revenue from a year earlier, according to Prakit Chinamourphong, president of the Thai Hotels Association (THA).
Tourism, which makes up about 6.5% of Gross Domestic Product (GDP), has been badly hit by the violent ‘red shirt’ protests in March. In the second quarter, the tourism sector plummeted by -37.8% q-o-q after it expanded 9.5% from the previous quarter. It has recovered in the third quarter with a 27.4% growth q-o-q but decelerated in October due to the heavy flooding in many provinces.
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