Property Market Overview

With its great weather, fine food and world-renowned beaches, Thailand continues to enter the sights of savvy property investors looking for new opportunities away from the traditional European and Caribbean markets.

Much like the country itself, Thailand's property market is incredibly diverse, offering buyers everything from high-end villas in Phuket overlooking the Andaman Sea to luxury high-rise condominiums in the playground of Bangkok executives a^EUR" Pattaya.A^ Also rising in popularity among investors is the Gulf of Thailand-based island of Koh Samui, fast becoming a preferred destination for those seeking holiday homes as its infrastructure develops and word of its natural beauty spreads. Bangkok, meanwhile, remains a key investment location for regional and expatriate executives, drawn to the city's affordable market that offers much better value when compared to markets in other Asian capitals, such as Singapore or Hong Kong.

Major property investment regions
Pattaya, Phuket, Bangkok, Koh SamuiA^

Upcoming markets
Hua Hin/Cha-Am, Chiang Mai, Krabi, Koh Pha Ngan
To read the latest analysis on several up-and-coming Thai markets, click here:
http://www.property-report.com/archives.php?id=818&date=0703

To read the latest analysis on the Hua Hin market, click here.
http://www.property-report.com/archives.php?id=839&date=0704

BANGKOK
Over the past decade, Bangkok's residential property market has diversified immensely, emerging from the shadow of the 1997 financial crisis. Luxury condominiums in central Bangkok sell for a third of the price of those in Hong Kong, and less than half the price of those in Singapore, making them a relatively cheap option in US dollar terms. Read the latest analysis of the Bangkok property market

PHUKET
With a thriving property market and a growing marine industry fuelling it, Phuket remains in the sites of savvy international investors and developers. The price of real estate on this Andaman island remains attractive to international buyers who recognise the potential of a burgeoning economy, combined with incomparable coastal beauty and an international lifestyle. Luxury property continues to attract a fair share of investment as well, with the island attracting more and more interest from the incredibly wealthy.

Phuket has overcome the tsunami of December 2004. The island, attached by a causeway to the mainland, in the southwest corner of the country is one of several resorts on the Indian Ocean. Read our knowledgebase section on Phuket Property

SAMUI
When it comes to market trends, in the last five years Koh Samui has followed a similar development path to some of Thailand's more established resort destinations - most notably, Phuket. In the early days, raw land purchases dominated the market, while the housing sector mainly comprised of modest developments aimed at long-term travelers rather than those looking for high investment returns. Today a different scenario can be found. The fast-paced development now underway throughout Samui that mushroomed after the millennium can be attributed to international security issues and regional natural disasters that prompted a popularity boom that quickly made the island one of Southeast Asia's more lucrative investment options. Success in the tourism sector led to an explosion in the construction of medium- and top-end hotels, as well as the emergence of an impressive range of fine dining choices around the island. Such services began to attract a new breed of visitor, and little by little luxury properties started to spring up around the island, closely followed by gated residential developments and more recently, large-scale commercial projects. This diversification has opened up new choices for investors and one of the more recent trends on Samui has led private investors away from raw land purchases, with buyer focus shifting more towards finished, residential properties. Read our knowledgebase section on Samui Property

CHIANG MAI
Chiang Mai is Thailand's second largest city and has been dubbed a^EURoethe rose of the north.a^EUR? In the last six months, the Chiang Mai skyline has changed quite significantly. A 15 storey construction site now dominates the commercial area around the popular Night Bazaar on Chang Klan road and is the most ambitious of several new developments in the city centre. It is the latest in a string of five star hotels under construction and signals a bullish confidence in the city's future.

With a long-standing reputation as a laid-back tourist town that was more backpacker than boutique, Chiang Mai has been steadily going upmarket in many respects and this can most noticeably be seen in the gentrification of selected areas such as the Night Bazaar, Thapae Gate area and suburban Nimminhemin street. The arrival of chic looking franchised coffee shops, plush shopping arcades and modern shop fronts have changed the character of this historic town. The net effect has been a sharp rise in commercial property values in the town centre and a subtle vote of confidence in Chiang Mai's outlook. Read the latest analysis of the Chiang Mai property market

PATTAYA
Pattaya, located on the east coast of the Gulf of Thailand, is certainly the jewel in Thailand's eastern development crown, but it's by no means the only diamond in the rough. Developments in locales surrounding Pattaya such as Jomtien, Sahathip, Pratumnak Hill and Mabrachan Lake are providing good investment opportunities. And with the new international airport - Suvarnabhumi - just an hour away, one could say that the sky is the limit for the sheer size and scale of future Pattaya property developments, and the international agents that wheel and deal them.

Spotlighted in countless local and international publications, the potential for property investment on the eastern seaboard is attracting an increasing amount of attention. With the bursting of Thailand's property bubble in 1997, the market was pretty cool for several years thereafter, but the past half-decade has seen some tremendous growth potential. Read the latest analysis of the Pattaya property market

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Essential information

Location
Thailand is located in Southeast Asia. It has coasts on the Andaman Sea and the Gulf of Thailand and shares borders with Myanmar, Cambodia, Laos and Malaysia.

Area
Total: 514,000 sq km
Land: 511,770 sq km
Water: 2,230 sq km

Population
64.1 million (UN, 2005)

Language
Thai, ethnic and regional dialects. English is widely spoken in the country's major tourist areas.

Religion
Buddhist 94.6%, Muslim 4.6%, Christian 0.7%, other 0.1%

Currency/Money
Thailand's currency is the Baht. Major credit cards are widely accepted. Traveller's cheques are accepted at banks, large hotels, and shops.

Climate
The country's tropical climate varies from region to region, however it can basically be divided into two seasons: the rainy, warm, cloudy southwest monsoon (mid-May to September) and the dry, cool northeast monsoon (November to mid-March).

International dialling code
+66

Capital
Bangkok

Electricity
220V 50HzHz

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History

In the mid-14th century, a unified Thai kingdom was established as a^EURoeSiama^EUR? before being renamed a^EURoeThailanda^EUR? in 1939.It is the only Southeast Asian country to have never been occupied by a foreign power, except during war, a fact Thais are notoriously proud of.

From 1782 to 1932, Thailand was an absolute monarchy, until rebels seized power in a bloodless coup and a constitutional monarchy was established. Since then, Thailand has come under the rule of many governments through coups and counter-coups, both civil and military, the last coup taking place in September of 2006.

The country's dabbling in democracy began in 1979, and a long period of stability and prosperity followed as power shifted from the military to the business elite. In February 1991 a military coup ousted the Chatichai government, but bloody demonstrations in May 1992 led to the reinstatement of a civilian government with Chuan Leekpai at the helm. This coalition government collapsed in May 1995 over a land-reform scandal and prime minister Banharn Silpa-archa took over. He was forced to relinquish the prime ministership just over a year later after a spate of corruption scandals. Ex-general and former deputy PM Chavalit Yongchaiyudh headed a dubious coalition until late 1997, when veteran pragmatist Chuan Leekpai retook the reins.

In 1997 the Thai baht collapsed, pulling the economy and many others in the region down with it. The unfinished skyscrapers around Bangkok a^EUR" dubbed 'ghost towers' by locals - are an ever present reminder of this downturn, however today many have been bought and are being reconstructed.

The Thai Rak Thai Party (Thais Love Thais), led by Thaksin Shinawatra, emerged as a major force in Thai politics and saw many sitting MPs defect to its ranks. In parliamentary elections held in January 2001, Thai Rak Thai wiped out Prime Minister Chuan Leekpai's democrats.

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Government

Thailand is a constitutional monarchy. Its king, Bhumibol Adulyadej, assumed the throne in June 1946 and is the world's longest-reigning monarch. In 2006 the kingdom celebrated the 60th anniversary of His Majesty's ascension to the throne.

Following a bloodless military coup on September 19, 2006, an interim constitution and prime minister were put in place on October 1. Army commander-in-chief General Sonthi Boonyaratglin led the military's bloodless coup while Thaksin Shinawatra, the former prime minister, was attending the UN General Assembly in New York on 19 September 2006. It was Thailand's first coup in 15 years.

Retired General Surayud Chulanont will govern as prime minister until elections, expected in October 2007.

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Economy

Today boasting a well-developed infrastructure, free-enterprise economy, and relatively positive foreign investment policies, Thailand appears to have fully recovered from the financial collape of 1997-98.

The economy expanded fast during the 1980s and early to mid-1990s; average annual GDP growth between 1990 and 1996 was 8.5%. But certain areas of its economic performance over this period of time gave cause for worry, such as its high foreign debt, weak taxation system and even weaker financial institutions. The economy was already gearing down when the Asian currency crisis struck in the late summer of 1997. In 1998, the economy contracted by a whopping 11%. After a strong initial recovery, the Thai economy stuttered in 2001/2 but recovered to 6.1% in 2004.

After the tsunami in December 2004, growth is expected to have slowed to around 4% in 2005. Before Thailand emerged as one of the Asian tiger economies, agriculture had been the main economic activity: this has declined in relative importance as the industrial and service base has expanded and developed.

The main crops are rice (of which Thailand is the world's leading exporter), sugar, cassava, maize, rubber, cotton and tobacco. Fishing is also significant.

The country's other natural resources are minerals, and gemstones are the most lucrative, but there are also major deposits of tin and lead, plus copper, gold, zinc and iron, and rare metal ores containing antimony, manganese and tungsten. Natural gas and oil fields have been located offshore and are now being developed. In the industrial sector, Thailand manufactures cement, electronics, jewellery and refined sugar; there is also an important oil refinery. In the service sector, Thailand has a large tourism industry, worth billions to the economy that the government works hard to protect. Thai companies are also highly active in transport, telecommunications, finance and the media.

Thailand is a member of the Association of South East Asian Nations (and as such will participate in the planned Free Trade Area), as well as the Asian Development Bank and the Colombo Plan (a cooperative trading body covering South Asia).

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Visas

As of October 1, 2006, the Thai Immigration Bureau has issued new regulations regarding "visa exemption" entry. They state that travellers from visa-exempt countries can "enter into the Kingdom of Thailand without [a] visa and remain in Thailand for 30 days per visit. However, the total duration of stay should not exceed 90 days within a six month period, counting from the date of first entry."  Therefore, tourists who stay for the maximum 90 days within a six-month period must leave Thailand for at least 90 days before they will be allowed to re-enter, unless they obtain a valid visa from a Thai embassy or consulate in another country.

Travellers must obtain 30-day entry stamps themselves from an immigration officer at a point of entry into Thailand. You must pass through the immigration checkpoint in person; it is illegal for someone else to do this on your behalf.  Visas must be obtained from Thai embassies or consulates. Visas, visa extensions, or entry stamps issued through visa shops or travel agents in Thailand should be avoided. Tourists are regularly apprehended for having improper Thai visas or entry and exit stamps inserted into their passports. Moreover, a passport that has been altered or that contains counterfeit visas and entry/exit stamps is technically invalid. Offenders can expect jail sentences, fines, and/or deportation and may also be prohibited from entering Thailand in the future. It is illegal to work on a tourist visa.

Overstaying your visa is considered an offence under Thai law. It will result in a fine of 500 baht per day and can also lead to detention and deportation. Foreigners are permitted to stay only up to the date indicated on the Thai entry stamp, regardless of the date indicated on a Thai visa. The Royal Thai Police have increased their random checks of foreigners, and some found to have overstayed their visas have been arrested.

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Healthcare

Thailand features a high number of world-class private facilities. In fact, the country's hospitals are considered of such a high standard and of great value that the country has earned itself a reputation as a leading a^EURoemedical tourisma^EUR? destination.

As for vaccinations, immunization against typhoid is advised. Malaria risk exists throughout the year in rural areas throughout the country, especially in forested and hilly areas and around the international borders. There is no risk in cities and the main tourist resorts, eg Bangkok, Chiang Mai, Pattaya, Phuket and Samui. Food and water-borne diseases are common. Use only bottled or otherwise sterilised water for drinking, brushing teeth or making ice.

Amoebic and bacillary dysentery and hepatitis A and E may occur. Hepatitis B is highly endemic and trachoma is also reported. Japanese encephalitis may occur, particularly in rural areas. A vaccine is available, and travellers are advised to consult their doctor prior to departure. Precautions should be taken to guard against mosquito bites due to the risk of this disease and dengue fever. There has been an increase in the reported cases of dengue fever since January 2005, especially in Southern Thailand and areas bordering Malaysia.

Travellers to Thailand are unlikely to be affected by Avian Influenza, but should avoid visiting live animal markets, poultry farms and other places where they may come into close contact with wild or caged birds; and ensure poultry dishes are thoroughly cooked. HIV infection is rife in Thailand, especially among prostitutes in Bangkok and Chiang Mai. Rabies is present. If you are bitten, seek medical advice without delay. Health insurance is recommended.

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Travel

On September 28, 2006, Bangkok's new Suvarnabhumi International Airport opened after numerous delays. The national airline is Thai Airways International however the country is served by many international carriers and low-cost airlines.

The country's major cities and tourism hotspots are all easily accessible by air, some with international airports, including Chiang Mai, Samui, Phuket and Krabi.

The country also has an excellent railway network, which extends over 4,600km. It is run by State Railways of Thailand. There are several daily services on most routes, with air-conditioned, sleeping and restaurant cars on the principal trains.

Driving in Thailand should be reserved for those with nerves of steel. There is a reasonable road network comprising many highways and 52,000km of national and provincial roads, however traffic in Bangkok is notoriously bad and drivers often reckless. Traffic drives on the left. An International Driving Permit is required. IDPs are valid for three months, after which a Thai driving licence is required.

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