Bangkok among region’s juiciest prime property locations

Bangkok among region’s juiciest prime property locations

Bangkok among region’s juiciest prime property locations

Bangkok, Singapore, Kuala Lumpur and Jakarta are top Asean destination for prime property, according to Knight Frank Research

The research shows that the five-year capital gain of prime residential property as of the first quarter in Kuala Lumpur was a mere 2.1 per cent while in the fourth quarter last year Jakarta and Bangkok registered growth of 123.3 per cent and 51.3 per cent, respectively.

The research shows that the five-year capital gain of prime residential property as of the first quarter in Kuala Lumpur was a mere 2.1 per cent while in the fourth quarter last year Jakarta and Bangkok registered growth of 123.3 per cent and 51.3 per cent, respectively.

Singapore recorded a drop of 1.3 per cent in the fourth quarter 2016.

Prime Residential properties located in the Bangkok central business district performed consistently in recent years with a range of impressive, exclusive projects setting new benchmarks for quality, facilities and price per square metre, said Knight Frank Thailand research and consultancy director, Risinee Sarikaputra.

Five-year capital gains from the first quarter of 2012 for luxury homes in Bangkok was around 51.3 per cent, she said.

Thailand remains a very positive long-term investment option as source markets for buyers seem to be expanding continually, giving investors plenty of scope for yields and capital returns,” she said.

Meanwhile, given the safe-haven status of Singapore, ultra-high-net-worth individuals globally are often drawn to invest in the city state, the company said. Singapore is the second-most popular destination for such individuals to own an overseas property, according to the Knight Frank 2017 Wealth Report.

Knight Frank Singapore director and head of consultancy and research, Alice Tan, said investors and homeowners view Singapore as a safe haven and continue to place private residential properties as one of their investment options in the short to medium term.

Data from the consultancy firm showed that residential property prices in Kuala Lumpur stood at US$4,608.30 psm at the end of last year, compared to $4,366.81 psm (Bt153,000) in Jakarta, $9,708.74 in Bangkok and $23,255.81 in Singapore.

In other words, investors are able to buy a luxury home with a built-up area of 217 sq m in Kuala Lumpur with a $1 million investment compared with 229 sq m in Jakarta, 103 sq m in Bangkok and 43 sq m in Singapore, the company said.

“In terms of pricing, KL is very attractive. And there is no restriction on the property tenure, so foreigners can buy a freehold property subject to price thresholds that vary for different states,” said Knight Frank Malaysia executive director of research and consultancy, Judy Ong.

As of the fourth quarter last year, the prime residential price in Jakarta had slowed, with a mere 0.3 per cent increase year on year, said Knight Frank Indonesia professional consultancy and valuation senior associate director, Hasan Pamudji.

“The outlook for 2017 remains cautiously optimistic with opportunities and challenges,” he said. “Despite the successful local election and tax amnesty program in early 2017, luxury buyers-investors are still adopting a wait-and-see approach over uncertainties due to the political situation as well as concerns over bank transparency for tax purposes.”

Also read: Bangkok, the region’s startup capital

Source: The Nation



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