Hong Kong Property Investors Turn Towards Thailand
21 July 2011
Property prices in Hong Kong have risen dramatically over the last couple of years, and this is forcing many speculators to look elsewhere for opportunities, and Thailand is proving to be a particularly popular alternative. Prices of condominiums in Hong Kong are currently around five times as high as those of similar new apartment units in Bangkok.
According to CB Richard Ellis, investors from Hong Kong and mainland China are purchasing luxury Thai property as they feel increasingly optimistic about the political and economic stability of Thailand. Interest has surged since the recent election, especially since the announcement of new infrastructure projects which could cause considerable appreciation to a number of developments in the near future.
One developer cashing in on Chinese enthusiasm for Thai property is Pace Development which has just completed a three-day roadshow in Hong Kong where it sold US$11.69 million worth of luxury property in its MahaNakhon development.
After such an enthusiastic response the developer is holding another roadshow in Singapore, and projected sales from both these events are predicted to be around US$20 million. Apparently those buying property as an investment are tending to purchase smaller units, while those buying property to live in are buying larger homes.
MahaNakhon is a luxury mixed use development which will be worth US$634.6 million upon completion. It will consist of 194 condominium units priced between US$7520 and US$11,523 per square metre, and at 77 stories it will be the tallest building in Bangkok. In addition to having condominium units, the building will also house a hotel operated by Ritz-Carlton, as well as 27,000 m² of retail space.