Tourism markets have halted all over the world. People are looking to unload assets and cash is king.
“Buy when there’s blood in the street even when it’s your own”
Real estate in Southeast Asia has not ground to a halt (ok, viewings yes, buyers no)
Right now no one knows what to expect from the fallout of Covid-19. However, there are those with cash ready to get that bargain deal.
Foreigners purchasing real estate in Southeast Asia usually fit into 3 categories:
- Buying for investment (with the sole intention of renting their property to make a rental return)
- Buying for living (wanting to stay in the property themselves, maybe shared with friends and family )
- Mix of both (Using their property for a few months per year and rent out the rest, usually to fund the maintenance cost of the unit.
When searching for investment property in Asia, you have probably sat through a well rehearsed sales presentation from an off-plan real estate developer. These presentations are well choreographed and professional.
Each Development customarily has many unique selling points, along with a great display of why they are the best (ask me about my favorite developers click here)
The market norms for investment properties in tourist areas are commonly very small units, much like a hotel. Price per square meter is often higher than first time buyers imagined.
Expectations of buying a sizable 1 or 2 bedroom unit that you can rent out for a few years and eventually live in are usually scarpered when the price is revealed. That original plan changes, and you go for the hotel style because it makes financial sense.
There are the large sizable units available though, and now the market is definitely a Buyer’s one.
Where to get the best deal?
Some of Southeast Asia’s highest property prices were previously seen in Phuket, mostly for good reason. Boasting high tourism numbers, limited land allowed to build, stringent building restrictions and an amazing expat community that make being a foreigner in Thailand very easy.
There is a down side to Phuket. Even though it has everything you’d want from your tropical lifestyle, the fact is, it’s not the cheapest for day to day living when property price is taken into account.
Due to the lockdown and the paradigm shift in the flow of tourism, previously unimaginable property is being reduced in price. This price drop isn’t necessarily because it’s worth less in value, but because the owners need money now.
Pre Covid-19 prices on Phuket were nearing ฿180,000 Baht or $5,500 USD per square meter in some parts of Phuket, (I know really high, especially for Thailand)
There are some ridiculously great offers to be had. Some of the best are the following.
Baan Yamu Residences
2 bedroom Duplex 170 sqm
฿12,000,000 or $367,650 USD now only ฿7,000,000 Baht or $214,000 USD
฿41,000 Baht per sqm or $1,250 per sqm
Located on the relatively unknown east coast of Phuket, Baan Yamu was designed by award-winning architect Martin Palleros, it provides a generous amount of space and privacy for all residents. The contemporary architectural design is clean, simple and elegant. Large sliding doors open onto large spacious terraces and allow plentiful amounts of natural light and flow between indoor & outdoor spaces. Each residence is attached or overloks tropical water gardens.
Offering a secluded, low-density, residential retreat spread over 7.6 hectares within the exclusive Cape Yamu peninsula overlooking Phang Nga Bay where the famous James bond island is. Comprised of: 22 pool villas (sold out), 16 custom villa plots (sold out) and 58 condominium units. Freehold available.
For more information on this property, contact the exclusive agent directly here
The Residences Dewa,
Attached to the 5 Star Dewa Resort & Spa in Nai Yang Beach (here), built in 2008 this tropical paradise usually boasts high rental occupancy from long term rentals, popular with Scandinavians looking to escape their harsh winters.
Dewa is located within the Sirinath National park right on the beach. Having inhouse facilities including: Spa, Gym, Restaurants, Kids Club, Reception and Storage Space for those that want to leave some belongings in Thailand when renting their property.
1 bedroom, ground floor floor Unit 57 sqm
฿7,000,000 or $214,000 USD now only ฿3,000,000 Baht or $91,000 USD
฿52,000 Baht per sqm or $1,500 per sqm
1 bedroom, first floor floor Unit 57 sqm
฿8,000,000 or $245,000 USD now only ฿6,000,000 Baht or $180,000 USD
฿105,000 Baht per sqm or $3,200 per sqm
For more information on these properties, contact the exclusive agent directly click here