Why U.S. Investments Halted to Thailand
It has been more than 5 years since the US placed investment warnings directly attributed to the military actions that ousted PM Yingluck Shinawatra from office in 2014. The military junta took control of the country, modified the constitution, ratified many laws while in power, and then enabled the first election in more than 7 years in 2019.
To many, the junta was a bold totalitarian move, while others saw it as a nescessary move to protect the country. The purpose of this article is not to argue either point, but to illuminate the new opportunities that now arise due to the U.S. officially declaring they are “opening for business” in Thailand once again with its first feasibility project of Blue Solar.
Thailand is expected to be one of the most important contributors to the ASEAN group of countries as Thailand’s rapidly growing infrastructure, tapable workforce, and friendly, service oriented culture. The newly announces EEC (Eastern Economic Corridor) is intended to connect Bangkok’s 3 adjacent airports together by rail, supporting land based manufacturing sites along the way.
New Investment from U.S. = Opportunity
For those familiar with expat living in Thailand, there have been a lot of ups and downs in various markets from tourism to real estate. A lot of speculation of the new governments intent, the passing of the respected HRMTK Rama IX, and what some say see as overzealous immigration reform under way. Regardless of the nuances and inconveniences, Thailand is poised for the future. Having the nod from the U.S. is a big win and one I’ve persoanlly been anticipating to help the market move in real estate.
Real Estate in Thailand
The macroeconomics of the country have had a bit of effect overall to the current conditions; in different areas of the country, and not always for the same reasons.
There is no doubt it is a Buyers market in just about every area of Thailand. In Chiang Mai, one can find a reasonably sized studio condo for under 2M THB ($67K USD), in Bangkok, there are more than 500,000 unsold rental units (less than 50sqm) going for anywhere from 2.2M THB up to 4M THB depending on which part of town. Down in Phuket, Land has been high on the interest of many developers, and condo developments have been on the rise for some time. Pattaya and HuaHin both have gone through their won independent market cycles. There is no doubt there are great deals to be found and the future looks bright.
In the Phuket market, where our Agency is based, there are some great opportunities and beautiful structures on the market. There has been market interest in higher-priced Villas and Houses, typically above the $800K USD mark for very large and modern residences.
Here is a brief summary with Thomas Hardy (USTDA acting director): https://www.nationthailand.com/business/30374764?fbclid=IwAR3loEV_BBk04srUBx_yD7VKUqjy42hvTMa0p2REmIx-ZjiwM6wr9ZfM5Aw
Here is the Offical Announcement from U.S. Trade & Development Agency: https://th.usembassy.gov/fact-sheet-ustda-blue-solar-grant-signing-ceremony-on-august-14-2019/
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