In 2015 the ASEAN (The Association of Southeast Asian Nations) trade agreement will come into action allowing all 10 participating countries to act as a single trading region with, in principle, a free trading policy. There will of course be changes, many still to be agreed upon, in trading regulations within and without South East Asia. One change that is hoped for in Thailand is the ability for a foreigner (inside and outside of the ASEAN community) to buy land. Currently foreigners can purchase condominiums outright in their own name, but cannot directly own land in Thailand. Foreigners are able to indirectly purchase land by using a Thai registered company. Many thousands of foreigners have invested in housing and land in these ways, but having the peace of mind of owning land outright would indeed have a positive effect on Pattaya’s property market. Many foreigners that are considering relocating or retiring to Thailand could re-consider their options about buying land and property as it would be a much simpler and safer option.
Changes in land ownership policy, reduction of high import duties and general freeing up of the ability to trade with the ASEAN community would also attract business from further afield, this in turn would lead to more foreigner workers relocating to Thailand and purchasing property.
Property prices in Pattaya are currently very reasonable when compared to like for like accommodation in Europe. Large houses in Pattaya, in particular, can be currently snapped up at lower than market value prices largely due to fluctuating exchange rates and the European recession. If these restrictions and the European Union’s economic climate change in 2015 investing in Property in Pattaya could be a shrewd move. It is a given that property sales in Pattaya to ASEAN community buyers will increase with relaxed working and trading conditions coming into play and with Pattaya’s rapid on-going development, the long term prognoses is very good concerning the increase in value of property in general.
Condominiums are also a great investment opportunity; there are many developments currently under way that indicate a return of investment on rental of 10% per annum. Plus, if you buy off plan immediate re-sale profits are often realised.
One example of extended trading potential is being instigated by Belgium’s Crown Prince Philippe and a team of nearly 100 top businessmen from his country. Prince Philippe has seen the potential Thailand has as the hub of the ASEAN community and wishes to help strengthen trade agreements, leading to further trade agreements with the European Union.
In conclusion it appears to be a very good time to invest in Pattaya’s Property Market, the ASEAN trade agreement looks set to increase the number of tourists and migrant workers coming to the region and inevitably a larger population needs more accommodation. Any foreigner considering buying property in Pattaya should of course seek professional advice first so they can weigh up all of their options.