Whatever the type of inflation we are seeing and wether it is the buying frenzy we have seen in some areas, or the more typical mundane growth in others, prices continue to rise island-wide. We see three primary reasons for the sudden increase in prices: inflation, supply-demand dynamics, and improvements in technology (although other factors dovetail into this, as you’ll see). Money supply increasing faster than the economic output of a country was once the very definition of inflation. During the last two decades, there have been mammoth amounts of cash pumped into the global economy from nearly every country in the world, which has created an unprecedented increase in global money supply. More money in circulation leads to higher prices across a broad range of tangible assets, including property. A short study of global macro-economic trends over the last 100 years shows us that when money is created in inordinately large amounts that it almost always flows into real estate, hence, we have seen property prices moving steadily upward across the globe.

The lack of mortgages means there cannot be speculative finance-fueled booms, followed by gut-wrenching defaults and price collapses. This may be self evident to many people, but on an island with a finite supply of land, the impact of land prices on current and future property valuations will always be apparent. There are, of course, other fundamentals driving property values. Given the rising demand, we are seeing new luxury villas being built on land which even 5 years ago developers may have deemed unviable.g. Inflationary pressure on construction costs, materials and labour play their part, but in a stable economy the main driver is land prices. As long as the projects are of excellent quality and buyers can see value (especially relative to the price they received selling their home in their country of origin), we are likely to see more development in areas previously ignored. On some new builds, the price increases stoked by this demand are taking a more covert form – much smaller plot sizes selling for the same money, a phenomenon aptly referred to as shrinkflation.

Without this paper, you won’t be able to register your name with the condo. 5. This contract deals with the needs of the seller. The agreement drafted must be according to the law. Provide some protection to the buyer. Buyer as a way of finishing them before closing the deal. Lawyers can help clarify the legalities of purchasing a condo and can also review your sale and purchase agreement. In a private resale of a condo or a leasehold sale, the contracts are controlled by general contract law and the parties may agree on various conditions that may benefit one party more than the other. You will also be required to pay the fee which may include transfer fees, duties, or revenue taxes. The cost may be split between the buyer. Seller or as per what has been agreed between the parties. The developer is only permitted to ask for up to half of the 2 percent ownership transfer registration fee from the buyer when purchasing from a developer under consumer protection rules, but not more, and all other expenses are for the developer.

Tourism is returning so those looking for long-term investment opportunities should look here. Bangkok remained stable throughout this time. There are buying opportunities for those seeking long-term beach living at affordable prices. Across the board, there is a lot of potential in the off-the-plan segment. The outlook for 2023 is one of the market, price, and rental stability, with a slow increase in value. Many companies who postponed new projects over ‘20-’21 are now rescheduling and launching construction. This can lead to purchasing opportunities for those with time on their hands, as developers are actively seeking foreign investment and offering lower prices or higher guaranteed rental yields. There is a lot of information above. Overloaded with options, here is a simple breakdown of your process. Conduct your own research. Ask yourself questions about what you want. Hire a good real estate agent. Hire good legal advice before signing any contracts. Be aware of areas. Pay a deposit. Sign your contract. Read the regulations & by-laws! Settle. Pay balances. Enjoy your new condo. Live a happy life!

Sell it as it appreciates? Are you hoping to benefit from a return in tourism? A popular strategy for investors was to buy many smaller condos and rent them at high prices. This strategy proved short-sighted in early 2020 when the tourism industry crashed. They were aiming for a high turnover of short-term visitors. As an investor, you will find many bargains in the smaller condo segment because of an oversupply in newly completed complexes. These can be a sound investment as tourism returns, but keep in mind that many visitors may now look for more space if they are visiting long term. If you are a seasoned property investor, you know there are many steps from, “I want to buy a property”, to settlement and handover. There are properties listed up to 25% under market value. Your motive for buying will affect the type of property you look at.

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