In fact, many of the leading experts on the Thai property market have said as much. One of the leading experts commented that the government's commitment to better tourism in Thailand by 10 per cent per year and the general improvement and resurgence of projects in the property sector have both resulted in a very positive impact on prices within the property markets of the country.
While the high tourism has always been something that has assisted to drive the Thai property market, the positive effect of government is not something that the sector has always been accustomed to. In fact, the setbacks in the property markets of Thailand, when they have occurred, have been directly linked with buyer uncertainty because of the political instability or the perceived instability within the government of the country.
However, it seems as if that is not going to be a hiccup with the current administration, as the establishment of the new government is anticipated to proceed without incident. At the same time, the strategies of the new government for economic growth and tourism are expected to be in place by the middle of the year.
According to most of the analysts, if that is a reality the real estate sector of the economy could begin to see the advantages of that in hard number form as early as the third quarter of this year. That would lead to a boom in property prices and it would probably also result in a large influx of foreign investment dollars into the property markets across the country of Thailand.
There has been a strong urge from the people in the property sector to the newly-elected democratic government to be more generous towards foreign property investors. Thailand going back to democracy after a 15 month military rule has already had a positive impact on the property market. There have been a notable number of deals completing during the high season in Phuket as well as more visitors to the sole agency projects. The newly elected government has begun to take initiatives toward a more open and favorable policy for foreign property investors. The new government has already taken away the 30% capital control which is thought to support bringing back foreign investments.
The issuing of the new tax incentive package is also an attractive move for the property market. This is anticipated to fuel market sentiments on both the demand and supply side. Property Transfer fee will be decreased from 2% to 0.01% and Specific Business Tax for property transactions will be decreased from 3% to 0.1%. Reliability in the market could be improved further by longer lease terms, stretching from the current 30 years to 90 years. The beginning of business lending to foreign property investors should also be considered by the government. Policies like these would enable Thailand to keep pace with its emerging neighbors, Vietnam and Malaysia, relating to property purchase terms. It is expected that there will a more encouraging outlook for the Thai property market in 2008 than in 2007.
The Treasury Department's recent land value appraisal displayed that land values in Phuket have rose by an average 160 per cent over the past four years, with Samui prices following closely. The steady rise in land prices on Thailand's coast points to the confidence in the market and its long term prospects. There is no doubt that Thailand's property market is continuously flourishing. Foreign investors will have a good time investing in Thailand from now onwards. If you are ready to forget the unfriendly past of Thailand and show renewed faith, you are set to benefit. If somebody says, tourism and political situation looking good for investments in Thailand do not be surprised at all as that is as true as the daylight.
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