GIVEN THE CURRENTLY POOR EXCHANGE RATES, IS IT STILL WORTH BUYING PROPERTY IN THAILAND?

I am asked this question almost on a weekly basis, so I have composed this post for everybody to read. I cannot speak for the rest of Thailand, but regarding property purchase in Rayong, I can honestly say yes, it is still a fantastic investment and lifestyle opportunity. Even with the Thai Baht performing so strongly against the Euro, Pound Sterling and U.S. Dollar etc, last year saw yet another average 10% increase on property values within the coastal belt east of Rayong city (primarily the Hat Maerampung to Hat Laem Mae Phim area). I believe that the main reasons for this are as follows:- The property prices here are still very low compared to other popular coastal locations. Rayong is very conveniently located and within easy reach of Bangkok, Pattaya, Koh Samet, Koh Chang and the Cambodian border. Rayong does not suffer from the flooding which seriously affects almost all other Thai provinces (thousands of Bangkok residents evacuated to Rayong during the catastrophic 2011 floods). There is no known Tsunami risk (according to accurate geological and geographical surveys) and there is no recorded history of any such event. Rayong enjoys a unique and agreeable weather climate all year round. I have had many foreign customers put their plan to purchase local property on hold over the last two years. They have said that they will not bring money into the country until the exchange rate greatly improves. The hard fact is, that the Thai Baht has become increasingly stronger and there is no sign yet that the trend will not continue. Meanwhile the property prices have continued to climb, being bolstered by growing domestic demand and prices have increased by an average of 20% over the past two years. The point that I am trying to convey is, that if you really wish to purchase property in Rayong, it is advisable to do so sooner than later or there is a very strong chance of financially missing out completely.

New high speed rail link – no more cheap Rayong property?

Another important financial issue to bear in mind is the possibility of a new high speed rail link being built between Rayong and Bangkok. This is currently being debated by the government and there is a very good chance that the project will soon be approved. If the project is approved, many Bangkok business people will choose to purchase second homes here whilste the prices are still low, even though construction of the link will take several years. This will be with a view to relocating to Rayong in the near future, as the rail link will eventually mean an easy commute of only one hour to central Bangkok. I am convinced that this wish to commute instead of residing in Bangkok will greatly increase property values and asking prices almost overnight and cheap Rayong property will quickly become a thing of the past.

CONTENT COPYRIGHT © 2014-2019 RAYONG HOMES REAL ESTATE AGENCY.

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