Political stability, a healthy economy, a market uptrend and geographical potential as Asean's centre have spurred foreign demand for Thai property despite pressure from the strong baht, say developers and consultants.
Nineteen units worth a combined 335 million baht at Magnolias Ratchadamri Boulevard condominium complex were sold in Hong Kong during a three-day roadshow early this month.
"There were no questions about the Thai political situation from buyers in Hong Kong during the company's roadshow there early this month," said Thanawan Chaiwatana, managing director of the developer Magnolia Finest Corporation.
"Hong Kong buyers are quite positive about buying Thai properties. The situation is much better than in the past few years, when our country faced political problems."
During the three-day roadshow, Magnolia sold 19 units worth 335 million baht. Most were two-bedroom units of 80 square metres.
Even on May 19, when the red shirts rallied at the Ratchaprasong intersection some 200 metres from its luxury Magnolias Ratchadamri Boulevard condominium complex, two units were bought by Hong Kong buyers.
"Political demonstrations in Bangkok are more acceptable to foreigners now, as there's no more bloodshed. Most foreign buyers of Bangkok properties also make frequent visits and are familiar with Thailand," said Mr Thanawan.
Another factor is that property prices in Hong Kong have become exorbitant. A luxury unit is priced as high as 2 million baht a square metre compared with only 200,000 baht in Bangkok.
Matthew Lin, director of the Chiang Mai-based Summit Global Developments Co, said it is a well-known fact that Singaporeans love buying property.
But following recent cooling measures, property purchases in Singapore have not been as lucrative, and more Singaporeans are venturing abroad.
Thailand has always been a choice country for them, given its proximity and good value. Meanwhile, politics in Malaysia and Indonesia have been fairly unstable, and their property costs are now relatively high.
"The relatively low land and construction costs allow properties in Thailand to be at an affordable level. Thailand as a country is also well known as the Land Of Smiles. It may be chaotic, but it is an ordered chaos," Mr Lin said.
Thailand's economy remains on an upward curve, and many foreigners are trying to ride that wave. The country also stands to benefit the most from the Asean Economic Community due to the number of borders it shares.
But negative factors exist, particularly high interest rates and difficulty in obtaining bank loans, said Mr Lin.
About 30% of buyers of Summit's condo units are foreigners. Of those, 80% are Singaporean, 10% Malaysian and 10% American or European.
Phanom Kanjanathiemthao, managing director of the property consultant Knight Frank Chartered (Thailand), said the strong baht is not an issue for Singaporean buyers, as their currency does not cling to the US dollar, unlike those in Hong Kong and China.
The consultant has held four roadshows in Singapore for Thai projects over the past six months and recorded more than 1 billion baht in sales.
It plans two or three more this year, when it expects another 700 million baht in sales.
"Stable politics builds strong confidence among foreigners buying Thai properties, while the property market in Thailand is on an upward trend," Mr Phanom said.
Asean economic integration is another key factor driving demand, while Thailand is in a hub-like location where foreign investors can expand to Myanmar, Laos and Cambodia.
Aliwassa Pathnadabutr, managing director of the property consultant CB Richard Ellis (Thailand), said foreigners see Thailand as Asean's centre.
Even though the baht has strengthened, property prices remain lower than in many other destinations.
Most foreign buyers are from Singapore, Hong Kong, China, Japan and South Korea, while European buyers are smaller in number after the financial crisis in 2008.
Singaporean and Hong Kong buyers account for 15% and 13%, respectively, followed by Taiwanese and British at 11% each. Chinese buyers have grown to fifth place at 8% since being reassured by stable politics.
"Chinese buyers want to shift their money into an asset where they also can stay during a long holiday or on weekends," Ms Aliwassa said.
Other nationalities include Australians (7%), Japanese (5%) and Americans, Cambodians and Maldivians at 4% each.
In Bangkok, projects near mass transit lines attract most foreign buyers, while two-bedroom units are the most popular size. By purpose, 52% buy for an investment, 33% for a second home and 15% for a first home.
Surachet Kongcheep, senior research manager at the property consultant Colliers International Thailand, said foreign buyers choose projects from well-known developers with good reputations that reveal all project information and sales material.
As many foreigners do not know all Thai developers, those developers should promote themselves to foreign buyers, he said.
"Joining a foreign exhibition or roadshow is the best choice for new developers," Mr Surachet said.