Thai property investors are focusing on sites in London where demand remains high as the pound sterling remained at a low rate for the fifth consecutive year, according to property consultant CBRE Thailand.
Pornpimol Phuengkhuankhan, head of advisory and transaction services for residential sales ad hoc at CBRE, said 2020 is a good time to enter the London property market.
"The London property market is becoming a popular investment choice for Thai top-end investors, with Zone 1 and Zone 2 being the most popular locations for purchases," she said.
Potential buyers are upper-class families of Thai students studying in London.
This group requires residential properties within 500–800 metres from tube stations to provide easy access to universities.
They also look for rental return and capital appreciation.
With a highly developed transport network across the capital, it is easy for Zone 3 and Zone 4 to access the central city.
With land prices significantly lower than Zone 1 and Zone 2, this zone provides good value for rental return investments.
A budget of 15-20 million baht would be equivalent to a one-bedroom in Zone 3.
Depending on the budget, an investment outlay of £1.2 million (45 million baht) can get investors a one-bedroom unit in a prime location in London, a two-bedroom in Zone 2 or a three-bedroom in Zone 3 or Zone 4.
According to CBRE research, house prices in London are expected to increase 1.6% by the end of 2020 and 3.5% by 2021 before reaching 3.9% in 2022.
In total, prices are expected to increase 10.5% over five years.
London rental growth rose 10% in the last five years and is expected to grow by 18% over the next four years, attributed to unmet demand for completed houses.
Based on the London annual plan by the Ministry of Housing, Communities and Local Government, house completions have failed to reach its target of 66,000 units per year by less than half.
The pound has remained at a low rate since 2014, while top-end property prices in Bangkok are now close to those of London.
"On a similar budget, buyers can now choose between an international property or a local top-tier one," Ms Pornpimol said.
The UK does not impose restrictions on renting or owning real estate for foreigners, but purchasing requires the hiring of a solicitor and a thorough evaluation of the property before the sale.