Based on a Price Waterhouse & Cooper (PwC) report on Emerging Trends in Real Estate for Asia Pacific 2016, investment experts recommend ‘holding’ on to your property investments in Thailand, especially in the residential sector.
The report interviews 88 executives from organizations including Goldman Sachs, Morgan Stanley and the Standard Chartered Bank to name a few. 63% of the executives interviewed recommend a ‘hold’ position on Bangkok residential assets over notable cities like Tokyo, Hong Kong, Beijing and Sydney. The only other city with a higher hold recommendation was Singapore with 69 %.
A total of 22 Asian Pacific cities were included in the study.
The least favorable recommendation, to ‘sell’, Bangkok shows up in the lowest percentiles with 17% sell recommendations. Asian Pacific cities with the highest sell recommendations of residential holdings were in Melbourne (38 %) followed by secondary cities in China (37 %), Sydney (33 %) and Shenzhen (32 % ).
The report doesn’t go into detail about the reasons behind the recommendations of the 88 real-estate executives. What stands out is a strong hold consensus in Bangkok, average buy recommendations and very few experts recommending to sell.
A hold recommendation can indicate the market will perform on average with the rest of the region necessitating neither a strong buy nor sell recommendation. However, looking beyond the average, Bangkok was considered the best ASEAN city in terms of price-to-value for the high-end property market in a separate Oct’15 report here.
The hold can also be a recommendation for investors to continue reaping the capital gains and rental income derived from their residential assets held in Bangkok.
Furthermore, with a high hold and low sell recommendations, the projection is towards less properties for sale on the market, taking the luster out of speculation that an over-supply problem exists in Bangkok.
This Price Waterhouse & Coopers (PwC) study was conducted jointly with the Urban Land Institute (ULI) dated November 2015 here