Knowing the buyers

Singaporeans: Singaporeans are investment buyers looking for a property that can generate income or a good yield.

Based on this requirement, they usually choose a property in a prime location such as Silom, Sathon, Ratchadamri, Wireless, Sukhumvit or Ratchadaphisek Road, says Phanom Kanjanathiemthao, managing director of the property consultant Knight Frank Chartered (Thailand).

They prefer one- and two-bedroom condos priced from 5-15 million baht.

Matthew Lin, the Singaporean director of Chiang Mai-based property developer Summit Global Developments, says his compatriots are looking for condos with freehold status or within the 49% foreigner quota.

The trend of Singaporean demand in Chiang Mai is for two- and threebedroom units sized from 120-150 square metres for 50,000 baht per sq m.

Size is a factor, says Mr Lin. There are many one-bedroom apartments in Chiang Mai with an area of 35 sq m, which is too small for Singaporeans. Facilities are also a key selling point.

Hong Kong residents: The property firm Magnolia Finest Corporation, which held a roadshow in Hong Kong recently, says luxury residential buyers there are emotional and usually buy a unit at a project suggested by a friend.

The best-known spot among buyers from Hong Kong is the Erawan Shrine. Also, if the condo’s location is near a luxury hotel, they will consider it prime.

Hong Kong residents prefer the number eight and want to live on the 8th, 18th, 28th or 38th floor. They are also sticklers for a unit’s layout.

Buyers from Hong Kong are familiar with the leasehold concept, as all properties in Hong Kong are on a 99-year lease.

Middle Easterners: Luxury developers Pace Development Plc and Magnolia Finest agree that buyers from the Middle East are not sensitive about prices.

Pace says buyers based in Dubai are business people wanting a foreign property for investment because they cannot receive interest on local bank deposits due to religious principles.

Middle Easterners prefer large units. For them, 120 sq m is small and 180 sq m mid-sized, but 1,500 sq m is considered large. Most buy a unit with more than three bedrooms.

They are drawn to city landmarks with iconic design and luxury status. As Middle East buyers are quite wealthy and have limited time, a fully furnished unit is preferred.

Russians: Surachet Kongcheep, senior research manager at the property consultant Colliers International Thailand, says while Russian buyers prefer Pattaya, some are opting for Hua Hin instead.

Russians seek out coastal spots and look for condos and houses to buy on a limited budget.

Indians: Knight Frank’s Mr Phanom says Indian buyers prefer a villa in a beach destination but have difficulty making decisions and seek bargain prices.

Scandinavians: Colliers International’s Mr Surachet says Scandinavians prefer a peaceful destination and are often on the move.

Six years ago, Scandinavians were the biggest group of foreigners living in Hua Hin. But since Hua Hin has become too busy, they have moved 125 kilometres south to Huai Yang in Prachuap Khiri Khan’s Thap Sakae district. Despite few facilities, the new spot is peaceful with nice beaches.

Another emerging location for Scandinavians is Krabi’s Koh Lanta district.