Primary or secondary real estate market – what to choose?

In the ever-growing allure of Thailand, a destination for tourists, investors, and relocators alike, the decision to invest in real estate becomes pivotal. The surge in property value, with Bangkok witnessing a 10% increase and Phuket a 5% rise in 2023. Improved housing quality and government initiatives indicate a continuing trend in 2024.

The primary question arises when contemplating property: should one focus on the primary or secondary real estate market? This dilemma becomes a crucial aspect for those considering ownership in the country. The primary market involves properties built from scratch, appealing to those seeking modern homes and fresh designs. Flexible payment terms and a wide range of configurations add to its attractiveness. The secondary market features existing properties, ideal for quick migration or rental income. The choice between these markets depends on individual needs, preferences, and goals.

Features of the primary real estate market in Thailand

Thailand captivates not only vacationers but also investors and potential residents. In recent years, the primary real estate market in Thailand has become particularly relevant for investors and relocators. Let’s delve into the key features of this market.

Advantages:

  1. New construction projects: The primary market allows investors to acquire property developed from the ground up, featuring modern designs and high construction standards.
  2. Flexible financial terms: Various payment plans, discounts, or additional benefits cater to first-time buyers.
  3. Individual design: Investors can influence the style of their future homes. The ability to choose finishes, materials, and interior design makes the process more personalized.
  4. Guarantees: Construction companies undergo certification, ensuring compliance with modern construction standards and safety.
  5. Infrastructure and modern amenities: Amenities such as pools, fitness centers, spa facilities, restaurants, and parking enhance the overall living experience.
  6. Choice of configuration: The opportunity to choose configurations ensures an optimal match to needs and preferences.
  7. Modern technologies: New properties are typically equipped with modern technologies, including energy-efficient solutions, contributing to environmental sustainability and cost savings.

Disadvantages:

  1. Project delay: Rare but possible, project delays may occur. Before finalizing a deal, it’s advisable to research the developer’s reputation.
  2. No rental income during construction: Investors may not generate rental income during the construction phase.

Features of the secondary real estate market in Thailand

The resort real estate market in Thailand started developing in the 2000s, witnessing the first foreign investment-driven constructions. Let’s explore why many investors prefer to consider existing properties.

Advantages:

  1. Established infrastructure: Properties in the secondary market are often situated in areas with favorable living conditions, close to schools, shopping centers, and transportation hubs.
  2. Ready for occupancy: Unlike new constructions, properties in the secondary market are ready for occupancy. This is convenient for those looking to relocate quickly or start earning rental income.
  3. Diverse areas: The secondary market offers options in various areas—from tranquil coastal villages to bustling city centers.
  4. No risk of project delays: As existing properties are already built, there is no risk of project delays.
  5. Fully furnished: Secondary properties are usually sold with complete furniture and appliances.

Disadvantages:

  1. No payment plans: Full payment must be made within 1-2 months, with approximately 40% during reservation and the remaining sum during property ownership transfer.
  2. Potential rental programs: Previous owners might have rental programs in place.
  3. Possible need for renovation: Renovation may be necessary.

In Conclusion

When deciding on real estate in Thailand, choosing between the primary and secondary markets becomes crucial. The decision shapes the success of the investment and the comfort of living. Both markets have their advantages and limitations, and making an informed decision requires aligning with individual goals and preferences.

Moreover, Thailand offers a myriad of attractions beyond its real estate market that make it an even more enticing destination for foreign investors:

  1. The potential for rental income in popular tourist areas is not just a financial boon but also a testament to the country’s vibrant tourism industry. The perpetual influx of visitors ensures a steady stream of potential tenants, enhancing the appeal of real estate as an investment avenue.
  2. The prospect of obtaining a long-term visa further solidifies Thailand’s appeal. This not only facilitates extended stays but also opens up opportunities for seamless travel within the country. 
  3. Thailand’s growing real estate market is a reflection of its economic stability, contributing to investor confidence. The government’s commitment to infrastructure development and pro-investment policies adds to the overall positive sentiment. This stability, coupled with the country’s strategic location in Southeast Asia, positions Thailand as a hub for international business and commerce.

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Марина Абрамович
Марина Абрамович
2024-02-27
Моя первая покупка квартиры на острове наконец-то состоялась! Благодаря Silk Properties все прошло гладко и без лишнего стресса. Они не только нашли квартиру под мои требования, но и провели онлайн сделку под ключ, советую! Все прошло быстро, сейчас я на пути к получению ВНЖ, по этому вопросу тоже консультируюсь с ребятами! Если хотите сэкономить время и выбирать из действительно качественных застроек - обращайтесь в Silk, не пожалейте !)