Thailand Property Market with Damian Sung

Thailand Property Market with Damian Sung

This is one part of the full interview we had with Damian at Asia Bankers Club, a physical asset investment club with an extensive focus on the overseas real estate market in Southeast Asia. In this part, we are going in-depth in Thailand. Thailand has been known to be one of the top tourist destinations and the country’s economy is strongly tied to tourism. As COVID has lingered around for more than a year, Thailand’s real estate market has been deeply affected. Is that a good time to invest? You can find the other interviews from Damian and more about him in the show note or our blog – www.denzity.io/blog.

這是我們跟Asia Banker’s Club 的Damian Sung 完整訪問的其中一部份。Asia Banker’s Club是一個實體資產投資社,專注東南亞的房地產投資。我們會在本集深入探討泰國。泰國一向以旅遊業揚名,泰國的經濟亦與旅遊業息息相關。當新冠肺炎持續了超過一年,泰國的房地產業亦深受影響。這是一個投資的好時機嗎?你可以在我們的影片介紹及網誌 www.denzity.io/blog 中找到和Damian的完整訪問。

Key Discussions

  • Why Invest In Thailand
  • Need to be aware of when buying a property in Thailand
  • Underrated & overrated regions in Thailand
  • Invest now or later

I get the feeling that you need to have good relationships with the locals or have the locals be part of the investment in order to get some potentially good projects. Also, there may be markets that only locals would be able to weave out. This is an important factor if you are interested in investing in Thailand. I’d suggest to start studying the market and explore potential opportunities as there might be more distressed projects to explore. Be patient and start building relationships with the agents to find good projects.

我得到一個感覺,就是你需要和本地人關係友好,或者讓本地人參與投資,才會獲得有潛質的投資項目。還有,可能有些市場是只有本地人才能拓展的。如果你希望在泰國投資,這是一個重要的因素。我會建議你開始研究泰國市場,以及發掘潛在機會,因為可能有些被低估了的項目需要探索。保持耐性,與經紀建立好關係以得到好的項目。

▶ About the guest:

Damian Sung is a Sales Director at Asia Bankers Club. They are a physical asset investment club with an extensive focus in the overseas real estate market in South East Asia including Vietnam, Cambodia, and Thailand. They have a pipeline of exclusive projects in these countries throughout the year, and host a series of weekend seminars.

▶ Connect with the guest

▶ Source & Supporting:

Rental yields: Rental yields is the amount of profit earned from renting a property one invested in. https://www.mortgagechoice.com.au/guides/property-investment/what-is-rental-yield/#:~:text=Rental%20yield%20is%20essentially%20the,will%20earn%20on%20your%20investment.

▶ Transcript [English & Chinese]

https://docs.google.com/document/d/1veSSTrZRxEF14z82-oFvndjdvvsZOC4z6aO_S9ZpfAo/edit

English Transcript:

Darren Wong :

So Damian, you know how we talk about 

different parts of Southeast Asia? So what’s going on in Thailand right now?

Damian Sung :

I’m in Thailand, because of COVID, the tourist market just 

died. So the rental actually has been affected, you don’t have a lot of people coming in. So the rental markets are 

down. People can travel there to buy properties, so the property markets is a little bit down. 

COVID really put them on a stop right now.

Darren Wong : 

I see. For Thailand real estate market, for people who want to invest in Thailand, 

what are a couple of key points that they should know that why they should invest or not invest.

Damian Sung : 

So for Thailand market for Hong Kong buyers, 

usually they look for their second home. If they had to move out of Hong Kong, they look for Thailand. There’s good food, 

good environment, very good public transportation, very good network of international schools, and good health care. 

And it’s easy to get retirement visa in Thailand.

Darren Wong : 

I see. When people invest in Thailand, 

what are things to be aware of? Again, what are differences between other countries in Southeast Asia? Is there a different way to look at or evaluate a 

project in Thailand compared to other countries?

Damian Sung : 

Yes, so people have the conception of that Thailand, especially Bangkok, is very 

oversupplied, which is true in the sense where they do have a lot of developments going on. But if a good project here at BTS or MRT 

near a very good public transportation area, the project gets sold out. We had a project back in q4 of 2020. Right next to be BTS about 200 metres 

away for 98% sold out. Another thing is foreigners are allowed to buy up to 49% of the net area of 

the building. So a lot of foreigners are able to buy these nice projects. The downside is the developer usually 

sell out to the locals, especially the projects near the BTS but very good location. So people still read 

articles saying that Thailand’s oversupply, why should I buy? The local Thailand people are still buying good projects, and it gets sold out.

Darren Wong :

I see. At the same time is that is there any 

area you think is overrated or underrated?

Damian Sung : 

Right now, I’d say Phuket has been hit the hardest, because 

of no tourists. So people that invest in Phuket probably four or five years ago, they’re just feeling it right now 

because the whole town is empty. It’s good and bad, people that want to buy Phuket now, they could probably get a very good deal. 

For people that bought four or five years ago, I’m sure the capital gain is up there, but the rental yields are not there for the past, I’d would say, eight to nine months. So that’s 

the downside.

Darren Wong : 

I see. So obviously foreigners always looking to Phuket and Bangkok, right? Is there any other 

hubs that you think there’s a potential there?

Damian Sung : 

So there’s a area called Hua Hin. So Hua Hin is about three-hour drive from Bangkok. That area 

is very known for a weekend getaway for the rich Bangkok, local Thai people. So the foreigners, they go to Pattaya, or they go to 

Phuket. But the local Thai people, they’ll drive to Hua Hin. That’s where the king had his cat, the castle. Very 

nice beach, very relaxing, nice golf course. Even a lot of the Koreans are actually, before COVID, they’re actually flying to Hua 

Hin. They’re going to Hua Hin, they can’t fly directly. They have to go to Bangkok and take a three hour car ride. But they’re looking into Hua Hin one of the probably 

next weekend.

Darren Wong : 

And that’s our next retreat together, right?

Damian Sung :

If we can go.

Darren Wong : 

If we can go and we have some cocktail on the beach and everything like that.

Damian Sung :

The project that we sold was maybe 200 

something metres from the beach.

Darren Wong :

Really? Oh, okay. Where’s my invite? 

Damian Sung :

After 

COVID. 

Darren Wong :

So add on to the answer you have just now, which obviously it’s good to know about what things are going on and unfortunately the market’s going down. 

However, from a different point of view, do you think now’s a good time to really consider because now everything’s going down, and obviously, there might be distressed assets to look into, right?

Damian Sung : 

So 

people look for distressed assets. A lot of developers are probably putting a lot of development on hold. They’re not launching projects, 

some developers very aggressive, they’re pushing. But if done so well, project sold out. They have another project that’s nearly sold out. 

So it all depends. Distressed asset, there’s a reason why they’re selling for cheap.

Darren Wong : 

I see. 

Damian Sung :

There’s a reason why the projects that 

we’re selling, there’s no big discount, because it’s a good project. We’ll have a good capital gain in the future.

Darren Wong : Well, speaking of 

projects, do you have any project in your hand right now?

Damian Sung :

For Thailand, the one that we had last quarter, that one’s nearly sold out. We do have 

other projects that’s off plan. 

Darren Wong : 

Okay. 

Damian Sung :

Again, only selected weekends are the year that we can have seminars, so 

if a client wants to get to know more about the project, they’ll contact us. We’ll do a one-on-one private consultation.

Darren Wong : 

That’s great. Thank you so much for your time. 

Thank you.

Chinese Transcript:

Darren Wong : 

Damian,我們在討論

東南亞的不同地區,泰國現在發生了什麼事?

Damian Sung :

我在泰國,因為COVID,旅遊市場剛剛開始

衰退。所以租金實際上受到了影響,你沒有很多顧客來。所以租賃市場

跌了下來。人們可以去那裡買房子,所以房地產市場有點低迷。

新館肺炎真的讓他們停了下來。

Darren Wong :

我明白了。對於泰國房地產市場,對於想在泰國投資的人來說,

有什麼關鍵點他們應該知道,去決定要投資或不投資的?

Damian Sung :

對於泰國市場的香港買家來說,

通常他們會尋找第二個家。如果他們不得不搬出香港,他們會找泰國。有好吃的,

良好的環境,良好的公共交通,良好的國際學校網絡,良好的醫療保健。

在泰國很容易拿到退休簽證。

Darren Wong :

我明白了。當人們在泰國投資時,

有什麼需要注意的?再說一遍,東南亞其他國家有什麼不同?有沒有不同的管道來看待或評估一個

泰國項目,如果與其他國家相比?

Damian Sung :

是的,所以人們認為泰國,特別是曼谷,是

供過於求,這是事實,在這個意義上,他們有很多發展正在進行。如果在BTS或MRT裏有一個好的項目

靠近一個非常好的公共交通區域,項目很快就會售罄。我們在2020年第四季度有一個項目。旁邊200米左右是捷運站

98%售出了。另一件事是外國人被允許購買高達49%的土地淨面積

大樓。所以很多外國人都能買到這些不錯的項目。缺點是開發商通常

出售給當地人,特別是靠近BTS的項目,位置非常好。所以人們還在閱讀一些

文章說泰國供過於求,我為什麼要買?泰國當地人仍然在購買好的項目,而且已經賣完了。

Darren Wong :

我明白了。同時是不是有

你認為被高估或低估的領域?

現在,我想說普吉島受到的打擊最大,因為

沒有遊客。所以在普吉島投資的人可能在四五年前,他們現在就感覺到了

因為整個鎮子都空了。這是好是壞,人們想買普吉島現在,他們可能會得到一個非常好的交易

對於四五年前買房的人來說,我敢肯定他們的資本收益在那裡,但租金收益率在過去的八到九個月裏是不存在的。所以這就是

缺點。

Darren Wong :

我明白了。很明顯,外國人總是把目光投向普吉島和曼谷,對吧?還有別的地方

你認為那裡有潛力嗎?

宋大明:

所以有一個叫華欣的地方。所以華欣距離曼谷大約3小時車程。那個區域

是曼谷當地富有的泰國人的週末度假勝地。所以外國人,他們去芭堤雅,或者

普吉島。但是當地的泰國人,他們會開車去華欣。那是國王的貓和城堡的所在地。非常

不錯的海灘,非常令人放鬆,不錯的高爾夫球場。甚至很多韓國人,在新館肺炎之前,他們會飛到了華欣

他們要去華欣,不能直接飛。他們得去曼谷坐三個小時的車。但他們是想在·

下週末去華欣的。

Darren Wong : 

所以我們下一次能一起去渡假,對吧?

Damian Sung:

如果我們能走的話。

Darren Wong :

如果我們能去,就可以去海灘喝點雞尾酒之類的。

Damian Sung : 

我們賣的項目大概距離海灘

有200多米遠。

Darren Wong :

真的嗎?哦,好吧。我的邀請呢?

Damian Sung:

新冠肺炎

之後就可以。

Darren Wong :

再追問你剛才給的答案,很顯然,瞭解現時的情况是件好事,不幸的是,市場正在下跌。

然而,從另一個角度來看,你認為現在是真正考慮的好時機嗎?因為現在一切都在下降,顯然,可能有不良資產需要調查,對嗎?

Damian Sung:

那麼

人們尋找不良資產。很多開發人員可能會暫停很多開發工作。他們沒有啟動項目,

一些開發商非常積極,他們在推動。但如果做得這麼好,這個項目就賣完了。他們還有一個項目幾乎售罄。

那要看情况了。不良資產,這是他們廉價出售的原因。

Darren Wong :

我明白了。

Damian Sung :

我們銷售的項目

沒有大的折扣,因為這是一個好項目。我們將來會有很好的資本收益。

Darren Wong :

說到

項目,你手頭有什麼項目嗎?

Damian Sung :

對於泰國,我們上個季度買的那個,差不多賣完了。我們確實有

其他計畫外的項目。

Darren Wong :

好的。

Damian Sung :

再說一遍,只有特定的週末才是我們可以舉辦研討會的一年,所以

如果客戶想進一步瞭解項目,他們會與我們聯系。我們會做一對一的私人諮詢。

Darren Wong:

太好了。非常感謝您抽出時間。

謝謝。

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