Property consultants Richmont's Thailand and Jones Lang LaSalle (JLL) have introduced London properties priced from 15 million baht to attract Thai investors amid a quiet Bangkok condo market.
Tim Skevington, managing director of Richmont's Thailand, said the price point of £350,000 (15 million baht) per unit in Greater London represents the introduction of a new segment to Thai buyers, who typically purchase properties priced at £1 million and above.
"This price offers a 45-square-metre unit, which is similar in size or even larger than many condo units in prime Bangkok areas such as Thong Lor," he said. "But units in London tend to rent out faster and offer higher yields compared to those in Bangkok."
James Puddle, head of international residential for JLL in Southeast Asia, said London properties attract buyers worldwide due to low global interest rates and a shortage of supply in the city.
"Housing development activity across London has dropped to its lowest level since 2010," he said. "We forecast rental growth of 4.5% in Central London and 5% in Greater London this year, with an average annual growth of 4% and 3.9%, respectively, during 2024-28."
On Wednesday, Richmont's Thailand and JLL, which has been appointed as the exclusive international sales agency across Southeast Asia for Barratt Developments, the UK's largest residential developer, signed a collaboration agreement covering the sales and marketing of residential properties overseas in Thailand.
The agreement also extends to sales of Thai developments introduced by Richmont's through JLL's sales network, particularly in Southeast Asian markets.
Richmont's Thailand will introduce two projects from Barratt Developments to Thai buyers.
The luxury Ebury project in Westminster offers units starting from £885,000 (38,919,708 baht), while the 2,000-unit Eastman Village in North London includes affordable 45-sq-m units priced at £350,000 (15 million baht).
Due to strong demand for rental properties, this project is expected to offer a rental yield of 6.5% per year.
"The Thai property market has been quiet for a few months, but we remain hopeful for improvement in the near future," said Mr Skevington.
Richmont's expects to achieve sales of 750 million baht from 30 overseas properties purchased by Thai buyers between now and the second quarter of 2025.
Between 2021 and 2023, Richmont's sold overseas properties worth 4.7 billion baht to Thai buyers.
Of the total, 69% was from units priced over 30 million baht, while 31% was from units priced below 30 million.