Don’t look now, but the Pound and Euro recently hit two-year highs against the Thai Baht. Both currencies are also closing in on the five-year median against the Baht which comes as good news after an extended bear run. Thailand’s currency was historically strong in 2019 and 2020 but has weakened drastically in the past six months.
Currently, the Pound to Baht exchange rate is GBP1/THB43.5, the most favorable figure since July 2018. The Pound to Baht exchange rate is EUR1/THB38, a rate not seen since September 2018.
The strength of the Thai Baht against both currencies forced many property investors to the sidelines as they waited for the situation to tilt back in their favor. Additionally, tourists found their trips to the Kingdom more expensive. It remains to be seen when/if tourists and investors return, but the weak Baht makes things more appealing.
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In the post-Brexit Referendum period between October 2016 and November 2018, the Baht to Pound exchange rate sat between THB44 and THB42 to GBP1. Between June 2015 and December 2018, the Baht to Euro exchange rate fluctuated around THB40 and THB36 to EUR1.
With the exchange rate now back at more appealing levels, people will find their money going further in Thailand. But this isn’t the only positive when it comes to real estate. A buyer’s market has emerged throughout the country as many developers have reduced prices.
In Bangkok, condo prices fell by 11 percent on average last year. It was a similar story in Phuket where the price of condominiums with partial sea views declined by 6.8 percent in 2020. Developers across the country are willing to negotiate on asking prices in order to facilitate sales.
Overseas investors can now take advantage of the favorable exchange rate and falling real estate prices, although they may have to sacrifice seeing the property in person to realize both. Simply put, developers are looking to close sales as soon as possible, not a year from today when the situation is back to normal.
At the very least, it doesn’t hurt to look given the emergence of the buyer’s market in Thailand and weakening Baht. Money is going a lot further now than in recent years which can help
Many people don’t realize it’s possible to purchase Thai real estate without being in the country. This means if you find a deal too good to pass up, you can secure the property regardless of any restrictions.
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