Thailand Real Estate

Returns of 8.6% are better than forecast average inflation

Nothing makes a better headline than 8.6% return on property in Thailand. That are the lastest figures in as reported by The Nation. Thailand largest English language newspaper. 

Returns of 8.6% are better than forecast average inflation

Nothing makes a better headline than 8.6% return on property in Thailand. That are the lastest figures in as reported by The Nation. Thailand largest English language newspaper.

Property investment returns over the past 12 months have averaged at 8.6%, above the level of inflation of 8% per annum. Already 20 property funds have been listed since they were approved as an investment vehicle five years ago and 21 are heading for a public offering.

SCB Asset Management will launch two property funds this year, while Kasikorn Asset Management will debut one next month. The spread between the dividend yield of property funds and the interest rate of Thai government bonds was as much as 3 percentage points, said Yupharet Likitsansuk, vice president for research at SCB Securities Co Ltd.

Currently the return on a government bond maturing in 10 years was 5.55 per cent, he said.

Four out of the existing 20 property funds can generate dividend yields above the average rate, he said.