While the real estate market in Thailand across various sectors struggles due to the impacts of another wave of COVID-19, debt-free buyers in the high-end market are expanding their property portfolios into international markets, particularly in London, England. CBRE, a global real estate consulting firm, has found that with schools and educational institutions in England set to reopen this September, the London real estate market is once again attracting interest from buyers. Key factors driving buyers' decisions include family convenience, rising property prices, stamp duty exemptions, and the trend among high-end clients seeking second homes as a contingency during crises.

Ms. Papinriya Phungkhueankhan, Head of Residential Sales at CBRE Thailand, commented, “The residential market in London during the first and second quarters of 2021 has exceeded expectations due to the UK government's supportive policies for property purchases, including bank lending and low interest rates for British citizens. As a result, in 2021, house prices in London increased by approximately 6%, and it is projected that residential prices will rise by up to 18% in the next five years. Another factor is the increased demand from residents for larger living spaces and outdoor areas to accommodate remote working lifestyles. Consequently, housing projects in Zones 2 and 3, as well as suburban areas, have gained more interest. Additionally, the Stamp Duty Holiday, which exempted taxes on home purchases up to £500,000 until June 2021 and on homes up to £250,000 until September 2021, has further stimulated purchasing power.

The increase in housing prices is one of the positive signs of recovery in the London real estate market from the COVID-19 pandemic, as the UK government approved vaccinations starting in 2020. Foreign buyers have shown increased interest in purchasing properties even before the additional 2% stamp duty tax was implemented in April 2021 and before the pound strengthened. However, CBRE believes these factors will only affect foreign buyers in the short term, and many foreign buyers will return as the UK has announced the lifting of lockdown measures, and support for property buyers, both domestic and international, has been included in the country’s economic development plans.

“During the COVID-19 pandemic, buyers certainly had more negotiating power, depending on the popularity of each project. Some projects offered furniture packages and virtual tours to attract buyers, which presents a great opportunity for Thai buyers looking to own property in London. These offers and additional services, combined with buyers' knowledge and familiarity with the London real estate market, will lead to quicker decision-making. Foreign buyers seeking high-end properties in London continue to come from France, Hong Kong, the USA, and China. Furthermore, the upcoming reopening of the UK borders in the next few months will facilitate these foreign buyers in viewing real estate projects more easily,” Ms. Papinriya added.

As London remains a popular city for students and boasts impressive culture and architecture, along with historical sites and high financial flexibility, the demand from affluent foreign buyers continues to return.

“This is a great time to invest in a market like London that can recover quickly. The London real estate market consistently attracts foreign buyers, and the aforementioned favorable factors encourage buyers to make decisions. For Thais, the primary purpose of purchasing property in London is to secure the best accommodation abroad for their children’s long-term education and as an investment that can be passed down as family inheritance. With schools and universities in England set to open in September, this presents a great opportunity for Thai investors who own properties in London to rent them out to international students or small families looking to rent rather than buy,” Ms. Papinriya concluded.