Growing Interest for Thailand Real Estate among Japanese Investors

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Growing Interest for Thailand Real Estate among Japanese Investors

There are many reasons for a growth of interest growth among Japanese investors in Thailand real estate. The most vital  of those reasons is the economic situations of Japan, government’s policies and its public response to the economic fluctuations.

Natural disasters like earth quake, social and cultural boundaries and restrictions on Japanese youth are also factors encouraging the Japanese to look towards Thailand. To explain further we must first understand the economic conditions of Japan. Japan is the world’s third biggest economy, a noteworthy aid contributor and one of the essential origins of worldwide capital and credit, with a population of 127 million in 2015 and a per capita income of US$32,486. The country is worlds fourth biggest in terms of export and import, and has the world’s largest electronics and mechanical and automobile industry.

From 2000 to 2007, the Japanese economy developed by a normal of 1.5% every year. However because of the worldwide financial crisis, the economy shrunk by 1% in 2008 and by another 5.5% in 2009. The economy came back to growth in 2010 with GDP development of 4.7%. At that point Japanese development contracted once more, by 0.5% in 2011 because of the effect of the Great Tohoku Earthquake on March 11th, 2011. The economy developed by an unassuming 1.7% in 2012 and by another 1.4% in 2013. In 2015, the economy extended by a tiny 0.5%, after a compression of 0.03% in 2014. The Japanese economy developed by an annualized rate of 1.7% in Q1 2016, in sharp diverges from the past quarter’s 1.7% decay. The economy is expected increase by a pitiful 0.5% this year and to decrease by 0.06% in 2017, according to the International Monetary Fund (IMF). This economic instability is causing turbulence in the mind set of middle class and middle income investors. They feel that their capital is insecure if invested in Japan, which is the reason new investors and young businessmen are looking for alternative economies and for many of them Thailand is the best option in the region with its lucrative condominium real estate industry. Thai-Japanese Government level cooperation: This is another most encouraging aspect for Japanese Investors to come to Thailand and invest in the infrastructural development of Thailand. In addition to this Thailand is the biggest manufacturing hub for Japanese companies in Southeast Asia.

Tokyo, seeking to counter China’s developing impact in Southeast Asia, Japan has reaffirmed its solid financial ties with Thailand. Thailand’s Prime Minister, Gen. Prayuth Chan-ocha, said on a visit to Tokyo that he would permit Japan to invest in railway ventures, a consoling stance for Tokyo. His Japanese counterpart said he had “productive discourses” with the Thai PM. “The financial ties between the two nations are getting to be more profound,” he said at a news meeting. This level collaboration is proving helpful in confidence building for Japanese investors in Thailand markets.

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