Despite the fears of a global market slowdown caused by what many analysts are already calling a recession in the U.S., the overseas property investment sector continues to flourish. While David Stanley Redfern Ltd research into overseas property markets is ongoing, their 2008 research is finally at a point where they are willing to present their top investment destinations and the reasons why. Liam Bailey, head of international research for the international property specialist said:
"This will be the first part in a serious that will first cover the top five destinations for short-term investment, and then the top five destinations for long-term investments. Doing them in groups of two allows us to give a more detailed explanation of why we favour each one as a good destination for property investment."
No 1 - Philippines:
The Philippines is an incredible destination for a short-term property investment. Using other countries in the region as a guide, and considering the fact that the Philippines' real estate growth is based on the same strengths, it is a safe bet that Philippines real estate will grow in value by 20-25% per year. Take Bangkok, where we can now see real estate being sold for twice what it was 3-4 years ago. And Cambodia's Phnom Penh is seeing strong 24%-25% growth year on year.
Philippines real estate growth is -- like Phnom Penh -- fuelled by massive growth in its business and industry sectors, primarily in Manila as major companies flock in to build cheap office towers, inhabited by a cheap work-force, working with manufacturing goods bought just as cheaply. This then brings in retail chains and financial outlets in preparation for the increasing affluence of the population. The big corporations tend to relocate the top-level management, and the incoming executives are looking for quality rented accommodation. The same is true as the affluence of local people increases in their new jobs.
David Stanley Redfern's Philippines real estate is perfect to capitalise on the demand for quality rented accommodation. The second tower of the three tower Lancaster condominium development is currently being built in Manila's Makati financial district, and the luxury condos thereof marketed by David Stanley Redfern.
Units now going for £33k are set to be worth at least £46k in 2 years, and in the region of £60k in 4 years. Even after the Philippines substantial taxes are paid, there will be sufficient profit margin to make this an excellent short-term investment, ideal for a first-timer looking for entry level property. As a testament to the growth potential of Philippines investment property, the price of these apartments is going up by 17% on April 16th, so anyone fired up by the Philippines should act quickly.
No 2 - Thailand - Koh Samui Island:
Following the success of Thai island Phuket, Koh Samui emerged onto the property investment scene in a big way just over two years ago. It is now a semi-mature market and the resort properties which make the biggest profit are rarely available for less than £200,000. However, research of late last year showed that people who had bought a resort property in Koh Samui in late 2005 as a short-term investment, sold last year for twice what they paid. This showed that capital appreciation had been solid at an incredible 50% per year for the two previous years.
Thailand's incredible growth is fuelled primarily by incredible tourism figures. As the number of people flocking in for the white sandy beaches, tropical climate and tropical atmosphere increases by 20% per year, resort properties on the beautiful island of Koh Samui will continue to attract a great proportion of the visitors, and property prices continue to grow strongly.
Koh Samui now has more 5 and 6 star resort developments that any other island, and the competition in the market is good for buyers because it is forcing developers to find ways to make their developments stand-out.
This intense competition has led to 2 bedroom off-plan luxury resort villas in Koh Samui's Maenam Hills development coming onto the market at a bargain price of £100k. The competition has also led to more developers offering finance on their Koh Samui property. Buyers can get 50% LTV finance on their Maenam Hills Villa. And David Stanley Redfern has other Koh Samui projects with equally impressive finance available.