Colliers: Plan for older buyers Thailand
Bangkok Post: 14 Jan 2010
Colliers: Plan for older buyersThailand should capitalise on the surge in the elderly population in the coming decade through medical and wellness tourism, special packages for retirees and a clearer property ownership structure.
Antony Picon, senior research manager of the property consultant Colliers International Thailand, says concerns over freehold and leasehold ownership for foreigners persist and a more open and clearer structure involving longer lease periods and streamlined inheritance procedures should be set in place.
"This will help Thailand make the most of the dramatic population shift in Europe and North America," he said. "It must also be remembered that other countries will provide stiff competition for this burgeoning market."
These rivals include Malaysia, the Philippines, Vietnam and Cambodia.
The distinction between tourist and resident will become blurred as many retirees are likely to stay in Thailand for the winter and return to their home countries in summer.
"Thailand has long been a magnet for retirees and second-home occupiers," Mr Picon said. "The grey baby boomer is rising extraordinarily. Economists have been talking about it for a long time, but finally it is upon us.
"The first baby boomers, born after the Second World War, are about to retire and the positive consequences for Thailand could be substantial."
The number of people who will be of retirement age over the next two decades is massive. They are American, Japanese, German, Korean, Australian, British, Scandinavian as well as other Europeans. These present strong tourist markets for Thailand.
"An amazing 3% of the Scandinavian population visits Thailand every year," he said.
About 1 million people there will enter retirement age during the 2010s, over double the number in the previous decade. And that is just a small fraction of the total in Europe and North America.
He expects the market to become more sophisticated with retirement home property developers from Europe, North America and Australia providing specialised packages and financing.
He believes that as a population grows older, it also grows healthier. Mr Picon denies that old means inactive.
"Senior citizens will demand more facilities in the future as they will be more active because of their free time. Activities such as golf and hiking will be partly driven by new retirees and expect concurrent growth in medical and wellness tourism."
In 2009, 1.2 million visitors came to Thailand for medical tourism and this is set to swell due to new retirees. They could significantly affect growth and development of resort areas in Pattaya, the Hua Hin corridor, Chiang Mai and Phuket as well as the less well-known areas of Chiang Rai and Hat Yai.
A key focus will be on clusters, as retirees care more about who their neighbours are and especially if they can speak their language.
Mr Picon expects partially clustered retirement communities in the future with shops, restaurants and community centres catering for language groups.
"Some serviced apartments and hotels are likely to offer special packages for those over 60 to capture this growth market," he added.
www.bangkokpost.com/business/economics/30972/colliers-plan-for-older-buyers
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