Foreign real estate holdings in Thailand's Special Autonomous Systems (SAS) Bangkok and Pattaya: A structural equation model

Abstract

This study was undertaken to study the factors that affects foreign leasing and ownership of real estate holdings in Thailand's 'Special Autonomous Systems' (SAS) located within the Bangkok metropolitan area as well as the coastal resort city of Pattaya situated along a 15 km stretch of t he Gulf of Thailand's eastern shore. In 2012, Bangkok was once again ranked 1st as the 'World's Best City' while Pattaya has grown from a tiny fishing village 2 h southeast of Bangkok to what some estimate is a half million people during the height of the tourist season. As the regional air, transportation and logistics hub of Southeast Asia, Bangkok's role within the AEC can't be underestimated. Pattaya, whose average beachfront land has trebled in the past 10 years, has become the place to visit and live for both Thais and foreigners. Thai government authorities are projecting 10 million visitors for Pattaya in 2015, with US $3.26 billion in tourism receipts. Additionally, between 2008-2013 Bangkok in some areas saw a 150% jump in commercial property values. Results of this study found that government policy has a direct and positive effect on the economy and investment as well as the types of foreign real estate holdings types. Additionally, the economy and investment had a direct and positive influence on foreign real estate holdings.