BANGKOK, July 29 — Wealthy Thai investors are changing their overseas property strategies, with some shifting away from London purchases and exploring Japan’s real estate market as currency advantages and lower entry costs make it more attractive.

The trend was reported by The Nation, which said rising ownership costs, economic uncertainty and the lingering effects of Brexit had prompted Thai buyers to reconsider committing large sums to London properties.

London has traditionally been a favoured destination for affluent Thai families, particularly those seeking homes for children studying in Britain or long-term assets in a major global financial hub.

However, investors are now placing greater emphasis on flexibility, with some opting to rent properties in London while keeping more capital available for other opportunities.

Prapaporn Boonkajornkul, deputy managing director of Savills Thailand, said London property ownership was previously viewed by many wealthy Thai families as a long-term investment strategy.

She said buying homes in Britain was once common among families preparing for their children’s education there, while also serving as a way to hold overseas assets.

But she noted that the Covid-19 pandemic, Brexit-related uncertainty and changing government policies had made long-term investment decisions more challenging.

As a result, some families are choosing annual rental arrangements instead of purchasing homes, allowing them to reassess the market before making major commitments.

Prapaporn said investment budgets had also become more conservative, with buyers who previously allocated about £1.5 million (RM8.2 million) to £5 million for London properties now typically looking at homes priced between £800,000 and £1.5 million.

Interest has also grown for properties costing around £500,000, although high prices in central London have pushed some investors towards areas outside the city’s most expensive districts.

Buyers are increasingly considering London’s Zones 2 and 3, especially developments connected by the Elizabeth line, which offer easier access to central areas at more affordable prices.

The shift, however, does not signal a complete withdrawal from London, but reflects a broader effort by investors to balance cost, location and long-term returns.

Japan has emerged as one of the markets benefiting from this change, with the weaker yen allowing Thai buyers to stretch their purchasing power further.

Beyond currency advantages, investors are also attracted by Japan’s stable property environment, infrastructure, tourism sector and relatively predictable market conditions.

Tokyo and Niseko in Hokkaido are among the areas drawing interest, with Tokyo offering strong residential demand while Niseko remains popular among international buyers due to its global reputation as a ski destination.

While London remains closely associated with education-related property needs, Japan is increasingly viewed by Thai investors as a destination for income-generating assets and portfolio diversification.

Prapaporn said the United States and Canada had yet to become top choices for many Thai buyers due to differences in ownership rules, taxation systems and regulatory requirements.

Meanwhile, foreign buyers continue to view Thailand as an attractive market, with Savills Thailand preparing overseas roadshows to promote luxury property developments to international investors.

“The main target is the luxury segment priced from 10 million–20 million baht and above,” Prapaporn said.

“Buyers from Singapore, China and the Middle East focus on central business district locations, the brands of listed developers and rental returns. We are therefore preparing to take Thai projects back to overseas roadshows after activity slowed during the Covid period.”