THAILAND may not seem like an obvious choice for an investment, given its recent political shake-ups, but the country is well worth a closer look.

Online research house Global Property Guide said house prices actually dropped there by 3.47 per cent in the year ended June 30, after having risen 3.92 per cent the previous year.

The slump followed three years of rapid rises. Condominiums in Central Bangkok had risen 91.5 per cent in the three years to January last year.

Analysts generally believe prices will head up again once the political situation stabilises.

And if you delve deeper into the heart of Thailand, gems in the form of quality homes giving good rental yields can still be found in Bangkok.

There are concerns that there may be an oversupply of apartments in the city, but analysts say the glut is limited to the low- to mid-tier markets.

High-end condominiums in the Sukhumvit area, for example, such as Domus, have done well in the resale and rental market, said CB Richard Ellis in a recent report.

As a testament to the general optimism of the real estate market, an increasing number of condominiums are sprouting across the city, particularly along its Skytrain route.

Generally, units priced above 100,000baht per sq  m, or about S$4,290 per sq m, are considered high-end.

Foreigners, however, can buy only freehold homes, and their purchases may not exceed 49 per cent of a condominium's total ownership.

Still, there are plenty of choices. The Riverside, or Rama III, is the place to live for views of the Chao Phraya River.

And The River, just across the water from Shangri-La Hotel, has been received favourably despite its distance from the city.

In the Charoennakorn area, new condominiums, such as the 40-storey Villa Sathorn by TCC Land and Singapore's CapitaLand, are sprouting around the upcoming Krungthonburi Skytrain station, set to open early next year.

Like much of Bangkok, the areas of Sathorn and Silom are a mishmash of old and new.

Two new projects are poised to set fresh records in the area. The Sukhothai Residence is expected to be launched by the end of next month as Bangkok's first branded residence. It is expected to cost 40 per cent to 50 per cent more than the nearby The Met, which has achieved prices of up to 150,000 baht per sq m.

Banyan Tree Residences, which has an unusual 90-year lease, will offer a guaranteed 6 per cent rental return for six years.

The resort of Phuket, with its beachfront homes, is also an attractive proposition for wealthy investors.

There is no tax in Thailand on the occupation of property or ownership. Some restrictions on ownership are applicable, but foreigners have bought about 2000 condominiums, apartments and villas in Phuket, said CBRE Thailand.

According to CB Richard Ellis, luxury villas can be purchased for under $2 million, while an entry-level villa will cost  around $700,000.