The real estate market in Bangkok is pretty stable and as a result is a low risk investment type for anyone wanting to purchase land and property. This stability comes about as a result of many sellers wanting to hold out for the sale price they have requested. These properties tend to be secondary properties for these owners and so they will wait for their ideal price. This also means that you will find that the real estate prices will not skyrocket significantly over time.
On the other hand, if there is an economic downturn, you will find that the real estate prices will still remain at their normal prices regardless. The stability of the real estate market in Bangkok thus has its pros and cons.
How to Earn Capital On Investments in Bangkok Real Estate?
In order to earn capital on your investment in real estate in Bangkok, you have the option of purchasing a unit in a development which is just coming on stream. Purchasing early allows you to have the option of selling it upon completion of the project or close to completion at an increased cost. Many resellers have been able to benefit from up to a 20 percent increase in property value upon resale.
Yet another option is to purchase an older building, have renovations done, then sell it at a profit. It is important to note however that the profit margin is usually small. This option may be better suited for local buyers than for international investors who may be seeking larger returns on their investment.
Ideally, when it comes to foreigners making investments in Bangkok’s real estate market, the bottom line is location. One also has to make sure that the price being asked for the particular location actually matches up to the quality of the property being sold. There are various types of property you may want to look into depending on your needs and the purpose of your purchase.
Most of the condos, townhouses and apartments in Bangkok are concentrated around the Bangkok Mass Transit System (BTS) and the Metropolitan Rapid Transit (MRT). This makes it very easy for people who work in the capital to get around easily and also to access the daily amenities. Many companies will seek accommodation for their office buildings in these locations and workers will likewise look for accommodations there so as not to be caught in the often times heavily congested traffic.
Real Estate Costs Based on Location
The Central Business District of Bangkok, namely Sathorn has many condominiums which are in high demand. These will give a great return on investment in the event of resale because this prime location will always be in high demand. Another location close to the MRT and the BTS is Silom which has an intersection leading to both of them. Land and accommodation in this location is also quite pricey because of the convenience of getting around which is offered.
Properties located further away from the Central Business District are much more reasonably priced in general. Living in these locations will take a little more planning in terms of plotting your transportation routes. On the plus side, you will more than likely be able to find whole houses if this is what you are looking for especially if you have a family.
The Existing Market for Condominiums, Apartments, Town Houses and Detached Houses
Condominiums are a common choice among non natives for purchase in Bangkok. The amended regulations to the Condominium act in Thailand have opened up many possibilities for foreigners to own condos which have shared amenities such as swimming pools and gyms, are close to the main transportation systems and have affordable maintenance costs.
Most apartments in Bangkok are owned entirely usually by companies, who rent the units on an individual basis to tenants. Ownership of these is normally by Thai nationals although a few are owned by foreigners, however apartment buildings tend not to be the common choice for foreign investors.
Most non-Thai nationals will also go for investment in a townhouse, over an apartment. Purchase is most easily routed through a Thai limited company owned by the purchaser, and so the townhouse will become a company asset. These dwellings appeal to foreign investors because they offer the security of a gated community, more space and communal facilities.
Finally, a detached home may also be purchased through a limited Thai company owned by the foreigner, since the purchase will include the house as well as the land. These are usually located further away from the bustling business centre and offer more privacy and living space.
The major factors thus determining the movement of real estate in Bangkok at this time has to do with location, pricing, resale value and quality.
Author Bio – Malcolm Jones, the author of this guest post, wrote it to promote CBRE Thailand.