7 reasons to invest in Bangkok

Andrew BattJanuari 8, 2015

reasons to buy in Bangkok

Bangkok, in the opinions of many market-watchers, currently offers a potentially lucrative property investment opportunity, although as with all investments buyers should do their due diligence and ensure they are comfortable with their purchase.

What are some of the attractive reasons to buy in Bangkok?

Record prices.

Record-breaking prices were also witnessed in Q3 2014 when CBRE sold a unit at Raimon Land’s 185 Rajdamri development, a project which was completed in Q1 2014, for around THB330,000 per sqm. The firm also sold units at more than THB300,000 per sqm in four other projects.

High numbers of expat tenants.

More than 90 percent of residential tenants in Bangkok with rents in excess of THB20,000 per month are expatriates, and the most recent figures showed that at the end of Q3 2014 there were some 74,000 holders of work permits in Bangkok, a rise of more than 7 percent in the turbulent previous 12 months.

A preference for renting.

The majority of expatriates who work in Thailand prefer to rent rather than purchase property because they are usually only in the city for a few years.

Lack of finance opportunities.

It’s almost impossible for expatriates, even with a solid credit record and work permit, to obtain finance at competitive rates from Thai banks to purchase property in the country. That’s another reason why renting is preferred to buying.

Buy as big as you can.

CBRE predicted that between 30 percent and 40 percent of purchases made at new condominium units in Bangkok during Q3 were made by buy-to-rent investors, with 70 percent of units under construction in downtown Bangkok being one-bedroom units or smaller. Highlighting a significant mismatch in supply and demand, CBRE noted it has seen strong demand for two- and three-bedroom units – with two-bed units are bigger making up a massive 75 percent of its leasing business. It said demand us starting to exceed supply in the bigger-unit.

Join the queue.

For the first time, several agencies have acknowledged the existence of waiting lists at some of the most popular developments in central Bangkok – underlining how the best developments are in demand and are commanding premium prices.

Rates are likely to rise.

Because demand will exceed supply, rental rates that have remained at the same levels for almost 25 years will finally have to rise

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg


Anda juga mungkin menyukai beberapa artikel ini

Mixed views on Asia-Pac markets

RUMAH.COM: Audit, tax and advisory services firm KPMG has provided an autumn review of current developments in key real estate markets in Asia-Pacific, with a particular focus on commercial property i

Lanjutkan membacaNovember 21, 2014

Anti-foreign sentiment grows in Australia

RUMAH.COM | More than 31,400 people have signed an online petition with the goal of toughen the regulations for foreign property Investment in Australia. Initiated by Simon Hosking on the popular c

Lanjutkan membacaNovember 25, 2014

Economy to constrain Indonesia property sector

RUMAH.COM | Indonesia's economic outlook is seen as the key constraint on the country's property market, beating other indicators including political change and price fluctuations, according to a rece

Lanjutkan membacaNovember 27, 2014

Top award for PropertyGuru Group

PropertyGuru Group's online service to its customers and agents was recognised at a global awards ceremony in London last week. Asia's leading property portal group collected a silver award in the

Lanjutkan membacaDesember 1, 2014

QZ 8501 and Air Asia Office: A Feng Shui Perspective

By: Mauro Rahardjo RumahCom - On 28th December 2014, the world was again shocked by aircraft disaster; this time Air Asia QZ8501 was missing in its flight from Surabaya to Singapore. For Feng Sh

Lanjutkan membacaJanuari 5, 2015