If you’re a foreign investor planning on getting an overseas property investment, you might like to consider a Thailand property. However, there are important things you should know first. Check out this list before getting into Thailand real estate.
Thailand property pricing is quite peculiar especially in Bangkok real estate. For instance, Bangkok condo in two different developments can vary in prices, despite seemingly equal features and location. In some extreme cases, a Bangkok condo in one development could go as far as double the price of another unit in a different property just beside it.
Notable differences in selling prices point to luxurious fittings, amenities, and distinctive design. It is great idea to look into these factors but bear in mind that these can have a significant impact in the price of a Bangkok condo.
Higher Prices in Key Locations
Thailand properties situated within 200m to 300m of the Mass Rapid Transit stations or BTS skytrain stations typically get better reception in Thailand real estate despite relatively higher prices. Bangkok condos near interchanges are said to be more in demand.
Thailand real estate developers such as Chewathai Public started to build projects in prime areas in downtown Bangkok as well as near interchange like Taopoon Interchange (the intersection of Purple and Blue Lines). Many property developers also launched a number of Thailand properties in the province to tap on anticipated demand due to the construction of the Purple Line, a mass transit system that will run through Bangkok and Nonthaburi.
This trend shares similarity to the Singapore property market where buying interest is high in properties around or near MRT interchanges.
Bangkok Central Business District
Healthy rental returns
Thailand property is without a doubt an excellent overseas property investment. Foreign investors who are looking for healthy rental returns should look into Thai condos situated in locations that are popular to tenants. For anyone buying a Thailand property investment, it’s best to consider foreigners and expatriates as well. According to CBRE’s Bangkok condo market report, more than 90% of tenants renting Thailand property that costs over Bt20, 000 (roughly S$770) per month are expatriates.
Here’s a tip for foreigners looking for Thailand property to rent out. Invest in a Bangkok condo that’s near a BTS skytrain or an MRT station. Locals love staying within close proximity to train stations due to bad traffic and convenient commutes from the outskirts to Bangkok on the daily. Expatriates, however, look for condos near the BTS skytrain, their workplace, and amenities such as schools, shops and restaurants.
Additionally, two to three-bedroom Bangkok condo units in the central business district, particularly Sukhumvit between sois 1-63 and 2-42, Sathorn and Central Lumpini. are preferred by tenants.
For foreign buyers with an expensive taste, there’s an abundance of Thailand properties that will suit your lifestyle. To name a few, there’s Marque Sukhumvit, a 147-unit luxury development which will be completed in December this year, and the 77-floor MahaNakhon Tower which is designed by German architect Ole Scheeren.
The Ritz-Carlton Residences also offers units that will occupy floors 23-73 at MahaNakhon. The units it offer ranges from two to five-bedrooms and are priced at US$1.1 million and up. Meanwhile, there’s also 98 Wireless which has residential units priced at an average of Bt550, 000 per square metre.
According to DTZ Thailand’s research, extreme luxury units are priced above Bt250, 000 per square metre while luxury units should typically be between Bt170, 000 and Bt250, 000.
Expensive properties likely to yield lower returns in the long run
Luxury Thailand properties by big developers usually boast a number of amenities. However, it comes with a high price. For foreigners looking for a property investment, it is important to keep in mind that there is a limit to the price a tenant can pay despite convincing factors. It is a good idea to invest in Bangkok condos early in the selling process because lower property income has a tendency to give capital gains if bought early.
As a foreign investor interested in getting a Thailand property, you might want to listen carefully. According to the law, foreigners are not allowed to own land in Thailand under their name. However, there are alternative ways to acquire land. You can have claims on land you leased for 30 years or you can own land when you set up a Thai Limited Company. Otherwise, owning a Thailand property is mostly limited to condominiums.
If you’re interested in Thailand property investment, check out this blog for Thailand property for sale, buying tips, and Bangkok real estate listings.