Bangkok’s real estate is booming, and investors from around the world are pouring into this hot real estate market. While many people know to do their research before buying any piece of property, there are a number of factors that make Bangkok’s real estate market unique. Here are four things you should know before you invest in condos in Bangkok.
The Importance of Mass Transit
Nearly every urban area sees the value of a home go up if it is in walking distance of public transit, while homes convenient to train stations and bus stops command a premium. This is especially true in Bangkok, a rapidly developing city. This makes condos close to the Bangkok mass transit system or BTS/MRT a key measure of the attractiveness of the unit to potential renters or buyers.
The Value of Brand Names
Bangkok developers have become brand names in their own right. Established developers have a reputation for good building design, the layout of their apartments, and their quality of work. This means that a condo with a brand name developer will be worth more than one that doesn’t have one, though they may be nearly identical from a layman’s perspective. The brand name is associated with quality, so people pay more, and some brand names command a premium the same way a luxury brand handbag does.
The Diverse Markets in Bangkok
Rental demand throughout Bangkok is high, but different parts of the city cater to different renters. The Central Business District or CBD are particularly attractive to foreign investors.
Foreigners tend to opt for condos because they are not allowed to own land in Thailand. They can buy land through a limited company or buy a 30-year leasehold. In contrast, the condo market is wide open since they can buy a condo as long as just over half the building is owned by a Thai national or a Thai company owns at least 51% of the building.
Building Management Makes or Breaks a Reputation
The condo’s brand name and location may sell it to the first wave of tenants, but building management makes or breaks the reputation of the community. Working with a reputable property management Bangkok firm is therefore paramount to maintaining the value of your investment. Ironically, poorly managed buildings are why you can find under-performing developments even in prime areas ripe for takeover.
New condos are generally worth more than old condos because of their shorter remaining life. Good maintenance offsets this to a degree but not entirely, and that’s why you can find a wide range of prices for condos even in prime areas.
If you aren’t sure about the reputation of the development, look at the vacancy times. There are so many options for would-be renters that they don’t have to move into undesirable projects. If vacancy rates or vacancy times are high, you know not to invest there.
Bangkok has a deep condo market that is open to foreigners, whether they’re investors or planning on living there permanently as expats. Understand the unique details of this real estate market before investing your money in real estate here.
