Bangkok condos and houses are currently considered to be some of the smartest real estate investments to be made in Thailand, as CBRE recently reported that in 2013 residential rentals and property sales prices in down town Bangkok rose for the first time in 20 years while condominium yields remained stable at 5.3%.
This data was taken from an analysis of 176 rental transactions located within 55 condos in three of Bangkok’s most popular expatriate areas, including Sukhumvit, Silom/Sathorn and Lumpini. Expatriates currently make up more than 95% of the demand for luxury rental condos units in the down town area and the Sukhumvit area happens to be the most popular location for unit rentals, having achieved the highest yields at 6.1%.
Land real estate is also growing in demand for these popular expat neighbourhoods, with a low supply as many land-owners have no pressure to sell their land, most of which has been passed down through family inheritance. If an investor can get his or her hands on Bangkok land, it has consistently provided one of the highest investment returns with about 15% year-on-year increases over recent years.
Although the political situation in Bangkok has been and remains in the forefront of news surrounding Thailand, and has created anticipations of a declining real estate market, there seems to be less evidence of this than previously expected.
