Invest in Bangkok Property | Thailand Property | Bangkok Condo  Investment

Investing in Bangkok real estate may seem a daunting and difficult task, but as can be seen from the below, it can also be rewarding if the investments are made in the correct districts of Bangkok.

A Bangkok property investment in a well located Bangkok condominium can yield both a high rental yield and a high yield in capital gains.

For example some condominium units located in Thonglor can yield rentals of over 8% and the capital gains have gone above 10%, not bad considering the economic crisis that has affected the world at this time.

Bangkok Condo

In fact highlighted in a recent report by a well-known and highly respected property developer, listed  here, states that condominiums in Bangkok’s city center offer on average 7% rental yields across the low-mid, mid and high-end market categories. And the condo resale market within Bangkok remains extremely buoyant despite the economic and political problems of the last 12 months.

What is more important, you can buy this off-plan penthouse condominium now and sell it after completion in December 2014, and make huge amount of money selling it forward… about 50% ROI !!!

Let’s look at some figures, but firstly let’s define some criteria’s we are looking at within our report. Investing in a condominium in Bangkok can range from low-mid end up to high-end luxury Bangkok properties, but all can be found along the BTS and MRT in Bangkok’s city center areas. The main designated areas of Bangkok’s city center are Sukhumvit, Silom, Sathorn, Ratchada and Central Lumpini (near Lumpini Park and the Royal Sports Club).

Also when we refer to investing in a Bangkok condominium, we are referring to brand new condominium projects.

For the purposes of this brief post, we will concentrate in investing in a Sukhumvit condominium. There reasons for this is that Sukhumvit is the most popular district of Bangkok and most foreign buyers invest in condos in Sukhumvit. In the last 12 months there have been approximately 4 500 condominium units completed within the Sukhumvit area of Bangkok. Therefore there has clearly been a large increase in the amount of Sukhumvit condominiums on the market. However this has not stopped the rental yield from remaining attractive, as mentioned earlier with an average 7% return on investing in a Bangkok condo.

The purchasing prices for these Sukhumvit condominiums continues to rise, and on average one can expect to pay approx

THB 90 000/sqm for a mid-end Sukhumvit condo, or if you want to invest in a more luxurious Sukhumvit condominium then prices of approximately THB 115 000/sqm are being asked.

We can provide you really SPECIAL PRICE, from  THB 50 000/ sqm for luxury penthouse condo in Sukhumvit area

Check pictures and contact us if you are interesred !

Investing in a condominium in Sukhumvit will probably present you with the following returns:

For a Studio prices of THB 15 – 20 000/month can be asked;

for 1 Bedroom prices of THB 30 – 50 000/month can be asked and

for a 2 Bedroom prices of THB 50 – 80 000/month can be asked and

for a 3  Bedroom prices of THB 80 – 140 000/month can be asked and

for a 3 Bedroom Penthouse prices of THB 140 – 180 000/month can be asked.

Of course all the above depend on several variables such as location, quality of the building, size of the unit and quality of the furnishings in your buy-to-let Bangkok condo investment.

But what about the capital gains on your Bangkok real estate investment? Well as we saw early some projects have offered Bangkok condominium developers rises of up to 25% since launch, The Address Chidlom being such a Bangkok condo investment.

However on average Bangkok condominiums launched in the last 12 months have offered their investors approximately a 10% capital gains return since their launch. However it has been noted the best resale units in general are the larger 2 bedroom units. The reasons for this is that developers are generally building more Studio and 1 bedroom units in the newly launched Bangkok condominium projects around the city center, as these often are quicker to sell off-plan and can offer good rental yields.

Therefore if you are looking for rental return yields you may be best off investing in a Bangkok condo less than 60sqm in size, such as Studio or 1 bedroom. However if it is capital gains you are looking for in your Bangkok condo investment then a larger 2 bedroom unit of up to 100sqm could be your best Thai real estate investment strategy.

 

Here is EXAMPLE ( please take this as example, this is past information and cannot be used as future calculations)

 

 

Off-Plan Project Investment

When purchasing an “off-plan” project in Bangkok or Pattaya, you should be able to achieve at least an 8% ROI if you purchase the right property. Buying/Investing in this kind of Property can get you Pre-Sale price from 25%-30% which can be your profit, when Project is fully finished !

Off-plan projects is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to Real estate developers  and to early adopters as developments so that the purchaser can secure much better finance terms from their lenders.

Off Plan calculations for Pattaya Studio:

Investment scenario for a studio apartment details
Total purchase cost in USD 33828
Equity in 100,00%
Investment period (years) 5
Time to completion (years) 2
RENTAL (from completion)
Conversative monthly rental income 511
Occupancy 80,00%
Commission Letting costs 10,00%
NET monthly rental income 368
NET Annual Income 4419
NET Yield 13,07%
Total NET Income over 3 years 13,259
Investors cost
Condo average Price 33828
Sinking Fund + Water + Electric meter 611
Setting up company+Lawyer fee+ 1989
Annual Balance Sheet (28.000 USD capital)
Cable Fee 102
White Goods + Furniture (some projects free) 5655
Transfer fee 3.3% 1116
Maintenance costs over 3 years 1211
Total Investor cost 44506
PROFIT
Purchase value 33828
Estimated Purchase Discount 25,00%
Estimated Market Value 45093
CAPITAL Growth Rate 10,00% 15,00% 20,00%
Potential value after 5 years 72624 90699 112212
Additional Income (Rental) 13260 13260 13260
Total Income 85884 103959 125472
ROI (profit) 41379 59455 80964
ROI (%) 92,97% 133,59% 181,91%
Estimated calculation. Actual calculation may vary, prices in USD, use 1 USD = 35,18 THB
13.06.16