Investing in property for first time can be a daunting prospect at the best of times, but investing in a foreign market such as investing in real estate in Bangkok can be a even more daunting, however it can be easily argued there has never been a better time to invest in Bangkok property.
And when an investor is thinking about investing in Bangkok they should look at the city center and to condos, for the following reasons:
- Unlike land, townhouses and houses, condos can be owned 100% outright by foreigners. This of course gives the foreign investor in Thailand the peace of mind he craves.
- At present it is only the city center that is well linked up via the metro systems of the BTS and MRT. For an investor in Bangkok, it is wise to buy a condo close to either the BTS or MRT stations.
For more information on buying a condo in Bangkok , please read the following blog:
In 2015 Thailand and therefore Bangkok will open up to the AEC (Asian Economic Community) which like the former EEC in Europe will open up the region to a huge free market allowing freedom of movement of capital, labour and goods and services. This will increase markets for investors in Thailand from approximately 65m people to approximately 500m people – a massive increase, even by global standards.
Of course the EU (formerly the EEC) has come under a lot of criticism in the last 5-6years, but this has mainly been due to problems caused by the single currency. However the AEC is proposing no such policy at this stage, and so the AEC should in effect perform as a catalyst for growth in the SE Asian region as the EEC did in Europe for most of the 80′s, 90′s and early 2000′s.
Bangkok accounts for 50% of Thailand’s total GDP and as such has no equivalent competitor inside Thailand itself for size, wealth and therefore property appreciation potential. And in fact Bangkok’s relative wealth and real estate market potential is not just confined to Thailand, but to the whole of SE Asia. In fact if you are an investor in SE Asia then it is difficult or may be impossible to find a better market. Bangkok is not only huge, well connected by infra-structure (compared to other real estate markets such Jakarta, Manila or Ho Chi Minh City) and has a long way to catch up with expensive buy-to-let market in Bangkok , you could do a lot worse than Asian real estate markets like Singapore and Hong Kong.
Our tip for investing in Bangkok is to get in to the area where new stations have appeared along the BTS lines. On the BTS line in Sukhumvit they have recently expanded 5 stations from On Nut-Bearing and these areas offer fantastic opportunities for new investors. And in fact the area which offers the best returns is Bearing. If you are looking to invest in the buy-to-let market in Bangkok , you could do a lot worse than buy a condo in Bearing.
Bearing represents the ideal up-and-coming area and getting into the market now is the perfect time. Not only does it have a BTS station, but also has superb road links to Bang Na, Suvarnabhumi airport and is surrounded by dozens of schools and most notably international schools. This of course translates into a whole host of international school teachers looking to rent good value condos in Bangkok near their place of work.
Of the condos in Bearing that are on offer, condos such as Sense of London, The Kensington, Notting-Hill and The Knight. These are fantastic condos, well built, well designed and well located. But most importantly for the condo buyer in Bearing they are extremely well priced. A one bedroom for instance in a condominium block like The Kensington would rent for THB 12 000/month whilst the purchase price would only be approximately THB 2m. This giving the investor in Bearing a return of over 7%, whilst similar units in more centrally placed Sukhumvit can only command a return of 5%.