Investing in Bangkok real estate may seem a daunting and difficult task, but as can be seen from the below blog 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 Noble Solo condominium units located in Thonglor can yield rentals of over 8% and the capital gains have gone above 10% since the project was first launched 3 years ago, not bad considering the economic crisis that has affected the world at this time. http://www.easyhomes.tv/property/noble-solo-thonglor-1312

In fact highlighted in a recent report by a well-known and highly respected property developer, listed on the SET, 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.

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 Lumpinin Park and the Royal Sports Club).

Also when we refer to investing in a Bangkok condominium, the main body of the blog will only be referring to brand new condominium projects. In fact none of the condominiums we will have been completed more than 12 months ago. The reason for this is that older units would have been bought at much cheaper, and therefore will neither reflect the current prices of the Bangkok condominiums on the market, or the rental yields as a percentage of the buying price – clearly Bangkok condominiums invested in earlier will yield higher returns as the purchasing prices would have been lower.

For the purposes of this brief blog, 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.

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. 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. http://www.easyhomes.tv/property/the-address-chit-lom-1100

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 2br 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. In addition the 2 bedroom units they have launched are on average smaller than those built in the past, with newly built Bangkok condo units over 90sqm becoming rare. So newly built 2 bedroom units of over 100sqm are becoming relatively scarce in the Bangkok real estate market.

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 stategy.

We are often asked ‘What are the best districts in Bangkok for an expat to live?’, and of course some people expect us as Real Estate Agents in Bangkok and Bangkok property consultants that we have a definitive, but of course we don’t! The truth is there is no ideal place for an expat to live in Bangkok.

For a start all expats are different, some people like high-rise Bangkok condos in busy vibrant areas, like Asoke or Nana they love to have a great city view from their windows and feel part of an international city. Others like the more intimate feel of a low-rise Bangkok condominium or apartment in a quieter area of town like On Nut.

However for expats wanting or needing to live in the Sathorn area of Bangkok near the Bangkok CBD, then Yenakart is a great place to live. Quiet, green and centally placed with access to Rama 3 Expressway, Rama 4 road, Sathorn road and Narathiwat Road, it is actually quite difficult to find a more centrally placed location in Bangkok.

It is also important to note that Yenakart has 3 points of access from the Bangkok Metro system. The first and original is the Chong Nonsi BTS station, only 5 minutes drive from the central Yenakart area, even closer is the Lumpini MRT station, which is located near Q-House Lumpini and offers residents just a 15 minute walk to most of the condos mentioned in this blog. And finally and most recently opened is the Yenakart BRT station, which only opened its doors 2 months ago on the Bangkok BRT line.

So what is on offer in Yenakart and what are the sort of condos and apartments that one can expect to find in this area of Bangkok?

Resorta Yenakart

Well fortunately Yenakart has all ranges of condos on offer, from low-cost Bangkok Studios for rent starting at THB 13 000/month to large beautiful 3 Bedroom Yenakart condos to rent at THB 100 000/month, However let’s start by looking at the low-cost condos at The Resorts Yenakart. One bedroom units can be for as little as THB 15 000/month, but some of the better furnished or more attractive units will be priced up to THB 18 000/ month.

The Resorta has a large swimming pool, attractive grounds and gardens and the usually 24hr security and car parking that one can expect from a good quality modern Bangkok condominium. The Resorta represents great value for those wanting to live in the Bangkok CBD area. http://www.easyhomes.tv/property/the-resorta-yenakart-1240

Sathorn Plus

Moving up in terms of price is the Sathorn Plus on the Pond and Sathorn Plus by the Garden condos located on the main Yenakart road. These condos built 3 years ago by Sansiri offer practical living in the Yenakart area with access to the roof-top swimming pool, fitness room and of course security and car parking. http://www.easyhomes.tv/property/sathorn-plus-by-the-garden-278

These Yenakart based Bangkok condos rent for approximately THB 24 000/month for a 50sqm 1 Bedroom. Studios are slightly cheaper at just THB 17 000/month.

Sansiri Sathorn

Located near by to Sathorn Plus on the Pond and Sathorn Plus by the Garden is Sansiri Sathorn which offers Grade-A condo living in an attractive low-rise condo in Yenakart. Being a low-rise Bangkok condominium there is a nice feeling of both intimacy and quality. With the solid wooden floors, powder coated window frames and quality fittings throughout these condos are special and a 55sqm 1 Bedroom unit will rent for approximately THB 30 000/ month.

Sansiri Sathorn all offers Bangkok studio condos and 2 Bedroom condos, which can rent for THB 20 000 and THB 40 000/month respectively, and offer 35sqm and 80sqm living space. http://www.easyhomes.tv/property/baan-sansiri-sathorn-275

The Lanai Condominium

As mentioned earlier Yenakart has condos for rent to suit a varied selection of tastes, budgets and requirements. The Lanai Condominium in Yenakart is a condo that offers residents an unusual choice for Bangkok. Indisputably high-end with a real 5 Star quality feel to this Bangkok condominium, it offers residents of Bangkok a resort type feel that one would only expect to experience in a location such as Samui, Phuket or even Bali.

Located near by to Sathorn Plus on the Pond and Sathorn Plus by the Garden is Sansiri Sathorn which offers Grade-A condo living in an attractive low-rise condo in Yenakart. Being a low-rise Bangkok condominium there is a nice feeling of both intimacy and quality. With the solid wooden floors, powder coated window frames and quality fittings throughout these condos are special and a 55sqm 1 Bedroom unit will rent for approximately THB 30 000/ month.

The condos in The Lanai are huge with the 3 bedroom units over 250sqm and even the 2 bedrooms can be above 200sqm. Oozing quality and opulence The Lanai condos are bright airy and sophisticated. If you like traditional South East Asian style and architecture then The Lanai could be the perfect place for you. http://www.easyhomes.tv/property/the-lanai-320

The moment that you enter the lobby, it feels like you have been transported outside of Bangkok and magically arrived at a beautiful 5 Star resort near the Andaman Sea or Gulf of Thailand. It is safe to say The Lanai offers its residents that no other Bangkok condominium building can offer. Of course though all this space, luxury and style does not come for free and at THB 100 000/month for a 3 bedroom, only the higher earners in Bangkok will be able to afford to live here.

So as you can see the little known and often forgotten area of Bangkok known as Yenakart actually offers Bangkok expats a great deal of choice and convenience, with access to not only the BTS and MRT, but also the Bangkok BRT system. In addition those with a car can access Rama 4 road, Rama 3 road, Narathiwat Road, Sathorn Road and can easily access Rama 3 Expressway.

In fact is could be that Yenakart could be one of the most ideal places for and expat to live in Bangkok.

Always trying to bring you the latest Bangkok Real Estate news and moves on the Bangkok property market, this EasyHomes Bangkok property blog has decided to take a look at the new Bangkok BRT bus system, that recently opened in the Sathorn, Narathiwat, Rama 3 and Thonburi areas of Bangkok.

In May 2010, the BMA (Bangkok Metropolitan Association) opened up the Bangkok BRT (Bangkok Rapid Transit) for the public. The first BRT line runs a total of 16.5Km from Sathorn, where it links with the Chong Nonsi BTS station, all the way along Rama 3 and over the river into Thonburi, where it stops at its 12th BRT station at Ratchapruek. This offers increased benefits and convenience for 10 000’s of residents of the Bangkok condos and apartments that exist alongside the new line.

The new BRT is a blessing for those living in the Sathorn district of Bangkok, on Rama 3 road and of course those people on our near the Chaophraya River. And of course those working in Bangkok’s CBD will now find it easier to commute along thoroughfares such as Rama 3 and Narathiwat roads So let’s have a look at some of the condos and apartments that will benefit from this new convenient and great value form of Bangkok transport.

Bangkok Garden Apartment is located in Narathiwat Road, and is only a 10 mins walk from Thanon Chan BRT station. Bangkok Garden apartment is an ideal Bangkok apartment for families and children. In the heart of Narathiwat road and only 10 mins walk from Central Rama 3 shopping center. With a whole host of facilties, Bangkok Garden Apartment offers not only 2 large swimming pools, one of the largest gardens in Bangkok, a 5-a-side football pitch, basket ball court and gymnasium, but also cafes and restaurants. http://www.easyhomes.tv/property/bangkok-garden-apt-58

A less expensive, but also stylish Bangkok condominium located close by to Bangkok Garden apartment, is Condo One X Narathiwat, this condominium is only 2 years old offers a swimming pool and gymnasium as well as excellent lay-outs in the condos, making ideal use of space and design. Condo One X offers great value and is also located to Thanon Chan BRT station, Central Rama 3 and is close to a quiet community with coffee shops and local shops. http://www.easyhomes.tv/property/condo-one-x-narathiwat-24-1161

Further up the line towards the Sathorn station there is the Yenakart BRT station, which makes life easier for those who live in the Yenakart are of Bangkok. There are some great value condos and apartments in the Yenakart district, but perhaps the pick of the bunch in terms of quality is The Lofts Yenakart, which is a Grade A condominium housing 1 bedroom, 2 bedroom and 3 bedroom units.

The Lofts Yenakart features a large swimming pool, gymnasium, car parking and sun deck, but it is the quality of the fixtures and fittings that make this such a great Bangkok condominium to rent in the Sathorn area of Bangkok. http://www.easyhomes.tv/property/the-lofts-yenakart-1422

However the Bangkok BRT does not only serve and benefit those in Sathorn, but also those on Rama 3, after all this new system stretches for 16.5Km. So those renting Bangkok condos or apartments along Rama 3 will also find the new Bangkok BRT bus system very convenient.

Lumpini are one of the biggest developers in Thailand and in Bangkok, building many convenient and well designed condominium buildings in prime and popular areas of Bangkok. LPN Narathiwat-Chaophraya condo is just such a building and is located near the Chaophraya river’s water’s edge on Rama 3 road.

For those looking for convenient and inexpensive condos living with river views and luxury features like infinity style swimming pools then LPN Narathiwat-Chaophraya is an ideal place to live. Close to Central Rama 3, Tescos and other convenient shops and restaurants, this LPN Narathiwat-Chaophraya has always offered great value for money at the river, with Studios to rent starting at just THB 11 000/month. http://www.easyhomes.tv/property/lpn-narathiwat-chao-phraya-196

The Bangkok BRT line then stretches over the Rama 3 bridge and into Thonburi, where in the future it will link up with the BTS when the stations are complete. However it is still convenient for those living in Thonburi and those living in Metro Park Sathorn. This is a great value Bangkok condominium and due to its location in a quiet suburb of Bangkok, just on the outside of the city center, the atmosphere is peaceful.

And at just THB 8 000/month to rent a Studio condo or just THB 10 000/month to rent a 1 bedroom condo at Metro Park Sathorn, this really is low cost living, at a high-level. http://www.easyhomes.tv/property/metro-park-sathorn-878

Bangkok expats know that there are 3 main areas where Westerners, Japanese people and other nationalities making their home in Bangkok congregate and they are Silom, Sukhumvit and Sathorn.

These three areas are traditionally the most popular international areas and therefore have been the Bangkok districts that have seen the greatest number of Bangkok condos and Bangkok apartments on the market.

Most expats have also demanded the convenience of having their condo or apartments within close proximity to an international standard hospital in Bangkok such as Samitivej on soi 49 of Sukhumvit, or Bangkok Hospital on Petchburi Road and shopping plazas such at The Emporium and Siam Paragon, two of the best shopping malls in Thailand.

However with the city center of Bangkok expanding some expats in the last 3-4 years have looked for an alternative and have found it in Ari, the northerly district of Bangkok close to Sanam Pao and Saphan Kwai districts. Whilst still on the BTS Sky-Train therefore affording residents the convenience of the Bangkok metro system, and therefore has become a great place to rent in Bangkok.

Ari district is a high-end desirable district of Bangkok with an arty and slightly bohemian feel, and so attracts Bangkok expats whom are artistic and perhaps connected with the media industries in Bangkok.

Bangkok property developers have noticed this surge to Ari and have obliged by building some iconic and high-quality condos in Ari that have style and quality.

Taking a look at some of the best condos that have drawn people to Ari we will start with Villa Rachakhru, built by TCC Capitalland and located in Soi Rachakhru, a low-rise and chic condominium building with fewer than 80 units, really gives this condo building a feeling of intimacy.

With one bedroom, two bedroom and three bedroom units, Villa Rachakhru caters for a large section of the market. Ranging from THB 25 000/month for a 55sqm rental unit, these are spacious and well laid-out with floor to ceiling windows in the main room and bedrooms.

One Bedroom Condo at Vila Rachakhru, Ari

http://www.easyhomes.tv/property/villa-rajakhru-ari–152

The two bedroom units are equally well designed and are found on the corners of the buildings so the master bedroom can enjoy a wrap around window design, giving residents a great view of the district of Ari. Making Villa Rachakhru trulu one of the best designed condos in Bangkok within the last 5 years.

Two Bedroom Condo a Villa Rachakhru, Ari

http://www.easyhomes.tv/property/villa-rajakhru-ari–153

Also on the top floor of the 8 storey condominium building there are 3 bedroom units with high-ceilings, up to 5m high in some areas.

Three Bedroom Unit in Villa Rachakhru, Ari

http://www.easyhomes.tv/property/villa-rajakhru-ari–154

Probably the most obvious condominium building in the Ari are of Bangkok is Noble Lite, which is within 5 mins walk of the Ari BTS station, making this condominium building not just attractive, but also practical.

At present this is the only modern high-rise structure in Ari and so those who are renting units in the high-floors are afforded breathtaking views of the northern Bangkok districts.

Noble Lite has Studios through to 3 bedroom units, and each and every unit has a bathtub in the bathroom, which is a pleasant addition to the Studio unit.

Studio Condo at Noble Lite, Ari

http://www.easyhomes.tv/property/noble-lite-246

One bedroom condos at Noble Lite are also highly desirable, with large windows, high floors and great views, at just THB 22 000 Baht/month these are great value.

One Bedroom Condo at Noble Lite, Ari

http://www.easyhomes.tv/property/noble-lite-706

Finally a forgotten gem in Ari is often Centric Place Ari, a building often overshadowed by its more prominent cousin Centric Scene, this tranquil Bangkok condo offers residents a personal and relaxed environment.

With the standard high-end facilities found in all the above Bangkok condos mentioned here, Centric Place Ari has as a swimming pool, gymnasium, fitness room, car parking, security and sauna.

Offering Studio condos up to three bedroom condos Centric Place covers a large part of the Bangkok property market.

Studio Condo at Centric Place, Ari

http://www.easyhomes.tv/property/centric-place-113

One Bedroom Unit at Centric Place Ari

http://www.easyhomes.tv/property/centric-place-114

Two Bedroom Unit at Centric Place Ari

http://www.easyhomes.tv/property/centric-place-1029

So as can be seen, for those wanting to live away from Sukhumvit, Silom and Sathorn, there is indeed a realistic and attractive alternative, and that alternative in Bangkok district of Ari.

For those of use who live in the real world, and therefore the Capitalist World (the only form of human development that has any long lasting durability) we have to face the fact that with the Booms come the Busts, as with all aspects of life, with the Smooth comes the Rough!

We can’t have it good all the time and one can have too much of a good thing, so there have to be bad times ahead even in the best of times.

Ok enough with the clich?s, let’s get to the point. Bangkok and the whole of Thailand has just mimicked the rest of the world in that it has been a part of the Global Recession, a recession that has lasted in some parts of the World such as the US for 6 Quarters and in countries like the UK for at least 7 Quarters and is still not out of the woods.

Thailand, having learnt its lesson from the 1997 Asian Economic crash, where Thailand and particularly Bangkok was the catalyst in disaster has been better placed than the UK, US and Europe to withstand its own domestic recession, however as a modern global country, Thailand is of course dependent on and vulnerable to the successes and failures of the West.

Of course Thailand’s exporters such as those of Electronics, Cars and Rubber will suffer when the Western markets enter recession and this will bring a negative effect on the economy, particularly Bangkok’s which is the hub of all trade in Thailand. However Foreign Direct Investment (FDI) will also be affected and therefore expats living in Bangkok and potential immigrants to Bangkok will also be negatively affected.

International Property Agents have reported earlier this year that Condo sales to foreigners are down by 36% on last year, which is of course not good news for the market as a whole, especially when it is considered that up to 17% of condos in Bangkok are indeed owned by foreigners since the Condominium Act of 1997.

So by looking at the figures if just the reduction is Sales of Bangkok Condos to foreigners are taken into account, then the Condominium market as a whole has reduced by approximately 6%. However of course it is more than this as many Thais have not been buying, in fact Thailand’s largest developer LPN Development PLC has stated that in the first 2 months of 2009, Thai clients were looking but not buying. In fact they thought that property prices would drop considerably and so condos, town-houses and detached houses in Bangkok were not purchased. In fact the prices did not drop so much and so now there has been a realization of their mistake and now there is a relative buying frenzy in the last few months of this year. In fact projects like the Ideo in Wang Wien Yai, and The Citrine also located near to the Wang Wien Yai BTS station in Thonburi have sold out.

So the question has been answered….right?

Well not quite!

Yes there are lots of negatives, and of course by definition a recession or even worse a depression is not a good time for any economy. However it is also not all gloom and doom, as every cloud has a silvers lining (I will try and make this the last cliche for this blog ).

When recession hits it is a chance to reduce the also-rans in the market. And therefore the Bangkok market is left with far more quality rather then quantity as a result.

As the market is deflated, the banks who supply the blood to run the economy are the first to notice. Repayments are not made, and non-performing assets (NPA) are on the increase. Therefore Banks are reluctant to lend, to either developers or potential owners. This is going to have a short-term negative effect on individuals or individual companies, but in the long-term will be of benefit.

Only the Developers with low debt to equity ratios will be able to obtain money from the banks and therefore, many ‘first time’ or ‘relative amateur’ developers will not be able to obtain the loans.

In addition Bangkok Bank announced that Developers have to close on between 20-25% of units in their pre-sales before further loans will even be considered. Not only that but the location and quality of the buildings are also greatly considered in times of recession. Siam Commercial Bank have stated that the new developments they have been supporting all have to be within 200m of either a BTS or MRT station or a BTS or MRT line. And the quality should be such that the units can realistically sell for THB 100 000/ sqm, which represents the higher-end of the market.

So to summarize it can be seen by laying down the following criteria that only a few and choice projects will in fact be allowed to proceed in such tight market conditions:

1. Developer must be credit worthy and be of sound quality and reputation
2. The projects must be located in desirable and highly sought after areas (such as near the Sukhumvit BTS, Silom BTS or Ratchada MRT lines)
3. The buildings must be of high-end quality so that they can realistically attract buyers of up to THB 100 000/ sqm

So what does this mean to the medium term future of the Bangkok Real Estate Market?

Well it initially reduces the supply of properties in Bangkok and in particular condominiums in Bangkok. It seems just the best and most popular areas of Bangkok such as Sukhumvit, Silom, Sathorn and Ratchadaphisek will be significantly developed further in the near future.

Projects that have already started and have received banking approval will be finished in due course and will be of good quality. In addition as the developers have had to undergo strict financial tests to gain the loans they need, then clients that have invested in off-plan condominiums can be assured that they are likely to receive the property as planned.

Potential owners of condos too will be subject to strict investigations before they are issued with a mortgage and so there should be less defaulting on loans and the development of a sub-prime mortgage crisis, such as has been experienced in the West.

So all in all the future of the Bangkok Property Market looks good, with only the best developers being granted loans to develop condominium, townhouse and detached house projects near the Bangkok metro and transit systems. And in addition they have only been granted the right to do so when the buildings are of high quality.

Also with the US announcing its departure from recession and the other G8 nations (except for the UK) it looks like Bangkok’s market will move towards better times ahead!