Buying and investing in properties in Bangkok
Bangkok is a sprawling metropolis with an ever increasing number of property developments all over the city. Foreign investors interested in investing in Bangkok properties will find it highly beneficial as the return on investment is large and worthwhile. Compared to other Southeast Asian or East Asian cities, the price per square metre is significantly cheaper in regards to US dollars.
The condo and house markets are viable options for foreign investors interested in investing properties in Bangkok. At either the high or low end of the cost spectrum, there are condos and houses that fit within the frameworks of any budget. It is not at all uncommon for foreigners to buy such properties and rent them out to others.
Although Thai law has strong restrictions on foreigners owning land, those with a substantial amount of capital are still able to work around the law and obtain property and land. The current trend is to buy land on the outskirts of Bangkok, where several gated communities house large and luxurious homes, and space is plentiful. Properties farther away from central Bangkok tend to be less expensive as well. The most common means to own a house and land is by proxy via a Thai spouse or nominee, although you will have little support in court if a dispute arises in this del-facto arrangement.
Buying a condominium in Bangkok is a more affordable and feasible route for most foreign investors. Thai law permits foreigners to purchase condominium units as long as not more than 49 per cent of all the building’s units are foreign-owned. When buying and investing in properties in Bangkok as well as other properties, it is best to consider the area and proximity to local transportation as these factors are indicators for price.
Sukhumvit Road is the most popular area in Bangkok for foreign investors who wish to buy or invest in properties. Housing the largest expat community in the city, Sukhumvit has many international restaurants and shops in the area that cater not only to expats but also to tourists. About 70 per cent of condominiums purchased by foreigners are situated in this area. Lumpini, Sathorn, Silom, and Chao Praya riverside area are other popular districts for foreign investors. It is here that many of the multinational businesses are based and they typically supply the largest preportion of potentional foreigner leasees.
A large number of international developers have targeted this sector, such as industry leaders Raimon Land, and they continue to push the boundaries with world class luxury buildings, sometimes with private pools accompanying each unit! Evidently the city has plenty of money and there are few limits at the top end, but many more condos and apartments are offered via numerous agents in a robust market. Thousands of new units come onto the market each year, and the growth rate of the city’s property sector makes them a safe bet. Typically a new generation of condos has been emerging in recent years appealing to the ever increasing expat community. Wealthy Thais are joining them, and there is good prospect for investors to buy and lease out at returns of 8 per cent or more.
Prices range from 3 million for a modest condo up to 70 million (US$2m) for prime penthouses with river views, but the median cost is roughly 200,000 baht per square meter in typical expat areas. The expansion of the transport system has lead to speculation and the prospect of rapidly increasing value in certain areas.
Suburban Bangkok properties are typified by the ubiquitous housing estate that is favoured by the emerging middle class, who judge their status by the prestige, security and family-orientated suburban bliss reflected on the brochures of these many projects. Long stay expats have also migrated far out to these oasises of calm. Some buy as investments and rent them to Thai and foreigners alike, but ownership has to remain in a Thai name. The downside of these however is the commute in Bangkok’s famously congested traffic and this applies to all property investment in Bangkok.
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