3 Things Property Investors Tend to Overlook when Investing in Bangkok

Thonglor, also known as Sukhumvit Soi 55, is a prime residential area in the heart of Bangkok that is highly sought after by both foreigners and locals. With Bangkok becoming one of the most popular destinations for foreign property investment, many investors are already familiar with Thonglor.

Yet, many investors may have jumped onto the bandwagon without considering these 3 key factors that are commonly overlooked:

  1. Who are Your Tenants?

If you are looking for rental returns from your Thai investment, it is important to understand the natural tenant profile of the location you are investing in.

In general, Thonglor is a popular neighborhood among expatriates and local professionals. The area is populated with office buildings hosting the headquarters of many international MNCs and Co-working Space. Thonglor is also home to various lifestyle services and amenities, such as restaurants, shopping centers and hospitality venues, making it an ideal location for those who wish to stay close to work, but are also seeking lifestyle options.

Among the large number of foreign expats in Bangkok, the Japanese expat population contribute to the largest percentage of expats in Bangkok. Thonglor, being home to many Japanese MNC headquarters and Japanese centric malls including Nihonmura Mall, has the highest concentration of Japanese expats and is well established as the Japanese enclave.

For those who wish to rent to Japanese expats, Thonglor would be the most ideal location.

  1. How important is BTS and Public Transport?

Savvy investors looking to “buy-to-rent” would understand the importance of public transportation. They are willing to pay a premium for a project in a good location, within walking distance to the BTS.

Thai properties situated within 800m from the Mass Rapid Transit stations or BTS typically get better reception in Thailand real estate. Not only are such properties more popular among tenants, demand for resale projects near public transport are also much higher than projects that are not as close to BTS.

  1. What rental yields should you expect?

Across the years, Thonglor has developed a stable rental market offering rental yields in the range of 4%-6%. While this is a publicly published figure, this figure is commonly touted with little context or insight as to local market conditions and consideration for development-specific attributes.

4- 4.5 % Yield

This is the typical rental yield estimated for prime CBD locations such as Phrom Phong, Asoke or Ploenchit (Central Sukhumvit). For investors in these areas, they typically name capital appreciation as the key investment objective instead of rental yield alone.

4.5-5.5% Yield

Most condos in Thonglor typically offer yields in this range which is higher than new launch developments in other Central Sukhumvit areas such as Phrom Phong, Asoke or Ploenchit. However, rental yield may vary significantly across different locations and property types in Thonglor. It is therefore important to select the right property and development in Thonglor in order to secure rental yields that are on the higher end of this spectrum.

5.5- 6 % Yield

Properties offering this level of rental yields are becoming increasingly rare. Investors should perform their own due diligence if the project offers “maximum rental returns” or “guaranteed rental yields” and assess the natural tenant profile of the location.

What’s new in Thonglor?

One of the top developers in Thailand, Areeya Property, is bringing to Singapore its latest new launch condominium in Thonglor.

Charlemnit Art De Maison is a luxury low-rise development located at 57 Soi Sukhumvit 53, merely 400m from the Thonglor BTS and is easily considered one of the most prestigious locations in Bangkok.

Areeya Property builds on its track record with over 40 developments in Thonglor to introduce its flagship property, Charlemnit Art De Maison that is designed with Japanese principles in mind.

It offers a Japanese style living facility that includes a Japanese-style Onsen spa, indoor swimming pool, the premium fitness center that is located underground, and a golf simulator on the roof.

As a real estate developer, its approach to design and planning stands out when considering the quality of build and construction. By working with Japan’s most renowned designer and contractor, Areeya invests in building in world-class flood protection and infrastructure that you would expect to see in a local Japanese development but are rare in properties overseas.

Charlemnit Art De Maison is one of the most anticipated property launches in Singapore this month. Register below for the most anticipated new launch in Singapore this month:

RSVP for Charlemnit Art De Maison's Launch Event in Singapore!
25 Aug 201826 Aug 2018

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