Foreign nationals acquire property in the Kingdom of Thailand for various purposes: to earn money, reside in the country permanently, and/or live there during their holidays. From 2021 to 2022, the number of condominiums in Thailand owned by citizens of other countries increased from 8,199 to 11,561 residential units. According to experts, the same positive trend will continue in 2023.
Before you buy real estate in Thailand, you need to understand what exactly affects the price of apartments.
Content:
- Property location
- Area and number of rooms
- Residential safety and amenities
- Primary/secondary market and apartment age
- Featured furniture and household appliances
- Weather protection
- Window view
- Construction stage
Property location
The cost of apartments in Thailand depends on many factors. Some of the main ones are where a unit is situated, how far it is from the sea, if we are talking about a resort location, and what view its windows offer.
Which regions of the kingdom are the most popular among buyers?
They are resort areas that are in demand among tourists from all over the world. Owners of local real estate have the opportunity to live here during their seasonal stay and rent out property. Due to the popularity of residences in tourist areas, it is easy to find tenants who will pay good money. Which regions to consider when buying a residential property? Above all, Phuket, Pattaya, Koh Phangan, Koh Samui, and Krabi. We can also add to the list the Thai capital of Bangkok, with a population of over 11 million. Real estate here is popular, among other things, due to the huge influx of expats into the city. Currently, about half a million foreign nationals permanently live in the metropolis, of which about 70 thousand people are Europeans and Americans. Bangkok attracts around two million visitors every year.
When rented out, residences in the resorts of Thailand bring their owners up to 10% per annum. As construction progresses, local property appreciates up to 30%. The average return on rental apartments in the capital is 4.45%. In different districts of the metropolis, this figure ranges from 1.89 to 8%.
Among other things, it is important how well the infrastructure of the neighbourhood where an apartment is located is developed. The closer the property is to educational institutions, hospitals, shopping malls, sports centres, parks, and gardens, the more expensive and attractive to tenants it is.
The cost also depends on:
- distance from the sea (in resort locations);
- distance to the centre of the settlement (the farther the distance, the lower the price);
- proximity to industries with harmful emissions into the environment, petrol stations, car washes, and warehouses. All these facilities decrease the price;
- the availability of parking lots, especially individual parking spaces, which increase the price.
Area and number of rooms
The more square metres, bedrooms, and bathrooms, the more expensive the apartment. Balconies and terraces also make a difference.
The cost of property in the country is highly dependent on the type of kitchen. Apartments that have the same area and the same number of bedrooms but differ in the layout of the kitchen area cost differently. Properties where the kitchen is a separate room rather than connected to the living room are more expensive than residential units with an American-style kitchen.
Residential safety and amenities
Security guards, CCTV cameras, car parking, a gym, a well-groomed territory, planted trees, shrubs, and flowers affect the cost of property.
Experienced investors also recommend paying attention to whether there are local central utility systems.
Primary/secondary market and apartment age
Age and the market (secondary or primary) property is on sale in play an important role in pricing. New move-in ready residences are more expensive than similar secondary apartments.
Featured furniture and household appliances
If an apartment is fitted with household appliances and furniture, it costs more than a similar empty home. If a residential unit has a Smart Home system that can be used to manage the living space remotely, this also increases the price of the property.
Weather protection
Apartments in a building with walls protected from excessive light and summer heat are more expensive than units in the same location that have the same floor plan and number of bedrooms but are devoid of all these extra features.
Moreover, residential properties with windows facing the southeast, south, and east are more in demand among buyers, so they can be more expensive than apartments lacking the advantage of sunlight.
Window view
If the windows overlook the sea, other beautiful natural or urban landscapes, or sights, this increases the price of a residence. A view of factories, industrial zones, a construction site, or a noisy highway significantly reduces the cost of a residential property.
Bodies of water (especially seas) and sights visible from the windows can increase the cost of property by 30–40%. A highway and an industrial zone reduce the price by up to 20%.
Construction stage
Apartments in off-plan projects in Thailand are cheaper than units in completed new development projects in Thailand since prices go up as construction progresses. Once a residential building is commissioned, as mentioned above, the cost of residences can increase by up to 30%.
Prices are usually at their lowest at the design stage, before the foundation is poured, since it makes no sense for buyers to purchase non-existent properties for the same money as finished residential units. Another reason for the relatively low prices at the initial phases of construction is that developers are interested in selling apartments at all stages of building a house.
The Thailand-Real.Estate aggregator website offers you the opportunity to see what property options are available for sale right now. If you are planning to buy an apartment or villa in Thailand, feel free to contact our experts. To do this, fill out the contact form. We will be happy to help you make your dream of buying an apartment in this beautiful country come true!