Many foreign nationals consider the Kingdom of Thailand one of the most preferred destinations in Southeast Asia for permanent or temporary residence and real estate investment. This country is in high demand due to the low cost of residential properties and consumer goods, a stable political, financial, and economic situation, beautiful nature, mild climate, excellent transport links, and well-developed infrastructure.
One of the most popular locations among Thai property buyers is Bangkok. There are at least five reasons why it is worth buying real estate in Thailand, including in the kingdom’s capital, right now.
Content:
- Stable increase in property prices
- High returns on local property
- Large selection of properties
- High level of safety
- Accessibility of basic services
Stable increase in property prices
In recent years, the Thai real estate market has been developing at a rapid pace compared to other Asian countries. Over a decade, the cost of local apartments has increased by 50%, while properties nevertheless remain affordable.
Even the coronavirus pandemic did not really affect the cost of properties in Bangkok in particular and in Thailand in general: after a short decline, prices returned to pre-pandemic levels and then began to go up.
As of July 2023, one of the most budget-friendly units in the kingdom’s capital, Bangkok, is estimated at THB 1.05 million (about $30,000). This is a one-bedroom apartment in a condominium with one bathroom and a total area of 31 m2.
Not all apartments in Bangkok are relatively cheap. You can also find multi-million dollar offers here. For example, a 433 m2 four-bedroom penthouse with four bathrooms can be purchased for THB 349 million (about $10 million).
High returns on local property
The average rental yield of apartments in the Thai capital is 4.45%. Depending on the district, the figure varies from 1.89 to 8%.
Units in Phra Khanong yield the highest rental ROI among properties in the metropolis. The return on a studio in this district in 2022 was 6.39% per year. That said, you can purchase a residential property here at a relatively low price.
The most expensive apartments in Bangkok are sold in the central district of Pathum Wan. In 2022, studio owners in this area earned approximately 4.04% of the property price.
Bangkok’s best districts
Bangkok is divided into 50 districts. The downtown and business and historical parts of the metropolis are in the highest demand among investors and tenants. Centrally located properties with beautiful views of the Chao Phraya River are especially popular.
For example, apartments in Pathum Wan are among the most expensive properties in Bangkok. They offer views of the promenade and skyscrapers. The district is also home to shopping malls, The Royal Bangkok Sports Club, museums, and Lumphini Park.
You can buy a 27 m2 studio in this district for $220,275. Real estate owners and tenants will be able to use swimming pools and walk around green spaces within the residential complex.
Another sought-after district, Khlong San, is located on the other side of the river, opposite Pathum Wan. Here, you can currently buy property in buildings that are still under construction. For example, a 46 m2 two-bedroom apartment is on sale for $188,110. The building in which this apartment is located will be commissioned in 2025.
Investors who plan to rent out their property can purchase a residential unit in areas with high demand for short-term rentals. One of them is Silom, where there are many bars and nightclubs, which attract tourists.
Sukhumvit, an opulent nightlife destination, is in demand among wealthy visitors to the metropolis. There are practically no budget-friendly apartments in this area, as most of the units are luxury apartments.
Riverside also offers high-end apartments. This part of the city is aimed at wealthy travellers who are interested in local culture and art. There are many museums, theatres, cafes, and restaurants with live music.
When it comes to family holidays, visitors to the capital choose Chatuchak. If an investor plans to rent out property in this district, it is better to purchase a spacious unit that can comfortably accommodate a family with children.
Property owners earn high rental income from apartments in the following districts of the metropolis:
- Watthana, with an average ROI of 4.44% per annum;
- Phra Khanong, 6.39%;
- Sathon, 5.85%;
- Chatuchak, 5.86%;
- Huai Khwang, 5.33%.
Currently, a number of residential complexes are being built in Bangkok, with apartments and studios coming in various sizes and configurations offered for sale. Investors can choose communities that will be commissioned in a few months. Alternatively, they can purchase a residential unit at the design stage for a much smaller amount, but in this case, they will have to wait for the completion of construction. The demand for primary apartments is higher, and units in under-construction development projects in Thailand normally sell out even before the property is commissioned.
As construction progresses, a unit in an off-plan project in Thailand rises in price by up to 30%, so investors can make good money simply by reselling the finished property.
If necessary, you can arrange an instalment plan. The down payment is often only 20–25% of the property price, so many investors purchase not one but several residential units at once.
Large selection of properties
Bangkok’s apartment buildings offer a diverse array of units: you can buy a compact studio or choose from apartments with living rooms and different numbers of bedrooms and bathrooms. Prices for real estate in the capital of Thailand also range widely: there are both budget-friendly apartments and multi-million-dollar properties.
Properties also have a different area, which varies from 30 m2 to 400 m2 or more.
High level of safety
Naturally, the behaviour, cultural traits, and mentality of the local population and foreign nationals coming here differ substantially, but Thais in general and Bangkokians in particular are quite friendly towards tourists and expats. The tourism business and overseas investment in local real estate make a significant contribution to the country’s budget, so international visitors are always welcome here. The main thing is to acquit yourself well and establish good relations with Bangkok natives. Then, if needed, you can count on their help.
Accessibility of basic services
Bangkok has a well-developed healthcare system. Although doctor’s appointments and surgical care are not cheap, the result of the treatment justifies the money spent.
Besides, nowadays, the government puts great emphasis on the development of education; there are several prestigious international schools and universities in the capital.
Bangkok has excellent transport links, and getting around the city is easy even if you don’t have your own vehicle. You can use underground and elevated trains, buses, taxis, river ferries, etc.
Another indisputable advantage of Thailand is that you can open an account here without strict control over the origin of funds, unlike many other countries.