An Overview Of Bangkok Real Estate, 2014

The South East Asian Property Market

If you have ever thought about investing in South East Asia (SEA), specifically in property, then this article will introduce you to Asia’s real estate potential.

As Europe struggles to recover from the financial crisis, SEA has been steaming ahead and the future outlook shows no signs of letting up any time soon. Capitalizing in Asia’s real estate market is one of the most solid ways to get a good return on investment, as many savvy investors are already finding out.

Reasons to Invest in Bangkok Real Estate

Investing in Thailand’s property market makes good sense, and there is no place with faster growth than the capital. Apart from being an exciting, thriving, cosmopolitan city, there are no signs of a slowdown in new condominium projects for 2014 and beyond.

Furthermore, Bangkok has achieved “The World’s Best City Award” for four consecutive years (2010-2013) by the publication “Travel and Leisure Magazine.” And in October 2013, in the annual Expat Explorer Survey, Thailand came top as the country which offers the best quality of life for expats. Without doubt, this is one of the most prosperous nations in the entire region.

Urbanization Driving South East Asia’s Housing Demand

More and more people are moving into cities with each passing year, especially in Asian countries, and that’s creating a huge demand for accommodation (see below):

  • In the next 20 years, global urbanization is set to increase from 50% to 80%
  • Most of this urbanization is happening in Asia (the world’s most populous continent)
  • The demand for property in cities like Bangkok continues to increase to meet demand
  • Investing in well located Bangkok Real Estate a wise move

As you can see, the forecast for the Asian region looks rosy and Thailand is no exception.

Ten Years of Real Estate Growth in Bangkok – 2003-2013

Investing in a buy-to-let property in Bangkok, or a property you want to live in yourself, will experience capital gains of approximately 4-5% annually over a 10 year period. In 2003 the average price for a luxury, Grade A property in Bangkok’s Sukhumvit road was just THB 60,000/ sqm (US$ 2,000/sqm).

Now in 2014, just 10 years on, the average price for the same properties is THB 120,000/sqm (US$ 4 000/ sqm). That’s a 100% increase in just a decade! These figures alone demonstrate the value of investing in Bangkok real estate.

Rental Returns of 10-11% on New Properties

However, there are other advantages to investing in Bangkok real estate, one of those being the rental returns. Back in 2003 it was easy to get rental returns of 10-11% even on brand new properties, however due to the expansion in the supply of condos for the Greater Bangkok area, and the rapid rise in property prices, returns are more like 5-6% in the current market for new properties bought at today’s prices.

Even so, this still easily trumps comparative rentals in other major capitals of the world, such as London, Sydney, New York, Paris, etc., which tend to see around 2-3% returns on newly acquired properties.

There will always be those more skeptical property investors who tend to think that Bangkok real estate is a risky business, not least because of the ongoing political instability the country has seen in recent years. But the fact remains that the coup of 2006, and then the massive Red and Yellow shirt demonstrations, have had little impact on real estate.

Thailand’s 2008 Condominium Act Amendments

The 1979, the Thailand Condominium Act (allowing foreigners to own a finite number of units outright) has not changed. In fact, the most recent amendment to this law (which occurred in 2008) actually increased the protection for alien investors, and therefore made condo purchases even less risky. It is no surprise then that 17% of condominium units in Bangkok are owned by foreign nationals.

The Upsurge in New Condominiums Projects

The other negative comment that is often made in regards to investing in Bangkok real estate is the recent increase in the supply of condominiums onto the market. It’s true, there has been an upsurge in the number of properties launched these past few years, but many of these developments have been sold out quite quickly to both foreign and local investors.

The Bangkok Rail Transit Network

The advent of Bangkok’s Mass Transit System (BTS Skytrain), and later the Metropolitan Rapid Transit (MRT Subway) dramatically changed the landscape and skyline of central Bangkok.

This transportation network has successful anchored the city to these lines, and needless to say that the vast majority of new Bangkok condominiums, apartments, and town houses have been built within close proximity to the BTS and MRT stations.

There was an obvious and unavoidable lag as local Thai people and expats adjusted to the new transport system, but we are now in the full swing of the ‘Skytrain generation’.

If you look for accommodation using a “Search by BTS and MRT” property finder, you will see that most new developments have sprung up within a 500m – 1km radius of a BTS or MRT station, with some others only a 50 – 100m walk away. There are also a few select properties that are actually linked to a station. It therefore goes without saying that these are the easiest and fastest properties to rent out or sell on, and it is only the mispricing of a minority of individual landlords above market prices that may lead to a delay in finding a suitable tenant of buyer.

Unravel the Wonders of Bangkok

Discover the breathtaking marvels of the capital city of Thailand!

Bangkok is the rich capital of Thailand, a land full of picturesque sites and splendid natural attractions. It is a melting pot of different cultures, from the international genre de vivre to the traditional Buddhist living. Thousands of stores dot the pavements in Bangkok which houses millions of good merchandises. The exotic aroma of Thai food fills the air of Bangkok; surely, no one shall ever hear rants of hunger in this place. Not only shall your taste buds be in cloud nine, but also your whole spirits as you discover the pristine temples of Bangkok. There is just too much to explore in the golden city of Thailand.

Whether you are travelling alone or in a pack, Bangkok is sure to exhaust those wanderlust hormones in you. Bangkok’s exquisite temples are sure to reverberate with only the finest sounds of history. Visit the Grand Palace in Bangkok, which is unwittingly the most famous landmark in the City. The palace serves as the luxurious abode for Thailand’s government officials, as well as the Thai’s monarch. The carefully built palace is a grand sight indeed; the walls are seemingly adorned with gold. The Grand Palace remains one of the most visited landmarks in Thailand as its architecture is truly astounding.

After a tiring jaunt in the Grand Palace, it is a must that a traveler fills his insides with only the best food-to get to the core of Thai cuisine, the Chinatown is a must visit place in Bangkok. Tiny wooden stalls that are home to the most delectable Thai street food are abounding in Chinatown. Slowly after sunset do people fill the crevices of the streets of Bangkok, with the vision of nailing the best bargains. This food haven is definitely the place to be for gourmands, or even for those who want to get hold of the Thai culture. For major festivals, Chinatown in Bangkok is livelier, bursting with colors and filled with creative lanterns.

If you still have gotten a grip over the haggling of prices in Chinatown, then try the Floating Market in Bangkok. Many chic, wooden boats are lined on the stagnant waters that sell luscious tropical fruits, fresh coconut juice and even home cooked food straight from the floating kitchen. Truly the floating markets in Bangkok are amazing; going home with the best of bargains is surely one amazing things in the city of Bangkok. If you do not wish to stall and bug with various customers over the prices of goods, you can opt to ride a boat with a guided tour to Damnoen Saduak market to really enjoy the atmosphere.

A visit in Bangkok is never complete not until one has gone to Wat Pho (the temple of the reclining Buddha). Located behind the Emerald Buddha, the Wat Pho is famous for being the largest temple in Bangkok with a 46 meter reclining Buddha covered in gold leaf. Also in Wat Pho, a weary traveler can rejuvenate his bones with the famous Thai massage. It is a good start in Wat Pho, as the massages they offer are not that of the traditional one. It is a mixed of yoga to improve blood circulation. The temple Wat Pho has numerous English guides and many astrologers and palm readers for divine consultations.

If you haven’t had enough of temples, Wat Arun is a good place to visit, as this temple is said to be the place of repose for the battle-worn King Taksin after the siege of the Burmese Army. It has then been renovated and has been catapulted unto being one of the finest temples in Thailand. Its intricate and Chinese porcelain-laden interior is truly amazing when lit up at night.

After capturing countless photographs to box the beauty of Bangkok’s temples, go to Chatuchak Weekend Market which sells wholesale merchandise for customers. Chatuchak is not only the biggest market in Thailand; it is the biggest market in the world! This is literally the place where you can ‘shop till you drop’. This is definitely a must visit place in Bangkok, as there are as much as 200,000 visitors who grope their way to this amazing thrift market. Travelers must not be overwhelmed by the size of Chatuchak. There are many divisions in the market that sell particular merchandise. Brushing up those negotiation skills is a must to ensure you get the best deals at the end of the day.

If you want to see the collision of the West and East, then try Khao San Road where the staggering neon lights glare unashamedly at the influx of foreigners. With a mixture of high end bars and restaurants, Khao San Road is surely the melting pot of the East and West. Many food stalls dot the pavements of the road, catering to the much fickle palates of Westerners. The Khao San Road is definitely the place for your daily dose of night life. Many mobile bars are found along the road, selling bunch of cocktail drinks, more of a precursor to the wild night you and your pack shall be experiencing. Khao San Road’s proximity to the many cultural attractions makes the visit more enticing. Just a few walks and you will end up in the Grand Palace and Wat Phra Kew.

If you are up for some lone time in a red light district, well the Soi Cowboy is definitely a hot spot. Named after the African-American who first opened a bar in the 70s, this district is sure to make all that hard earned money fleet as scantily dressed girls move their body to contagious beats. So if you are really up for some naughty time in Bangkok, put Soi Cowboy on your itinerary list.

There is a myriad of wonderful places and attractions in Bangkok. Awesome hot spots are easy to find as many friendly and hospitable guides are available. Your travel in Bangkok, Thailand shall be filled with beauty unraveled by searching eyes. Any kind of taste shall be accommodated as there are plethora of natural attractions, historical sites and modern spots to choose from. Truly, Bangkok is the golden city of Thailand.