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Bangkok Property Investment Guide

Posted by Editor on November 27, 2017
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Guide to Bangkok Property Investment

Bangkok – the capital city and also the most populated city of Thailand.

The bustling city takes up 1,568.7 square kilometres in the Chao Phraya River delta in Central Thailand, and has a population of around 8 million, or slightly over 12% of the country’s population.

It is the global financial hub and economic centre of Thailand.

The metropolitan city is home to the headquarters of all Thailand’s major commercial banks & leading financial institutions.

Bangkok is among the TOP favorite choices for MNCs to set up their regional head offices, all thanks to the substantial lower cost of labour and operational expenses when comparing to other mature business centres in Asia.

Since the Asian investment boom between the 1980s and 1990s till present, Bangkok has now transformed into an international hub for transport and health care.

It has emerged itself as a regional centre for its vibrant fashion, arts and entertainment scene, making Bangkok an ideal country to live, work and play.

bangkok thailand map
Source: wikipedia

General Facts of Thailand

Country: Thailand

Main Capital: Bangkok (largest city of Thailand)

Official Language: Thai

Currency: Baht (฿) (THB)

GDP Growth: 2.8% (source: World Bank)

Key Industries:

  • Tourism;
  • Agriculture;
  • Exports & Manufacturing;
    (rice, textiles, footwear, fishery products, rubber, cars, computers, electrical appliances etc)

Can Foreigners Buy Property in Thailand?

Yes. Foreigners can buy property in Thailand, however with certain restrictions.

Buying Land in Thailand

The existing law does not permit foreigners to hold ownership for lands in Thailand. But foreigners can lease a land in Thailand for 30 years.

Alternatively, the 2nd option will be to set up a company in Thailand with a local Thai national, however the foreigner hold less than 49% share of the company. Companies are able to buy land in Thailand.

Buying Condominium in Thailand

Foreigners can buy and own freehold condominiums in Thailand so long as they can enter Thailand legally.

However, the condominium units owned by foreigners cannot exceed 49% of the total space of the development. Other restrictions are applicable.

 

General Guide to Thailand Property Taxes & Fees

cbre-thailand-Property-tax-table_Nov16_eng

Source: CBRE

 

Transfer fee:
2% transfer fee for new condominium, paid by the buyer.

Specific Business Tax:
3.3% based on the government assessed price or sale whichever is higher.

Stamp Duty:
0.5% of the sale price of the property.

Sinking fund:
Sinking fund typically applies to new condominium (buying off plan) and the rates varies with different developer. Buyer will be normally be required to pays a one-off lump sum of the sinking fund upon the transfer of the property from the developer to the purchaser. The funds will be utilised for renovations, repair works or replacement of items in the development when necessary.

Management fee:
Management fees rates varies with different developer are paid by owners for the upkeep/maintenance of the common areas of condominiums. For new condominium projects, it is common to make payment (upon handover) of several years’ management fees in advance.

Best Bangkok Property for Sale:

bangkok-residential-supply-demand-q1-2017

Bangkok Property Market Outlook 2017

The number of expatriates holding work permits in Bangkok has increased to 84,721 in Q1, 2017, increasing by 2.1% from Q1 2017.

Statistic shown that the Japanese nationals are still the single largest expatriate group working in Thailand, accounting for 22% of the issues work permits, followed by the Chinese nationals at 13%.

Bangkok residential rental demand continues to be robust as the majority of expatriates who come to work prefer to rent rather than purchase property.

This is because normally they are going to be living in Bangkok for a few years only, and therefore renting a condo in Bangkok make more economic sense for them, instead of buying one.

Generally, most of the expatriates still prefer to live in the Sukhumvit, Silom, Asoke & Rama 9 area due to its convenient to CBD area and easy connectivity to the BTS Skytrain, Airport Rail Link and as well as the presence of large number of retail malls and restaurants in the vicinity.

  • Overall, more than 90% occupancy rate have been reported for downtown apartments.
  • Bangkok property rental yield is estimated to be between 5.0% to 8.0%*. (GlobalPropertyGuide.com)

Bangkok Condo Price Classification

Super Luxury: Above THB 300,000/m² (From US$800psf) Up Scale: THB 90,000-119,999/m² (From US$250psf)
Luxury: THB 200,000-299,999/m² (From US$550psf) Mid-Range: THB 70,000-89,999/m² (From US$200psf)
High End: THB 120,000-199,999/m² (From US$330psf) Entry-Level: Below THB 69,999/m² (Below US$200psf)

As classified, Bangkok Condominiums that are high end or above generally demonstrate common characteristics such as:

  • Easily accessible locations (ie. Near BTS Skytrain, MRT, Shopping Malls, etc)
  • Good and secure neighborhoods, ensuring privacy of residents
  • Good building design, layout and decoration
  • Good standard of construction using high-quality materials and specifications
  • Comprehensive range of facilities, including swimming pool, gym, squash, tennis courts.
  • Adequate elevators and efficient M&E system
  • Professional management
  • Sufficient car parking

(Source: CBRE)

Bangkok-MRT-BTS-map

Bangkok’s Transport & Connectivity

Bangkok is served by 3 Rapid Transit Systems; namely the BTS Skytrain, the underground MRT and the elevated Airport Rail Link. Despite the fact that plans for the development of mass rapid transit in the city had been made since 1975, the BTS only has began its operation in 1999.

The BTS consists of two lines, the Silom line and the Sukhumvit, with around thirty stations which adds up to approximately 30km. The MRT began operations in 2004 and currently consists of the Blue Line and Purple Line. The Airport Rail Link which began operations in 2010, connects the city centre to Suvarnabhumi Airport via a distance range of approximately 28km.

Bangkok property near BTS area are the most popular among expatriates due to its traveling convenience.

3 Important Tips Before Buying Any Condominium in Bangkok

 

Tip #1 – Developer’s Profile

Always perform your own due diligence to understand on the developer’s background and understand their past track records. Check if they delivers their past projects on time etc.

 

Tip #2 – Buy Near to BTS or MRT stations

Expatriates would generally prefer to rent condominiums at locations that are near to BTS Skytrains/MRT stations, shopping malls and even offices. Living near train stations makes daily commuting more convenient and reduce time stuck in traffic jams during peak hours.

One example of such Bangkok condo for sale will be Ashton Asoke Rama 9 – Luxury Bangkok Condo opposite Rama CBD area, BTS and retail mall.

 

Tip #3 – Go for 2 bedrooms & above, if possible

There are an abundance of studio units and 1 bedroom condominium supply in the market today. Hence, getting a 2 or 3 bedroom apartment in Bangkok would probably means lesser competition (than studio or 1 bedroom) for rental or resale.

Looking for Overseas Property Investment Opportunity?

Speak to our International Property Consultant today!

WhatsApp Andrew Tan +65-94361903 for Recommendations & Latest Update!

Thailand • Cambodia • Vietnam • Malaysia • UK • Singapore

www.LuxuryProperty.sg

Disclaimer: This article is meant for research and educational purposes only. All information, especially property ownership laws, are subjected to changes and no responsibility shall be held on the accuracy. All sorts of property investments can be risky and investors are expected to perform their own due diligence before committing into any purchase.

Source:
https://en.wikipedia.org/wiki/Bangkok
http://www.globalpropertyguide.com
https://www.cbre.co.th/

Popular Overseas Properties for Sale

 

Cambodia Property for Sale:

The Bridge Cambodia by Oxley – Freehold Mixed Development consisting of Apartments, Soho & Retail

The Bridge Retail Shops – High Nett 70% Guarantee Rental Returns over 10 years by developer! Learn more.

The Peak Cambodia by Oxley – Own a Condo beside Shangri-La Hotel! Freehold Condominium from US$168k. Learn more.

The Peak Cambodia Offices – Freehold Luxury Offices directly below Shangri-La Hotel!

The Gateway Cambodia – Freehold Grade ‘A’ Offices and Apartments for sale.

 

Vietnam Property for Sale:

The View Riviera Point by Keppel Land – District 7, Ho Chi Minh City. Expatriates favourite.

Vista Verde by Capital Land – District 2, Ho Chi Minh City

Estella Heights by Keppel Land – District 2, Ho Chi Minh City

Seasons Avenue by Capital Land – Hanoi, Ha Dong district.

 

Bangkok Property for Sale:

Ideo Mobi Rama 4Zero “0” m to MRT Station! Within 2 CBD areas. Surrounded by Lumpini Park, Offices etc. High growth potential.

Ideo Mobi Rangnam by Ananda – Bangkok Condo 135m to upcoming MRT Rang Nam from SGD$19Xk!

Ashton Asoke Rama 9 by Ananda – Luxury Condo Bangkok next to Rama 9 CBD area facing G Tower & Rama IX Super Tower

28 Chidlom by SC Asset – Prime location Only 250m to BTS Chidlom, surrounded by Shopping Malls and Hotels

Ideo Mobi Asoke by Ananda – Strategically located in the intersection of Phetchaburi MRT and Makkasan Station

 

Johor Bahru Iskandar Property for Sale

Suasana Iskandar JB – In the City Center of Johor Bahru. Prime Location Opposite City Square JB. From RM780k (SGD$26xK)

 

Kuala Lumpur Property for Sale

The Luxe by Infinitum – Phase 2 Tower B New Launch! Low Cash Outlay from approx SGD$16k++, assuming 80% loan.

The Colony by Infinitum – Phase 1 Tower A Over 70% Sold.

 

UK Manchester Property for Sale:

Burlington Square ManchesterUp to 7% Rental yield. Surrounded by 5 Major Universities & medical hub. From £129k.

Citu NQ Manchester – Luxury apartments in the heart of Manchester city center.

 

UK London Property for Sale:

Royal Wharf London – Waterfront Mixed Development near Canary Wharf, 1 minute walk to tube station.

Looking for Overseas Property Investment Opportunity?

Speak to our International Property Consultant today!

WhatsApp Andrew Tan +65-94361903 for Recommendations & Latest Update!

Thailand • Cambodia • Vietnam • Malaysia • UK • Singapore

www.LuxuryProperty.sg

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