Bangkok is without a doubt Thailand’s economic center and it plays host to the headquarters of some of the country’s leading conglomerates. With an estimated population of 6 Million+ residents, the Capital has consolidated its position as an attractive global destination to live and work. This is in large part because the city offers a multitude of business and job opportunities to both ambitious local Thais and Expats. The appeal of Bangkok is not only monetary or career-led, as the City also offers tremendously good work life balance.
Bangkok is currently presenting an incredibly attractive investment case!
In this article we will explore 5 reasons why Bangkok is the right place to invest in property:
1. Positive Economic Fundamentals
Whole articles can be dedicated to this topic, and in the past few years Thailand’s export-led economy has experienced tough economic conditions. However the country is resilient and incredibly well-positioned to benefit from growth in the dynamic South East Asian region. This is due to a variety of factors notably:
– An advantageous geographical location in the heart of the ASEAN Economic Community.
– A competitive and aggressive homegrown roster of conglomerates.
– Generally well-developed national infrastructure and logistics.
The list goes on…
Sustainable Economic growth will result in the accumulation of more wealth by local residents and this will inevitably result in growth in discretionary spending (I.e. upgrading or investing in Condos)!
2. Urban Development
Bangkok is currently experience a spurt of development activity however an interesting development is the Government’s massive push to try and expand Bangkok’s Mass Transit Lines (BTS Skytrain and MRT) to service more neighborhoods. Facilitating travelling/ commuting across Bangkok by improving public transport will undoubtedly have positive effects on the local property market. See the scale of the infrastructure development pipeline in pictures below:
On top of this, some of Bangkok’s neighborhoods are experiencing unprecedented levels of gentrification and are welcoming new commercial hubs and residential developments. This is bound to improve the appeal and attractiveness of numerous areas throughout the city; even neighborhoods formerly viewed as rough and unattractive investment locations.
3. Solid Rental Market
The multitude of career and business opportunities available in the capital attracts both Thais (From all over the country) and Expats (From all over the world)!
This has created a unique and vibrant rental market for condos, houses and apartments. In Central Bangkok, rental condominiums are currently offering a decent 4-6% Rental Yield which is a solid level of return. Interestingly, there is consistent demand throughout the year with only minor drops during the Songkran (April) and December Periods.
4. Quality Developments
Bangkok’s Residential Developers now operate in a highly competitive business environment; as a result this has pushed building standards to new levels of quality, design and functionality. Now most condominiums in the city center offer good-sized pools, fully-equipped gyms (Many of them rooftop) and a multitude of enviable amenities. On top of that, individual units within those buildings are often sleek, modern and stylish.
5. Relative Affordability
In Bangkok, space is currently sold at a premium and being the Capital City property prices are creeping up to unprecedented levels. In certain prime areas some developments are achieving stunning prices of 250,000+ THB Per/Sqm. which is a record for Bangkok. The positive market conditions offered are gradually pushing the price of Condos (Especially new project developments) to new heights.
However it is important to note that considering Bangkok is the economic center of Thailand and a global destination (For business and tourism) property prices are still relatively affordable. Bangkok offers property in attractive neighborhoods at relatively good entry-prices with decent 1 Beds still available for between 2.5-5 MTHB. If compared directly to some of its regional counterparts such as Singapore and Hong Kong, the City still offers good-value!
This brings us to the end of the 5 Top Reasons to invest in Bangkok!
The list presented in this article, is in no way exhaustive and there are numerous other reasons why Bangkok is presenting an increasingly attractive investment opportunity.
The city is incredibly diverse and it offers an amazing quality of life that is attracting global residents from the 4 corners of the globe. This residential appeal is the simple reason why Bangkok is likely to continue producing healthy returns to property buyers in the coming years!