Buy-to-let (BTL) Investments follows a simple formula, simply buy property in locations that offer a combination of:
– Convenient Commutes (To key areas of the city).
– Appealing Lifestyle.
– Quality (Possibly Good Value) Accommodation Options.
Neighborhoods that are able to fully integrate these 3 lifestyle offerings transform and develop into popular residential hubs and investors inevitably profit.
“Capital Appreciation and healthy Rental Yields are the inevitable results of investing in an appealing and popular residential area”
Phra Khanong Lifestyle Overview
Phra Khanong is a prime example of this principal in action, and in recent years it has successfully cemented itself as an ultra-popular investment and residential neighborhood.
This can be attributed to several factors notably:
Affordable Condo Options
The hiking prices of condos (Rental and Sales) in prime Sukhumvit (I.e. Asoke, Phrom Phong, etc…) has inevitably resulted in spillover of Thai and Expats into the area. Interestingly, Phra Khanong is still comparatively affordable for both buyers and renters.
Convenient Commute Times
Phra Khanong appeals primarily to working professionals employed in the business hubs of Sukhumvit notably Asoke and Phrom Phong. Served by the BTS Green Line (BTS Phra Khanong Station), residents can quickly travel to these key commercial, leisure and business locations within 15 Minutes.
The area is also convenient for road users, who can quickly access several major roads most notably Rama 4 and Phetchaburi/ Pattankarn Road.
While still “work in progress”, Phra Khanong is gradually developing into a pleasant residential neighborhood. The area has recently welcomed a new community mall “Summer Hill” which complements the already existing W-District.
On top of this several independent coffee shops, eateries and restaurants are gradually starting to mushroom in the neighborhood.
Phra Khanong Property Investment Highlights
The neighborhood offers several key value propositions to buyers, especially those looking for a buy-to-let investment.
1. Relatively Affordability
Several established developers notably Sansiri, Land and Houses and AP (Thai) have launched and completed Projects in the neighborhood. Potential buyers therefore have a varied choice of modern and good-quality residential condos.
With an approximate average sales prices ranging between 120-150,000 baht per square meters, Condos in the neighborhood are still great value; especially when compared to neighboring Thonglor/Ekamai (Only approx. 1 Km away) where 150,000 THB+ per square meters is standard.
2. Established Rental Hub and High Occupancy
Phra Khanong has consolidated its position as an affordable rental hub for Sukhumvit’s working professionals. The area is popular with both Expats and Thai that are attracted to the area’s affordable rental condos.
This is an important factor, as Bangkok’s growing supply of condos means that occupancy rates is an important investment consideration. According to a report by Plus Property Management dated August’17, occupancy rates in Phra Khanong are above 80%. On top of this the neighborhood is currently offering between 4.5-6.5 % Average Rental Yield.
3. Area Gentrification and Development
Phra Khanong will continue to benefit from spillover investment, especially from homebuyers and investors that are priced out of the increasingly expensive prime areas of Bangkok.
It is important to note that Phra Khanong’s lifestyle offering and general development as a residential hub is still “work in progress”. Still “rough around the edges”, the neighborhood is gradually gentrifying and this could be an opportunity for investors to profit from Capital Appreciation gains.
Example of BTL Condos in Phra Khanong
1. Aspire Sukhumvit 48
2. Life @ Sukhumvit 65
3. The Line Sukhumvit 71
4. Rhythm Sukhumvit 44/1
5. Wyne Sukhmvit