Luxury condos in Bangkok are priced at far less value than equivalent living spaces in Hong Kong and Singapore, making them a relatively cheap investment. Many businesses have chosen to make Bangkok their Southeast Asian base, which has created a lively demand for condos, which has resulted in a growing foreign demand for residential properties, especially among the many foreign buyers from Hong Kong, Shanghai, Singapore, Taiwan, India and Russia, who tend to be secondary homebuyers. Smaller numbers apply to Europeans and Americans.
Bangkok still has pulling power in the property market despite the protests and prime condos have a distinct competitive advantage over their Asian counterparts. The year ahead looks bright for the luxury condo market, with no signs of a bubble in the market this year and the city’s real estate agents remain bullish.
While some buyers have stalled on their investments, price rises have been constant for several years now at an average rate of around 5 per cent. And although Thailand’s economic growth has dipped due to the political situation, the Bangkok property market remains relatively unscathed with demand across all property sectors robust, especially the high-end sector of the market.
Indicators of this steady growth is shown by the steady prices of condos and sturdy rental incomes and there has also been a supply of new condominium projects that have been well received. This is particularly true of those located near to Skytrain stations. Bangkok is also attractive to many buyers because of its services that are affordable in Bangkok and normally reserved for the ultra-wealthy in Asia, including personal drivers, maids and live-in nannies.
Buying a condo in Bangkok is the most popular option among foreigners, particularly in the Sukhumvit and Silom areas, and there were eight major launches of new condominium projects last year. This, of course needs to be qualified as buyers, property developers and investors have taken a far more cautious approach due to the political fallout from the protests, with many of them adopting a wait-and-see attitude.
However, past experience has taught us that previous stretches of political tumoil since 2006 suggests that caution is generally short lived and the effects on the bangkok property market have been markedly limited. Some buyers remain undeterred as prices per square metre remain significantly lower than in the more expensive neighbouring countries. Although this uncertainty exists at present, investors remain bullish despite the rudderless political landscape the country the country finds itself in.