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BANGKOK REAL ESTATE REPORTS AND GUIDES | EASYHOMES.tv

BRITISH REALTORS
BANGKOK, THAILAND

EASYHOMES.TV VIEWS BANGKOK PROPERTY
INVESTMENT POTENTIAL FOR 2014

An Overview of Bangkok Real Estate
WHAT DOES 2014 LOOK LIKE FOR PROPERTY INVESTORS?
If you have ever thought about investing in South East Asia (SEA),
specifically in property, then you will find this guide useful.
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 Thai 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
expatriates. Without doubt, this is one of the most prosperous nations in the entire region.

An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV
EASYHOMES.tv
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 45% 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's residential property market, 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 sceptical 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 of recent times, have had little impact on real estate.

An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P1
EASYHOMES.tv
Teflon Thailand!
This is, without doubt, an incredibly resilient country. It's by no coincidence that the Old Siam has
been given the nickname by other nations of "Teflon Thailand" so called because whatever turmoil
hits the country, nothing ever seems to stick. Nothing!

Thailand’s 2008 Condominium Act Amendments
The 1979 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 numbers 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 successfully 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’.

Searching for Property Along the BTS and MRT
If you look for accommodation using our “Search by BTS and MRT” search tool, you will see that
most new developments have sprung up within a 500m – 1km radius of a BTS or MRT station, with
some others being 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, 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.

An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P2
EASYHOMES.tv
About EasyHomes.tv
Why choose Easy Homes? First and foremost, we take great pride in listening to our clients and
customers' needs. We then work with them to provide and maintain a first-class professional
service, but also a range of products to match.
Easy Homes is a progressive, independent company, providing a dedicated and professional service.
Customers' needs are paramount and we believe in putting people first by dealing directly with all
our customers, placing emphasis on friendly, assured assistance with effective feedback. Our aim is
to be the agent of first choice, by gaining and maintaining a reputation for delivering the highest
possible standards of integrity and performance. We achieve this by utilizing cutting-edge
technology combined with the traditional value of courtesy and professionalism.
At Easy Homes, we pride ourselves in giving only the highest standard of customer service. So if
you're buying, or looking to let, we have developed our own unique brand of management.
Whether you're relocating job, moving abroad, looking for an investment or any other reason, Easy
Homes can help.

EASYHOMES.tv
EasyHomes Property Services Co., Ltd
Website: www.easyhomes.tv
Like Us on Facebook
Follow Us on Twitter
----------------------------------------------------------------------

An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P3

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An Overview of Bangkok real estate in 2014

  • 1. BANGKOK REAL ESTATE REPORTS AND GUIDES | EASYHOMES.tv BRITISH REALTORS BANGKOK, THAILAND EASYHOMES.TV VIEWS BANGKOK PROPERTY INVESTMENT POTENTIAL FOR 2014 An Overview of Bangkok Real Estate WHAT DOES 2014 LOOK LIKE FOR PROPERTY INVESTORS? If you have ever thought about investing in South East Asia (SEA), specifically in property, then you will find this guide useful. 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 Thai 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 expatriates. Without doubt, this is one of the most prosperous nations in the entire region. An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV
  • 2. EASYHOMES.tv 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 45% 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's residential property market, 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 sceptical 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 of recent times, have had little impact on real estate. An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P1
  • 3. EASYHOMES.tv Teflon Thailand! This is, without doubt, an incredibly resilient country. It's by no coincidence that the Old Siam has been given the nickname by other nations of "Teflon Thailand" so called because whatever turmoil hits the country, nothing ever seems to stick. Nothing! Thailand’s 2008 Condominium Act Amendments The 1979 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 numbers 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 successfully 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’. Searching for Property Along the BTS and MRT If you look for accommodation using our “Search by BTS and MRT” search tool, you will see that most new developments have sprung up within a 500m – 1km radius of a BTS or MRT station, with some others being 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, 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. An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P2
  • 4. EASYHOMES.tv About EasyHomes.tv Why choose Easy Homes? First and foremost, we take great pride in listening to our clients and customers' needs. We then work with them to provide and maintain a first-class professional service, but also a range of products to match. Easy Homes is a progressive, independent company, providing a dedicated and professional service. Customers' needs are paramount and we believe in putting people first by dealing directly with all our customers, placing emphasis on friendly, assured assistance with effective feedback. Our aim is to be the agent of first choice, by gaining and maintaining a reputation for delivering the highest possible standards of integrity and performance. We achieve this by utilizing cutting-edge technology combined with the traditional value of courtesy and professionalism. At Easy Homes, we pride ourselves in giving only the highest standard of customer service. So if you're buying, or looking to let, we have developed our own unique brand of management. Whether you're relocating job, moving abroad, looking for an investment or any other reason, Easy Homes can help. EASYHOMES.tv EasyHomes Property Services Co., Ltd Website: www.easyhomes.tv Like Us on Facebook Follow Us on Twitter ---------------------------------------------------------------------- An Overview of Bangkok Real Estate, 2014 | WWW.EASYHOMES.TV | P3