Editor: Cheyenne Hollis
Pages 26, Dot Property Magazine ISSUE 024 Q3 2018
Finding the best place for Bangkok real estate investment has long led property buyers to the city’s central business district. In more recent times, so-called Thailand property experts have been trumpeting the potential of neighbourhoods like RamaIX, home to a second business district, as well as locations such as Bearing towards the end of the city’s mass transportation lines like the Bangkok Skytrain and MRT. However, new research from Thailand-based research firm Nexxus Property has found that while these neighbourhoods can be lucrative, they are not home to the highest price growth or return on investment during the past five years. That distinction belongs to the Phrom Phong and Thonglor neighbourhoods where condominium prices have risen by more than 40 per cent since 2013. And this isn’t the only reason they are the best place for Bangkok real estate investment. Research from Nexus Property found Thonglor provided investors with 66percent total returns (rent and sales combined), the highest total in the Thai capital, with PhromPhong not far behind. This was driven in part by rental rates, which average near THB1,000 (CNY 200) per square metre per month in the Phrom Phong and Thong Lor neighbourhoods. The total is one of the highest in Bangkok surpassed by only the peak luxury areas of WirelessRoad and Chit Lom. Meanwhile, neighbourhoods such as Rama IV may have potential, but don’t have the track record of Phrom Phong and Thong Lorneighbourhoods. Investors are picking up units here based on expected demand and price growth. However, Landis still readily available and more time is needed to fully analyse both rental demand and price appreciation in more suburban areas of the city. Additionally, some oversupply is already being recorded in fringe areas of the Thai capital. Nexus Property managing directorNalinrat Chareonsuphong told the Bangkok Post that property prices in Phrom Phong and Thong Lorare soaring due to a limited supply of land available for development and continued demand from Thailand foreign investors in these areas. She added that land prices have risen in these neighbourhoods for seven consecutive years, a positive sign for such an established location. These prices are predicted to increase by ten per cent during the next two years what makes Phrom Phong and Thong Lor the best place for Bangkok real estate investment? Phrom Phong and Thong Lorare less than a kilometre apart and share some common traits. Both are popular residential communities among ex-pats working in Thailand due to their lifestyle options. A wide range of shopping, dining and nightlife can be found in this part of Bangkok which makes it lively during the evening and weekends. The influence of the city’s ex-pat population, who have preferred this part of the Thai capital for decades, can be found, throughoutPhrom Phong and Thong Lor. Several new shopping centres are popping up as well. EmQuartierin Phrom Phong has become one of Southeast Asia’s most popular shopping destinations while the Commons in Thong Lor developed a reputation as being the spot to hang out in Bangkok. Finally, each neighbourhood is home to a unique collection of outstanding properties that vary in size. When you put all of these reasons together, it is easy to see why Phrom Phong and Thong Loris the best place for Bangkok real estate investment.