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Condo Prices Surge 40% in Thong Lor

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Condominium prices on Sukhumvit Soi 39 and the Thong Lor area have surged by 40% over the past five years.

Thong Lor also takes the cake for the highest rental costs in Bangkok at 1,000 baht per square meter per month, reported property consultant Nexus Property Marketing Co.

Managing director Nalinrat Chareonsuphong said the company, after compiling data on newly-launched condominiums in central locations in the capital, had found that property prices have risen continuously due to an insufficiency of land for development and high demand both from Thai and foreign investors. Hence, new projects tend to pull high returns from either sales or rent.


The Nexus survey found property prices on Sukhumvit Soi 39 and in the Thong Lor area had posted the highest increase over the past five years, rising 40% from 183,000 baht per sqm to 255,000 baht per sqm. Meanwhile, prices in the Rachada-Rama IX area and Ekamai surged 34% and 30%, respectively.

Condominium prices near the city center, such as the beginning of Phahon Yothin Road, Phaya Thai, and Thon Buri have also increased by 13-26% over the last five years.

In the first quarter of 2018, the average price of newly-launched high-end and luxury condominiums in inner Bangkok and its environs was 208,600 baht per sqm. The Sukhumvit 39-Thong Lor location registered the highest price at 315,000 baht per sqm, followed by Chidlom and Langsuan at 262,000 baht per sqm and Sathon (243,000 baht per sqm).

Rental costs

The average cost to rent high-end condominiums in inner Bangkok and surrounding areas is 754 baht per sq m per month. The rental rates in Sukhumvit Soi 39-Thong Lor, Langsuan and Sathon are 1,000, 955 and 823 baht per sqm per month, respectively. Most tenants are Japanese, European and Americans who work in the Bangkok’s central business district.

Meanwhile, the rental rates of high-end condominiums in inner Bangkok and surrounding areas range between 526-800 baht per square meter per month. The highest rental cost goes to the Ekamai and Phaya Thai areas, respectively. The rental rates in Rachada–Rama 9 and Thonburi are lower than other areas because most tenants are Thai and other Asian nationalities, except Japanese, who also work in Bangkok.

Rental rates per sqm for one-bedroom and two-bedroom units in the city center are more or less the same, with prices for the latter only 1-2% higher.

For central locations like Thonglor, Langsuan, and Sathorn, rent ranges from 43,000-52,000 baht per month for a one-bedroom unit and 65,000-82,000 for a two-bedroom unit. For central locations, the rental rate ranges from 19,700-33,000 baht per month for a one-bedroom unit and 33,500-54,600 baht per month for a two-bedroom unit.

Return on Investment

When comparing the return on investment in condominiums over the past five years, the survey found that when it came to buying a condominium in 2013 and renting it out, an investor would get a 6.1% return per annum. Ekamai retained the highest yield at 7.7%, followed by Phahon Yothin (7.2%), Thong Lor (6.6%) and Langsuan as well as Phaya Thai (5.6%), respectively.

Investing in condominiums not only gives investors an annual return from renting, but also generates capital gains from sales, as the prices regularly climb. The return on investment for the overall luxury market has been relatively high over the past five years. Thong Lor gives the highest total return on investment at 66% from rent and sales, followed by Ekamai (61%) and Rachada-Rama IX (58%). The average return on investment has been 50% over the last five years.

Although condominium prices have continued to increase, the location that gives the highest return per year for condominium investment is Thon Buri at 5.4%, followed by Ekamai (5.2%) and Phahon Yothin (4.9%).


The overall condominium price is forecast to increase 8-10% per year over the next three years. Condominium prices in the city center are projected to rise 12-15%. For areas surrounding inner Bangkok, the annual yield will be higher in the short term, while investing in a condominium in inner Bangkok itself may provide higher capital gain from sales.

Therefore, the total return on investment from condominiums both in inner Bangkok and surrounding areas will more or less be the same.

The key factors that buyers should consider before purchasing a condominium are good management and building maintenance.




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