by Daryl Lum | Nov 21, 2018 | Bangkok Property Market Updates
Mention Phrom Phong and the usual thing that comes to mind is the EMQuartier and Emporium shopping mall. However, Phrom Phong is an extremely diverse and cosmopolitan neighbourhood with a good mix of affluent Thais and expatriates frequenting this area in Bangkok. You will find many Japanese and Korean expatriates in this area and consequently, there are many Japanese and Korean restaurants, supermarkets and bars in the area. The EMQuartier is just about the most upmarket mall you can find in central Bangkok. It is filled with high-end brands like Fendi, Emporio Armani and Rolex to name a few and also features a state of the art cinema and, my personal favourite part of the mall, the Helix Dining area. This is a part of the mall where you can walk along in a spiral lined with food outlets.
The EMQuartier is just one of three malls planned for the “EM District”. The EM District will also feature the existing Emporium and the EMSphere. Emporium is on the other side of Phrom Phong BTS Station, opposite the EMQuartier. It too features high-end luxury brands and is frequented by wealthy Thais and expatriates.
Phrom Phong BTS Map
The Phrom Phong does throw up a lot of opportunities for property investment. Understanding the nature of the tenants who will be renting the area is important. The typical tenant would most probably be a foreign expatriate. There is a large number of Japanese tenants living in this area. A useful point to note would be that the Japanese do like large bathrooms with a bathtub. This could be something to take note of when buying a property in the area. Also, loft units are preferred by many tenants as the high ceiling of loft units makes the apartment unit feel larger and more inviting.
Here are some projects which you may want to consider:
1. Noble State 39
Noble Development is one of my favourite developers in Bangkok. Their projects are usually located very close to the train station (Noble Ploenchit, Noble Around Ari and Noble Remix. These are right next to the train station!) Their design can be rather unflattering though and their workmanship is not bad but not the best in Bangkok. However, if you are looking for developments with good location qualities, Noble Development is one developer which you should be looking at. It just seems that they have properties in really prime locations in central Bangkok. Noble State 39 is located just behind The EMQuartier. It is a high-rise, 36 level condominium with 352 units sitting on a plot of land approximately 3,026 square meters in size. For more details, you can visit the Noble State 39 website here.
You can take a look at the walk to the BTS Station and a review of the development at this link:
investbangkokproperty.com/noble-state-39/
Here is a review of Noble State 39
2. EYSE Sukhumvit 43
EYSE Sukhumvit 43 is developed by Singha Estate. It is located about 5 minutes away from Phrom Phong BTS Station. It is located 2 sois away from Phrom Phong BTS and there are amenities like supermarkets and schools in this vicinity.
For more information about EYSE Sukhumvit 43:
investbangkokproperty.com/eyse-sukhumvit-43/
3. Noble BE 33
While it may seem a bit weird to have 2 out of 3 developments from Noble Development, I do think that their developments do warrant a mention. Phrom Phong prices are not cheap. In fact, they are extremely expensive and if you are looking at anything along the main Sukhumvit Road, do be prepared to pay an arm and a leg and perhaps a kidney to afford one. MARQUE Sukhumvit by Major Development is a prime example of this. Prices at MARQUE Sukhumvit start from THB350,000 per square meter and absolute quantum start at about 42 million THB. Noble BE 33 is located two sois away from The EMQuartier and is priced more affordable at just above THB200,000 per square meter. It is still a high rise development with full condominium facilities and is within the soi which is quieter.
If I were to pick one of the three, I would go for Noble State 39. In my opinion, the properties on the same side of the BTS track as The EMQuartier are more popular. My take would be to be as close to The EMQuartier as possible. Sukhumvit Soi 39 is wider and neater than the other two developments. I would not consider properties like MARQUE Sukhumvit or The Address Sukhumvit 28 if I were looking to rent these properties out. These properties are extremely high end and their rental yield is very low. In general, properties around Phrom Phong BTS Station are extremely easy to rent and is one of the best location for property investment.
Yours Sincerely,
Daryl Lum
Here are some articles that we hope will aid you in your search for an investment property in Bangkok:
The good locations for property investment in Bangkok
Where are the up and coming property investment locations in Bangkok?
A compelling case to invest in Bangkok
Guide to buying a property in Thailand
Thailand Property: Legal and Tax Issues
Recognising the different property title deeds in Thailand
Can a foreigner take a property loan in Thailand?
Buying property in Bangkok: Payment procedures
A guide to the top property developers in Thailand
Thailand Property Market Outlook for 2018
Thailand as a retirement destination
How to get a Retirement Visa in Thailand
My personal experience purchasing a property in Bangkok
Things to take note when investing in an overseas property
Factors that determine the property price in Bangkok
Looking to buy a Bangkok condo? Things to take note of.
Thailand property inheritance laws: taxes, succession and wills
by kevinyeo | Nov 20, 2018 | Bangkok Property Market Updates, Developer Watch, Investment Analysis, Rental Market & Landlord Guides
American hotel chain The Standard plans to expand to Phuket, Hua Hin and Bangkok’s Thong Lor, with 150 rooms each, developing residences for sale at the two beach destinations after SET-listed developer Sansiri Plc invested USD 58 million (1.9 billion baht) in the company last year.
Amar Lalvani, chief executive of parent firm Standard International, said the hotel in Phuket will be a renovation of an existing hotel with 50 rooms near Banana Beach, opening by 2020.
“Apart from the renovation, we plan to build 100 new rooms at the Phuket hotel and develop 50 units, including villas and condos for sale under The Standard Residence brand on remaining plots nearby owned by the existing hotel’s owner,” Mr. Lalvani said.
The second destination will be Hua Hin. Plans call for building 150 condo units for sale, to be operated as hotel rooms under The Standard Residence, opening in 2021.
Thong Lor will be the third location in Thailand with 150 rooms, all of which will be new and strictly for hotel operations, opening in 2021.
“Sansiri will seek investors to invest in each site,” Mr. Lalvani said. “The investment of USD 58 million with us last year can help us expand from the current five locations to 20 in the next five years.”
The Standard started with its first hotel in Hollywood in 1999 and expanded to downtown Los Angeles, Miami and two sites in New York with more than 900 rooms combined. Occupancy runs about 85%, 82%, 79%, 91% and 90%, respectively.
The first quarter of next year will see the opening of The Standard in King’s Cross, London with 262 rooms. This will be a renovation and the first location outside the US. The average daily rate is expected to be £305 (13,130 baht), with revenue per available room of £260.
Apichart Chutrakul, Sansiri’s chief executive, said The Standard was one of six companies in which it invested last year with total spending of USD 80 million. The investment of USD 58 million in the hotel company made Sansiri one of the major shareholders with a 35% stake.
Among the six firms, Sansiri invested in Singaporean co-working space operator JustCo, which got an investment of USD 177 million in May from Singapore-based Frasers Property, owned by the Sirivadhanabhakdi family, and Singaporean sovereign wealth fund GIC.
Both became major shareholders of JustCo with a 50% combined stake, while Sansiri, which injected USD 12 million last year, holds a 6.09% stake.
SIRI shares closed yesterday on the Stock Exchange of Thailand at 1.52 baht, down one satang, in trade worth 84 million baht.
by kevinyeo | Nov 19, 2018 | Bangkok Property Market Updates
Mixed-use development is booming in one of the city’s prized neighborhoods.
The vibrant Ari-Phahon Yothin neighborhood in Bangkok is being transformed into the newest centre for mixed-use developments that include office space and residences for people who are seeking a quality urban living experience.
Along the two-kilometer section from the Ari to the Saphan Khwai BTS stations, in particular, government premises, office buildings, and mixed-use developments have been going up, surrounded by abundant facilities for all lifestyle needs — community malls and department stores, hospitals, eateries, coffee shops and more. Easy to access by foot or skytrain with short time traveling in- or outbound, it’s become the desired location for everyone to move in, and it’s rare that the original residents decide to move out.
Nalinrat Chareonsuphong, managing director of Nexus Property Marketing, the real estate consultant, said the Ari-Phahon Yothin area has high potential to become one of the capital’s next major locations for office space.
It’s already home to some prominent public and private office buildings such as Exim Bank, the headquarters of Government Savings Bank, the NBTC, Kasikornbank’s head office and AIS Tower, but also three brand-new Grade A office buildings: the 25-storey Pearl Bangkok; Ari Hill, the 34-storey mixed-use centre consisting of office space, retail and residential accommodation; and the 24-storey SC Tower. The three buildings are expected to be workplaces for a combined 6,050 people in total.
Moreover, Mrs. Nalinrat said, there are under-construction projects scheduled to be completed in the next few years: The Rice, a 2-billion-baht 24-storey mixed-use development, and Pruksa’s Vimutti Hospital, a 5-billion-baht healthcare project, both expected to open in 2020; and Vanich Place by Laemthong Corporation, a 31-storey office building and community mall set for completion in 2021.
“The continual rise of high-end skyscrapers underlines the fact that this area remains one of Bangkok’s CBDs,” she said, referring to central business districts. “Blending with the charming contemporary lifestyle, it beckons the new generations to move in.”
With its outstanding strength in ongoing developments of office buildings and high-end skyscrapers, plus an easy-to-commute location, Ari-Phahon Yothin has an opportunity to become a city residential centre with growth in demand, supply, and prices.
Since 2013, more and more condominium projects have opened, both high-rise and low-rise. Out of 16 projects, 3,318 units were sold, or about 81%, Mrs. Nalinrat said.
Projects newly launched in the two years mainly had a sales rate exceeding 70%. High-end condos (110,000 to 190,000 baht per square meter) hold the biggest market share at 74% or 2,544 units of both high- and low-rise condos. The best-sellers of this cluster are projects with a selling price of 110,000 to 120,000 baht per sqm, mostly in the Inthamara neighborhood, while there is nothing with this selling price developed in Ari-Phahon Yothin. Thus the area is a potential marketing opportunity for the property industry.
“The market demand for low-rise condos in this zone is continually seen, as the price for a residence located in the heart of Bangkok, near the sky train stations, sounds reasonable and affordable,” Mrs. Nalinrat said. “Meanwhile, the selling price of high-rise condos is more expensive, due to the price of the land plot and its availability. Additionally, the advantage of a low-rise one is fewer units in each project, which could bring a vibe of privacy that exactly meets the demands of the modern urban life.”
She said that in the current fast-paced world, one of the most important matters is to have a home in town in a bid to reduce traveling hours and gain more leisure time in style.
Living in Ari-Phahon Yothin could bring homebuyers closer to that goal.
by kevinyeo | Nov 14, 2018 | Questions and Answers
Question: What is the difference between mass market and investment grade condo?
Answer:
There are 4 aspects to this question.
Location
There are very specific locations where good quality tenants will want to stay. It is imperative that you know where these locations are. Buying into wrong locations without proper tenant catchment area will cause you much headache. Naturally, to be considered an investment grade condo, the property has to be in the right locations. For example, Thonglor, Ekkamai, Chidlom, Sathorn, etc.
Density Of The Development
Most of the time, the better grades of condos typically have a lower density. This is also because of the greater exclusivity and larger sized units that are synonymous with high-end living. On the other hand, the mass market condo can be found having a high number of units squeezed into a small plot of land.
Quality Of Finishing
The quality of finishing between investment grade and mass market condo can be very distinct. From flooring to kitchen cabinets, the material used for investment grade condos is likely to be far superior. And it is rather common for investment grade condo to come fully furnished as it appeals to international buyers.
Condo Facilities
A lot of investment grade condos now come with fantastic facilities. This is important as the facilities are sometimes a deciding factor in your ability to attract good tenants or perhaps command a slightly higher asking rent. The mass-market condo is mostly sold to locals and the most important thing is affordability. Facilities may not be as comprehensive.
Not getting an investment grade condo may result in a lot of difficulties in renting or selling in the future.
Got a question? Reach us at [email protected]
by kevinyeo | Nov 7, 2018 | Questions and Answers
Question: Should I Invest In Bangkok Property With Personal Name or Company?
Answer:
This is another question we get asked often. Other than under special circumstances, we would always advise that clients do so under the personal name. The process is a lot more streamlined and of less hassle.
In fact, if you understand how the Thai tax structure works, it can be less costly to sell the property under a personal name rather than a company.
The selling taxes and withholding taxes as a personal name is lower.
There is no significant advantage of holding property under a company unless there are specific reasons to do so.
Got a question for us? You can reach us at the following:
[email protected]
[email protected]
