by Daryl Lum | Jan 31, 2019 | Bangkok Property Market Updates, New Launches & Project Previews
A recent report by Knight Frank Thailand stated that the condominium market in Bangkok in 2018 set a record for the most number of new project launches in the past decade. For 2018, there were about 65,000 units that were released to the market. This represented an 11 per cent increase from 2017 numbers. Most of these units, about 42,000 of them, were released in the 2nd half of 2018. Let us analyse these figures and understand them a little better to make better investment decisions.
1) The bulk of these new launches, in fact about 57 per cent of the 65,000 units, were for developments in the outskirts of Bangkok. These developments are located along the extensions of the Green and Blue train lines.
Our take: We have always advocated buying in prime Bangkok. Most of the supply is happening in the outskirts of Bangkok where land is freely available. As the metro lines are expanded gradually, many developments will market themselves as being close to a train station. Buyers have to be discerning enough to know the locations with rental and resale demand.
2) The proportion of new supply in the Central Business District (CBD) of Bangkok was about 18 per cent or about 11,700 units.
Our take: Land in the CBD is scarce. Prime projects next to train stations in the CBD will sell out fast. The LINE Sathorn, next to Surasak BTS, sold out in 3 weeks. The bulk of which were local Thai buyers.
3) The proportion of new supply in the areas around the CBD was about 33 per cent or about 21,450 units.
4) The locations which developers focused on were
- From Asok to Ekkamai
- Phahon Yothin (Mo Chit to Khu Khot)
- Rama 9 to Ratchadaphisek
- Lad Prao to Rakhamhaeng
- Charan Sanitwong to Phetkasem
Our take: We still stand by our recommended areas to invest in Bangkok.
The good locations for property investment in Bangkok.
Where are the up and coming property investment locations in Bangkok?
5) The take-up rate was about 55 per cent. Condominiums in the CBD had take-up rates of about 51 per cent and the surrounding areas had take-up rates of about 64 per cent.
Our take: These rates are the total rates for all developments. Those that are far away from train stations and from less reputable developers with less quality finishing tend to do poorly in terms of sales as compared to the larger developers.
6) New suburban condominiums enjoyed about 50 per cent sales rate. Popular locations are from Asok to On Nut, Udom Suk to Bearing, Rama 9 to Ratchadaphisek, Phahon Yothin and Thon Buri.
7) The average selling price for all new units in 2018 is THB150,641, down 6 per cent from the previous year. The average price in the CBD was THB250,000, down 8 per cent and the area around the CBD was down 7 per cent to 120,000 baht. The average price of newly launched suburban units increased 3 per cent from 2017 and is up 20 per cent from 2015.
Our take: As Bangkok city expands further outwards, we will see many “cheap” offerings. Many foreigners may find these developments very cheap compared to properties back home. This is especially true for buyers from cities like Hong Kong and Singapore. However, we still advocate understanding the location before making a purchase as some of these locations do not have good rental and resale markets.
Yours Sincerely,
The editorial team at InvestBangkokProperty.com
by kevinyeo | Jan 31, 2019 | Questions and Answers
Question: What Insurance Do I Have To Get For My Bangkok Condo?
Answer:
- If you have an outstanding housing loan for your Bangkok condominium, the bank would require you to obtain mortgage insurance. In the unfortunate event of the demise of the property owner, the property will be paid up in full by the insurance. Of course, if the property is fully paid in cash, this insurance is not required.
- Another consideration is to get a fire and theft insurance for your Bangkok condominium. This is usually offered to you when opening a bank account in Bangkok. You can also choose to get it from independent third-party providers but for ease of the procedure, we would recommend you just get it from the banks. The fire and theft insurance is relatively cheap and you can opt to have the insurance premium deducted via GIRO from your bank account.
These insurances mentioned are only required when your property is completed.
Got a question? Reach us at [email protected]
by kevinyeo | Jan 30, 2019 | Questions and Answers
Question: What Are The Roles Of A Juristic Person In Bangkok Condo?
Answer:
Who is a juristic person?
A Juristic Person is someone who sits in the condo management office a.k.a the juristic office. While their primary purpose is to take care of all things related to the upkeep of the condominium, they can also provide value-added services to the individual property owners.
For example, if you are a foreigner owning 1 of the units in the condo, you can get the juristic person to assist with the paying of the utility bills.
They are also in charge of informing all property owners of any impending general meeting and to facilitate the meeting.
If you are keeping the property as a holiday home, you may also choose to leave 1 set of keys with the juristic person. When you plan to stay over in Bangkok, you can then get them to arrange for 1 round of general cleaning before you arrive. (subject to cleaning fees)
In summary, besides fulfilling their primary role of upkeeping the auxiliary facilities of the condominium, they also double up as a concierge.
Got a question? Reach us at [email protected]
by Daryl Lum | Jan 29, 2019 | Bangkok Property Market Updates, Expat Living & Relocation, Investment Analysis
On the 28th of January, the Business Times ran a report entitled “Thai property can stay hot in chillier times”. It narrated the demand that is expected to come from the Chinese and how as the Chinese middle class continues to grow and accumulate wealth, the demand for property investments in Thailand will remain strong. These are the factors that will encourage the Chinese to invest in properties in Thailand, mainly Bangkok.
1) Thailand is considered a safe haven
In an era with great turmoil around the world and with the US and China embroiled in a trade war, Thailand is seen as a safe place to park their monies. The Thai Baht has proven to be very resilient over the past decade.
2) Benchmark interest rates are still low
Thailand’s benchmark interest rate is at 1.75 per cent and inflation is at about 0.4 per cent. This means that lending cost is low and this is a huge benefit for the construction industry. Mortgage rates for locals are very attractive. So much so that the Thai government needed to step in to regulate excessive risk-taking in the property market.
3) Tourism is still a very strong driver of the economy
Tourism contributes about one-fifth of Thailand’s Gross Domestic Product (GDP). Bangkok is still the world’s most visited city in the world, even ahead of cities like London.
4) The Thai government is expanding its visa-free entry policy for the Chinese
In a bid to entice the Chinese to visit Thailand, the Thai government implemented a visa-free entry policy for the Chinese. Now they are extending this policy till 30th April 2019. This waiver alone is expected to boost tourism by 30 per cent.
To read the full Business Times article, visit this link:
https://www.businesstimes.com.sg/real-estate/thai-property-can-stay-hot-in-chillier-times
The team at Invest Bangkok Property is positive of price growth in the medium to long term. In the short term, due to external factors like a slowing global recession and repercussions of a trade war between the two largest economies in the world, we would recommend clients make property investments with a longer horizon. The elections should go along smoothly but if it does not, there is a chance that it will adversely affect the Thai economy. The Thai economy and correspondingly, the Thai Baht has been the standout performer in South East Asia in the past decade. For a narration of how strong the Thai Baht has been, you may refer to this article: My views on the Singapore and Bangkok property markets.
Yours Sincerely,
The Invest Bangkok Property editorial team
by Daryl Lum | Jan 28, 2019 | Questions and Answers
There are many hidden hassles when it comes to overseas property investments. In Bangkok, many developers tend to offer units that are fully furnished and fully fitted. These packages are usually catered to the overseas market to reduce the hassle of furnishing the condominium. However, there may be some developments that may not have such options and thus foreign buyers will have to buy the units bare. They will then have to furnish the units on their own. Some real estate companies in Bangkok, like TRC Property, do provide furniture packages and electrical goods packages to clients. TRC Property will furnish and fit your property with the necessary furniture and appliances. The furniture and electrical goods packages may differ between condominiums as condominium layouts and tenant profiles differ. After furnishing the condominium, TRC Property will assist in looking for a tenant for the property. Please note that such service is only offered as an after sales service to clients of Invest Bangkok Property under Bkk Gongyu Co., Ltd and TRC Property Co., Ltd.
Here is a sample of the furniture package that is on offer for a standard one bedroom.
Here is an example of a property furnished by Agnes from TRC Property
Ideo Mobi Asoke before furnishing
Ideo Mobi Asoke after furnishing
It is much easier to rent out a unit if it is fully furnished. If you are keen to learn more about TRC Property’s furniture and electrical appliances package, you may contact Agnes at +66 92 552 1933 (Call, SMS or WhatsApp). This is just one of the many after sales service that TRC Property offers to clients of Bkk Gongyu Co. Ltd (InvestBangkokProperty.com)
Yours Sincerely,
The editorial team at InvestBangkokProperty.com
Bkk Gongyu Co., Ltd.
