Nexus Co. reports that condominium prices in the Sukhumvit 39 and Thonglor areas have increased by up to 40% over the past five years, with Thonglor having the highest rental rates in Bangkok at 1,000 THB/sqm/month.

Ms. Nalinnarat Charoensupong, Managing Director of Nexus Property Marketing Co., Ltd. stated that over the past five years, the company has collected data on the new condominium market in inner Bangkok and its surrounding areas, noting a continuous upward trend in prices. This is due to the high demand for land in these areas from both Thai and foreign investors, coupled with a limited supply of land available for development, resulting in high returns whether sold or rented.

Prices

Research indicates that over the past five years, the Sukhumvit 39 to Thonglor area has seen the highest price increase, from 183,000 THB/sqm to 255,000 THB/sqm, representing a 40% rise, while the Ratchada – Rama 9 and Ekkamai areas increased by 34% and 30%, respectively.

Additionally, condominium prices around the city center, such as in Phaholyothin, Phaya Thai, and Thonburi, have also steadily increased by 13-26% over the past five years. In the first quarter of 2018, the average price for new high-end and luxury condominiums in inner Bangkok and its surroundings was 208,600 THB/sqm, with the highest prices found in the Sukhumvit 39 – Thonglor area at an average of 315,000 THB/sqm, followed by Chidlom at 262,000 THB/sqm and Sathorn at 243,000 THB/sqm.

Rent

The average rent for high-end condominiums in inner Bangkok and its surroundings is 754 THB/sqm/month, with the highest rents in the city center areas of Sukhumvit 39 – Thonglor, Chidlom, and Sathorn at 1,000 THB, 955 THB, and 823 THB/sqm/month, respectively. Most tenants are Japanese, Europeans, or Americans working in the city center.

In contrast, in areas surrounding the city center, high-end condominiums have rental rates ranging from 526 to 800 THB/sqm/month, with the highest rents in Ekkamai and Phaya Thai. Rents in the Ratchada – Rama 9 and Thonburi areas tend to be lower, as most tenants are Thai and other Asian nationals (excluding Japanese) working in Bangkok.

When comparing rental prices for condominiums in city center locations like Thonglor, Chidlom, and Sathorn, one-bedroom units rent for approximately 43,000-52,000 THB/month, while two-bedroom units range from 65,000-82,000 THB/month. In surrounding areas, one-bedroom units rent for about 19,700-33,000 THB/month, and two-bedroom units range from 33,500-54,600 THB/month.

Investment Returns

When comparing annual investment returns on condominiums over the past five years, it was found that purchasing a condominium in 2013 and renting it out yields an average annual return of 6.1%. The Ekkamai area offers the highest return at 7.7%, followed by Phaholyothin at 7.2%, Thonglor at 6.6%, and Chidlom and Phaya Thai at 5.6% each.

It is well-known that investing in condominiums not only provides annual rental income but also potential profits from selling at a higher price. The continuous increase in condominium prices over the past years has resulted in high overall returns, with Thonglor showing the highest total return when considering both rental income and sales profit at 66%, followed by Ekkamai at 61% and Ratchada-Rama 9 at 58%. The market average over five years is 50%.

Although condominium prices continue to rise, if one invests in a condominium in Bangkok's city center and surrounding areas, the highest annual return is currently in Thonburi at 5.4%, followed by Ekkamai at 5.2%, and Phaholyothin at 4.9%.

Trends

Looking ahead to the investment trends in condominiums over the next three years, market prices are expected to continue rising by an average of 8-10% per year, with city center condominiums likely increasing at a higher rate of 12-15%. This suggests that condominiums around the city center may provide better short-term rental returns, while long-term overall returns for city center condominiums are not expected to differ significantly. The main factors in choosing to purchase a condominium are selecting projects with good management and maintaining the building in good condition.

Thank you for the information from www.nexus.co.th