When discussing the most vibrant and rapidly growing locations in Bangkok, many people immediately think of 'Sukhumvit' . However, if asked which area of Sukhumvit stands out the most, it’s likely that almost everyone would mention 'Thonglor – Ekkamai' , a location that undoubtedly holds a special place in many people's hearts.

'Thonglor – Ekkamai' is not just a forever hot spot; it also possesses a unique charm that sets it apart from other neighborhoods. It serves as a diverse lifestyle hub, a luxurious residential area, and a magnet for expatriates working in Thailand. Therefore, 'Thonglor – Ekkamai' is an ideal location for both investment and living.

Why 'Thonglor – Ekkamai' Always Has Demand

Although 'Thonglor – Ekkamai' is a small street located in Sukhumvit Soi 55-63, the area is filled with top-notch amenities for urban dwellers, covering every aspect that a prime location should offer. This completeness has led to a continuous influx of demand in the area.

  • Central Hub for Leading Schools and Hospitals - This makes 'Thonglor – Ekkamai' not just a lifestyle location but also suitable for living, surrounded by top-notch facilities such as hospitals and schools, including Samitivej Hospital (which provides Japanese language interpretation services for the many Japanese residents), Ekamai International School, Bangkok International Preparatory & Secondary School (BangkokPrep), The Early Learning Centre International School, and many more.
  • Lifestyle Destinations for Families and Individuals - The completeness and vibrancy of 'Thonglor – Ekkamai' is a charm that few locations can replicate, especially as a community mall area catering to all user levels, whether for families or friends hanging out, such as J Avenue, The COMMONS, 72 Courtyard, 935 Community Mall, 55th Tower, Eight Thonglor, or The Taste Thonglor, not to mention numerous international restaurants and standalone cocktail bars that have chosen to establish themselves in this area.
  • Shopping Destinations for Expats - Anyone who has strolled through the supermarkets in 'Thonglor – Ekkamai' will notice a steady stream of expatriates shopping with their families. This area is also home to some of the most concentrated supermarkets catering to foreigners in Bangkok, including Donki Mall, FUJI SUPER, and Nihonmura Mall, which specifically caters to the Japanese community.
  • Convenient Transportation for Both Driving and Walking - 'Thonglor – Ekkamai' is a connected soi that provides quick access to major roads like Sukhumvit Road and Phetchaburi Road, as well as the Si Rat and Chalerm Maha Nakhon expressways. Additionally, 'Thonglor – Ekkamai' is considered one of the most walkable areas in Bangkok (rated by goodwalk.co), with wide sidewalks on both sides connecting to the BTS Green Line, the main artery of Bangkok, and in the future, the Gray Line will also pass through Thonglor.

If we were to divide the Thonglor area, it can be categorized into three zones: Upper Thonglor, Central Thonglor and Lower Thonglor , each with distinct characteristics:

  • Upper Thonglor - A neighborhood with small shops and hotels, easily accessible to the BTS, with a relaxed atmosphere.
  • Central Thonglor - The heart of Thonglor, rich in lifestyle venues, restaurants, and amenities, truly embodying the essence of Thonglor.
  • Lower Thonglor - A quieter area of Thonglor, characterized by showrooms and beauty institutes, convenient for driving.

With the abundance of amenities in this well-rounded location and its capacity to serve the expatriate community, it reflects the quality demand from expatriates, particularly the Japanese.

'Thonglor – Ekkamai': A Location of Quality Demand

The overall amenities reflect diverse demand, especially from expatriates (Expats), who are a significant force in the rental market in this area. 'Thonglor – Ekkamai' is also the top choice for Japanese expatriates looking for accommodation.

For regular demand, not including Expats in 'Thonglor – Ekkamai' , most are looking for condominiums for personal use and investment. Those looking to buy for personal use typically belong to business owners, entrepreneurs, and high-level executives who want easy access to their workplaces and appreciate the unique lifestyle of 'Thonglor – Ekkamai'.

For those looking to invest and rent out to Expats, especially Japanese, who have specific characteristics and high stability, Terra Research presents interesting data on this demand group as follows:

  • Japanese nationals are the largest group working in Thailand, accounting for 18% or approximately 28,500 people (as of February 2022), with a trend of increase, reflecting recovery and opportunities for renting to Japanese.
  • Most Japanese living in Thonglor are employees from Japanese companies such as Honda, Toyota, Daikin, and companies in the Eastern Industrial Estate, which are stable companies that provide housing benefits for their employees.
  • The rental duration aligns with work relocation contracts, typically short-term (1 year) and long-term (approximately 4-5 years), reflecting the long-term stability of tenants.
  • The demand for accommodation among Japanese is divided into two types: 2-bedroom units for families and 1-bedroom units (30-40 sq.m.) fully furnished for individuals.
  • Essential amenities in the units include hot water systems or bathtubs and water filters for bathing.
  • Japanese are known for their meticulousness and responsibility, often maintaining cleanliness in their units and consistently paying rent on time.

What Types of Projects Are People Looking for in 'Thonglor – Ekkamai'

Condominium projects in this area are all luxury condominiums, and it’s clear that those who will own units in this segment do not primarily consider price but seek additional and emotional value that differentiates them from other projects, including:

  • It should not just be a condominium for living but also a project that reflects the image and status of the owner, including location, design, common areas, and exclusive services that differ from typical projects.
  • Located in a good area, allowing easy access to both Thonglor and Ekkamai, with a short walking distance to lifestyle and shopping areas.
  • Developed by reputable developers with unique characteristics and high potential for value growth.
  • For investment purposes, they often look for projects with comprehensive tenant management services that can guarantee rental returns.

The Past, Present, and Future of the Real Estate Market in Thonglor... A Location That Never Sleeps

What Was the Rental Market for Thonglor Condominiums Like in the Past? Why Is It Interesting?

The distinctive character of 'Thonglor – Ekkamai' as a premium lifestyle area filled with high-end amenities has made it popular among high-income groups. Over 81% of the main tenants in this area are foreigners, primarily Japanese, Europeans, South Koreans, and Americans, while the remaining 19% are Thai businesspeople and employees who enjoy the Thonglor lifestyle.

When asked about the investment potential of 'Thonglor – Ekkamai' , it must be said that it has always had dense demand, as it is the location with the highest number of people looking for rental condos. Terra Research has collected data on the number of visitors to rental condo listings in each area and found that 'Thonglor – Ekkamai' had the most visitors on www.terrabkk.com (data from 2017-2019), with rental prices that people are interested in ranging from 20,000 to 50,000 THB per month. The rental yield from Thonglor condos in the past (2017-2019) generated a rental yield of approximately 4.4-6.2% per year.

Currently, Thonglor – Ekkamai Remains the Most Sought-After Location on www.terrabkk.com

From the number of visitors to rental condo listings during the COVID-19 pandemic in 2020 to the present, "Phrom Phong - Thonglor - Ekkamai" has been the most popular location with the highest number of visitors. Following closely are the Rama 9 - Huai Khwang - Ratchada and Klong Toey - Rama 4 areas. Even in a market where real estate is sluggish and the number of foreigners entering the country has decreased, Thonglor - Ekkamai remains the most sought-after location for renting condos, demonstrating its investment potential, with most people looking for rental condos priced between 20,000 and 55,000 THB per month.

Rental Yield of Condos in Thonglor – Ekkamai

The investment potential of condos in 'Thonglor – Ekkamai' is reflected not only by the consistent demand from tenants from the past to the present but also by the rental yield figures, which are quite favorable. The average rental yield is approximately 3.9% - 5.8% per year, with average rental prices ranging from 620 to 950 THB per sq.m. The rental rates for Studio units (30-35 sq.m.) are around 15,000-25,000 THB per month, 1 Bedroom units (30-60 sq.m.) range from 21,000 to 50,000 THB per month, 2 Bedroom units (55-95 sq.m.) are approximately 48,000 to 85,000 THB per month, and 3 Bedroom units (90-160 sq.m.) rent for 80,000 to 120,000 THB per month.

The most popular and worthwhile investment units for rental yield are 2 Bedroom units, with an average return of 4%-6.5% per year, followed by larger 1 Bedroom units with returns of 3.99% - 6.1% per year, as the majority of clients are expatriates working in Thailand, and another segment of tenants often prefers to live together as families, requiring larger units.

Future Opportunities in Investing in Thonglor – Ekkamai Condos

When discussing future opportunities for investing in Thonglor – Ekkamai condos, it is clear that there are positive factors supporting the rental market's potential. The opening of the country has led to an influx of foreigners returning to Thailand for both short-term and long-term living, including tourists, investors, or foreign companies investing in Thailand, as well as expatriates, high-level executives, and employees, particularly Japanese (the number one nationality working in Thailand), who represent a highly interesting customer group, as Thonglor is a top destination for Japanese expatriates working in Thailand. It is also a neighborhood that meets the lifestyle needs of Japanese people and is a safe area under the care of the Japanese embassy. This group of Japanese expatriates typically holds stable positions and often has monthly incomes exceeding 50,000 THB, sometimes reaching several hundred thousand THB, with some receiving housing allowances from their companies. Thus, Japanese expatriates represent a group with high rental power.

Given the demand for housing from high-income Thais and foreigners coming to work in Thailand, combined with the outstanding potential of the location in every dimension, anyone looking for a condo investment for rental should consider 'Thonglor – Ekkamai' as a worthy investment opportunity.