Investment trends today are evolving due to the changing economic landscape combined with the lifestyle behaviors of modern individuals. This has led to a new trend of investing in condominiums in Bangkok. Here are 6 key factors that make condominiums an attractive investment choice:

1. Long-term Cold Cash The prices of condominiums have consistently risen over the past 10 years, increasing by 61%, or about 6% per year. Investing in condominiums for long-term returns means investors do not have to compete with time as they would in short-term investments. The ideal holding period should be between 3 to 5 years before selling or selling with tenants, depending on the management of the condominium, which affects the living conditions and whether the property remains in good shape. The value of condominiums will continue to rise annually in line with land prices and visible development in the area, and well-maintained projects can be easily resold.

2. Consistent Returns The modern investment trend seeks properties that provide stable returns and continuous value appreciation. This allows investors to receive regular monthly income, which may not be the highest return. The rental yield from condominiums typically ranges from 3% to 6%, depending on purchase prices and rental rates in different locations. For instance, in the Sam Yan area, long-term leasehold condominiums can yield up to 6.0% per year, while areas like Thonglor and Sathorn yield around 3.8%. Long-term rental projects generally offer higher annual returns.

3. Potential Locations Choosing to invest in condominiums located in high-potential areas, such as near universities or business districts with complete amenities and convenient transportation, is crucial. These factors attract tenants and guarantee price growth and investment stability. Such locations are also suitable for rental and resale. Investors prioritize potential locations when selecting investments, with central city areas and those near BTS stations being particularly appealing.

4. Reasonable Prices Both the price per square meter and the total price matter. An increase of 5% in price can reduce annual returns by approximately 0.3%. For example, a condominium priced at 4 million baht rented out for 20,000 baht per month yields 6%. If a condominium is purchased for 4.2 million baht at the same rental rate, the yield drops to 5.7%. New investment trends require selecting condominiums with reasonable prices that offer good rental yields and capital gains. Investors should choose projects that provide reasonable returns from the start of the project until the building is completed, allowing for continuous rental for 5 to 7 years and easy resale with tenants to reinvest profits in the future.

5. Continuous Demand This refers to condominiums that can be resold or have a consistent rental rate. Typically, these are projects in high-demand locations, such as near workplaces and educational institutions, like near airports, central business districts, or BTS stations. Properties in communities popular with foreigners will attract high interest and demand, giving investors confidence and reducing the frequency of needing to find new tenants, thus ensuring a steady cash flow.

6. Rental Units The units must be of appropriate size—not too large or too small—fully furnished and well-maintained. Good management of the common areas by the property management team is another factor that helps in renting or reselling the unit quickly and profitably.

SOURCE: www.dooddot.com