Ocean Property reveals a trend among the new generation investing in condominiums for rental income as a long-term asset. The response to the project “Ocean Grand Residence Mittraphap – Khon Kaen” has exceeded expectations, showing growth from both owner-occupiers and investors, with an average rental yield of 5-7% per year. The company is ramping up its year-end marketing strategy with special offers, including a complimentary life insurance package from Thai Samut Life Insurance, providing coverage up to 4 million baht for 5 years* from now until June 30, 2022.

Mr. Napong Pariponpajanpisut, Managing Director of Ocean Property Co., Ltd., shared insights on the trend of condominium purchases among the younger generation, including students and working professionals. There is a noticeable increase in purchasing power for investment purposes compared to previous years. The most marketable condos are those located near the city, with convenient transportation, close to workplaces and educational institutions. This is reflected in the response to the “Ocean Residence Mittraphap – Khon Kaen” project, which has sold out all units, with approximately 30% of the building rented out at rental rates ranging from 6,000 to 12,000 baht depending on room size, yielding an average rental return of 5-7% per year.

“For the rental rates of the project “Ocean Residence Mittraphap – Khon Kaen”, we initially estimated the rent for the small 23.5 square meter units to be around 6,000 to 7,000 baht, but they are actually renting for up to 9,000 baht. Meanwhile, larger units of 31.5 to 34.5 square meters can rent for 10,000 to 12,000 baht, which reflects a good return,” he added.

The “Ocean Grand Residence Mittraphap – Khon Kaen” project, the second development in Khon Kaen, is currently over 60% sold, amounting to approximately 230 million baht. Of the purchases, 80% are for personal residence and 20% for investment, with the primary buyers being professionals from various fields: 60% medical personnel, 30% corporate employees, and 10% students and others.

Regarding the market opportunities in Khon Kaen's real estate sector, Mr. Napong stated that the investment (rental) market is still showing good growth, driven by urban development factors and the buying and renting behaviors of consumers, which are increasingly similar to those in major cities in Thailand. There is a strong interest in one-bedroom condominiums, with an average rental budget of about 7,000 baht per month, and these condos must be located near workplaces and educational institutions, with convenient and safe transportation and project amenities.

“The changing living environment has made city-center condominiums highly viable for both personal residence and long-term investment and rental. Data from the “Ocean Residence Mittraphap – Khon Kaen” project shows that the investment return (Capital Gain) from buying and selling can yield a profit increase of 5-10%, while rental yields (Yield) are at 5-7%, which is higher than current deposit interest rates,” Mr. Napong explained.

Additionally, the real estate business is benefiting from positive factors as the Bank of Thailand (BoT) has relaxed regulations on housing loans and related credit (LTV measures), increasing the loan-to-value ratio from 70-95% of the purchase price to 100% for home loans, effective from now until December 31, 2022, which is expected to stimulate property purchases during this period.

As for the marketing plan for the final quarter of 2021, Ocean Property, in collaboration with Thai Samut Life, has launched a special promotion for customers purchasing units in the “Ocean Grand Residence Mittraphap – Khon Kaen” low-rise condominium, designed to meet modern lifestyle needs for the independent living of Khon Kaen residents, starting at 1.39 million baht, along with a complimentary life insurance package providing coverage up to 4 million baht for 5 years* from now until June 30, 2022.

The “Ocean Grand Residence Mittraphap – Khon Kaen” is an 8-story low-rise condominium with 236 units located in a prime area of Khon Kaen, adjacent to Mittraphap Road, featuring modern design surrounded by amenities, a rooftop fitness center, an infinity edge pool, and a green space garden, along with professional security systems that meet all the lifestyle needs of the new generation.

Interested parties can visit the sample rooms at the sales office of the “Ocean Grand Residence Mittraphap – Khon Kaen” project daily or view them online 24/7. For more details, visit www.oceanproperty.co.th or call 02-038-5011. Follow additional news on Facebook www.facebook.com/OceanProperty
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