Looking to shift from the condo investment market in Bangkok to provincial areas, but where should you go? You need a location that meets the potential of tenants, location viability, and future growth opportunities. What factors should be considered? TERRABKK suggests taking a look at ‘Rayong’ as an example of a city that possesses all the qualities and potential mentioned above, based on the following factors.

Rayong Province's Potential Has Never Been Inferior

After TERRABKK published the article ‘Getting to Know Rayong, the Richest Province in the Country for 15 Consecutive Years’ (click to read) in 2021, the original data showed that from 2004 to 2018, Rayong was the province with the highest Gross Provincial Product (GPP) in the country for 15 consecutive years, only to be surpassed by Chonburi in 2019.

However, after updating the GPP figures for 2020 (the latest year), Rayong had a GPP of 857.19 billion baht, ranking second in the country after Chonburi, and a GPP per capita of 831,734 baht per person per year, slightly down from 2019, yet still maintaining its title as the province with the highest GPP per capita in the country for the 16th consecutive year.

(Source: Provincial and Regional Product Data, 2020 Edition, National Economic and Social Development Office)

However, looking solely at the GPP per capita figures may not provide a clear picture of Rayong's potential. TERRABKK thus reviewed the average household income of Rayong residents per month.

From 2004 to 2021, the average income of Rayong residents grew by an average of 5.69% per year, with an average household income in 2021 of 28,142.07 baht per month, growing by 15.82% from 2020. This made it the 17th highest average household income in the country, with a total of 10,573 registered businesses and 527,204 employees in these establishments.

When examining the number of insured individuals to assess the employment figures in Rayong, it was found that there were 711,583 insured persons in the social security system, including 477,366 under Section 33, 39,824 under Section 39, and 194,393 under Section 40.

Job Opportunities Are the Source of Income: Rayong's Core Potential

The industrial sector is the main potential of Rayong province and has elevated the GPP and GPP per capita figures to the highest for 10 consecutive years. It is also home to 14 leading industrial estates. In 2021, the industrial value of Rayong reached 3,237,647.18 million baht, accounting for 10.18% of the total industrial value of the country (with the total industrial value of the country at 31,805,394.99 million baht). In 2022, there were 3,075 factories with a total investment of 1,578,104.89 million baht and 196,526 employees working in these factories.

It is undeniable that the industrial sector in Rayong is the most attractive potential for investors, as the companies in these industrial estates are all leading national firms, and the personnel working in these factories are all quality staff with high salaries.

From previous articles, TERRABKK presented salary levels for personnel in industrial factories from entry-level to senior staff, with monthly incomes ranging from 8,500 to 50,000 baht. This time, TERRABKK delved into the income figures of high-level personnel from Executive to C-Level based on job postings in the past 30 days for 40 positions, revealing that income levels vary by industry type but are generally quite high, as follows:

  • Executive Level Personnel earn between 35,000 - 70,000 baht per month (average 52,500 baht per month)
  • Senior Level Personnel earn between 45,000 - 160,000 baht per month (average 102,500 baht per month)
  • Manager Level Personnel earn between 55,000 - 70,000 baht per month (average 107,500 baht per month)
  • C-Level Executives earn between 130,000 - 180,000 baht per month (average 155,000 baht per month)

Positions with high salary rates include Finance and Accounting, Business Development, Engineering, and Supply Chain, followed by IT, Sales, QA.

In addition to Thai personnel, Rayong also has foreign staff working in multinational companies, mostly in high-level positions to executives, representing a demand potential in the eyes of investors. In 2022, there were 1,910 foreigners authorized to work under Section 59 (general) and 3,238 under Section 62 (investment promotion), along with 6,700 foreign personnel working at the Eastern Economic Corridor (EEC) center, totaling 11,848 individuals, primarily from Japan, China, and South Korea.

These leading companies, both Thai and foreign, not only offer high salaries but also provide Housing Allowance benefits of approximately 15-30% of the base salary.

The Tourism Sector is Still Growing

Tourism in Rayong in 2022 began to recover clearly, with 2.75 million visitors (2.64 million Thais and 111,407 foreigners), an increase of 102.38%, generating total revenue of 9,681 million baht, a growth of 146.71% (with revenue from Thai visitors at 9,365 million baht and from foreigners at 315 million baht), and an occupancy rate of 54.61%, up 34.39% from 2021.

Mega Projects in the Rayong Zone

As one of the strategic areas of the national-level project like the EEC, Rayong has several mega projects that will enhance its potential and create opportunities for future demand. These projects include:

  • Eastern Economic Corridor Innovation District (EECi) - An area of over 3,500 rai in Wang Chan district, created as a research, development, and innovation innovation zone by PTT Group.
  • Smart Park Industrial Estate - The first technology industrial estate in the country to support New S-Curve industries, creating 7,400 jobs and generating over 1,342 million baht in economic circulation per year.
  • U-Tapao International Airport - Upgrading the existing U-Tapao airport to become the country's third international airport to support growth in the EEC area and increase the capacity to accommodate up to 200 million passengers per year.
  • High-Speed Rail Connecting 3 Airports - Enhancing travel capabilities from the three main airports in the country over a distance of 220 kilometers with 9 stations at a speed of 250 kilometers per hour.
  • Map Ta Phut Port (Phase 3) - Enhancing the port's capacity to accommodate and transfer natural gas and liquid goods to expand the capabilities of the country's industry.

Overview of the Serviced Apartment Market in Rayong

As Rayong is a hub for industrial estates of both Thai and foreign companies, there is a high demand for quality housing for those working in the estates. This group requires both short-term and long-term accommodation, making Serviced Apartments highly sought after in this area.

The overall market for Serviced Apartments in Rayong varies in price depending on location, room type, and amenities. When discussing Serviced Apartment projects that offer comprehensive services and facilities, there are only a few in this area, each providing amenities such as swimming pools, fitness centers, cleaning services, laundry services, and limousine services. Rental rates are categorized by size and room type.

  • Standard Size 28-56 sq.m. Monthly rental rates range from 35,000-39,000 baht, with daily rates from 1,200-2,400 baht.
  • Superior Size 33-70 sq.m. Monthly rental rates start from 39,000-50,000 baht, with daily rates at 2,200-3,000 baht.
  • 1 Bedroom Size 30-135 sq.m. Rental prices range from 35,000-73,000 baht per month, with daily rates from 2,400-5,200 baht.
  • 2 Bedroom Size from 70-217 sq.m. Monthly rental rates range from 67,000-83,000 baht, with daily rates from 3,300-6,500 baht.

Serviced Apartments are a type of accommodation that sits between hotels and condominiums, offering better amenities and services than typical condominiums but not as luxurious as hotels. Therefore, rental prices are not as high as hotel rates. The rooms are fully furnished and ready for immediate occupancy, and the rental duration is more flexible than that of regular apartments and condominiums.

However, Serviced Apartments do have limitations in terms of security systems, less privacy compared to condominiums, and monthly rental rates that are higher than those for condominiums.

Investment Value of Condominiums

In addition to Serviced Apartments, the condominium market is also in demand, leading to a continuous supply in the area. Both small and large developers are investing in condominiums in this location. If we look at the growth of condominiums in Rayong from 2018 to 2022, we find that 2-3 new projects are launched each year. The launch prices of condominiums have been steadily increasing, with the current average price at 79,000 baht per square meter, growing at an average of 7% per year over the past five years.

Condominium Investment Potential

The investment potential of condominiums in Rayong can yield an average rental yield of 5%-7% per year. Rental rates depend on room size: Studio rooms (21-30 sq.m.) rent for 5,000-6,000 baht per month; 1 Bedroom (24-48 sq.m.) rents for 6,000-11,000 baht per month; 1 Bedroom Plus (35-40 sq.m.) rents for 7,500-10,000 baht per month; and 2 Bedroom (40-65 sq.m.) rents for 8,000-18,000 baht per month. The capital gain from holding a condominium averages 3%-5% per year, with resale prices for second-hand condominiums ranging from 48,000-65,000 baht per square meter. The main customer base for rentals consists of workers in various industrial estates in Rayong, including both Thai and foreign employees (Expats) from Map Ta Phut.

All of this highlights the potential of the location ‘Rayong’ from various perspectives, including its status as a major industrial city and future growth opportunities, attracting high-demand potential from both Thai and foreign investors. Coupled with investment potential that can yield good returns, if you are looking for a location to invest in a condominium, ‘Rayong’ is indeed a suitable investment location.