Bangkok has a lot to offer in terms of property. Most of the units available for sale here are located in gated compounds offering a range of facilities going from swimming pool, fitness and 24/7 security as a standard to even cinema rooms, golf simulators and health spas in the most luxurious ones.
The compounds can either comprise of houses in which case the residences are called "moobaan" or of apartment-type units in which case the residences are either called apartment buildings or condominium buildings. The legal distinction between the two terms is that an apartment unit can only be rented out while a condominium unit can be purchased by a foreigner.
In terms of legal structure, foreign nationals will be able to acquire condominium units outright in their own name (direct Freehold) while they will have to either set up a Thai limited company or enter into a 30-year lease in order to control the ownership of their house. Such lease can be renewed up to two periods of 30 years each.
The scarcity of available land in central locations such as Sukhumvit, Sathorn and Lumpini drives the price of "landed properties" higher so the very few houses available for sale in these areas will come with a hefty price tag. Land plots which are large enough to erect buildings see developers fiercely competing and bidding up, also contributing to the rapid increase of land and consequently house prices.
For an investment in downtown Bangkok, the purchase of a condominium unit is therefore the easiest choice, both in terms of legal structure and in terms of property offer. There is indeed a wide range of condominium units to choose from in the central locations of Sukhumvit, Sathorn and Lumpini.
Our next decision to make is therefore to select the right number of bedrooms for our condominium unit. For those who can afford it, we recommend to go for 2, 3 and 4-bedroom types. There is currently an oversupply of 1-bedroom units in Bangkok so the competition will be tough when comes the time to rent out and/or resale our unit.
Prior to making our decision, we should always study the market in order to draw the right conclusions and thus increase our chances of a profitable investment. The property type we will choose should mostly depend on who we will be targeting as potential tenants.
The 2-bedroom unit types usually appeal to single persons and couples. The second bedroom usually serves as an office space, especially for those who work from home, or as a guest room. Depending on the size of the second bedroom, it can also accommodate either kids or teenagers.
The 3 and 4-bedroom types are usually favored by families with 1 to 3 kids. The 3-bedroom type is in great demand however some expat larger families do need a 4th bedroom and there are not many 4-bedroom condominium units available on the market. Purchasing a 4-bedroom condominium unit downtown can therefore give you a competitive edge for obvious reasons of demand and offer.
At this stage, you will have to choose the right building from the right developer with the right level of maintenance and the right management company. Not an easy task, you may say! We agents have been on the ground for years and will be able to guide you in your choice, both taking into account the aforementioned criteria and our tenants desirability in terms of location and product.
Last but not least, the age of the residence will be a factor in your decision making process. More modern buildings with high-end finishes and state-of-the-art facilities are not to be missed but do come with a price premium, especially in those along the Sukhumvit line.
If you can consider older buildings, you will have access to larger unit sizes and much more affordable prices per m2. The downside is you will have to spend more time studying the maintenance and financial health of the building, keeping in mind the first condominium buildings here are not that old since they only date back from the late 80s/early 90s
