Hello there. I have been a real estate agent in Bangkok since 2006. During that time, I saw some changes, but surprisingly, there have been few changes. Let me explain.
Apartment for rent price Bangkok 2008 - 2018
In the past 10 years, the rental prices of most apartment buildings have risen slightly. Although the price of a spacious three-bedroom apartment in the Sukhumvit area was 70,000 baht 10 years ago, it may cost 85,000 baht today. This has only increased by 20% in the past 10 years, which is actually far below inflation, and in many ways, apartments are now cheaper than they were 10 years ago.
why? This is hard to say, but I suspect that the ongoing political problems, the two coups and the stagnant economy are almost stagnant, with an annual GDP growth rate of about 3%. For the world's leading developed countries, this level of growth may be acceptable, but for Thailand [let us face it] there is still a way to go in terms of development, but this is not very good.
The apartment rental market in Bangkok is mainly managed by expatriates. Thais don't rent at these prices, either they don't have enough income, or they are wise enough to buy a suburban property, or part of a very wealthy elite, and already have multiple blocks in downtown Bangkok. As the number of expatriates remains fairly stable, so is the rental price.
The rent price of new apartment buildings has risen. There are always a small number of people who have enough budget. They just want to live in a very new place. The Japanese renters do, but the new buildings will become old once they are built and the rental price has been determined. You will notice that the price will remain stable from then on.
This is actually the same as selling an apartment. Once the building is completed, the sales price and the rental price are established, and it will be stagnant at this level in the next few years.
But the price in Bangkok has been rising, everyone knows!! Am I wrong?
Apartment sales price Bangkok 2008 - 2018
I don't think I am wrong. In recent years, the capital appreciation of some apartment buildings has been very high, but "on average" has not.
Yes, the price in Bangkok has been rising sharply, which is what all developers are willing to sell to you when you sell new projects. They will show you a chart with an upward trend in prices and show you that prices are up at least 5-10% year-on-year.
The price of new buildings rose by 5-10% year-on-year, but unfinished buildings.
This depends mainly on the rise in land prices. As land prices rise [and some additional construction costs], the cost of new buildings increases. So the new building is getting more and more expensive, but is the building after the completion?
No, this is why I am right. The building costs 150,000 baht per square meter. Five years ago, it may now be only 160,000 baht square meters. In this example, approximately 1.5% of the compound is grown. The building was brand new five years ago, and the new building still being built today could cost 200,000 baht per square meter. Since the growth of 5%++ compounds, it has been 33% higher than new buildings five years ago.
But the fact remains that buildings you bought five years ago may only add 1.5% more compounds per year.
This is the continuous development trend of Bangkok properties. New buildings continue to set new benchmarks for prices and then remain unchanged. Even the updated building adds a layer to the top, sets a new baseline, and then stays at the same level. Even for newer buildings, just add another layer at the top.
That's why you'll find huge price differences between buildings, even if they're located next to each other. An example is Lumpini 24, a new apartment at Sukhumvit Soi 24 for about 250,000 baht per square meter. Therefore, a small two-bedroom unit of 60 square meters will cost approximately 15 million baht.
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Adjacent to the neighbouring apartment is an old apartment called President Park, which has been stagnant at around 60,000 baht per square metre. Therefore, a very spacious 3 bedroom unit of 260 square meters. It will cost you about 15,000,000 baht.
Four times larger, next door, but the price is the same! Therefore, the old adage "location, location, location" does not apply here. It is based entirely on the age of the building.
This is an example of a new building, 275 square meters. Ask for 80,000,000 baht: http://www.property-bangkok.com/viewproperty.asp? Id = 587
This is an example of an old building sold in a similar location, 366 square meters. Ask 21,000,000 baht: http://www.bangkokcondo.org/viewproperty.asp? Id = 614
Yes, the new apartment is better, better designed with updated lobby and gleaming amenities. But the price change is completely reasonable. I mean, the price is 4 times!
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Keep in mind that the interior of the new apartment will age and need to be replaced. If you buy it in an old building, you can renovate the interior to make it new.
In any case, whether you are buying a new apartment or an old building, it doesn't exist here, it doesn't exist. The main problem is that the price of the new project may be greatly improved, but once you invest in the apartment unit, you may not realize the developer. Tell you the same level of growth.
Landowners are the only people who really see huge capital growth. Most of these people are already very wealthy Thais because non-Thai people cannot own land. It does not help most non-affluent Thais who are still financially disadvantaged.
Office rental prices have also remained fairly stable. In the past 10 years, office leasing prices have risen slightly, similar to apartment buildings. However, since most investors [including Thai and foreign investors] seem to focus on apartment buildings, the office prices sold in office buildings have remained fairly stable. It can be said that office sales units are the best choice for rental returns, as office leasing is usually It's been at least 3 years, you don't need to renovate the office space like an apartment, the former needs to paint and paint, the latter needs new furniture, new bathrooms, new kitchens, etc.
This is not to say that investing in Bangkok real estate is a bad idea. But you need to think about office space and commercial real estate as well as homes. You need to think about architecture very carefully. As I mentioned before, some apartment buildings have seen good growth over the past 10 years, and most have not.
You need to have a good eye. good luck!
Orignal From: Offices, Apartments and Apartments - How has the situation in Bangkok changed over the past decade?
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