Understanding the Real Estate Market in Bangkok Introduction
Bangkok has a vibrant real estate market. By the beginning of this year, foreign investors accounted for a respectable 23% of all high-end condominium sales within the city.
Moreover, Bangkok’s real estate market remains fairly stable and active over time, even after turbulent political periods.
As a result, Bangkok’s real estate market offers lucrative investment opportunities for both locals and foreigners.
Why You Should be Part of Bangkok’s Real Estate Market
One of the reasons to get into the Bangkok real estate market is friendliness and familiarity with foreign investors.
Furthermore, Bangkok is centrally located in South East Asia and enjoys a reputable nightlife.
Additionally, infrastructural projects, particularly the SkyTrain and Metro transit systems, will substantially relieve the city dwellers from the city’s nagging traffic problem, hence boosting property values in the areas they will serve.
Such areas include Sukhumvit and Sathorn, which are already favorites among foreigners.
How to Get the Best of Your Real Estate Investment in Bangkok
Your budget will determine the location of your real estate property in Bangkok. The priciest properties are found in Sukhumvit, Central Lumpini, and Sathorn.
These locations also attract the greatest numbers of foreign investors, as the properties possess the western amenities most foreigners like.
Equally important is the fact that properties in these areas are close to the CBD, hence reducing traffic problems, which are rampant in Bangkok.
However, if you are looking for a cheaper bargain, you will have to settle for properties further away from the CBD, and you might have to contend with worse traffic conditions.
Recent Political Events and the Bangkok Property Market
The first step to understanding the real estate market in Bangkok is to understand the political events that influence how property prices change over time within the city.
For instance, a military coup back in June put a dent in to an already softening real estate market, thanks to the heightened political temperatures after the court ousted the caretaker Prime Minister from power.
There was less spending on property partly due to caution among buyers and partly due to reluctance by banks to offer mortgages.
Property developers had to contend with lower-than-expected prices for their real estate properties.
Why Politics is not a Big Deal in the Bangkok Property Market
A coup is obviously a great concern to foreign investors. You will have to wonder whether the prices will immediately plummet after a major political event, and if they do, whether they will recover in time.
This should not be a concern for you if you intend to invest in Bangkok.
Most overseas investors investing in the city’s property market tend to be familiar with political life in Asia, and do not usually overreact to changes in political and economic status of the country.
Therefore, the real estate market recovers quickly after such incidences, which are also quite rare.
Why Now May be the Best Time to Enter the Bangkok Real Estate Market
The recent political turmoil earlier in the year caused a slump in Bangkok’s lively property market. However, the country has since attained political stability.
Luckily, property prices remain low. Consequently, this is a great time to own prime real estate in Bangkok.
Already, the market is showing signs of a spirited comeback. Experts estimate that the Bangkok real estate industry will grow by 10% per year from 2015 to 2020.