If youââ¬â¢re looking for a good return on your property investment, homes in Bangkok could be the answer. A new report has found that capital values and rents of good quality property in the Thailand capital are increasing thanks to the scarcity of land and a high demand for rental properties.
The latest market review from property consultants CBRE has found that the reduced supply of property in Bangkok is driving up prices. Keep reading to learn more.
Rents and capital values rise in Bangkokââ¬â¢s best developments
CBREââ¬â¢s report found that there have been significant price rises for the handful of developments that are seen by the Thai market as being the best located best quality projects. And, as values rise, people are increasingly being priced out of buying homes and are instead turning to the rental market.
The CBRE survey found that the total number of units occupied by owners or tenants increased from 68,436 in the first quarter of 2012 to 71,255 in the second quarter. It also found that vacancy rates will rise in older buildings as tenants turn to newly completed developments, offering good potential to investors.
The average re-sale price of completed high quality units increased by 13.2 per cent year on year from THB126,835 (ã2,565) per square metre in the second quarter of 2011 to THB143,590 (ã2,950) per square metre in the second quarter of 2012.
From April to June 2012, the total apartment supply in the downtown area of Bangkok was 11,763 units, down 0.6 per cent year on year.
Other than one or two areas, apartment rental rates increased in the city. Rents were highest in the Central Lumpini area at THB481 (ã9.70) per square metre per month, an increase of 4.9 per cent quarter on quarter and up 12.2 per cent year on year.
Higher prices are making it more and more difficult for Thais to buy properties in the best locations. So, if youââ¬â¢re looking to generate a good rental income from your overseas property, an apartment in a good quality Bangkok development could lead to impressive returns.
Author Homesgofast.com Nick Marr
Are you looking to buy property in Thailand ? Pattaya , Koh Samui , Chonburi , Bangkok , Phuket
Are you looking to rent property in Thailand ? Bangkok , Muang Pattaya , Pattaya , Chiang Mai , Tambon Patong
Author
Nick Marr
I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.