In Bangkok, a city with a population of more than 15 million people, there are dozens, if not hundreds of different districts.
Vibrant culture, first-class infrastructure and strategic location in the heart of Southeast Asia make the Thai capital an attractive place to invest in real estate.
But with so many locations, each with its own unique characteristics and investment potential, where exactly should you focus your search?
Ratchatevi
Ratchatevi is located right in the center of Bangkok, north of the Siam business district and east of the government center.
Ratchatevi's transport accessibility is very good. The Airport Rail Link main station and three BTS Skytrain (Skytrain) stations are located here.
The most cosmopolitan part of the area is near the Victory Monument.
Ratchatevi's location is advantageous, while property prices in it are still more affordable compared to other elite areas of Bangkok. The average price per square meter of an apartment is about 200,000 baht ($5,600).
Ratchatevi are loved by Thai families. There are not as many visitors here as in other locations, although the proximity to the districts of Pratunam and Siam attracts many tourists and foreign residents.
As more and more people discover the successful combination of location, accessibility and local flavor of Ratchatevi, real estate prices in it are likely to rise.
Investors can count on good rental income in Ratchatevi, as well as one of the highest occupancy rates of apartments for rent in Bangkok, especially in new residential complexes located near transport stations.
Sukhumvit
Sukhumvit Road, which runs through the center of Bangkok, is a concentration of a cosmopolitan lifestyle. It is crowded with a huge number of restaurants, bars, shops and attractions.
Sukhumvit district includes many neighborhoods, each of which has its own unique character and dynamics of real estate development.
The most popular addresses are usually located in the districts of Nana, Ahsokyo, Phrom Phong and Thong Lo.
Luxury condominium properties are offered here at prices often exceeding 250,000 baht ($7,000) per square meter, especially if the apartments are located within walking distance of the BTS station.
Luxury properties in the area are popular with expats, highly paid professionals, wealthy Thais who appreciate a cosmopolitan atmosphere and convenient access to everything necessary for life.As we move along the Sukhumvit line towards On-Nut and Phra Khanong, housing prices become more reasonable. Good transport links are maintained at the same time.
These areas are popular with young Thais and thrifty expats who appreciate the lively atmosphere of the area and the pleasant community.
It should be noted that in some parts of Sukhumvit, especially in suburban areas, there is an overabundance of one-bedroom apartments. Apartments with two and three bedrooms are a more preferable option for an investor, both in terms of renting and in terms of capitalization growth.
By force/Sathorn
Silom and Sathorn form the main central business district of the city.
Silom is often chosen by executives as well as expatriates working in industries such as finance, law and consulting.
Serviced apartments in Silom are expensive and are aimed at wealthy foreigners. Despite the high price, they have the potential to generate stable rental income.
For investors with a more modest budget, an affordable entry point to this prestigious market may be old condominiums in Silom. Although their rental yields are slightly lower than in new buildings, the potential for capital appreciation is great, given the continuing attractiveness of the area and the limited supply of land.In recent years, there has been a wave of new construction in Sathorn, with luxury condominiums and mixed-use projects appearing along the green boulevards.
The facilities are popular with fashionable citizens who appreciate the unique combination of work and leisure atmosphere. In this area, popular cafes and bars are located next to the corporate towers.
One of the main advantages of the Silom district/Satorn – its exceptional transport accessibility.The area is served by several BTS (Skytrain) and MRT (underground subway) stations, as well as riverboats, which makes it easier to get around Bangkok.
The area is also home to Lumpini Park, the city's largest green area, which provides people with a welcome respite from the concrete jungle.Although property prices in Silom and Sathorn are undoubtedly high, the fundamentals of the area and the steady demand make it a relatively reliable investment compared to some other areas of Bangkok.
As Bangkok continues to grow, Silom district/Satorn is well positioned to maintain its status as a business center of the city.
There are few vacant building plots here, and demand from high-status buyers and tenants is stable. All this makes the area promising in terms of capital cost growth.
Central Lumpini
The area located in the vicinity of Lumpini Park is a favorite place for representatives of Bangkok's high society.
This elite enclave houses some of the city's most expensive residences, from luxury apartments to spacious penthouses.
The area is served only by the BTS Chidlom station, which is not enough. However, this is more than compensated for by prestige, tranquility and exclusivity.
High-class hotels, gourmet restaurants and designer boutiques are located on the wide green streets, designed for the most discerning residents and visitors of the city.
Many of Bangkok's top international schools are located in Central Lumpini, making it a popular destination for wealthy families.
Lumpini is also home to several embassies and diplomatic residences.
Real estate prices in the center of Lumpini are among the highest in Bangkok and reach 500,000 baht (14,000 dollars) per sq.m. m of real estate on Wireless Road.
Apartments with a direct view of Lumpini Park are the most in demand.
The area is promising in terms of capital cost growth, which is explained by the lack of land and constant demand from wealthy individuals.
Although rental yields may be lower than in some other parts of Bangkok due to high prices, this fact is balanced by the status of tenants and the lack of available space due to high demand.
One of the factors that may further increase the value of real estate in Central Lumpini is the upcoming opening of the MRT Orange line. The station of this branch will be located in Langxuan. This will significantly improve transport accessibility and make the area even more attractive for both residents and investors.
Bang-On
Located in the eastern part of Bangkok, Bang has long been overshadowed by the more popular areas along Sukhumvit.
Nevertheless, this promising area is beginning to attract the attention of experienced investors who are aware of its potential.
It is no exaggeration to say that Bang Na is a rising star of the suburbs.It may be especially interesting to those who are looking for a house in Bangkok.
One of the advantages of Bang Na is its proximity to the Bangkok International Trade and Exhibition Center (BITEC), which hosts major events and conferences all year round.
The opening of IKEA Bang Na, one of the largest IKEA stores in the world and the first in Thailand, has also attracted public attention to the area.
As for transport accessibility, Bang Na is served by the BTS Skytrain (Bang Na and Peleng stations), as well as the Chalerm-Maha-Nakhon Expressway, which provides quick access to the center of Bangkok and Suvarnabhumi Airport.
In recent years, several large Thai developers have launched condominium projects in Bang Na, offering modern apartments at more affordable prices compared to the city center. The average price of a condominium in Bang Na is about 70,000 baht ($2,000) per square meter, which makes this area an attractive option for investors looking for value for money.
Buying a house is also not much more expensive, although it is worth noting that foreigners cannot directly own land in Thailand.
The growing popularity of the area among young professionals working in the eastern part of Bangkok or along the Eastern Economic Districtcorridor), means that the area has good potential in terms of renting and increasing the cost of capital.
As Bangkok continues to expand eastward and the government increases investments in infrastructure projects such as the WEC, Bang Na is well positioned to capitalize on this trend.
In order to maximize Bangkok's investment potential, it is worth focusing on projects with good transport links located close to key facilities such as BITEC and IKEA.
Although this area may not be as attractive to live in as those lying closer to the center, it offers a simpler atmosphere and a social environment that many like.
Summary
The Bangkok real estate market offers many opportunities for investors, both in the center and on the outskirts.
Although such prestigious areas as Sukhumvit, Silom/Sathorn, Ratchathevi, can offer stable incomes and significant capitalization growth, housing prices in them are quite high, and rental profits will be lower.
For investors looking for more affordable options with good growth potential, areas such as Thonburi and Bang Na will be an excellent choice.
Which area of Bangkok is the most expensive?
Bangkok's affluent neighborhoods are scattered throughout the city.However, when viewed as a whole, the highest prices are in Central Lumpini.Buying apartments in a condominium here will cost on average more than 300,000 baht ($9,500) per sq.m.
Central areas such as Sukhumvit, Silom, Siam and Ratchathevi are also among the most expensive areas in Bangkok.Apartments in them cost on average about 200,000 baht ($7,000) per sq.m.What are the most accessible areas of Bangkok?
The cheapest locations to buy real estate in Bangkok are remote suburban areas.In places like Bangna, Dong Mueng, Bang Na and Phaholiotin, prices are significantly lower than in the center. They often do not exceed 100,000 baht ($3,000) per sq.m.
Which area of Bangkok has the highest occupancy rate of rental housing?
High rental yields and occupancy rates are usually demonstrated by condominiums in the central areas of Bangkok, especially in the immediate vicinity of BTS or MRT metro stations.
Areas with high demand and low supply usually have the highest occupancy rate.Several locations meet these criteria, including Yaowarat (Chinatown), Dusit and Ratchathevi.
Source: Invest Asian
