Finding the best place for Bangkok real estate investment has long led property buyers to the city’s central business district. However, new research from Nexus Property has found that while these areas are lucrative, they are not home to the highest price growth or return on investment during the past five years.
That distinction belongs to the Phrom Phong and Thong Lor neighbourhoods where condominium prices have risen by more than 40 percent since 2013. And this isn’t the only reason they are the best place for Bangkok real estate investment. Research from Nexus Property found Thong Lor provided investors with 66 percent total returns (rent and sales combined), the highest total in the Thai capital.
This was driven in part by rental rates, which average near THB 1,000 per square metre per month in the Phrom Phong and Thong Lor neighbourhoods. The total is one of the highest in Bangkok surpassed by only the peak luxury areas of Wireless Road and Chit Lom.
Nexus Property managing director Nalinrat Chareonsuphong told the Bangkok Post that property prices are soaring due to a limited supply of land available for development and high demand from Thai and foreign investors in these areas.
What makes Phrom Phong and Thong Lor the best place for Bangkok real estate investment?
Phrom Phong and Thong Lor are less than a kilometre apart and share some common traits. Both are popular residential communities among expats working in Thailand due to their lifestyle options. A wide range of shopping, dining and nightlife can be found in this part of Bangkok which makes it lively during the evening and weekends.
The influence of the Japanese population, who have preferred this part of the Thai capital for decades, can also be found throughout Phrom Phong and Thong Lor. Finally, each neighbourhood is home to a unique collection of outstanding properties that vary in size. When you put all of these reasons together, it is easy to see why Phrom Phong and Thong Lor is the best place for Bangkok real estate investment.
Phrom Phong real estate
Multi-bedroom condominium units are extremely popular in Phrom Phong. Two-bedroom units are in high demand from both buyers and renters and arguably present the best investment opportunity.
A two-bedroom, two-bathroom condominium unit in The Address Sukhumvit 28 is going for THB 15.5 million (USD 486,000). The project, which was completed in 2009, is a short walk from the Phrom Phong BTS station.
Those looking for a new-build unit to invest in should consider Supalai Oriental Sukhumvit 39. The development is located in the north part of the neighbourhood and is close to a few shopping centres. A 77 square metre, two-bedroom unit here starts at THB 10.2 million (USD 321,293).
Thong Lor real estate
The best place for Bangkok real estate investment could be a unit in a project like The Monument Thong Lo. This superluxury condominium is being developed by highly-respected homebuilder Sansiri and has a range of trendy amenities to meet the demand of residents in this part of Bangkok.
The unit sizes are superb, starting at 124 square metres. A two-bedroom, two-bathroom unit in the 45-storey development starts at THB 30 million (USD 941,676). Units in The Monument Thong Lo have been going fast and with only 127 residences available, they won’t be around for much longer.