High quality property in Bangkok could prove an excellent investment

 

If you’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 Bangkok’s best developments

CBRE’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 (£2,565) per square metre in the second quarter of 2011 to
THB143,590 (£2,950) 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 (£9.70) 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 you’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