The biggest market among foreigners is condos in Bangkok. Like the rest of Thailand this is because of foreign ownership restrictions on land. There are several foreign managed developments that exclusively target foreigners, most represented by the global real estate services brands.
Buying Bangkok condos is the easiest and most practical way to acquire property and many of the foreigners coming to live in Bangkok prefer this option. However the city also attracts a proportionately large number of foreigner-Thai couples or families who have the right to own land in the name of the Thai spouse and thus a suburban house.
Last year, despite rising at a significantly slower rate, newly completed condo units created higher competition in both re-sale and leasing activities which means buyers have more options. Last year, a total of 3,640 units were completed, and 9,780 units were launched, bringing the total number of units in under-construction projects to 19,220. Those buying condos have an increasingly large choice of upmarket and modern units.
Due to all the new developments that continue to come onto the market, buyers tend to purchase Bangkok condo off-plan, which means they rely on the companys reputation and show units to make their purchase. In 2016, 9,550 units were sold. Buying condos pre-build in Bangkok is common, but there are plenty of cowboy operations out there too.
Most of the new units in Bangkok are in the middle and upper-middle segments located within Sukhumvit and Rama III areas, the majority on offer being one and two bedroom units ranging in size between 45 sqm to 55 sqm and 70 sqm to 80 sqm, respectively. In the high-end market, new additions were seen in Sathorn, Silom and Sukhumvit areas, with the majority of condo units offered being two and three bedrooms with sizes between 90 sqm to 110 sqm and 130 sqm to 190 sqm, respectively. Most people buying condos in Bangkok opt for the lower end of the scale, but there is plenty of money in this dynamic Asian city.
The largest five projects launched in 2014 were Lumpini Place Pahol-Sapankwai (1,084 units), Supalai River Place (877 units), The Station Sathorn-Bangrak (660 units), Villa Ratchatewi (603 units) and The Address Chidlom (597 units). These proved popular with foreigners buying a condo in the city.
In Bangkok, the average selling price stood at THB 80,020/sqm, representing an 11 per cent increase. Over the past two years, prices have increased at an average rate of 10 per cent per annum, which is much lower than last year when prices rose by 27 per cent and 30 per cent per annum respectively.