Buying a Condo in Bangkok

Buying a Condo in Bangkok has many options so speak to a real estate lawyer Bangkok for more advice. If you are looking at buying a condo in Thailand, then you are more likely to look at buying a condo in Phuket or a condo unit in Bangkok or Hua Hin. The property market in Bangkok is always changing as more people are looking at developments. This mainly on the outskirts of the city or close to the BTS or MRT stations. You should also look at other issues. Such as transferring your money into Thailand as well as property transfer fees and building restrictions.

This year being 2018 there are more than 14,000 condo units have entered the market during the first quarter of the year. This is only a brief overview of the Bangkok property market for the year. More than 53% of all new units came on the market in the peripheral areas of Bangkok. Units in the peripheral area of Bangkok made up just over 53% while units on the city fringe made up just over 42% with only about 3% being units available in the city center.

Condominium units in the CBD have averaged THB 213,169 per sqm while those of the fringe averaged at THB 117,134 per sqm. Many Asian buyers are looking at the city fringe and periphery such as Sukhumvit, Paholyothin, and Thonburi in Bangkok. The foreign buyers for Bangkok compared to buying a condo in Phuket are also different from the bulk of buyers in Bangkok being from international buyers, especially those from Mainland China, Japan, and Hong Kong.

If you want to buy a condo in Bangkok then also consider that before you sign any agreement. You will need to know the building regulations in Thailand as well as ensure that there is not a usufruct agreement registered over your condo. So ensure that you complete a property due diligence report before you take it further.

The average price for prime property in Bangkok last year had hit THB 366,745 per sqm. This market is set to grow further without the possible increase in mortgage rate affecting it. This as many of these units are wealthy buyers who do not require mortgage bonds. A breakdown of these investment properties brought on the market had been broken down as follows – 34% were in Sukhumvit, followed by 24% in Central Lumpini and 11% in Rama 4.

Look at the market over the past 9 years, the prime property market went from 190,000 THB sqm in 2009 to about 230,000 THB sqm while for the super-prime properties it has jumped from about 260,000 THB sqm to 356,000THB square meter in the 9-year period.

Bangkok’s prime and super-prime condominium market has seen good growth as usual. It has seen 21,330 units enter the market in 2017 which was a massive jump on the year before. Note that if you are getting married in Thailand. Then also consider a premarital agreement before the marriage.

The majority of these units had been in the Sukhumvit and Central Lumpini area which are prime spots in Bangkok as the land is becoming very expensive.

Ekamai and Thonglor will continue to remain in the limelight for its location as well as being the high-end market in the CBD. Note that the super-prime condominiums represent the top 1% of the Bangkok condominium market. This in the 15m THB plus category or condo units that cost more than 250,000 THB sqm. If you are looking at investing in property in Bangkok then see the articles. Those on depositing money, property developers as well as zoning and building restrictions. There are also views on the Phuket property market and the Pattaya as well as the Hua Hin property market for condominiums.

In Conclusion

The cost of condo units in Bangkok vary. They will normally start at about 1 million Thai Baht and move upwards from there. The high-end investment units can go well over 20 million Thai Baht. Location also affects the prices as well as the quality of the build.

Consider why you are buying the condo. Is it for investment or for retirement. The rental market in Thailand is very cyclical. There are also many units on the market for rent. Can you afford the unit even when not occupied as the condo fees still need to be paid?

You need to decide if you can live in that space.The condo units are getting smaller close to the mass transit system as the land is becoming more expensive. Who built the property and hence the quality of the build is important. Finally, would you pay that price at home?

If you are going to buy a condominium in Bangkok then you need to understand the basic property laws and issues. These may arise when you buy any real estate. If you did not do due diligence on the property. Then you may encounter someone who has a right of habitation over the property. This or a lease agreement that you did not know about. There could very well also be a usufruct registered over the property or that property was build using a superficies which you did not know about. It could also have been developed in the incorrect zoning or worst, it was built outside of the building restrictions which means it might be demolished. 

Always seek legal advice in Thailand from a qualified property lawyer

August 2018

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