How to Buy a Condo in Thailand
Summary
TLDRReed Kirkenbauer from investasian.com discusses the Thai real estate market, highlighting its popularity among foreign investors. He shares insights on buying condos, noting the rapid evolution of the market with prices tripling in some areas. Kirkenbauer emphasizes the importance of location, quality, and lifestyle when investing in Thailand, where foreigners can only purchase condos on a freehold basis. He also touches on rental yields and the process of buying property, either through agents or developers, stressing the need for thorough research and choosing reputable developers for off-plan purchases.
Takeaways
- π Thailand is a popular destination for foreign investors looking to buy real estate in Asia, especially with the country now open to foreign arrivals.
- ποΈ Bangkok's real estate market has seen significant growth over the past decade, with some areas experiencing price increases that have doubled or tripled.
- ποΈ Investors have a variety of locations to consider within Thailand, including beach areas like Phuket and Hua Hin, as well as the mountainous region of Chiang Mai.
- π‘ Foreigners can only buy condos in Thailand on a freehold basis; land purchases are restricted to locals, though there were discussions about a potential investment program for foreigners.
- π° Condo prices in Thailand vary widely depending on quality, standards, and location, with suburban units being more affordable compared to luxury condos in central Bangkok.
- π Proximity to the BTS (Bangkok's rapid transit system) significantly impacts property values, with properties closer to stations commanding higher prices.
- ποΈ Beachfront or beach view properties in tourist areas like Phuket can be more expensive compared to those further away from the beach.
- π Rental yields in Thailand are moderate, generally ranging from 4% to 6%, with smaller units typically yielding higher returns.
- π Foreign investors can buy property through real estate agents or directly from developers, with each method having its own advantages and considerations.
- ποΈ Buying off-plan (before construction is complete) can offer discounts but requires careful research, especially on the developer's reputation and past projects.
Q & A
Why is Thailand a popular destination for foreign real estate investors in Asia?
-Thailand is popular among foreign investors due to its open market for foreign arrivals and the recent boom in the real estate market, especially for buying condos.
What was the speaker's first experience with the Thai real estate market?
-The speaker, Reed Kirkenbauer, signed an agreement for his first condo in Bangkok in 2009, which was off-plan and completed in 2011.
How has the Thai real estate market evolved over the past decade?
-The market has seen rapid evolution with prices in some areas doubling or tripling, especially in the city center, and offering a variety of investment options across different cities and towns.
What are the different types of locations for real estate investment in Thailand?
-Investors can choose from various locations such as beach areas in Phuket and Hua Hin, mountainous regions in Chiang Mai, or the bustling city of Bangkok.
What is the restriction for foreign investors when it comes to buying land in Thailand?
-Foreign investors are not allowed to buy land in Thailand; it is reserved for locals only.
What was the recent proposal regarding foreign investment in Thai real estate, and what was its outcome?
-There were talks about allowing foreigners who invest 30 million Baht to buy landed real estate, but these talks were scrapped, and the restriction remains.
How does the price of a condo unit vary depending on its location in Thailand?
-The price can range from as low as 60,000 Baht per square meter in suburban areas to over 500,000 Baht per square meter for luxury condos in the city center, especially near a BTS station.
What factors influence the rental yields of properties in Thailand?
-Rental yields, which can range from 4% to 7%, are influenced by factors such as the size of the unit, its location, and proximity to amenities like BTS stations or beaches.
What are the two main ways for foreign investors to buy a condo in Thailand?
-Foreign investors can buy a condo either through a real estate agent or directly from the developer, often in an off-plan purchase.
What is the significance of the BTS station in determining property value in Bangkok?
-Properties closer to a BTS station in the city center are generally more valuable, as they offer better accessibility and convenience.
Why is it important for investors to research developers when buying off-plan properties?
-Investors should research developers to ensure they are well-established with a good track record, as this can affect the quality and reputation of the property being purchased.
Outlines
π’ Real Estate Investment in Thailand: Opportunities and Restrictions
Reed Kirkenbauer from investasian.com discusses the appeal of Thailand's real estate market for foreign investors, especially with the country's recent full reopening to foreign arrivals. He shares his decade-long experience in Bangkok's real estate market, noting the rapid evolution and significant price increases in some areas. Kirkenbauer explains the types of properties available, from beachfront locations to city center condos, and the unique restrictions for foreign buyers, such as the inability to purchase land and the limited option to buy condo units on a freehold basis. He also touches on the varying prices depending on the quality and location, with city center luxury condos being particularly expensive. The video script provides insights into the different lifestyles and investment goals that can be met within Thailand's diverse real estate markets.
π Understanding the Dynamics of Thailand's Real Estate Market for Foreign Buyers
This paragraph delves deeper into the specifics of investing in Thailand's real estate, highlighting the importance of location relative to the BTS station in Bangkok and the impact of being close to the beach in tourist areas on property values. Kirkenbauer explains that while suburban property prices have remained relatively stable, prime city center real estate has seen significant appreciation. Rental yields are described as moderate, with smaller units generally offering higher returns. The paragraph also addresses the process of purchasing property in Thailand, either through real estate agents or directly from developers, emphasizing the importance of conducting thorough research and considering the reputation and past projects of developers when buying off-plan. The script concludes by reiterating the diverse opportunities Thailand offers to foreign investors, whether for cosmopolitan living in Bangkok or a serene beach lifestyle in locations like Phuket or Koh Samui.
Mindmap
Keywords
π‘Real Estate Market
π‘Foreign Investor
π‘Condo
π‘Freehold
π‘Bangkok
π‘BTS Station
π‘Rental Yield
π‘Off Plan
π‘Developer
π‘Phuket
π‘Chiang Mai
Highlights
Thailand is the most popular country for foreign investors to buy real estate in Asia.
The real estate market in Thailand has seen a boom with the country fully open to foreign arrivals.
Reed Kirkenbauer has been active in Bangkok's real estate market for a decade.
Thailand's real estate market has rapidly evolved with some areas experiencing price increases of up to three times.
Foreigners can only buy condos on a freehold basis in Thailand; land is reserved for locals.
A recent program to allow foreigners to buy landed real estate with a 30 million Baht investment was scrapped.
Condo prices in suburban Bangkok can be as low as 60,000 Baht per square meter.
Luxury condos in central Bangkok can cost upwards of 200,000 Baht per square meter, near a BTS station.
There are very luxurious condos in Thailand with prices reaching 500,000 to 600,000 Baht per square meter.
Rental yields in Thailand range from 4% to 7%, with smaller units generally yielding higher.
Property prices in suburban areas have mostly remained flat over the past decade.
Prime real estate in city centers has doubled or tripled in price over the past decade.
Proximity to a BTS station significantly increases property value in Bangkok.
Beachfront or beach view access in tourist areas like Phuket significantly increases property value.
When buying a condo in Thailand, one can either go through a real estate agent or the developer.
There is no MLS system in Thailand, so it's best to do your own research and consult multiple realtors.
Buying off-plan from a developer can offer discounts but requires careful research on the developer's reputation.
Thailand offers a diverse real estate market catering to various lifestyles and investment goals.
Transcripts
I'm Reed kirkenbauer with
investasian.com and you're watching
Nomad capitalist Thailand is the most
popular country to buy real estate as a
foreign investor in Asia and with the
country now fully open to foreign
arrivals the real estate market has seen
a boom of sorts over the past few months
here I'll tell you all about buying a
condo in Thailand
[Music]
now I've been active in Thailand and
specifically bangkok's real estate
market for about a decade I signed the
agreement for my first condo in 2009 it
was off plan so the condo was not even
built yet it finished Construction in
2011 and since then over the past decade
Thailand's real estate market has
evolved rapidly with prices in some
areas doubling or tripling especially in
the city center there are all sorts of
different cities and towns to invest in
Thailand's real estate market as
Foreigner all with different goals and
different Lifestyles everywhere from the
beach areas down south in Phuket to
pattyon Hua hin which are Beach area is
a bit closer to Bangkok each about a two
hour drive all the way up North to
Chiang Mai in the mountains and of
course Bangkok itself which is one of
the largest cities in the region with a
population of 16 million people so
there's all sorts of different real
estate markets within Thailand itself
it's not just Bangkok there's all sorts
of different markets each with their own
fundamentals and prices and which appeal
to different people each with different
lifestyle also if you're not looking to
invest or if you're looking for a
lifestyle purchase more so than an
investment I should say
prices in Thailand vary one thing though
worth noting is that you can only buy
condos units in Thailand on a freehold
basis as a foreign investor you're out
of luck if you want to buy land as a
foreigner those are reserved for locals
only there were talks recently of
starting a program where foreigners who
invest 30 million Baht which is about a
million US dollars they were talking
about letting foreigners who invest
money at that level buy real estate or
landed real estate I should say in
Thailand but those talks were scrapped
and for the foreseeable future you're
only going to be able to buy condo units
in Thailand as a foreign investor
regarding price what you'll pay will
largely depend on quality standards and
of course location if you want to buy a
condo unit out in the suburbs of Bangkok
for example for example to the east in
bangana to the West up in pohoniotin or
on the other side of the river in
tonburi then you can buy a condo unit
for as little as sixty thousand baht per
square meter which is about a thousand
five hundred two thousand US dollars so
rather inexpensive by global standards
but you probably won't be close to a BTS
station the BTS is the rapid transit
system that they have in Bangkok you
probably won't be within walking
distance of that if you want to buy a
luxury condo in the city center of
Bangkok you should expect to pay at
least 200 000 Baht per square meter
especially if it's within 500 meters of
a BTS station and prices can even go way
up from there there are condos in
Thailand where units are being sold for
500 600 000 Baht per square meter those
are Singapore prices but there are very
luxurious buildings World standards
state of the art you know you have your
own personal Butler and some of these
properties so there's really a type of
property for everyone in Thailand
whether you're looking to live out near
the beach or uh if you're looking to
live a luxurious lifestyle in the city
center along with you know next to
Michelin star restaurants and huge malls
some of the largest malls in the world
so no matter what your goal is there's a
type of property in Thailand for it
whether you want to live out near the
beach or if you want to live a city
center lifestyle next to Michelin star
restaurants and some of the largest
malls in the world you can find that in
Bangkok with the caveat that you can
only buy a condo unit in Thailand as a
foreigner Now where's the property
Market going from here well if you were
to ask me 10 years ago if buying real
estate in Thailand was a good idea I
would have said well absolutely and
since then the market as I said has
evolved rapidly I should note that
property condo units out in the suburbs
have mostly stayed flat for the past
decade a condo unit that you could buy
for sixty thousand Baht around two
thousand US dollars per square meter 10
to 15 years ago is about that price
today in most Suburban locations on the
other hand real real estate Prime real
estate in the city center has for the
most part doubled in price doubled in
some cases tripled in Bangkok if you're
buying property in sukum wit or chitlom
or urachi Tui or some of the city center
locations a property you were paying a
hundred thousand Baht per square meter
10 years ago is probably worth well over
200 000 today especially if it's within
close walking distance to a BTS station
in general property in Bangkok is worth
a lot more if it's closer to a BTS
station in a city center location on the
other hand if you're buying property in
a Beach area like Phuket wahin patiovan
beachfront or even beach view access is
what will really make property values
more expensive compared to those located
further out so you can pay about half
the price for a similar property if it's
located out of the city center further
away from a BTS station or in the case
of tourist areas if it's further away
from the beach those are ways to limit
the price that you'll pay if you're
buying property in Thailand rental
yields in Thailand as a whole are
moderate they're about depending on
again all sorts of factors they can
range from four percent yields to six
and in some rare cases seven percent
rental yields generally smaller units
yield higher in Thailand and this is
really true all over the world if you're
buying a smaller unit say 36 square
meters which is about 400 square feet
that'll yield five or six percent on the
other hand a two bedroom units probably
closer to three four percent and larger
units are even less than that so smaller
units if you're seeking yields are going
to be better from that perspective so
Thailand's real estate market has a lot
of variance with regards to price
location lifestyle quality standards if
you're buying the property in Thailand
you're going to either do it through one
of two ways especially as a foreign
investor if you're buying a condo you're
either going to be doing it through a
real estate agent or buying directly
from the developer in the case of a real
estate agent I should note that unlike
the west where if you're buying property
in the U.S or Europe for example the
very first place you would probably go
as well I'm going to go to go to a real
estate agent and that's not necessarily
the case in a lot of Asia's emerging in
Frontier markets there isn't an MLS
system so to speak so you should keep in
mind that if you go to one specific
realtor you're only going to be buying
or looking at property that which that
Realtor is listing you're only going to
be looking at the property which someone
has gone to that Realtor and said hey
can you list my property and you won't
be getting an overall view of the market
so in many ways it's best to do your own
research and maybe talk to several
different realtors if you're going to be
buying a condo on the resale Market
now if you're buying property through a
developer in Thailand it's going to be a
new building and you'll be buying what
they call Off plan and this means buying
a property often several years before
it's actually complete site unseen and
this of course has some negatives in
that you can't really see what you're
buying but you can also often get a
large discount on a property bought this
way as opposed to buying a building
that's already complete I've personally
bought off plan a few times and have
always done well with it some people
haven't but it's very important to do
your research especially on the
developer when you're buying property
through them it's a good idea to maybe
look at some of the developers past
projects go visit them see what
condition a building they brought they
built say five years ago is in read
Google reviews see what uh tenants and
owners have to say about the project and
you should always buy a condo from a
well-established developer ideally one
with several dozen finished projects
under their belt and there are many
developers in Thailand which meet this
criteria most of which are listed on the
stock exchange of Thailand which means
that they aren't only accountable to
whoever they're selling a condo to
they're also accountable to shareholders
and their overall reputation so if
you're buying from a developer certainly
do some research on them with all of
that said Thailand has something for
everyone whether you want to live a
Cosmopolitan lifestyle in Bangkok or if
you want to live in a Scenic Beach down
in Phuket or Koh Samui out on the
islands Thailand has something for you
and for that reason is very popular with
foreign investors whether they're
actually seeking to buy in Thailand for
investment purposes or whether they want
a second residence or simply a lifestyle
purchase
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