How to Buy a Condo in Thailand

Summary

Reed 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

• 🌐 Thailand is a popular destination for foreign investors looking to buy real estate in Asia, especially with the country now open to foreign arrivals.
• 🏙️ Bangkok's real estate market has seen significant growth over the past decade, with some areas experiencing price increases that have doubled or tripled.
• 🏖️ 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.
• 🏡 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.
• 💰 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.
• 🚇 Proximity to the BTS (Bangkok's rapid transit system) significantly impacts property values, with properties closer to stations commanding higher prices.
• 🏞️ Beachfront or beach view properties in tourist areas like Phuket can be more expensive compared to those further away from the beach.
• 📈 Rental yields in Thailand are moderate, generally ranging from 4% to 6%, with smaller units typically yielding higher returns.
• 🔍 Foreign investors can buy property through real estate agents or directly from developers, with each method having its own advantages and considerations.
• 🏗️ 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

00:00

🏢 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.

05:00

📈 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.

Keywords

💡Real Estate Market

The real estate market refers to the economic sector involving the buying, selling, and development of land, buildings, or housing. In the video, the real estate market in Thailand is highlighted as a popular destination for foreign investors, especially for purchasing condos. The script discusses how the market has evolved rapidly over the past decade, with prices in some areas doubling or tripling.

💡Foreign Investor

A foreign investor is someone who invests in a country other than their own. The script emphasizes that Thailand is a favored country for foreign investors looking to buy real estate, particularly condos, but with restrictions on land purchases reserved for locals.

💡Condo

A condo, short for condominium, is a type of residential property where individuals own their unit while sharing ownership of common areas with other unit owners. The video explains that foreigners can only buy condos on a freehold basis in Thailand, which is significant for understanding the investment options available to them.

💡Freehold

Freehold refers to the ownership of land or property outright, without any leasehold obligations. The script clarifies that foreign investors in Thailand can only purchase condos on a freehold basis, meaning they have full ownership rights to their units.

💡Bangkok

Bangkok is the capital city of Thailand and a significant focus of the video script due to its bustling real estate market. It is mentioned as one of the largest cities in the region with a population of 16 million, indicating its importance in the context of property investment and living options.

💡BTS Station

BTS stands for Bangkok Mass Transit System, which is the rapid transit system in Bangkok. Proximity to a BTS station is highlighted in the script as a factor that can significantly affect property prices and rental yields, making it a crucial consideration for investors and residents.

💡Rental Yield

Rental yield is the income generated by a rental property as a percentage of its purchase price. The script discusses how rental yields in Thailand can range from four to seven percent, depending on various factors, and notes that smaller units tend to yield higher returns.

💡Off Plan

Buying off plan refers to purchasing a property before it is completed, often at a discount. The video mentions that the speaker has personally bought off plan and suggests it as a strategy for investors, although it comes with the risk of not being able to see the finished product.

💡Developer

A developer in the context of the script refers to a company or individual that constructs new buildings or properties. The video advises that when buying off plan, it's important to research and choose well-established developers with a good track record.

💡Phuket

Phuket is a southern province in Thailand known for its beaches and is mentioned in the script as one of the various locations within Thailand where real estate can be invested in. It represents the beach area investment option in contrast to city center properties.

💡Chiang Mai

Chiang Mai is a city in northern Thailand often referred to as a mountainous region. It is included in the script to illustrate the diversity of real estate markets in Thailand, offering options for those who prefer a cooler, less urban environment.

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