{"id":915,"date":"2023-06-27T11:00:00","date_gmt":"2023-06-27T03:00:00","guid":{"rendered":"https:\/\/sgtayjeremiahj.com\/?p=915"},"modified":"2023-11-22T17:41:25","modified_gmt":"2023-11-22T09:41:25","slug":"investing-in-mid-luxury-to-luxury-condominiums-in-bangkok-a-lucrative-option-amidst-singapores-latest-property-cooling-measures","status":"publish","type":"post","link":"https:\/\/sgtayjeremiahj.com\/investing-in-mid-luxury-to-luxury-condominiums-in-bangkok-a-lucrative-option-amidst-singapores-latest-property-cooling-measures\/","title":{"rendered":"Investing in Mid-Luxury to Luxury Condominiums in Bangkok: A Lucrative Option Amidst Singapore’s Latest Property Cooling Measures?"},"content":{"rendered":"\n\n\n

In recent years, Singapore has implemented stricter property cooling measures on purchasing of second and more properties, prompting many Singaporeans to explore overseas investment opportunities. One such enticing option is Bangkok’s mid-luxury to luxury condominium market. This blog delves into why I’m one of the growing number of Singaporeans who have considered overseas properties, particularly mid-luxury to luxury condominiums in Bangkok, as a viable investment alternative and whether my decision made was the right choice.<\/p>\n\n\n\n

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Photo by Pixabay on Pexels.com<\/a><\/figcaption><\/figure>\n\n\n\n

As a savvy investor seeking lucrative opportunities in the real estate market, Bangkok’s mid-luxury to luxury condominium segment presents an attractive prospect. In 2018, I purchased a freehold mid-luxury condominium in CBD Rama 9, located in the heart of Bangkok, which is a vibrant and rapidly developing central business district that has garnered significant attention from investors in recent years. <\/p>\n\n\n\n

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Map of the urban rail transit systems in Bangkok including BTS, MRT, SRT and Airport Rail Link<\/sup><\/sub><\/em><\/figcaption><\/figure>\n\n\n\n

Top 5 Reasons Why I decided to Invest in CBD Rama 9, Bangkok<\/strong>:<\/p>\n\n\n\n

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  1. Prime Location and Thriving Business District<\/strong>: CBD Rama 9’s strategic location in Bangkok positions it as a prime investment opportunity. As a rapidly developing business district, it offers a vibrant ecosystem of commercial activities, making it an ideal destination for entrepreneurs and businesses. The district’s proximity to major corporate offices, shopping malls, and entertainment centers ensures a steady demand for both residential and commercial properties. Interestingly, several national and international companies have relocated or elected to establish business operations in the area like Unilever and AIA Capital. One high-profile example of this trend is The Stock Exchange of Thailand which has relocated its operations to 93 Ratchadaphisek Road.<\/li>\n\n\n\n
  2. Capital Appreciation and Rental Growth Potential<\/strong>: CBD Rama 9 is undergoing rapid development, with numerous infrastructure projects and commercial developments transforming the area into a bustling urban center, where some big projects like GLAND to be fully completed around 2026. As the district continues to grow, property values are expected to appreciate over time, providing investors with potential capital gains. The combination of increasing demand, limited supply, and ongoing development projects in the vicinity makes CBD Rama 9 a promising investment destination.<\/li>\n\n\n\n
  3. Lifestyle and Amenities<\/strong>: Investing in an overseas property in CBD Rama 9 allows Singaporeans to experience the best of both worlds. The district offers a vibrant lifestyle with a wide range of amenities, including luxury shopping malls, fine dining restaurants, entertainment venues, and cultural attractions. The area’s modern infrastructure, green spaces, and recreational facilities provide residents with a high-quality living experience, further enhancing the appeal for both investors and potential tenants. The neighborhood is connected to the MRT Blue line and is served by MRT Phra Ram 9<\/a> and Thailand Cultural Station<\/a> (it will also be part of the new Orange Line). Road users can also connect to major arteries such as Phetchaburi Rd., Asoke-Din Daeng, Vibhavadi Rangsit and the Sirat Expressway.<\/li>\n\n\n\n
  4. Accessibility and Proximity to Singapore<\/strong>: One of the key advantages of investing in Bangkok is its close proximity to Singapore. With a short flight time of just around two hours, Singaporean investors can conveniently travel between the two cities, making property management and monitoring more accessible. This proximity also allows for easy visits and seamless connectivity, enabling investors to stay actively involved in their overseas investment. Alternatively, with Bangkok being one of the top travel destinations for Singaporeans, the property can also be treated as a holiday home.<\/li>\n\n\n\n
  5. Reputable Developer and Property Agency<\/strong>: When investing in an overseas property, particularly in CBD Rama 9, Bangkok, it is crucial to consider the reputation and track record of the developer and property agency involved. By selecting a reputable developer and property agency, I had peace of mind knowing that my property investment is in safe hands. It minimizes potential risks and enhances the overall investment experience, ensuring a smooth and hopefully, a profitable journey in the Bangkok property market.<\/li>\n<\/ol>\n\n\n\n
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    Four Seasons Private Residences Bangkok at Chao Phraya River<\/sup><\/em> (Ready to move in)<\/sup><\/em><\/figcaption><\/figure>\n\n\n\n

    Rental Yield<\/strong><\/em><\/p>\n\n\n\n

    Despite the global impact of the Covid-19 pandemic from 2020 to 2022, which caused significant disruptions across various sectors, including real estate, the construction of my property continued as scheduled and was successfully completed. Throughout the process, my agent played a crucial role in facilitating the furnishings of the unit and efficiently securing tenants within a short period. Their assistance and expertise ensured a smooth transition and swift rental process, allowing me to start earning rental income promptly. My current Gross Rental Yield for 2022 is 4.45%, which also happens to the same as the average rental yield in Bangkok (based on Q3, 2022 data) with a yield range between 1.89% to 8.00%.<\/p>\n\n\n\n

    Capital Appreciation<\/strong><\/em><\/p>\n\n\n\n

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    Source: Bank of Thailand – QoQ Thailand Property prices<\/sup><\/em><\/figcaption><\/figure>\n\n\n\n

    Property transactions have experienced a significant decline, with a sharp drop observed in the total value of land and building transactions nationwide during the first three quarters of 2022. According to data from the Bank of Thailand (BoT), the recorded value decreased by approximately 35% year-on-year to THB 560.65 billion (equivalent to US$15.96 billion). This decline was evident across all regions, indicating a widespread impact. However, the recent resurgence in tourism has instilled optimism for improved demand, particularly among foreign buyers, in the upcoming months. <\/p>\n\n\n

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    By property type, in Bangkok and vicinities:<\/p>\n\n\n\n