There is no denying the fact that prices of condos in Bangkok and other popular tourist areas such as Pattaya and Phuket have soared over recent years. Newly built condos in the capital have significantly increased in price per square metre and this has left some people with no option but to move out to the suburbs or seek alternative housing arrangements.
Some buyers have chosen to buy units in older developments as they offer a much cheaper alternative. Prices of older condos can often be as low as half that of new builds which makes them increasing attractive to investors and those looking to buy to let.
A recent report recently released by Jones Lang LaSalles states that luxury units and new builds in the heart of Bangkok are being sold for between THB 160,000 and THB 350,000 per square metre, whereas units in older luxury buildings (aged 10 years or older) in the same part of the city can be purchased for between THB 90,000 and THB 120,000 per square metre.
This has led to high occupancy rates in older buildings which are well located and well maintained. These condos also have long-term capital potential as sites for new developments are becoming scarcer and development costs continue to rise. Building a high rise condo is now far more expensive than 10 years ago which has added to the price hike.
Buying a brand new condo in the centre of the capital is no longer considered an investment; more a luxury. Buying an older condo however is a wise investment decision. This is largely due to the fact that high competition within the rental market in Bangkok has driven down rental prices and therefore it is much easier to make a rental income from older property.
This being said however, not everyone simply looks at price. Many owners who bought condos for investment purposes a number of years ago are finding it difficult to rent them out as a number of people simply want brand new. Therefore, incentives are still being offered for investors to buy brand new properties for rent and will hopefully help to drive prices down as competition increases.
For those looking to invest in seaside properties, the two most popular destinations still remain Phuket and Pattaya, however don’t forget about the up and coming and developing seaside locations such as Koh Samui, Koh Chang and Hua Hin.
Although Koh Chang may not be on top of the list in terms of numbers of visitors, but it is definitely leading in terms of value for money. It is also interesting to note that according to the Thai Hotel Association, Koh Chang had the highest growth rate of Western tourist arrivals in 2010 of any major seaside destination in Thailand.
Luxury property developments on Koh Chang are increasingly gaining in popularity since they can be found at far lower prices than similar sized properties in other major destinations.
Koh Chang is the perfect alternative to the bustle of the more popular destinations, yet still boasts beautiful beaches and pristine waters, an abundance of facilities and sunshine.
If you live and work in Bangkok, you might be considering buying a weekend pad on a beach somewhere. Pattaya is the obvious choice as it is the closest, but if you want to get away from the bustle then it really will be worth considering Koh Chang which can easily be driven to from Bangkok.