Tip for Buying a Thailand Condo for Investment

In this article, we are going to cover some of the basic points to consider when deciding whether or not to purchase a condo for investment in Thailand. For over five years now, many professionals and pundits have been proclaiming that the Thailand condo market bubble will soon burst and so it’s not wise to invest here. Well, that still has not happened, and the market is still growing strongly. If you are still on the fence or eager to take the plunge but need that final tick of approval, read on to discover some of the pertinent information relevant to the Thai condo real estate market.

Condo Pricing

It is tough to say how much a condo, be it a studio or five-bedroom penthouse in Thailand, will cost as prices vary significantly based on a property’s size, location and build quality. Here in the Land of Smiles, the value and rental potential of a property are determined by comparing its size in square meters. As you can see in the below table, entry-level properties start at 70,000 Baht per square meter. From this humble starting point, prices continue to rise until you will be looking at a princely Baht 300,000 per sqm for the very best of the best.

LEVEL PRICER PER M²

Entry Below THB 70,000
Mid-range THB 70,000 – 89,999
Upper mid-range THB 90,000 – 119,999
High-end THB 120,000 – 199,999
Luxury THB 200,000 – 299,999
Super Luxury Above THB 300,000

As a quick comparison to give you an idea, a one-bedroom condo that is not near the BTS / public transport and by an average developer will set you back approximately 1 million Baht. A similar-sized (<25 sqm) unit located within a couple of hundred meters of the BTS in downtown Bangkok will be more than 2.5 million Baht. Yes, that’s over double the price! Looking beyond the capital, there is significant price disparity. Prime locations in Phuket, Pattaya, Hua Hin and Chiang Mai will still be in the high-end bracket, with smaller towns and cities being considerably cheaper, as is the outskirts of Bangkok. 

Buy Vs Rent

Instep with getting married or choosing a career, buying a condo for investment is perhaps one of the biggest decisions you will ever make in your life: it is a commitment to a city, building, area, lifestyle, and, in many cases, a bank loan. As nice as it can be to own your own home, is it the right decision for you? 

For foreign nationals, in particular, keep in mind that Thailand does not make it straightforward for foreigners to sell or buy a condo. So think long and hard before you leap. If you think you will be in the country for a considerable amount of time, it might be wise. Just remember that property prices in Thailand are not as robust as they are in the West, and as more and more units enter the market, the rental sector has started to decrease in value, and it’s competitive to find tenants. 

If you do purchase and then need or want to move, you would have to either sell or rent your property, a feat that can take anywhere from a few weeks to a few years to accomplish. And unlike being a renter, who enjoys the flexibility of movement, monthly payments, and no maintenance worries, as an owner/landlord, you are on the hook for everything.