Plus Property reveals 88% occupancy and 5-7% return on rentals

11 ม.ค. 2016 บทความอื่นๆ

Plus Property, the full-service professional property and facility management agency, reported an 88% occupancy rate in developments in Phra Khanong and the early parts of On Nut. Increasing numbers of foreigners are moving into the area, raising the foreign-to-Thai resident ratio to 30:70 as the market continues to shift away from the dense and expensive zones in Phrom Phong and Thong Lo. Businesses – including trade and hospitality operations – are also expanding in the same direction. Prices in the area have risen to approximately 100,000 baht per square meter, while rentals are up to 450 to 600 baht per square meter for 5-7% in average returns.

Mr. Poomipak Julmanichoti, Managing Director of Plus Property Company Limited, revealed that the middle portions of Bangkok’s Sukhumvit Road have enjoyed significant growth over the past 2-3 years – including areas like Phra Khanong and the early parts of On Nut. Data as of August 1, 2015, as gathered and compiled from Plus Property’s 2,600 units in the area, shows an exceptionally high occupancy rate of 88%, which compares very favorably to other zones in Bangkok. Once inhabited almost solely by Thai residents, foreigners are moving into the area in greater numbers every year, raising the Thais-to-foreigners ratio to 70:30. Unlike Phrom Phong and Thong Lo, foreigners residing in this area are not primarily Japanese. 47% of Phra Khanong and early On Nut residents are Asians, followed by Europeans at 35% and Americans at 14%. However, each project still houses Japanese residents in 30 units on average – a statistic that signifies the outward expansion of the Japanese community in Bangkok.                      

“Regardless, the early portions of Sukhumvit remain the most popular hotspot for condominium developments in Bangkok,” said Mr. Poomipak. “These areas have long been the home of Bangkok’s longstanding noble families, making them famous and highly developed. Sukhumvit is connected to Thailand’s top shopping districts, and this has led many to compare it to New York City’s Fifth Avenue, London’s Oxford Street, or Singapore’s Orchard Road. In addition to shopping, Sukhumvit also boasts an extensive range of corporate offices, schools, and hospitals frequented by foreigners. The presence of a large Japanese community in the area contributes to its growth even further, pushing investors to buy condominium units here and lease them out to Japanese tenants. More than half of Sukhumvit condominium residents are on a lease, and more than half of these tenants are Japanese. However, the area’s growing density has pushed buyers and potential tenants outward into other areas, and the inner-city portions of Sukhumvit – such as Ploenchit and Chidlom, all the way up to intersections with Wireless and Ratchadamri roads – face opposition in the form of even higher prices.” 

The launch of The Line Sukhumvit 71 – a joint-venture development by Sansiri and BTS – on August 8-9 saw the entire project sold out on launch day – an unprecedented phenomenon for condominium projects in this area and an indicator of rising demand. On the business front, various hotels and stores are moving into this area – including W District as well as art galleries and boutique hotels such as the distinctively-decorated Mustang Nero. Bangkok Prep international school is also developing a new campus close to Sansiri’s T77 in the early parts of On Nut. This same area will also be the location of Sansiri’s first community mall, Habito, which is currently scheduled to launch in 2016. With a constant stream of new developments over the past 2-3 years and a high occupancy rate, the Phra Khanong and On Nut zone is likely to become even more popular in the near future.

In terms of return on investment, condominium prices in this area have risen by 50% over the past 5 years. Popular, high-quality projects often fall into the 100,000 baht per square meter range, while rental rates average around 450 to 600 baht per square meter for an average return of 5-7%. This represents a better proposition than in many other zones across Bangkok, where sale prices have risen above the 100,000 baht mark without pushing rentals beyond 400 baht per square meter.

“For those looking to buy new units for residential purposes, this area is quite attractive thanks to easy commuting via the skytrain system as well as its relative vicinity to the center of Bangkok. Notably, prices here have yet to rise to the levels seen elsewhere. Investors must first consider the occupancy rate as a key factor to determine rental performance. With an occupancy rate of 88%, this will not be a concern, and yields of 5-7% can be considered good. Buyers who picked up units 4-5 years ago at 60,000-70,000 baht per square meter can consider themselves very fortunate as they can enjoy rental returns as high as 9%,” said Mr. Poomipak.


Explore how PLUS can help manage your property, Property Management, Condo & Apartment for rent Bangkok, Condo Juristic Person


เรื่องเด่นน่าสนใจ

เรื่องราวยอดนิยม

กรอกอีเมลของคุณเพื่อดาวน์โหลด