Boost your Investment potential value with condominium near BTS line.
In the time of various present condominiums situated along BTS skytrain line have the price constantly risen up higher than other common areas, owning and buying the properties within those areas seem reasonable for they offer better profit. It is reported the rental yield from the condominium around BTS are 5 – 7% per year. The maximum capital gain increase 12% per year.
TerraBKK Research has surveyed increasing capital gain of condominium located near BTS in a range of 500 meters in the past 10 years, and discovered the top 5 potential residential areas which are worth for long-term investment.
The first choice is “Phahon Yothin”, considered it a great spot to offer the highest profit; its maximum capital gain is 10 – 12 % per year and rental yield 5 – 6% per year. The reason behinds the increasing price is no others than the new condominium projects from Sansiri have launched in the area with the price at THB 200,000/sq.m., while the past 3 years there were none. This boosts up the value of condominium situated around BTS –Phaya Thai and BTS –Ratchathewi to have an average selling price at THB 120,000 – 180,000/sq.m. and rental rates of THB 22,000 – 35,000 per month, while the condominiums around BTS – Ari station and MRT –Chatuchak Park station have the average prices at THB 90,000 – 160,000/sq.m. and rental rates of THB 17,000 – 28,000 per month. Moreover the recommended projects are as following:
The second area is a neighbor of business district, “Taksin –Thon Buri”. The maximum capital gain increases to 9 – 10% per year and rental yield 4 – 5% per year. The location has new 2 – 3 projects launched every year, which each has adjusted the price higher prior to price of the previous project. The fact is the area gives the easy access to 5 of BTS stations, which simply connect to Sathorn, but the land costs half of the price of the real estate. This immediately makes the area tremendously popular as residents for people who live in Thon Buri side. Condominiums located around BTS – Taksin, Thon Buri, Pho Nimit, Talat Phlu station have average selling prices of THB 80,000 – 200,000/sq.m. with rental rates of THB 15,000 – 28,000 per month. The recommended projects are as following:
The third location is never sleeping zone “Sukhumvit”. Even at the time of economic downturn, the condominium price in Sukhumvit still increases annually and constantly. The area has capital gain of 7 – 10% and rental income yields 6 – 7% per year. The location is divided into 3 areas, which are lower Sukhumvit (BTS Phloen Chit, Chit Lom, Ratchadamri), middle Sukhumvit (BTS – Asok, Phrom Phong, Thong Lo, Ekkamai, Udom Suk), and upper Sukhumvit (BTS – Udom Suk, Bangchak).
The lower Sukhumvit has an average selling price at THB 110,000 – 300,000/sq.m. and the rental rates of THB 30,000 – 65,000 per month.
The middle Sukhumvit has an average selling price at THB 80,000 – 250,000/sq.m. and the rental rates of THB 25,000 – 55,000 per month.
The upper Sukhumvit BTS Udomsuk - BTS Bang Chak has an average selling price of THB 60,000 – 120,000/sq.m. and the rental rates of THB 10,000 – 15,000 per month. Moreover, the properties around BTS Punnawithi and Bearing have an average selling price at THB 60,000 – 100,000/sq.m., offering the rental yield of THB 8,000 – 18,000 per month. The recommended projects are as following
The forth location is the new central business district located around MRT Phetchaburi –Phra Ram 9. The area has the increasing capital gain at maximum of 8 – 10% per year and high rental yield at 6%. This area has developed from residential area to grade A office buildings and Central Plaza Grand Rama 9, the Shopping center that locate on Ratchadaphisek road, turning the location to have high potential investment value; attracts new employees and expats. Thus the rates of rental yield are particularly high, an average selling price is at THB 100,000 – 180,000/sq.m. and rental rates of THB 15,000 – 30,000 per month. The recommended projects are as following
The fifth location is certainly suitable for new generation lifestyle, “Sam – Yan”. The area has high capital gain increase of 9% per year and high rental yield at 6%. This area has limited land available for developed as Freehold property: no restriction on the right of the property. Chula property co-operated with TCC land have introduced many projects, dealing with the development of Sam Yan, which will create the investment potential and bring in more amenities, impacting the condominium around Sam – Yan to have the price average at THB 100,000 – 210,000/sq.m. and rental rates of THB 17,000 – 35,000 per month. The recommended projects are as following:
1. Study and research tenant’s demand The survey should be conducted and studied on behavior of our target customers; what type of group do they belong: working, new family, Japanese, Chinese, Korean, Western, or Thai. For each of tenants has different preferences, for example, Japanese expats prefer bathtub including in the shower and Westerners like to have a pool for swimming.
2. Choose location wisely The location should provide the yielding returns, which is not less than 4% when compared with the maximum of money investment. Some properties that provide rental rate at 7 – 10%, should not be missed, for the better location is situated, the easier you find tenants. Those properties are often located near the heart of workplace, do not miss to own!
3. Choose to use all – in – one service for your management To reduce the risk of vacancy rate, buying a condominium with all – in – one service offered by the developer is a smart choice. With the management service from the professional agency, your property will always be introduced to the tenants, ensuring your comfort and satisfaction with the income flows.
4. Assume your future value The condominium which is worth to purchase, should have a potential for owner to raise the price 10 % higher than the price from 3 years buying. If your calculation shows the property price is too high to afford or takes more than 3 years for amenities to be available, then you might want to reconsider your decision for this property might not worth for long term investment.
5. Choose the longest loan term The best loan to choose is the one that have appropriate period for you to calculate the rental income which should be fair to make a payment to a loan institution, or left some profit for you afterward. Furthermore, the period should be as long as possible, but the amount of payment should be little because the best investment that yields the maximum income comes from the loan
In fact the investment in the property located near BTS is still very interesting for the price swiftly changes and increases within a year. TerraBkk has some advice for the investors who aim to make an investment by purchasing a condominium, that the property near BTS line still offers a great opportunity and potential of income satisfaction, which yields return higher than other areas. However the investor should also be aware that every investment has a risk, therefore always study and check the information thoroughly before making any investment. Do not forget to consider your “profit expectation” and “profit and loss”. The simplest way is to imagine your property vacant with no income and estimate how long can you handle and tolerate with the situation? - เทอร์ร่า บีเคเค
