Is Buying a Condo in Bangkok a Good Investment Now?
It’s interesting to see that there are many people still looking for condos in Bangkok.
Agents are still getting enquiries from clients who can see beyond the current situation. After all, it is generally accepted that the pandemic will end, and it’s just a question of when, not if!
As with the financial markets, which price shares accordingly to forecast future earnings, there are a number of tenants and purchasers looking forward to moving on and continuing with their personal and business lives post-pandemic.
If we look at the pool of likely tenants for condos in Bangkok, you can see that this has a strong core or base, and unlikely to drop away significantly. There are foreigners or locals working for:
▪ large companies, whether these be MNC’s, regional or national players and the like. They may be food or beverage companies, telecom entities, travel, tourism or hotel related companies, regional service providers and so on. Some such people have a national role and will use Bangkok as their base;
▪ one of the multitude of NGO’s, government or quasi-government related bodies, such as the UN, or the diplomatic corps. Irrespective of what happens to the business environment in the city, these types of entities always need a presence in Bangkok;
▪ manufacturers who are already established in Thailand or are involved in the Eastern Seaboard expansion zone but whose key management staff stay in Bangkok. Car manufacturers, household goods, silicon chip makers and the like;
▪ trading companies involved in export and import, perhaps on a regional basis and using Bangkok as their HQ for Cambodia, Laos and Vietnam;
▪ consultants or managers involved with either one of the many railway (BTS or MRT) extension projects or the various road or bridge improvements being undertaken around the capital;
▪ teachers from the various international schools dotted around the city. The number of international schools seemingly increases yearly, as will the number of foreign teachers looking to rent. Even if the numbers stay static, there are always teachers coming and going as term and the school year ends.
Aerial view of Bangkok buildings
Then there are also:
▪ foreign retirees who have made Bangkok their home. In fact, there may well be newcomers to the city with a possible increase in numbers of people who prefer to live in Thailand rather than Europe. Plus, there may be a possible flight of retirees away from some of the southern Thai resort destinations back to the city for better medical treatment and to stay away from European and other tourists as they start to trickle back to Phuket or Pattaya later in the year;
▪ Thais looking to sell their home and downsize or taking the opportunity to temporary move to rented accommodation as they renovate or redecorate their primary home.
Condos in Bangkok are likely to see an upturn in rental demand once the current situation is clearer, so maybe now is good time to start to look for an investment in blocks popular with some of the aforementioned demand segments.