WITH prices of downtown property having escalated sharply in recent years a greater number of investors and end-users are starting to snap up midtown condos which are as much as 36% cheaper, a real estate survey by Plus Property Company reveals.
The average selling price of condos in key midtown locations such as Phetchaburi, Ratchadapisek, Lat Phrao, Ratchayothin and Phaholyothin roads which all have good rail connections to the inner city is 120,000 baht a square meter compared to 190,000 baht a square meter for downtown units.
Poomipak Julmanichoti, Plus Property’s managing director said this week that while downtown districts such as Ploenchit-Chidlom, Silom-Sathorn and inner Sukhumvit remain very popular, continuous price hikes has led to focus shifting to midtown zones.
“Areas with office buildings, such as Ari-Saphan Khwai, Lat-Phrao-Ratchayothin and Petchaburi-Rama 9, provide good return on investment due to many conveniences.
“The average rental yield for these areas is 5% a year, which is higher than the savings rate.”
This real estate survey found that mostly one- and two-bedroom units are being rented out with the popular size of the former being 35-40 sqm and the average rent 15,000-22,000 baht a month. Two-bedroom condos attracting tenants are 60-70 sqm in size and draw 28,000-38,000 baht monthly rental return.
Moreover resales of midtown condos are mostly 10-20% higher than the initial offered price with most of the units changing hands being one to two bedrooms.
This survey found that the difference in the initial and resale prices varies from zone to zone with it being highest in Lat Phrao-Ratchayothin area at 15-20%, in the range of 10-20% in Petchaburi-Rama 9 zone and 5-15% in Ari-Saphan Kwai area.
Mr Poomipak warned investors to carefully evaluate the price and location while also ascertaining whether the developer has a good reputation in completing projects on time.
Other key factors include ensuring that the design of the unit is modern enough to attract tenants and good after-sales and property management services are in place.
By Thai Residents reporters
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