With the high selling prices of units in newly launched projects or brand-new buildings in Thailand and especially Bangkok, some buyers may opt to purchase more affordable units in older developments. On a per-square-metre basis, the prices of some of these units could be as low as half of those commanded by units in newly completed buildings or those under construction.
Findings from Jones Lang LaSalles recent market study indicate that newly completed or luxury units now being built in central Bangkok are being offered for sale at prices ranging between 160,000 and 350,000 baht per square metre, whereas units in older luxury buildings aged 10 years or more in the same area are available at between 90,000 and 120,000 baht per square metre.
Although there are still compelling reasons to buy for investment, buying a used luxury condominium in the centre of the city as a residence is now a sound decision. The strong competition in the leasing market due to the rapid growth of new condominium supply has put downward pressure on rents.
Many owners who bought condominiums for investment purposes many years ago may now find it difficult to let their units as most tenants prefer newer buildings. For this reason, certain investors are keen to divest their holdings. As a result, many luxury units are available at attractive prices and offer good value for money to those looking to buy condos to live in.
As mentioned earlier, there are still opportunities to purchase an older condo as an investment. Units in certain buildings, as old as 20 years, that are well designed, well located and well managed, continue to enjoy high demand from tenants. They also have the potential to enjoy capital appreciation over the long term as sites available for new developments are becoming scarce, while development costs continue to rise.
Is There a Silver lining amid COVID-19?
Thinking of the future impact of this pandemic on office buildings, it may have already dawned on many of us that a majority of potential long-term trends and health measures will become permanent work-life features in the times to come.
The time is ripe to embrace Industry 4.0
Traditional brick-and-mortar retail has suffered tremendously, as countries have been implementing effective stay-at-home and social distancing policies to mitigate virus spread, while those worst hit have enacted strict draconian lockdowns
We have entered a time where, seemingly, interconnectedness is the new enemy, staying in is the new going out, and antisocial is the new social. COVID-19 has brought us on the cusp of growing accustomed to new norms and sounded a wake-up call in terms of how we live.
Covid-19 puts flexible space markets under strain
In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.
The global Covid-19 outbreak has had serious negative effects on commercial real estate, including flexible space. Of late, many operators have experienced the flexible nature of the business working against them, as many occupiers have opted to surrender desks and implement work-from-home plans.
Subscribe via Email
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...
Thailand BOI approves Biotech Projects Worth 2.4 Bln Baht ($78 million)
The biotechnology sector is part of the so-called BCG model (Bio, Circular and Green economy) which the Thai government has...
Diamonds are forever but “James Bond Island” in Phang Nga Bay may not
Thailand’s Department of Mineral Resources will assess the stability of the limestone karst towers, which make up the chain of...