Bangkok’s mass transit system the key for home-buyers

Home-buyers in Bangkok looking for high returns on their investment from rental or resale, should invest in residential property close to the city´s expanding mass-transit system, according to Khun Pumipat Sinacharoen, CEO of property brokerage, Bangkok City Smart.

Pumipat said purchasing residential property for investment was an undertaking that needed to be considered carefully, especially in terms of the type of residence, it´s price and location.

In the current climate, investors are being offered guaranteed returns of around 6 percent on most properties, but returns could be has high as 10 percent if the location was right, and the demand was there, Pumipat said.

According to Bangkok City Smart, the pre-construction value of condominium units located close to Bangkok´s mass-transit system could increase by 10, and even 20 percent, when construction is completed and units are tansferred to owners.

Already, investors who booked condominiums in 2007 close to Bangkok´s Skytrain and subway routes, and whose properties have been completed this year, have seen the value of their purchases increase by as much as 20 percent in some locations.

According to the property brokerage, the value of a condominium is linked directly to the distance from a mass-transit station. If projects are only 100 metres from a station, investors wishing to resell can expect to do so at about 20 percent above their initial pre-construction purchase.

For those investors looking to rent their condominium units, the location principle is the same: properties within 100 to 200 metres from a mass-transit station can expect to generate returns on their investments of between 6 to 10 percent a year.

Asia Property Report - 2009 July 08