According to recent results from a real estate survey conducted by Plus Property, demand for residential property in the Phetchaburi, Ratchadapisek, Lat Phrao, Ratchayothin and Phaholyothin areas is increasing. Prices in these mid-town locations are up to 36 percent lower than in downtown despite being in close proximity to the city’s CBD.
The rental market in the Ari-Saphan Khwai, Lat Phrao-Ratchayothin and Phetchaburi-Rama 9 zones is also trending upward with these poised to become new business centers. Annual rental yields in these locations stands at a healthy five percent. Poomipak Julmanichoti, managing director of Plus Property, pointed out that all of these neighborhoods possess convenient access to downtown through public transportation and have a number of shopping centers and office buildings to entice renters.
“Downtown districts, such as Ploenchit-Chidlom, Silom-Sathorn, and the inner Sukhumvit area are very popular among real estate buyers, but their continuously increasing prices have caused consumers and investors to turn towards middle city districts, where there are still opportunities for high returns on investments,” Poomipak said in a press release. “Areas with office buildings, such as Ari-Saphan Khwai, Lat Phrao-Ratchayothin and Phetchaburi-Rama 9, provide good returns on investments due to the many conveniences provided.”
While it’s unlikely that the mid-town locations will ever surpass Bangkok’s downtown in terms of price or demand, it does give investors an alternative place to put their money. Land and available units continues to become more scarce in Bangkok’s CBD and both renters and buyers see mid-town as offering convenience and value.
“In addition, middle city condominiums on the resale market are found to have 10-20 percent higher prices than their initial offering prices, with the majority of these properties being second-hand one- or two-bedroom units,” Poomipak stated. “When comparing the initial offering prices and the resale prices of these properties, significant increases can be seen, with a 15-20 percent increase in the Lat-Phrao-Ratchayothin area and a 10-20 percent increase in the Phetchaburi-Rama 9 area. Midtown districts are therefore additional alternatives for investors looking for good returns on investments from good potential, location and prices.”
