Bangkok offers property investors competitive inflation-adjusted yields, according to new market research published this week.
The high gross yields on offer in Jakarta and Ho Chi Minh City (pictured) are swallowed by high inflation rates in these countries, as research from Properydata.asia has revealed. When focusing on the more relevant inflation-adjusted property yields Bangkok offers higher yields than Jakarta, although it gets topped by Ho Chi Minh City.
Median average apartment prices in Jakarta and Bangkok are around US$130,000, the company noted, and are twice as high as the US$58,000 in Ho Chi Minh City. Surprisingly, the research found that median rents in Bangkok (US$924 per month) and Ho Chi Minh City (US$900 per month) are almost the same, but both are some 30 percent lower than in Jakarta (US$1,254 per month).
Average gross yields in Ho Chi Minh City are 12.6 percent and 9.9 percent in Jakarta, according to the research. Both are significantly higher than the 6.9 percent on offer in Bangkok, but when adjusted for average inflation the yield for Bangkok is 4.7 percent – higher than Jakarta (3.0 percent) but lower than the 6.0 percent in Ho Chi Minh City.
Propertydata.asia found highest average property yields in the three surveyed cities were in Ho Chi Minh City’s Binh Tan District at 7.2 percent, while the Grogol Petamburan district in Jakarta saw a 1.1 percent negative yield.
Lukas Guy Schnider of Propertydata.asia told DDproperty.com: “The high gross yields in Jakarta and Ho Chi Minh City got eaten by the high inflation rates during 2013. When focusing on the more relevant inflation-adjusted yields, Bangkok is almost as profitable as Ho Chi Minh City, and is significantly more lucrative than the inflation-punished Jakarta.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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