The Silom-Sathon area in Bangkok has become a new target for property investors as the annual return on investment for rental properties can be as high as 5%, according to new research from Plus Property. Prices in this are rising due to higher land prices and more condo projects.
The area is part of Bangkok’s central business district where many offices of leading companies, international schools, hospitals, and government offices can be found. Both Thai and foreign buyers are interested in this area. In addition to strong rental rates, resale prices in the Silom-Sathon have risen by 7% a year for the past 5 years.
“People working in this area seek real estate to live near their workplaces, in order to avoid heavily used mass transit systems and rush-hour traffic congestion. The forecasted demand for real estate in this area is expected to increase due to buyers’ desire to avoid tiring commutes and travel costs, as well as the proximity and easy access to nearby lifestyle venues, department stores, and world-class restaurants,” says Plus Property Managing Director Anukul Ratpitaksanti in a press release.
The Plus Property research found the Silom-Sathon area has high potential even though only a limited amount of land for development is available. This location continues to experience growth in condos with a total of 6,786 units available as of the 1st half of 2017. Another factor that could increase demand for condo units in the area is the fact that public transportation around Bangkok continues to get more crowded.
“Although the Silom-Sathon area features convenient transportation, including the BTS and MRT, the number of mass transit users is growing every year, with information from BTS Group Holdings indicating that the number of BTS passengers is growing an average of 3-10% per year,” Anukul said.
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