Doing Business in Thailand

This post is part of a series of posts that include my post dated of 26 August 2009 called “Bangkok What and Where to Buy?” and my post dated of 28 August 2009 “Bangkok more reasons to buy”.  Two new surveys published recently by CB Richard Ellis (Thailand) and Jones Lang LaSalle (Thailand) have draw my attention.

In a recent survey of Bangkok new condominiums market CBR concluded that Bangkok condominium market was divided in 6 price categories as follows:

1. Economy Condominium: Priced below 60,000 THB per square meter and are generally located in Bangkok outskirts.
2. Middle Market Condominium: Priced between 60.000 THB and 79,999 THB per square meter and are generally located in area like Pakanong, Onut , Ratchadapisek.
3. Upper Market Condominium: Priced between 80.000 THB and 99,999 THB per square meter.
4. High End Market Condominium: Priced between 100.000 THB and 129,999 THB per square meter
5. Luxury Condominium: Priced between 130,000 THB and 179,999 THB per square meter
6. Super Luxury Condominium: Priced between 180,000 THB and 180,000 THB per square meter

According to CBR studies the main factor affecting the price of a condominium unit is of course location. Most units in category 3 and all units in categories 4, 5 and 6 are to be found in location such as Silom/Sathorn, Sukhumvit (up to soi 65), Riverside and Central Lumpini, while economy condominiums will be located in Bangkok outskirts and middle market condominium will be located in area like Pakanong, Onut or Ratchadapisek.

Then when a condominium is located in the Central Bangkok District the criteria that will affect prices will be characteristics such as, easy accessible central location, secure neighborhoods, good standards of construction using high quality materials and specifications, sufficient numbers of elevators and car parking, comprehensive range of facilities and professional management.

JLL for its part surveyed the high end resale market and find out that buyers purchasing luxury condo for owner occupation may be better off purchasing a unit in a older luxury condominium than purchasing new products. For example in Central Bangkok District while new luxury condominium are for sale at price between 110,000 THB to 200,000 THB per square meter or more it is possible to find units in luxury building of 10 years more at prices from 55,000 THB to 90,000 THB per square meters.

Of course one should only consider purchasing in old buildings which have been well managed and well kept by the Juristic Person. Furthermore, old high end buildings often have bigger facilities than new buildings. Investors purchasing to rent out their units should however concentrate on newly built units as tenants are generally known to prefer to rent in newly completed building.

Note: This post is an excerpt of Rene Philippe Dubout first book: “How to Purchase Real Estate Offshore Safely: The Case of Thailand” published in february 2009. Second edition to be published in October 2009 under the title “How to Safely Purchase Real Estate in Thailand”

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”. 

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact.

Originally posted 2009-09-17 03:57:10.

Related posts:

1. Buying a Condominium: Bangkok what and where to buy?
2. Buying a Condominium: More reasons to buy in Bangkok
3. Buying a Condominium: Buying with an offshore company
4. Buying a Condominium: The 49% foreign ownership quota issue
5. Buying a Condominium: Foreign Freehold Ownership
6. Buying a Condominium: Issues applicable to married buyers
7. Buying Property: Comparing Construction Costs in Bangkok
8. Buying Land and House: What and Where to Buy?