Buying a property in Bangkok: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Bangkok's property market is included in our pack

Have you ever considered buying a property in Bangkok? You're not alone!

Many people find Bangkok's vibrant city life fascinating and fantasize about owning a modern condominium or a stylish penthouse.

Would it be a good investment, though? Are property prices increasing in Bangkok? What is the price per sqm? Is it wiser to buy in Sathorn or in Thong Lo? What are the property taxes? Where are the best rental yields?

We know the answers.

The BambooRoutes team knows this market inside and out. Actually, we've compiled all our findings in one pack. Get it now.

In this article, we're happy to share useful information with you.

How is the real estate market in Bangkok?

Is the property market going up or down? Opinions vary. As for us, we don’t listen to rumors. We use up-to-date data and statistics, to ensure our conclusions are well-founded.

Types of properties

In Bangkok, there are various types of properties available for sale, catering to different preferences and needs.

These include apartments and condos, which are popular for their modern amenities and central locations; single-family houses, offering more space and privacy; townhouses, often combining aspects of both apartments and houses; and commercial properties, like shops and offices, suitable for business ventures.

Additionally, Bangkok also offers luxury properties with upscale features, as well as more affordable options, ensuring a diverse range of choices for potential buyers in the city.

Should you buy or rent?

(If you want to live there yourself and not rent it to others)

If Bangkok is your city of choice, you may be pondering the buy vs. rent decision in this bustling capital city of Thailand.

Obviously, it's better to buy if you are looking for a long-term investment and want to build equity in a property.

To make a good decision, consider the property price-to-rent ratio. This metric give an indication of how many years of rental income it would take to cover the cost of buying a property at its current price.

According to Numbeo, the property price-to-rent ratio in Bangkok is around 31.13, which is significantly above the world average.

This value shows that it would take you 31 long years of paying rents before you can own a property in Bangkok. However, if you rent for a long time, you won't own the property and won't save any money towards ownership.

Housing prices in Bangkok

On average, according to the last data from Bank Of Thailand, purchasing a property in Bangkok should cost you around $5,700 per square meter.

Obviously, there are some big differences. A townhouse in Ladprao won't have the same price per square meter as a luxury condominium in the Mahanakorn tower. We actually give you a more detailed breakdown in our pack for buying property in Bangkok and in Thailand.

To help you understand better, it means that, instead of buying an apartment in Singapore, you can get 2 properties in Bangkok.

However, housing prices in Bangkok are higher (78%) than in Ho Chi Minh City.

The most expensive neighbourhoods in Bangkok are probably Sukhumvit, Sathorn, and Silom, while the cheapest areas are likely the outskirts of the city.

Trends

First and foremost, it's important to note that Thailand is presently a relatively stable country. The last Fragile State Index that has been reported for this place is 70.

This is important to remember when wondering if it's a good investment to buy a property in Bangkok.

Besides that, if we look at the IMF's GDP forecasts, Thailand's economy is expected to soar by 15.1% in the coming 5 years, resulting in an average GDP growth rate of 3%.

If you want to invest in real estate in Bangkok it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.

Also, in Thailand, the average GDP per capita has dropped by 0.9% over the last 5 years. It's an alarming number.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Thailand right now.

Buying property in Bangkok

Buying real estate in Bangkok can be difficult, as obtaining reliable and up-to-date information is one of the most challenging aspects of the process. That's why we have created the pack to buy property in Bangkok and in Thailand.

Buying process

In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.

Now, we're giving you a more straightforward version to help you grasp the information more easily.

This is the step-by-step process to purchase a property in Bangkok:

• Research property laws and regulations.
• Hire a reputable local real estate agent.
• 3. Find a suitable property and negotiate the price.
• 4. Sign a Reservation Agreement and pay a deposit.
• 5. Conduct due diligence on the property.
• 6. Sign the Sale and Purchase Agreement (SPA).
• 7. Transfer funds to a Thai bank account.
• 8. Obtain approval from the Foreign Investment Department (if applicable).
• 9. Complete the property registration at the Land Office.
• 10. Pay the remaining balance and taxes.
• 11. Obtain the Title Deed (Chanote) and property keys.
• 12. Register the property in your name at the Land Department.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Thailand.

Make a profitable investment in Bangkok

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

Where to find a property

Here are some websites where you can find properties in Bangkok:

• DDproperty - Offers a wide range of properties for sale in Bangkok.
• LivingInsider - Provides a platform to explore and buy properties in Bangkok.
• Hipflat - Specializes in condos for sale in various areas of Bangkok.
• RE/MAX Thailand - Lists properties for sale in Bangkok with search filters.
• Century 21 Thailand - Features a range of properties available for purchase in Bangkok.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Thailand.

Which properties for which budget?

As mentioned before, the average price per sqm in Bangkok is $5,700. The cost of a one-bedroom property (60 sqm) is about $342,000, and a two-bedroom (85 sqm) would be around $485,000.

However, as you can guess, property prices will differ based on the attributes of the property and its specific location.

Expect higher property prices in the premium areas of Bangkok. Think about an apartment in Sathorn, which might have an asking price of around $650,000, while a condominium in Thong Lo could be around $610,000.

Still, some spots are easier on your budget. You might discover a condominium in Nong Khaem for $190,000 or a condominium in Bang Sue that's priced at $150,000.

Find a more detailed breakdown in our full pack for buying property in Thailand.

Common pitfalls

Here are specific pitfalls when buying property in Bangkok, Thailand:

• Foreign ownership limited to 49% in condos.
• Complex regulations for land ownership by foreigners.
• "Nominee" ownership risks to bypass restrictions.
• Uncertainty in land measurements and documentation.
• Condo building licenses not properly obtained.
• Unregulated property agents leading to scams.
• High condo maintenance fees and mismanagement.
• Ignoring potential land encroachment issues.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Thailand Property Pack

Living in Bangkok

Living in Bangkok is an exciting experience, offering a vibrant city life with plenty of cultural attractions, delicious food, and diverse real estate opportunities.

Cost of living

The cost of living in Bangkok is generally quite low compared to other major cities. Prices for basic necessities such as food, housing, and transportation are especially affordable.

Here are some examples to help you better understand the cost of living in Bangkok:

• Traditional Thai iced tea from a street vendor: $0.50-$1.00
• Renting a studio apartment in Sukhumvit area: $500-$1000 per month
• Commuting by BTS Skytrain for a day: $1.00-$3.00
• Membership at a Muay Thai gym in Silom: $30-$60 per month
• Watching a movie at a Major Cineplex: $6-$10
• Paying monthly utility bills for a condo in Thonglor: $50-$90
• Enjoying a Singha beer at a rooftop bar: $4-$7
• High-speed internet package from AIS or True: $25-$45 per month

Neighbourhoods

We want to show information in an easy-to-understand way. So, we made a table that shows the different parts of Bangkok. For yields, prices and rents, check our property pack.

Life in Bangkok

Bangkok is a major economic hub in Southeast Asia. It is known for its bustling tourism industry and strong manufacturing sector, which contribute to the city's growth and development.

As per the IMF's data, the GDP of Bangkok constitutes almost 48% of Thailand's GDP. When you buy in a city with a strong economy, your investment is generally considered safer and less susceptible to market fluctuations.

What expats usually like the most in Bangkok is the vibrant nightlife, with many bars and clubs to choose from, as well as the diverse range of food options available. Additionally, the city's low cost of living and many shopping opportunities make it an attractive destination for expats.

Unfortunately, we can't say there is no crime in Bangkok (the crime rate index is around 40, which is not so favorable. Examples of crimes in Bangkok include pickpocketing, shoplifting, drug trafficking, and fraud, which are generally targeted towards the local population and not expats.

A good point for a property investor - Bangkok has an extensive mass rapid transit system consisting of severak metro lines, two elevated commuter rail lines, and two monorail lines.

Finally, access to healthcare in Bangkok is good, with a Healthcare Index of 77. A strong healthcare setup always reflects positively on real estate.

Don't lose money on your property in Bangkok

100% of people who have lost money in Thailand have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

Renting out in Bangkok

If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.

Long-term

Tenant Profiles in Bangkok

According to the data reported by Wikipedia, the home ownership rate in Thailand is 80%, which is rather high.

But things are a bit different in Bangkok. There are lots of foreigners and young workers there, so there are plenty of people looking to rent homes.

If you decide to buy and rent out to long-term tenants, you should target expatriates, local professionals, and students in Bangkok. If you decide to rent out to short-term tenants, you should target business travelers, tourists, and those on holiday.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Bangkok are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.

Rental yields tend to be highest for lower-priced, smaller properties in the city centre due to the high demand from young professionals and students looking for affordable accommodation close to their work and studies. Properties in suburban areas with good transport links also tend to have high rental yields, as they are more affordable than properties in the city centre and still provide easy access to the centre.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Short-term

You could also decide to rent short-term to business travelers, tourists, and expats living and working in Bangkok. Digital nomads and remote workers looking for an affordable place to stay for a few weeks or months are also potential tenants.

If you decide to go with that option, look for properties in the popular areas of Sukhumvit, Silom, and Sathorn for good returns on your investment. The proximity to the city's attractions and public transportation makes these areas attractive to short-term tenants.

You will have some competition though - there are around 17,000 Airbnb listings in Bangkok. The average daily rate is at $53.

You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Bangkok can make around $600 per month. Also, the average occupancy rate is estimated at 70%.

Is it worth buying real estate in Bangkok then?

Certainly, let's cut to the chase. Buying a property in Bangkok can be a worthwhile endeavor if you're looking for a stable, long-term investment, have the financial means to do so, and plan to live in the city for an extended period.

The high property price-to-rent ratio in Bangkok makes renting less financially efficient in the long run, making property ownership a more attractive option. Additionally, with Thailand's relatively stable economy and projected GDP growth, buying property in Bangkok can be seen as a safe bet for capital appreciation over time. It's especially appealing if you're drawn to the vibrant city life, diverse cultural attractions, and affordable cost of living that Bangkok offers. However, it's crucial to be aware of the potential pitfalls, such as foreign ownership restrictions and regulatory complexities, and to conduct thorough research and seek professional guidance to navigate the local property market successfully.

On the flip side, if you're solely looking for high rental yields in the short term, Bangkok's current market conditions might not be your best bet. Rental yields in the city are relatively low, hovering around 2-3%, which falls below the 7% or higher threshold typically considered a good return on investment. So, if you're an investor seeking quick, substantial returns, you may need to look elsewhere.

Ultimately, buying property in Bangkok is a long-term commitment that requires careful consideration of your financial situation, investment goals, and how Bangkok fits into your life plans. It can be a great choice for those who want to call this vibrant city their home, but for purely investment-driven strategies, there are potentially better markets out there.

Make sure you understand the real estate market in Bangkok

Don't rush into buying the wrong property in Thailand. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Download Now

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.