Is buying a property in Silom a good investment?

Last updated on December 20, 2023

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

If you've admired the iconic skyscrapers and financial district of Silom, you may have envisioned securing a property in this dynamic Bangkok neighborhood, enjoying its corporate atmosphere and cityscape.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Thailand, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Silom?

Silom, located in the heart of Bangkok, has emerged as a highly sought-after location for property buyers, distinguishing itself from other real estate markets in several key ways.

Let's delve into what makes Silom so attractive, how it compares to other areas in Bangkok, its history of popularity, the type of people it draws, and also consider some of its potential drawbacks.

Silom is often regarded as Bangkok's financial district, bustling with activity and brimming with skyscrapers, which gives it a unique vibe compared to other areas. What sets it apart is its blend of modernity and tradition.

While you'll find state-of-the-art office buildings and luxury condos, there's also a rich tapestry of cultural heritage visible in street markets and temples, offering a unique living experience.

The area's popularity began to surge in the late 20th century as Thailand's economy grew and Bangkok expanded. Silom's development into a financial hub attracted both domestic and international investments, turning it into a prime location for real estate.

This trend has continued, and while predicting the future of real estate markets can be tricky, Silom's enduring appeal as a business and cultural center suggests its popularity isn't just a passing trend.

It's a melting pot, attracting a diverse crowd. You'll find young professionals drawn by the bustling work environment, expatriates who appreciate the cosmopolitan lifestyle, and investors looking for lucrative real estate opportunities.

Silom's vibrant nightlife, array of dining options, and easy access to other parts of Bangkok through the BTS Skytrain and MRT also make it appealing to those who love an urban lifestyle.

However, like any area, Silom has its drawbacks. The very factors that make its central location and development also lead to challenges like heavy traffic and a higher cost of living compared to other parts of Bangkok. The dense urban environment might not suit those seeking a quieter, more laid-back lifestyle.

Additionally, the high demand for properties in Silom can drive up prices, making it less accessible for budget-conscious buyers.

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Why is Silom a nice place to live?

Silom is often celebrated as a vibrant and dynamic place to live, and there are several reasons for this.

Understanding what makes Silom an appealing choice involves looking at various aspects of life there, from its lifestyle and culture to the practicalities of living, like safety, amenities, infrastructure, and accessibility.

When you think of Silom, think of a bustling blend of business and pleasure. It's known for its lively streets, a plethora of dining options ranging from street food to high-end restaurants, and a nightlife that's arguably one of the best in Bangkok.

The lifestyle here is fast-paced and cosmopolitan, attracting those who enjoy an energetic urban environment.

The expat community in Silom is robust, contributing to the area's diverse and international feel. This is a place where you'll hear a variety of languages spoken on the streets, and find a range of international cuisines and cultural events. It's common to see expats and locals mingling, whether it's in the business district or at local markets.

Living in Silom does come with a higher price tag compared to other parts of Bangkok. The cost of living, especially in terms of rent, can be on the higher side due to the demand for properties in this prime location.

Safety is a concern wherever you live, and Silom is generally considered safe, especially in well-trafficked areas. Like any major city, it's wise to be cautious, especially at night or in less crowded areas, but overall, residents and visitors alike find Silom to be a secure place to live and work.

Silom is well-equipped with amenities and facilities. For healthcare, you have access to top-notch hospitals like BNH Hospital and Bangkok Christian Hospital. Educational needs are served by international schools such as Shrewsbury International School.

For shopping and leisure, places like Silom Complex and the famous Patpong Night Market offer a diverse range of options.

The quality of infrastructure in Silom is quite high. Roads are well-maintained, utilities function reliably, and internet connectivity is excellent, catering to the needs of the business community and residents alike. This makes it an ideal place for both living and working.

Accessibility is one of Silom's strongest points. It's well-connected to other parts of Bangkok, making commuting relatively easy. Major transport hubs like Suvarnabhumi Airport and Don Mueang Airport are accessible via expressways.

Public transportation options are plentiful, with the BTS Skytrain (Silom Line) and MRT (Blue Line) being the most popular choices. These systems link Silom to key areas across Bangkok efficiently.

How much does it cost to buy real estate in Silom?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Thailand.

Buying property in Silom can be quite an adventure, given the diverse range of options and the dynamic nature of the market.

Let's dive into the types of residential properties available, their demand, pricing, and what the future might hold for this bustling area.

In Silom, you'll primarily find a mix of apartments, condominiums, and some townhouses. Due to its urban setting and status as a business hub, spacious luxury condos and high-rise apartments dominate the landscape.

These properties are particularly in demand because they cater to the needs of working professionals, expatriates, and investors who are drawn to the area's vibrant lifestyle and central location.

Regarding the types of properties, there's a blend of both new developments and resale properties. New developments, often high-end and featuring modern amenities, are continuously cropping up, reflecting Silom's growing appeal and urban development.

However, there's also a steady market for resale properties, which often come at a slightly more affordable price point.

Speaking of prices, the cost to buy property in Silom varies widely based on factors like size, location, and the age and condition of the property. Generally, you can expect prices to range significantly.

For example, luxury condos in prime locations can command high prices per square meter, reflecting their desirability and the upscale lifestyle they offer.

However, older apartments or those a bit further from the main streets might be more moderately priced.

Over recent years, property values in Silom have shown a trend of steady growth. This increase is primarily due to the area's ongoing development, its status as a commercial and financial hub, and the consistent demand for housing in central Bangkok.

This trend is expected to continue, although the exact trajectory will depend on various factors, including economic conditions and the overall real estate market in Bangkok.

Looking ahead, there are always new developments on the horizon in a dynamic area like Silom.

For instance, new residential projects or city planning changes, such as improvements in public transportation or infrastructure upgrades, can impact property values. These developments typically make the area more attractive and can lead to an increase in property prices.

Predictions for the real estate market in Silom in the coming years suggest a continued interest in this area, especially as Bangkok grows and evolves.

Factors that indicate potential increases in value include the ongoing demand for housing in central locations, the lure of a cosmopolitan lifestyle, and improvements in infrastructure and amenities.

Additionally, as Bangkok continues to solidify its status as a major Southeast Asian hub, areas like Silom are likely to benefit from increased investment and interest.

Where is the best area to buy a property in Silom?

When considering where to buy property in Silom, it's important to understand that the area offers a variety of neighborhoods, each with its unique character, types of properties, and price ranges.

Silom is a diverse and dynamic district, ranging from bustling commercial streets to quieter residential lanes. The central part of Silom, near Silom Road and Sathorn Road, is known for its high energy and vibrant atmosphere.

This area is filled with high-rise condominiums, luxury apartments, and commercial buildings. Properties here are generally at the higher end of the price spectrum, catering to those who seek a bustling urban lifestyle right in the heart of Bangkok's business district.

If you thrive in a fast-paced environment and want to be close to workspaces, fine dining, and nightlife, this is the place to be.

Moving a bit away from the central area, you'll find parts of Silom that offer a more balanced mix of residential and commercial properties. These areas, like those around Surasak and Chong Nonsi BTS stations, still provide easy access to the heart of Silom but tend to be slightly quieter and more residential in nature.

The properties here vary from modern condos to older apartments, often at a slightly more moderate price point than the very center of Silom.

An up-and-coming area within Silom to keep an eye on is around the BTS stations like Sala Daeng. This area is becoming increasingly popular due to its convenient location and the balance it offers between access to the bustling parts of Silom and a more relaxed residential atmosphere.

Properties here are a good mix of new developments and established residences, appealing to a range of buyers.

On the contrary, areas on the periphery of Silom, further away from the BTS and MRT stations, might be less advisable for those who prioritize convenience and accessibility.

While these areas might offer lower property prices, they also come with the drawback of being less connected, which can be a significant factor in a city like Bangkok where traffic congestion is a common issue.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Thailand.

Area	Atmosphere	Property Types	Price Trends
Central Silom (near Silom Road and Sathorn Road)	High energy, vibrant	High-rise condos, luxury apartments	Higher end
Areas around Surasak and Chong Nonsi BTS stations	Quieter, more residential	Mix of modern condos and older apartments	Moderately priced
Area around Sala Daeng BTS station	Up-and-coming, convenient location	Mix of new developments and established residences	Varying prices, potential for growth
Periphery of Silom	Less connected, more isolated	Varied, often older properties	Generally lower

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Is there a strong rental demand in Silom?

Silom, known for its dynamic urban lifestyle, is indeed a hotspot for rental demand in Bangkok.

This demand is fueled by a mix of both short-term and long-term rentals, each catering to different segments of the market.

Short-term rentals in Silom are particularly popular among tourists and business travelers. Given Silom's status as a financial hub and its proximity to various tourist attractions, short-term rental properties like serviced apartments and Airbnb-style accommodations are in high demand.

These properties often appeal to those looking for a convenient, well-furnished place to stay for a few days to a few weeks.

On the other hand, long-term rentals cater to a different demographic. This includes expatriates working in Bangkok, local professionals, and even some students attending nearby universities. These tenants generally seek stability and are more inclined towards renting condos or apartments for periods ranging from six months to a few years.

The profiles of potential tenants in Silom vary. Expatriates, often from the corporate sector, tend to look for modern, well-equipped condos that offer comfort and security.

Local professionals, on the other hand, might prioritize affordability and proximity to workplaces or transport links. Students usually seek more budget-friendly options, though still within easy reach of educational institutions.

When it comes to the type of properties these tenants are looking for, modern condominiums with amenities like gyms, pools, and security services are highly sought after.

Areas particularly popular for rentals include those near BTS stations like Sala Daeng, Chong Nonsi, and Surasak. The convenience of being close to public transport, shopping centers, and entertainment venues is a major draw.

Amenities that can help reduce vacancy in rental properties include fast internet, modern appliances, well-maintained communal areas, and reliable security. These features are particularly attractive to young professionals and expatriates, who value both comfort and connectivity.

In terms of potential returns on investment, properties in Silom can offer attractive yields, particularly if well-maintained and in a good location. Rental yields can vary, but properties in prime locations with sought-after amenities can command higher rents, thereby offering better returns.

For example, a well-located modern condo could yield a higher return compared to an older property in a less desirable part of the district.

Looking at the future, properties that cater to the evolving needs of renters – such as smart home features, eco-friendly designs, and flexible living spaces – are likely to see increasing demand.

These types of properties not only appeal to the modern tenant but also stand out in a competitive rental market, potentially offering better yields over time.

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Is it easy to buy a property as foreigner in Silom?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Thailand.

Buying property in Silom, Bangkok, as a foreigner involves navigating a set of specific regulations and understanding the local real estate market's nuances.

It's not necessarily difficult, but there are certain constraints and procedures that foreign buyers need to be aware of.

Firstly, foreign buyers face certain restrictions in Thailand. The most notable is the Foreign Quota in condominiums, which states that up to 49% of the total area of a condo project can be owned by foreigners.

This means that if you're looking at purchasing a condo in Silom, you'll need to ensure that the quota for foreign ownership hasn't been exceeded.

Additionally, foreigners are generally not allowed to own land in Thailand, but they can own the building on the land or lease the land (usually for up to 30 years).

The purchasing process typically starts with finding a property, which can be done through real estate listings or a local agent. Once you've chosen a property, a reservation agreement is signed, and a deposit is paid.

This is followed by due diligence, where legal checks on the property are conducted. If all is in order, you'll proceed to sign a sales contract and make further payments according to the agreed schedule.

Finally, the transfer of ownership is done at the Land Department, where the remaining balance is paid, and ownership documents are officially transferred.

There are risks associated with property investment in Silom, as with any real estate market. These include potential changes in the real estate market, economic fluctuations, and legal issues related to property ownership.

A classic pitfall for foreign investors in Thailand is not conducting thorough due diligence. Issues like title deed verification, checking for any outstanding mortgages or liens, and ensuring compliance with the foreign quota in condominiums are critical.

Working with a local real estate agent and/or lawyer is highly important. They can provide invaluable assistance in navigating the complexities of the Thai real estate market, ensuring legal compliance, and helping with language barriers. They can also offer insights into local market trends and property valuation.

Common exit strategies for property investors in Silom include selling the property or renting it out. The rental market in Silom can be lucrative, especially for properties in desirable locations and with good amenities.

When selling, understanding market timing and pricing strategies is key to maximizing returns. It's also important to be aware of any taxes or fees associated with selling property in Thailand.