Is buying a property in Sukhumvit 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 explored the bustling streets and international cuisine of Sukhumvit, you might have considered establishing a residence in this vibrant Bangkok district, savoring its cosmopolitan dining and urban excitement.

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 Sukhumvit?

Sukhumvit, a vibrant district in Bangkok, has garnered significant attention from property buyers for several reasons, each contributing to its allure compared to other real estate markets.

Firstly, Sukhumvit's prime location in the heart of Bangkok ensures easy access to the city's major business and entertainment hubs. This central positioning is a stark contrast to more peripheral areas of Bangkok, which, while often more affordable, can't match Sukhumvit's convenience and connectivity.

When you think about what sets Sukhumvit apart, its cosmopolitan atmosphere comes to mind. It's a melting pot of cultures, bustling with a variety of dining, shopping, and nightlife options. This diversity is somewhat unique in Bangkok's real estate landscape, where many areas tend to have a more homogenous, local feel.

Sukhumvit's rise to popularity as a real estate hotspot began in earnest with Bangkok's economic boom in the late 20th century, particularly in the 1990s. This growth spurt coincided with significant infrastructure developments, like the BTS Skytrain, which opened in 1999 and runs directly through Sukhumvit.

This infrastructure development was a game-changer, improving accessibility and further boosting the area's attractiveness.

As for the future, it looks like Sukhumvit will maintain its appeal. The ongoing development of commercial and residential projects, along with continuous improvements in transportation, suggest that the area will remain a sought-after location.

However, it's important to note that real estate markets are subject to fluctuations due to various factors like economic shifts and urban planning policies.

Sukhumvit tends to attract a diverse demographic, including expatriates, business professionals, and affluent Thais. The area's international schools, luxury shopping malls, and high-end condominiums are particularly appealing to those seeking a cosmopolitan lifestyle.

This contrasts with other areas in Bangkok that might attract more traditional families or those looking for quieter, more suburban living.

However, Sukhumvit isn't without its drawbacks. The very factors that make it attractive can also be its weaknesses.

For instance, its popularity can lead to higher living costs and property prices compared to other parts of Bangkok.

Additionally, the area can be quite congested, both in terms of traffic and population density. This can detract from the living experience for those who prefer a more relaxed, spacious environment.

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Why is Sukhumvit a nice place to live?

Living in Sukhumvit offers a unique and vibrant experience, marked by a fusion of local Thai culture and international influences.

This area is renowned for its lively atmosphere, where traditional street food stalls coexist with upscale dining establishments. The lifestyle here is dynamic and cosmopolitan, attracting a diverse range of residents and visitors.

One of the standout features of Sukhumvit is its strong expatriate community. This international presence has fostered a multicultural environment where people from various backgrounds live and interact.

For expats, this means an easier transition into Thai life, as there's a good chance of finding familiar comforts from home, be it food, language, or community support.

However, the cost of living in Sukhumvit can be relatively high compared to other parts of Bangkok. This is particularly true for housing, as the area boasts many high-end condominiums and serviced apartments.

While this might stretch the budget more than other districts in Bangkok, many find the convenience and lifestyle worth the premium.

Safety in Sukhumvit is generally good, especially in well-trafficked areas and around major residential and commercial buildings. As with any busy urban area, it's always wise to be aware of your surroundings, especially at night.

The amenities and facilities in Sukhumvit are top-notch. For families, there are reputable international schools like NIST International School and Bangkok Prep. Healthcare needs are well catered for with hospitals like Bumrungrad International Hospital and Samitivej Sukhumvit Hospital, known for their high standards of care.

Shopping enthusiasts will appreciate malls like Terminal 21 and EmQuartier, offering a wide range of shopping and dining options.

In terms of infrastructure, Sukhumvit is quite advanced. The roads are generally well-maintained, although traffic congestion can be a problem, especially during peak hours. Utilities and internet connectivity are reliable, meeting the demands of both residential and business needs.

Accessibility is a strong point for Sukhumvit. It is well connected to other parts of Bangkok and major transport hubs. The BTS Skytrain, with stations like Asok and Nana, runs through the heart of Sukhumvit, making it easy to travel to other parts of the city.

The MRT, with stations like Sukhumvit and Queen Sirikit National Convention Center, provides additional connectivity.

For international travel, the Suvarnabhumi Airport and Don Mueang Airport are accessible via expressways or public transport, making travel in and out of Bangkok relatively hassle-free.

Public transportation options in Sukhumvit are plentiful. The BTS Skytrain and MRT are the most popular choices for daily commuters, providing fast and efficient travel. Buses and taxis are also readily available, offering more personalized travel routes, though they can be subject to Bangkok's notorious traffic.

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

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 Sukhumvit can be quite an investment, given its status as one of the city's most desirable areas.

The types of residential properties available in Sukhumvit are diverse, ranging from modern apartments and condominiums to luxury villas and townhouses. Each property type caters to different lifestyles and preferences, making Sukhumvit a versatile choice for many buyers.

When it comes to high demand, condominiums are particularly popular in Sukhumvit. This preference stems from their convenience, modern amenities, and often, their proximity to major transport links like the BTS Skytrain.

Condominiums in Sukhumvit are sought after by both expatriates and locals, especially those who value being close to the business and commercial hubs of Bangkok.

In Sukhumvit, you'll find a mix of new developments and resale properties. The area is continuously evolving, with new high-rise condominiums and mixed-use developments emerging alongside well-established residential buildings.

This mix provides a wide range of options for buyers, from brand new, state-of-the-art facilities to more established properties with a potentially lower price tag.

Speaking of price, the range for properties in Sukhumvit can vary widely. For condominiums, prices per square meter can range significantly, depending on factors like location, quality, and amenities.

Generally, you might find prices starting from around 150,000 THB per square meter for standard units, going up to 300,000 THB per square meter or more for luxury developments. These figures are indicative and can fluctuate based on market conditions.

Over recent years, property values in Sukhumvit have seen steady growth. This trend is attributed to the area's enduring popularity, ongoing development projects, and overall appeal as a prime residential area in Bangkok.

However, like any real estate market, these trends are subject to change based on broader economic factors.

Looking ahead, there are several developments and city planning changes that might impact property values in Sukhumvit.

For instance, ongoing infrastructure projects like the expansion of the BTS Skytrain and the development of new mixed-use complexes can increase the desirability and, consequently, the value of nearby properties.

Specific upcoming projects or developments in the area can also play a significant role in shaping future property values.

Predicting the real estate market in Sukhumvit in the coming years involves considering various factors. The area's continuous development, strategic location, and appeal to a diverse demographic are strong indicators of its potential for sustained demand and value appreciation.

Additionally, Bangkok's overall growth as a major Southeast Asian city contributes positively to the real estate market in prime areas like Sukhumvit.

Several factors indicate a potential increase in property values in Sukhumvit. These include its ongoing urban development, improvements in transportation infrastructure, and the area's status as a commercial and lifestyle hub.

With these factors in play, Sukhumvit remains an attractive prospect for real estate investment, both for personal use and for rental income, given the high demand for residences in this vibrant Bangkok neighborhood.

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

The best area to buy a property in Sukhumvit depends largely on your personal preferences and lifestyle needs, as different parts of Sukhumvit offer varied atmospheres, property types, and price ranges.

Starting from the lower sois (side streets) of Sukhumvit, near the Asoke and Nana areas, you'll find a bustling, lively atmosphere. This part of Sukhumvit is known for its vibrant nightlife, diverse dining options, and shopping centers like Terminal 21.

The properties here are predominantly high-rise condominiums. Due to the prime location and amenities, prices in these areas tend to be on the higher end.

Moving further east along Sukhumvit, towards Thong Lo and Ekkamai, the atmosphere shifts slightly. These areas are known for their trendy lifestyle, boasting hip cafes, boutiques, and a more upscale residential feel. Thong Lo and Ekkamai are highly desirable for both expatriates and affluent locals.

The properties here are a mix of high-end condominiums and luxury townhouses. While still pricey, they offer a more relaxed vibe compared to the more central parts of Sukhumvit.

Phrom Phong is another area worth considering. Home to the EmQuartier and Emporium shopping malls and the lush Benjasiri Park, Phrom Phong offers a balanced mix of urban convenience and green space. The properties here are similar to those in Thong Lo and Ekkamai, with a focus on high-end living.

As for up-and-coming areas, On Nut and Phra Khanong are gaining popularity. These areas are a bit further from the city center, but they offer more affordable property options while still providing good access to the BTS Skytrain.

The vibe here is more local, with a growing number of small businesses and international restaurants. These areas are ideal for buyers looking for a more budget-friendly option without straying too far from the conveniences of central Sukhumvit.

In contrast, the areas towards the end of Sukhumvit, like Bang Na and Bearing, are less advisable for those who prefer to be closer to the city center.

While these areas offer more affordable housing options and are developing rapidly, they are farther from the major commercial hubs and can feel a bit too removed for those seeking the full Sukhumvit experience.

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 Range	Up-and-Coming	Recommendation
Asoke & Nana	Bustling nightlife, diverse dining	High-rise condos	High-end	No	For those who enjoy vibrant city life
Thong Lo & Ekkamai	Trendy, upscale lifestyle	High-end condos, luxury townhouses	High-end	No	Perfect for a stylish, urban lifestyle
Phrom Phong	Urban convenience with green spaces	High-end condos, luxury townhouses	High-end	No	Great for a balance of city living and nature
On Nut & Phra Khanong	Local vibe, growing businesses	Condos, townhouses	Mid-range	Yes	Affordable options with easy access to Sukhumvit
Bang Na & Bearing	Less connected to city center	Condos, townhouses	Mid-range	No	Not ideal for those seeking central Sukhumvit

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Is there a strong rental demand in Sukhumvit?

Sukhumvit is known for its strong rental demand, thanks to its prime location and vibrant lifestyle.

When it comes to the types of rentals, there's a healthy mix of both short-term and long-term demands, the long-term rental market is particularly robust, driven by expatriates and locals working in the city.

The target demographic for rentals in Sukhumvit is quite diverse. It includes expatriates who are in Bangkok for work, often in the business, diplomatic, or NGO sectors. These individuals typically look for modern, well-located properties that offer convenience and comfort.

Another significant segment is young professionals, both Thai and international, who prefer living in a dynamic urban environment.

Potential tenants in Sukhumvit have specific profiles. Expatriates often seek properties that are close to international schools and business districts. They tend to favor modern condominiums with amenities like swimming pools, gyms, and security services.

Young professionals, on the other hand, might prioritize proximity to the BTS Skytrain stations and vibrant nightlife, opting for studio or one-bedroom apartments.

In terms of specific areas within Sukhumvit, Thong Lo, Ekkamai, and Phrom Phong are particularly popular. These areas are known for their trendy cafes, shopping centers, and lifestyle amenities, making them attractive to tenants seeking a balance of convenience and quality of life.

Amenities can significantly impact the rental appeal of a property. Features like high-speed internet, modern fitness centers, pools, and 24-hour security can greatly reduce vacancy rates. In a bustling city like Bangkok, conveniences such as onsite parking and proximity to public transportation are also highly valued.

Regarding the potential returns on investment, properties in Sukhumvit can offer attractive yields, although specific numbers can vary widely based on the property type, location, and amenities.

Generally, investors can expect a rental yield of around 4% to 6% annually, but this can be higher in sought-after locations or for properties with unique selling points.

As for the type of properties gaining increasing demand, there's a growing interest in smaller, well-designed units that cater to the lifestyle needs of young professionals. Studio and one-bedroom apartments in high-rise condominiums, particularly those close to the BTS stations, are seeing more demand.

These properties often offer better yields due to their popularity among a large segment of renters and their typically lower purchase prices compared to larger units.

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

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 Sukhumvit, Bangkok, as a foreigner comes with certain regulations and restrictions, making the process a bit complex but manageable with proper guidance and understanding of the local real estate market.

Firstly, there are specific regulations for foreign buyers in Thailand. Foreigners are generally not allowed to own land in Thailand, but they can own condominium units, provided that at least 51% of the building's total floor area is owned by Thais.

This means in areas like Sukhumvit, which has a plethora of condominium developments, foreign buyers often opt for these properties. However, navigating these regulations requires careful attention.

The purchasing process in Sukhumvit involves several steps. After selecting a property, you'll need to secure a sales agreement, make a deposit, and then proceed with the transfer of ownership. This process involves due diligence checks on the property, ensuring there are no outstanding debts or legal issues attached to it.

There are primary risks associated with property investment in Sukhumvit that foreigners should be aware of. The real estate market can be subject to fluctuations, and there's always a risk of property values not appreciating as expected.

Also, given the popularity of Sukhumvit, some areas might be overpriced, leading to less competitive returns on investment.

Classic pitfalls or common mistakes often revolve around not fully understanding the legal and financial implications of a property purchase in Thailand. One unique aspect is the different types of title deeds in Thailand, with some offering less legal ownership security than others.

It's crucial to ensure that the property has a "Chanote" title deed, which is the most secure type of land title in Thailand.

Working with a local real estate agent or lawyer is highly important. A knowledgeable local agent can help navigate the complex market, identify properties that meet your criteria, and ensure you pay a fair price.

Similarly, a lawyer can help with legal due diligence, ensuring the property doesn't have any legal encumbrances and that the transaction complies with Thai law.

Common exit strategies for property investors in Sukhumvit include selling the property at a profit after a period of value appreciation or renting it out to generate rental income. The rental market in Sukhumvit is quite robust, especially for well-located properties, offering a steady income stream for investors.

However, selling a property can be subject to market conditions, and it's essential to time the sale correctly to maximize returns.