Demystifying the Contemporary Housing Market with Seasoned Real Estate Specialists from the Community

1. Don't be in a hurry. Take a year to study the market. 

2. Have an advisor who can guide you a little objectively. If your agent or realtor is over-aggressive, maybe you should seek a different advisor.

3. Look for facilities and convenience around the neighbourhood that are suitable to your lifestyle. Schools, parks, pet hotels, pet parks, supermarkets, and hospitals are necessary in the long term, especially in Bangkok and Phuket. They need to be factored in and should be within 10 kilometres of your home. 

4. Choose a size that you will grow into. Family planning and expectancy are always unpredictable. What should happen if you’re blessed with triplets? Will that three-bedroom be sufficient? You may find this humourous until it happens to you. But, let me assure you it's possible. 

5. Try to visit your potential future home day and night, weekdays and weekends, even during the holidays. Sometimes a location looks kosher during the day, but not very friendly at night. Be aware.

This may sound a little strange but renting works if: 

1. You are not certain if you have a long-term commitment to a partner or a location. Gentrification of a location goes wrong. For example, you bought a nice home in the middle of Sukhumvit Soi 4, but now realise that maybe Soi 4 is not the best place for a residential investment in Bangkok.

2. Relationships can turn unexpectedly. At the time of your investment, you may be with a partner, but down the road, the relationship may sour or marriages may not work, so you have difficulty in splitting the house in two once love is lost.

I think the trend is towards smaller. I have noticed that there are those who are happy in 100-268 square metre spaces, while others may have a need for a huge suburban home. Again, it comes to a lifestyle choice. In Bangkok, many of us live in the likes of Oriental Towers, Windsor Suites, Fairview Towers, and MGC. These accommodations offer an excellent value proposition at a price under THB 90,000 per square metre, but maybe a lifestyle more akin to communal or kibbutz living or a shared private life. I think there’s nothing wrong with that, because I believe a community that lives together fosters lifetime bonds. However, I do trust the next generation will look for something a little more private. By 2030, new homes in the city will be under 200 square metres, have three bedrooms, and be priced at upwards of THB 25,000,000. Outside the city, in more rural areas, homes will be over 100 square metres, average four to five bedrooms, and be upwards of THB 30,000,000.

I believe the hotpots are, in order: Krungthep Kreetha, Pattahankarn, and Ratchapruek. The following areas will bring excellent suburban living options at prices under THB 20,000,000 for 3-bedroom homes less than 200 square metres. You may need to visit these locations on multiple occasions, or you may call me for a map of the moo bahns or gated communities in these locations. I do believe that some expats who have never ventured to these locations, need to take a drive and appreciate the variety of housing options available.

Investment for rental optimisation or resale appreciation is best understood by the tailoring community. They have seen growth of their tailoring business by 100 percent to 1,000 percent in the last 20 years, but growth of the real estate portfolios by 2,000 percent in the last 20 years. The tailoring community has generally focused on Nana and Phrom Phong shophouse assets, giving an initial return of four percent to five percent on purchase (NPV) and 20 percent to 40 percent based on acquisition costs of purchase between 2000 to 2010. In a recent sale we transacted in Sukhumvit Soi 7 yielded an immediate capital appreciation of 5 percent to 20 percent on purchase. This reflects high demand for properties in the Nana and Phrom Phong areas for commercial rents between THB 100,000 to THB 300,000 per month. This sector will continue to grow and by 2035, each shophouse in Nana location will be worth THB 100,000,000 in my prediction. The shophouse sector at an entry-level THB 25,000,000 presents the best short- and long-term appreciation options in Thailand and a lot of growth in the Thai-Indian community is directly correlated to the appreciation of shophouses in Nana over the last 20 years. This will continue.

Buying a home usually means coming up with a hefty down payment, and is a better fit if you're thinking long-term. On the flip side, renting tends to have lower upfront costs and offers more flexibility, especially if you’re not ready to commit to one place. Things like interest rates can play a big role in how affordable buying a home is, and when you own, you're responsible for repairs. Renters, on the other hand, don’t have to worry about any of those issues. Buying a house helps you build your personal equity over time and gives you the freedom to customise your space however you like. However, renting limits you from growing your equity and making any changes to the space as you don’t have much freedom to do so. 

When buying a home, avoid overestimating your budget and always get pre-approved for a mortgage first. Don’t forget to factor in extra costs like taxes, transfer fees, and maintenance. Once you purchase a property, you are responsible for maintenance fees and other costs that are required for the upkeep of the property as well, not just the monthly loans. Be cautious about purchasing in a condominium with too much supply, as it could lead to lower property values or difficulty reselling. Take your time to thoroughly research and inspect properties instead of rushing into a decision.

Location, location, location.

New investors often make the mistake of buying inexpensive condos with lots of units available, which can tie up their money and make it harder to sell or get out of the investment quickly. New investors should also keep in mind that things like market ups and downs, along with changing policies, can cause rental income, interest rates, and property prices to shift unexpectedly.

Many Thai-Indian families prefer larger homes with separate spaces to accommodate multiple people. At the same time, affordability is a key concern, as rising housing costs make it difficult for many to find budget-friendly options that meet their needs. Many Indian families also require a maid’s quarter, a parking lot, some Indian neighbours, and the list goes on. Over the years, I’ve received so much feedback that I now have a directory of Thai-Indian-preferred properties. I’m also able to filter out units based on custom preferences, and if needed, tap into my network of agents to fulfil my clients’ requests.

For personal use, test the waters before you dive. If you’re planning to stay in Bangkok for a short term, renting is often the smarter choice. It allows you to experience the area and the property firsthand without committing long-term. Think of it as, “trying before buying,” especially if the location is new to you. However, if you’re ready to buy, location should always be your top priority. The neighbourhood’s infrastructure, road access, public transport, and nearby amenities like convenience stores and schools can make or break your living experience. Beyond the area, evaluate the property itself. Is the view appealing? What about the floor, size, and condition of the unit?

For investment, weigh Return on Investment (ROI) against demand. If your focus is on ROI, Bangkok’s average rental yield typically falls between 4-6 percent, with anything above five percent considered a solid investment; you have to see if this is acceptable for you or not. 

However, high ROI isn’t everything. Some properties may look great on paper but take ages to find tenants. Others might offer a slightly lower yield but are in high demand, allowing you to secure renters quickly and start earning right away. The question isn’t just, “What’s the ROI?” It’s also, “How soon can I see returns?” Sometimes, a steady stream of tenants beat chasing that elusive, perfect figure.

Entering the real estate market can be lucrative, but like any investment, it comes with its fair share of risks. While no investment is completely risk-free, understanding the potential pitfalls can help you navigate the market more confidently.

1. Market Saturation: Right now, we’re facing an oversupply of condominiums and fewer buyers or tenants, making the market highly competitive. The real estate market moves in cycles, so it’s crucial to stay informed, and adjust your strategy accordingly to avoid getting stuck with an underperforming asset.

2. Ability to Liquidate: A property that seems like a great investment today may not be as easy to sell or rent tomorrow. People’s preferences evolve, and so do market conditions. Be prepared for fluctuations, and don’t be too rigid in your approach. Stay flexible and ready to pivot when necessary, embracing new opportunities when they arise.

3. Unforeseen Circumstances: Natural disasters, and other unforeseen events can impact your investment unexpectedly. It’s wise to have insurance in place, whether for fire, flooding, or other risks, to protect yourself and your property from unexpected financial loss.

Sukhumvit’s appeal lies in its comfort level - lifestyle, convenience, and prestige. Many buyers are drawn to its central location, proximity to workplaces, and vibrant community of family and friends. For some, it’s also about societal image or “fitting in” to the established hub of expat life.

From an investment perspective, Sukhumvit remains lucrative. While capital gains vary by area, properties priced at THB 80,000 per sqm or less are increasingly rare, making them highly sought-after. Owning property here is seen as a long-term win, even as prices climb.

Ratchapruek and Charan Sanit Wong: these neighbourhoods attract buyers seeking larger homes at more reasonable prices. Many families, accustomed to spacious living, choose these areas for the comfort they offer – though it comes at the cost of being farther from central Bangkok.

In the past years, the spotlight has been shifting towards Upper Sukhumvit areas like Phra Khanong and Punnawithi. These neighbourhoods cater to families who value large homes with modern amenities, but want more space than central Sukhumvit can offer. Similarly, Pattanakarn is seeing increased demand for houses, especially among those seeking a balance of comfort and affordability.

For Indian expats, Phuket is becoming a favourite for holiday home investments. With simple processes involved in legal transfers of funds from abroad, the island is flooded with buyers, who are seeking both luxury and high ROI profitability.

The Thai-Indian community has long considered real estate one of the safest and most reliable investment options. High-value assets such as commercial properties, condominiums, and land have traditionally been the go-to for building wealth and securing a legacy for future generations. But change is on the horizon. The next generation is shifting gears, exploring investments beyond real estate. Mutual funds, bonds, stocks, gold, and even cryptocurrencies are gaining traction as younger investors seek quicker ROI and scalable opportunities. This evolving mindset reflects a desire for faster growth while still valuing the stability that real estate offers.

Despite diversification, property investments in Thailand remain highly attractive. With continuous infrastructure development, world-class healthcare, and a retirement hub, Thailand’s real estate market isn’t losing its charm. Buyers see long-term value in owning property, whether for personal use or as a means to pass wealth to future generations. Right now, the Thai property market favours buyers, offering an excellent chance for those with financial means to secure valuable assets. The oversupply in the market presents opportunities to negotiate better deals on properties that will likely appreciate over time.

Ensure the property is spacious enough to accommodate future growth, as families naturally expand over time. Thoroughly evaluate the quality and condition of both the interior and construction to avoid unforeseen costs that could strain your budget. A well-considered investment now can prevent costly surprises later.

Unauthorised construction or additions, such as extensions or alterations made without the proper permits, can lead to legal issues and fines, as well as potential problems with the property's structural integrity. Another common oversight is poor management from the legal services or property management team, which can result in inadequate maintenance and unresolved building issues.

Yes, housing preferences vary based on life stages. Singles prioritise proximity to public transport and vibrant neighbourhoods, newlyweds seek convenience and well-rounded facilities, families focus on access to quality schools, and seniors favour step-free living with easy access to healthcare services.

Many individuals within the Thai-Indian community seek larger homes, similar to those they are accustomed to, which often come at a premium price. Additionally, there is a strong preference for closed kitchens, a feature that many newer condominiums lack. This presents a challenge, as it may limit their options or necessitate higher investments to meet their specific requirements.

An effective strategy would be to thoroughly investigate the hidden costs associated with property ownership, such as taxes, insurance, agency fees, and ongoing maintenance expenses. These costs can often be overlooked during the initial stages of purchasing, but they can significantly impact the overall financial commitment.

It is crucial to thoroughly assess the resale potential of the property. A thorough evaluation of its long-term resale prospects will help ensure a sound investment decision.