5 reasons why you should invest in the Bangkok CBD now

PUBLISHED ON Mar 19, 2020

Where exactly is the Bangkok CBD?

CBRE Thailand defines the boundaries of the central business districts as Silom, Sathorn, Rama IV Road, Ploenchit and Wireless Road.

As the commercial, business and entertainment hub of Bangkok, these districts have seen the highest rising property prices in recent years. A lack of prime CBD land coupled with expensive prices, have prompted new developments in Bangkok’s new CBD Rama 9 and Thonglor.

While Rama 9 and Thonglor are gaining momentum under a rapid development of infrastructure, offices and leisure options, properties in Bangkok’s traditional CBD continue to see increasing values. Here are the reasons why:

1. Prime CBD land is hard to find

Bangkok has undergone relentless urbanization. It is difficult to find prime land plots for new residential developments. The lack of land supply will result in price growth in the CBD.

Developers have launched a number of high-priced condos in the area. The most expensive to date, is Sansiri’s 98 Wireless priced at THB 720K per square meter.

2. High-quality tenants

Bangkok’s CBD has bred into a burgeoning ground of hotels, luxury retail, entertainment and Grade A offices. Anyone staying in the CBD will have access to everything that Bangkok has to offer.

It is also the district where high-paid expats will rent. The CBD is a tried and trusted location with a strong tenant market.

3. Wealthy investors lured to Bangkok

Developers have reported high levels of interest in the luxury real estate sector. The trend is fueled by growing interest among foreign buyers from China, Singapore, Japan and Hong Kong.

Wealthy and young locals also prefer condominiums and apartments in the CBD over suburban homes.

4. Access to everything in the CBD

The CBD has access to the best of everything in Bangkok. There are a number of premier office buildings and 5-star hotels including Mandarin Oriental, Shangri-La, W Hotel, Sofitel So and more.

The district also hosts Bangkok’s top shopping destinations like Siam Paragon and Central World besides top-tier international schools and hospitals.

5. Decent capital appreciation & rental income

According to global-wide reports, property prices in Asian cities including Singapore and Hong Kong are between two to six times more expensive than Bangkok.

Foreign buyers are exempted from a heavy stamp duty. The liquidity of developers and the selectivity of banks in approving mortgages are positive factors that attract foreign buyers.