Bangkok properties have risen a great deal from the time I first entered the Bangkok property market. Prices are close to an all-time high currently. Thailand is not immune to inflation. Prices of properties in Bangkok and neighbouring cities and countries have been rising aggressively since the pandemic ended and global travel is once again liberated.
The Thai Baht is weak. It has remained so for an extended period. The reason for this would be that this would make Thai exports more attractive as it seeks to make up for the shortfall in tourism numbers. The Thais are very cognisant that they cannot be as reliant on tourism as before. Pre-covid, tourism accounted for about 10 per cent of Thailand’s gross domestic product (GDP).
Thai properties as foreign property purchases are also dependent on the exchange rate. If the Thai Baht is strong, Thai properties will be more expensive to foreigners. The flip side is true as foreigners deem Thai properties as discounted due to the weak Thai Baht. This gives foreign buyers of Thai properties two possible upsides. One, if the property appreciates, the owner of the property can realise the profit if he chooses to sell the property. The second possible upside would be if, all things being equal, the Thai baht appreciates against the foreign buyer’s home currency. Selling the property and converting the money back to his home currency will yield a profit.
Recently, the Thai property market has seen a slight uptick. The buyers are mainly from China, Russia and Taiwan. However, as prices in traditionally popular areas like Chidlom, Ploenchit, Asoke and Thonglor have climbed, property purchasers will start to move slightly further out. These buyers are looking to purchase for their own stay and hence the typical characteristics like close to amenities and the city centre are important.
One of the areas where demand has seen an uptick in demand is the Rama 4 area. For those who are not familiar, Rama 4 Road is a very long stretch of road that leads from just after BTS Phra Khanong all the way through to the Sathorn Financial District.
Rama IV Road from BTS Phra Khanong
Rama IV Road through the Sathorn Financial District
Rama 4 Road is a road that is parallel to the main Sukhumvit Road. The road that straddles the BTS line that most tourists are familiar with. Along Rama 4 Road lies two major hospitals, chain supermarkets and community malls. The tenants that are looking to rent properties in this area want to be close to the Thong Lor, Ekkamai, On Nut area as well as being just one straight road down into the Sathorn Financial District.
In this review, we will be looking at 3 developments in the area from 3 major developers.
- Ideo Sukhumvit-Rama 4 by Ananda Development PLC
- Aspire Sukhumvit-Rama 4 by AP (Thai) PLC
- Oka Haus by Sansiri PLC
Details about the developments
Ideo Sukhumvit-Rama 4 is a freehold condominium by Ananda Development. The development consists of 1 building with 32 floors. There are a total of 645 residential units in this development.
Aspire Sukhumvit-Rama 4 is a freehold condominium by AP (Thai). The development consists of 1 building with 38 floors. There are a total of 1323 residential units with 2 commercial units in this development.
Oka Haus is a freehold condominium by Sansiri. The development consists of 1 building with 47 floors. There are a total of 1,178 residential units in this development.
Where are the developments located?
The walk from BTS Phra Khanong to Ideo Sukhumvit-Rama 4
Ideo Sukhumvit-Rama 4 is located along the main Rama 4 Road. The development is 450 meters from BTS Phra Khanong. The walk will take 6 minutes.
The walk from BTS Phra Khanong to Aspire Sukhumvit-Rama 4
Aspire Sukhumvit-Rama 4 is also located along the main Rama 4 Road. The development is 600 meters from BTS Phra Khanong. The walk will take 9 minutes.
The walk from BTS Thong Lor to Oka Haus
Oka Haus is also located along the main Rama 4 Road. It is further along Rama 4 Road as compared to the other two developments and is closer to the Sathorn Financial District. The development is 1.4 kilometers from BTS Thong Lor. The walk will take 19 minutes. The distance is not ideal if you intend to walk to BTS Thong Lor daily. However, if you are travelling by private transport to the Sathorn Financial District, then this is closer than the other 2 developments.
Both BTS Thong Lor and BTS Phra Khanong are located along the light green Sukhumvit BTS line. BTS Thong Lor is a mere 6 stations away from BTS Siam where the popular Siam Paragon shopping mall is located. Thong Lor should be an area which is synonymous with tourists especially those who enjoy cafe and bar hopping. Many popular restaurants are located in this area. The Japanese expatriate community particularly likes to live in this area and hence you can see a lot of Japanese restaurants and shops in the Thong Lor area. BTS Phra Khanong is another 2 stations down the same BTS line from BTS Thong Lor. This area is a little more residential in nature but is still very conveniently located if you are coming from the Thong Lor and Ekkamai area. The Phra Khanong and On Nut area are getting more popular with cost-conscious foreigners who want to stretch their dollar.
This area is getting very popular. Not too long ago, I reviewed two developments, Aspire Onnut Station by AP (Thai) and Nia by Sansiri which are located in the On Nut area. You can read this review here:
https://daryllum.com/my-review-of-aspire-onnut-station-by-ap-thai-and-nia-by-sansiri/
My thoughts about the developments (selling points and investment potential)
Developer profile is important. My advice to everyone that is looking to purchase a property in Bangkok would be to purchase from a local Thai developer that is listed on the Stock Exchange of Thailand. I believe that there is every possibility that smaller foreign developers may falter. There have been developments by some “new” foreign developers. Thailand, being a very open economy, welcomes developers from all over the world to develop in Bangkok. The same developers that are facing financial woes in countries like China have subsidiaries in Thailand and are developing in Thailand. One such example is Risland. If you are unsure who Risland is, you can refer to this article:
Who is Risland?
Do not be enticed by low prices. The market always moves towards an equilibrium. If prices of properties in a certain area have been transacting at a certain level, there is close to no way that you can get hold of something that is half off in the same area. Much less the same development. If you budget about USD$200,000 for a one-bedroom condominium unit in this area, you would have an extremely healthy budget to purchase a unit in a good development by a Thai developer with a proven track record. The development should have a wide array of facilities and the building should be well maintained over time. This would mean that the ability to attract tenants would survive past the initial few years.
Ideo Sukhumvit-Rama 4
Pricing 4/5
Prices start in excess of THB 4.5 million. Yield wise, it works out to a gross yield of about 4.5% per annum. Demand is strong for this area. The tenants are the slightly more cost conscious expatriate. The draw of this location would be the proximity to the On Nut area with a huge Tesco next to the BTS as well as the proximity to Ekkamai and Thong Lor. The Rama 4 Road provides a direct route straight into the Sathorn Financial District.
Location 4/5
The location is not exactly next to BTS Phra Khanong but it is still within walking distance. 450 meters may not be exactly close but we have dealt with so many other developments where the distance to the BTS is further than this and demand has been strong. This development is located along a main road and hence you are not walking up into a dark alley to get to the development.
Quality 4/5
If you are purchasing from one of the large Thai developers, this should not be an issue. As mentioned earlier, Ananda is listed on the Stock Exchange of Thailand and has an excellent track record.
Aspire Sukhumvit-Rama 4
Pricing 4.5/5
Prices start slightly less than THB 4 million. However, such units would be smaller in size and in a less desirable facing. Ideally, a budget of slightly more than THB 4 million would get you a nice studio unit. There are vertiplex units (that’s the term that is used in the brochures) and these units are essentially one bedroom units with high ceiling. The bed is located on a loft with a small flight of stairs leading up. If I had the choice, I would select such units as it offers something different to prospective tenants.
Location 3.5/5
The location is also not exactly next to BTS Phra Khanong but it is still within walking distance. However, it is 600 metres. Slightly further than the previous development.
Quality 4/5
Similarly, AP (Thai) is a large developer that is listed on the Stock Exchange of Thailand. Their track record is similarly excellent. Having seen and dealt with many of their developments for more than a decade, I struggled to find an instance where there were any major complaints.
Oka Haus
Pricing 4.5/5
Prices start around THB 5 million. The gross yield should be slightly more than 4% per annum. Having seen the actual development in the flesh, I can say that the furnishing and fittings that are provided are top-notch.
Location 4/5
The downside is that this is not close to the BTS station. However, the pricing would be dramatically higher if it were close to BTS Thong Lor, perhaps the nearest BTS station.
Quality 4/5
Similar to the other two developments, this is a Sansiri development. Quality should not be an issue. If there ever was an issue with the state of the development at the point of handover, Sansiri has been known for being extremely responsive to rectifying defects.
Yours Sincerely,
Daryl Lum