The System Map of Bangkok Rail Transit Network

Only by understanding where downtown Bangkok is, where the Central Business District and growth areas are, can we truly understand the Bangkok property market and make a sound decision. I usually divide the areas into 3 categories:

1) The Core Central Regions
2) The City Fringes
3) The Growth Area

1) The Core Central Regions

This is essentially the Orchard Road, Raffles City and Marina Bay area of Bangkok. As a property investor, we must always be able to identify the most prestigious district in a city. This is where the rich and affluent typically live. It is where there is the highest concentration of expatriates and wealthy individuals.

Siam and Chit Lom

Chit Lom and Siam area in Bangkok

This is where the high-end shopping malls are located.  This is essentially their version of Singapore’s Orchard Road. If you were to travel to Bangkok, you would most probably have visited Siam Paragon and CentralWorld. They are Bangkok’s answer to Singapore’s ION Shopping Mall, Wisma and Ngee Ann City. In Hong Kong’s context, this is like the area around Central. On the Rail Transport Network Map, this area is listed as the Rachapprasong Shopping Belt. The people who live in the condominiums in this area are mostly expatriates. You will have no problems finding tenants for your condominium in this area. Siam is also the interchange between two train lines. The light green line is the BTS line running along Sukhumvit Road and the dark green BTS line connects to the rest of Bangkok’s Central Business District. One of the most prominent landmarks in the area is the Erawan Shrine.

Siam Paragon Bangkok

Wireless Road and the area around Lumpini Park

Wireless Road and Lumpini Park in Bangkok

Wireless Road is where the wealthiest people in Bangkok live. It is by far the most expensive and exclusive area in Bangkok. To make reference to Singapore once again, think of this as the Ardmore or Claymore area in Bangkok. To Hong Kong, this is Bangkok’s version of The Peak. The properties in this area are extremely upscale. Think of this as Bangkok’s 5th Avenue. Wireless Road was the location of Bangkok’s first radio station. This location was chosen because it was right at the heart of the capital. This was how the street got its name. Coincidentally, Wireless Road is also Bangkok’s only street with buried cables.

98 Wireless by Sansiri, Possibly the most expensive development in Bangkok.

Lumpini Park is Bangkok’s answer to Central Park. The Lumpini Park is the largest park in downtown Bangkok and occupies 142 acres. It is extremely scenic with artificial lakes and scenic pathways. The park also plays host to concerts on certain Sundays.

Lumpini Park

Not too far away is The United States Embassy and high-end restaurants like Gaggan. Do not expect the properties to come cheap in this area. Properties in this area are averaging about B300,000 per square meter (or about SGD$1,100 per square foot) and there are cases where certain units were sold for B700,000 per square meter. Rental yields are low in this area as property prices are extremely high and rents cannot keep up. However, many have bought, sold and pocketed healthy profits from the properties in this area. Property prices in this area have appreciated significantly.

The Sathorn area

Sathorn Area Bangkok

This is perhaps just an extension of where Lumpini Park is. There are many offices around Sala Daeng BTS. The Silom Night Market is also around this area. If you are looking for a condominium in this area, be prepared to pay a premium. Most of Bangkok’s financial institutions and multinational corporations are located in this area. Thus this area is popular with the wealthy locals and the expatriate community. Prices here are a tad cheaper as compared to the ones along Wireless Road though. As a rule of thumb, the properties around here are easy to rent out as there are many offices in the area.

Sathorn Bangkok. Night View.

Nana and Asoke

Nana and Asoke Bangkok

Looking at The System Map of Bangkok Rail Transit Network, you will see that the Rachapprasong Shopping Belt ends at Asoke BTS. Asoke is also the station where you can make the transition from the BTS to the MRT line. For those who are unfamiliar, the BTS is Bangkok’s sky train and the MRT line runs underground. The thing about the rail system in Bangkok is that they are run by different operators and thus if you have to come out of the station at Asoke, go down an escalator, buy another ticket to take the MRT from Sukhumvit MRT Station. It is 2 stations located in the same vicinity. This is Bangkok’s version of Singapore’s City Hall of Hong Kong’s Tsim Sha Tsui. If you are looking for connectivity, this location is practically unbeatable. Going from Asoke BTS to Chit Lom and Siam is 3 and 4 BTS stations away respectively. It would take a mere 5-10 minutes to get there. If you take the MRT from Sukhumvit MRT Station, which is next to Asoke BTS, it takes one stop to get to the pink line (Makkasan Station) which takes you to Suvarnabhumi Airport. In future, you will be able to check in at Makkasan station before hopping on the train to the airport.

Circle 11 Sukhumvit. Sky garages for the truly affluent.

Properties in this area are usually cheaper than around Siam, Chit Lom and Wireless Road but not by much. It is still an extremely prime area. The downside is that this area has extremely congested traffic. However, I personally like this area. It has an extremely vibrant nightlife and has many shopping centres, 24-hour supermarkets and generally things are marginally cheaper than what you will find at Siam or Chit Lom. This area has perhaps the largest concentration of bars, restaurants and discotheques in downtown Bangkok and Sukhumvit Soi 11 is at the heart of all this activity. In terms of connectivity, nothing comes close to the area around Nana and Asoke BTS.

2) The City Fringes

When we mention city fringes, we tend to mean slightly lower prices for goods and services, less congestion and overall a more desirable residential area. If you are from Singapore, think of this as the Novena, Bukit Merah or Holland Road of Bangkok. If you are from Hong Kong, a place like Ekkamai would be the equivalent of Wan Chai.

Phrom Phong, Thong Lo, Ekkamai, On Nut

Phrom Phong, Thong Lo, Ekkamai, On Nut Bangkok

Sukhumvit is an extremely long road. Perhaps one of the longest in the world and extends all the way to the Cambodian border. Earlier we spoke about downtown Sukhumvit which is perhaps confined to the lower sois (streets) which ends at about Sukhumvit Soi 19. Thong Lo, Ekkamai and On Nut are located along Sukhumvit as well but at the later Sois. They are a couple of BTS stops after Asoke and will take about 5 to 10 minutes to get to this area. This area is extremely popular with the Japanese expatriate community and they tend to rent in this area. Occupancy rates are high and as the city expands, places like this should see growth in prices.

EM Quartier Phrom Phong

There is an extremely upscale mall, EM Quartier, that recently started operations. Downtown Bangkok is definitely expanding and due to the massive congestion, fringe places like Phrom Phong, Thong Lo, Ekkamai and On Nut are gaining popularity. In some aspects, Bangkok shopping malls are one of the best in the world.

Asoke and Phetchaburi

Asoke and Phetchaburi Bangkok

It can be a little confusing but these days when you mention Asoke it is the area north of Asoke BTS. From Asoke BTS you can cross over to Sukhumvit MRT Station and take one MRT stop to Phetchaburi or two stops to Phra Ram 9. The government is trying to decentralise the Central Business District (CBD) to alleviate the massive congestion in downtown Bangkok. This is the upcoming new CBD. It is like Jurong being the second CBD in Singapore. However, the location of this area is very close to downtown Sukhumvit. It is just the parallel street north of Sukhumvit. Prices are significantly cheaper in this area and many foreigners are looking at this area for investment opportunities. Many major developers have placed stakes in this area being the new CBD.

Central Plaza Rama IX

Ratchathewi and Victory Monument

Ratchathewi is extremely well connected. You can access the light green, dark green and pink line. It is just one BTS stop away from Siam. Due to its connectivity, occupancy rates are one of the highest in the area. The whole area is more local. You can still find the occasional expatriate living in the area but it is not as high as in Sukhumvit or Sathorn. The area near Victory Monument is the most desirable residential area around Ratchathewi.

The Riverside

The Riverside Bangkok

The developments along the Chao Phraya River offer scenic views and thus are extremely desirable as a retirement home. Many foreigners and wealthy locals own properties along the Chao Phraya River. The east side of the river commands higher prices due to it being more accessible to the city centre. Occupancy rates are low in this area as many purchased the properties along the river for retirement purposes. There is a lot of effort in recent times to rejuvenate the area. Asiatique The Riverfront is a very successful example. Transport to this area is via the Saphan Taksin BTS Station, river taxis or regular taxis (not recommended).

Asiatique The Riverfront, Bangkok

3) The Growth Area

These areas are more risky investments. However, fortune may favour the brave. Investors should take a longer-term view when investing in these areas. The good thing about Bangkok is that they usually do go through with their plans. In the grander scheme of things, Thailand is extremely strategically located. It is right in the middle of South East Asia and is also between Singapore and China. The Kunming-Singapore Railway or Pan-Asia Railway Network is a massive project but China is placing its weight on this project. This is where there may be potential in some locations in Bangkok.

Kunming-Singapore Railway (Source: Wikipedia)

Bang Sue and Tao Poon

This area is where the station for the Pan-Asia Railway Network will be located. There are already many developers who have begun developing this area. Earlier this year, the purple line started operations. This connected Tao Poon to the city centre via a more direct train line. Prices here are significantly cheaper as compared to downtown Bangkok.

Mo Chit and Chatuchak

This region is also developing and is very popular among the locals. It is one and two train stops away from Bang Sue. Sales of new projects have been very robust in this area.

Location should not be the only consideration when purchasing a property in Bangkok. There are many other factors to consider like developer’s reputation and entry price. However, I do hope that I have managed to shed some light on the various investment locations in Bangkok. I personally have been handling Bangkok properties since 2012 and I do hope that my experience can be of use to anyone looking to invest in Bangkok properties. You may visit my Invest Bangkok Property web portal at InvestBangkokProperty.com. I am contactable via my mobile number +66 66 112 8862 (WhatsApp preferred) or via my email me@daryllum.com.

Yours Sincerely,
Daryl Lum

Related Articles:

The good locations for property investment in Bangkok (2023 update)

A compelling case to invest in Bangkok

My personal experience purchasing a property in Bangkok

Thailand as a retirement destination

How to get a Retirement Visa in Thailand

Guide to buying a property in Thailand

Related Sites:

Invest Bangkok Property

[Update] Where to invest in Bangkok video on Invest Bangkok Property YouTube Channel

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As a tourist, Singaporeans can remain in Thailand for up to 60 days. In essence, you have to leave Thailand and re-enter it every 60 days. Thus if you want to retire in Thailand, you will have to apply for a retirement visa. Here are the steps to getting a retirement visa in Thailand.

1) Get a Non-Immigrant Visa

This differs from a normal tourist visa. This visa has a validity of 90-days and is issued to people who want to enter Thailand to study, do business, make investments or retire.

• Your passport must be valid for at least 6 months from your date of arrival
• You must show adequate finances to fulfil your purpose of being in Thailand

You can apply for this either in person at the Thai Embassy in Singapore (For other nationalities you can do so if there is a Thai Embassy in your country), or by mail.

2) Get a Retirement Visa

The common term for this is a long-stay visa or non-immigrant O-A visa. You must apply for this while your current visa has at least 30 days remaining. Retirement visas are valid for one year, renewable every year and can be renewed from within Thailand.

• 50 years of age and above (on the date of submitting an application)
• Not being a person prohibited from entering the Kingdom
• Having no criminal record against the security of Thailand and the country of his/her nationality, or the country of his/her residence.
• Having the nationality of or the residence in the country where his/her application is submitted.
• Not having prohibited disease as indicated in the Ministerial Regulation No. 14 (B.E. 2535).
• Not being allowed to work in Thailand.

The required documents (For Singaporeans) (For other nationalities you may wish to check with your local Thai Embassy. The criteria may vary slightly from country to country)

• Complete the online application (https://visaonline.thaiembassy.sg/), print three copies, sign the application forms as well as bring recent photographs V (with 6 recent passport-sized photographs) and three completed Additional Application Forms for Non-Immigrant Visa “O-A”.
• Your passport should have a validity of at least a year and a half.
• A summary of your personal data
• A letter from the bank verifying the amount of deposit in the bank account. The amount should be at least 800,000 Baht (or equivalent).
• Verification stating that the applicant has no criminal record issued from the country of his/ her nationality or residence (the verification shall be valid for no more than 3 months).
• A medical certificate issued from the country where the application is submitted, showing no prohibited diseases as indicated in the Ministerial Regulation No. 14 (B.E. 2535) (the certificate shall be valid for no more than 3 months).
• Singapore Blue IC and Re-Entry Permit Form 7 (for Singapore’s Permanent Residents) 
• Application fee:  S$250 for Multiple Entries valid for One Year (Cash only in Singapore Dollars – Non-refundable)
• In the case where the applicant wishes to have his or her spouse stay together in Thailand but the spouse is not qualified for the O-A code visa on his or her own, the spouse may be eligible to apply for a Single-Entry Non-Immigrant O-visa. Required documents are the same as required documents for Non-Immigrant O-A-visa plus a marriage certificate (Note: A copy of the bank statement has to show the amount of another 800,000 Baht (or equivalent) in addition to the applicant’s initial amount). Civil partnership certificate is not acceptable.

3) Reporting during your stay

As a holder of a retirement visa, you will be required to notify the relevant authorities, usually the local immigration office, about where you are residing. You may do this either in person, by mail (documents must be submitted at least seven days before the end of each 90-day period), or through an agent who will act for you through a power of attorney. If you are out of the country when the reporting is due, you will trigger a new 90-day period when you return Thailand.

4) Travelling out of Thailand during the retirement visa validity period

If you intend on travelling out of Thailand during your retirement visa validity period, you will need to apply for a single or multiple re-entry permit before leaving. You can do so at the closest immigration office or at the international airport before leaving Thailand.

In general, Thailand is rather welcoming to foreigners wanting to retire in the country. The retirement visa requirements are not high. This is one of the reasons why Thailand is a preferred retirement choice for many Europeans and Americans. Increasingly it is also becoming a retirement option for citizens from countries with a very high cost of living. This article is to serve as a guide for anyone looking to apply for a retirement visa in Thailand. However, you should always check with the Thai Embassy in your country with regards to the full application process.

Yours Sincerely,
Daryl Lum 

My previous article:

The good locations for property investment in Bangkok (2023 update)

My personal experience purchasing a property in Bangkok

The post How to get a Retirement Visa in Thailand appeared first on Daryl Lum's Blog.

1) Low cost of living

The cost of living in Thailand is much lower than the cost of living in Singapore and most developed countries. Property rents are relatively inexpensive at approximately SGD$800 for a one bedroom apartment in central Bangkok. Home ownership is possible too. Foreigners are allowed to purchase Thai condominiums. However, they are not allowed to own landed properties. Food and transport are both inexpensive and convenient. In general, the cost of living is over 40% lower than places like the US and more than 50% lower than places like Singapore and London.

2) Good food options

One important consideration for most retirees is the availability of food. Or namely, food which they find comfortable with. Thailand is a cosmopolitan city. The variety of food which is available is extremely wide. The variety may not be comparable to perhaps Singapore but it sure is wider than places like Europe. On top of that, European and western cuisine like pizza and burgers are easily found in Thailand.

3) Good medical facilities

Retirees need good medical facilities for obvious reasons. Thailand, namely Bangkok, has very good medical facilities. Medical tourism in Bangkok is extremely huge. Hospitals like Bumrungrad International Hospital provide state of the art medical facilities. Moreover, you can expect to pay a fraction of the price which you would normally pay for in cities like Singapore.

4) Thailand is centrally located on the global map

Thailand is a travel hub to the rest of Southeast Asia. It has direct flights to almost all of Asia. With air travel relatively inexpensive, flying to neighbouring countries for short holidays is a viable option.

5) Good climate

Despite the temperature changing throughout the year (unlike in Singapore where there is only one season, summer and more summer!), Thailand does not have extreme weather whereby it gets extremely hot or extremely cold whereby temperatures hit below 10 degrees Celcius. Monsoon season presents some inconveniences with regards to unpredictable rain patterns but that is perhaps the most inconvenient it can get. Westerners, especially those who live in temperate countries, tend to like tropical climates as it is generally sunny all year round.

6) High number of foreigners

The Thais are a generally ambivalent group of people. I mean this in an extremely positive light. They acknowledge the presence of a large group of foreigners in their country and they coexist harmoniously with foreigners. If you live within the reasonable boundaries of what is expected of you in accordance with Thai law, Thailand is a place whereby you can make yourself extremely comfortable.

7) Low language barrier

The Thais do converse well in basic English. Many of their contracts are translated into English for the purpose of allowing foreigners to understand them. Most shopping centres, road signs, maps are presented in English. This makes it easy for foreigners to retire in Thailand.

8) Retirement visas

Finally, the Thai government has a scheme to encourage foreigners to retire in Thailand. If you are a foreigner and are above 50 years old, you can apply for a retirement visa. These visas have a 12-month validity period and can be renewed without leaving the country. To qualify, a foreigner needs to show proof of either an income above USD$1,800 or have a bank account with USD$23,000 in funds or a combination of the two.

Yours Sincerely,

Daryl Lum

Related article:

The good locations for property investment in Bangkok (2023 update)

My personal experience purchasing a property in Bangkok

The post Thailand as a retirement destination appeared first on Daryl Lum's Blog.

1) Demographics

This is, in my opinion, should be one of the most important factors to consider when investing in a particular place. Factors to consider would be the overall age of the population and the literacy rate. If the population is rather young, i.e. the median age of the population is low, then the growth potential would be much greater than a place with an ageing population. An ageing population places great stress on society. Government funds have to be channelled towards taking care of people in their old age, nursing homes have to be built, more palliative care facilities set up and health care subsidies take up a sizable chunk of the governments budget. On the flip side, a young population tends to be vibrant and can contribute to the economy of the country. Take for instance during the 80s when globalization fever was taking hold in Asia. Governments could encourage students to enter fields like engineering which proved to be one of the main drivers of growth for countries like Singapore. A young population is also more accepting of new ideas and is generally more innovative. Literacy rate (Ability to read and write after the age of 15) is also important. The more educated the population the higher the productivity as they can do higher value jobs. Incomes then tend to be higher and thus when these young, educated workers decide to purchase a property, they have the ability to do so. The literacy rate in Thailand stands at 96.7%. As it stands Singapore has a literacy rate of 96.8%. In contrast, Thailand’s neighbours Cambodia and Vietnam have a literacy rate of 77.2% and 94.5% respectively. The global literacy rate stands at 86.3%.

2) Stability of the government

The ability of the ruling government to stay in power plays a large role in whether policies which were set out do bear fruit. A government sets the policies and if it remains in power then these policies can be properly implemented. This is one of the reasons why when there is a political turmoil in the country, investors tend to withdraw investments in that country. They are worried that the policies that were once implemented from the previous regime will not be followed through with the next regime. We can apply this theory to what is happening in Malaysia where embattled prime minister Najib Razak is facing corruption allegations versus countries like Singapore and China whereby the ruling parties have remained in power for an extended period of time. Malaysia is not a popular place to invest for fear that there will be a change in the ruling party. Property investment in Malaysia is anemic at best and stock markets are perhaps tracking global markets and trending downwards. Thailand has seen very unstable political regimes in the years that have just past. However the worst would seem to be over and in a recent poll, Thais were generally accepting of the current military rule and understood that this was necessary for returning Thailand to its framework of a constitutional monarchy. In 2015 foreign investment in Thailand dropped drastically and many attributed it to the military rule. However it would be wise to take note that Japan has been traditionally the largest investor in Thailand and they did not contribute as much as before in 2015 but this is also due to the fact that their own economy is faltering and the Yen is weakening at a very alarming rate. This would mean that investing in Thailand would be much higher due to their exchange rate loss. Investment from China did not see a significant fall in 2015 even with the military government in power and is expected to increase further in 2016 and beyond.

3) Infrastructure

The infrastructure of a country can determine the pace of which a property investment can be realised. Proper infrastructure such as roads, railways, efficient public transport, well-run police and support services are essential in attracting large multinational corporations (MNCs) into a country. To build this infrastructure it will take a very long period of time, probably decades. At times it would require displacing residents to make way for such infrastructure. Thus unless the investor is looking at a very long investment horizon, it would perhaps be wise to look at the current infrastructure already on hand and  what are the improvements slated to be realised in the near future. Bangkok has a very strong rail network that spans across the capital. It serves as a very efficient form of transport through its notoriously congested roads. It also has two fully functioning international airports to handle the huge influx of international visitors it receives every year. In terms of attracting immediate direct foreign investment, Bangkok cannot be better placed. It has the right infrastructure, ample high end office space at affordable rents and a very welcoming stance to foreigners and their business in general.

4) Tax structure

A competitive tax structure is required to encourage foreign investment especially when buying property. This not only makes the initial cost of property acquisition lower, it also helps to open up to a larger pool of potential buyers when the property is placed on the market to be resold. Currently there are countries whereby the governments have tried to cool a seemingly overheated property market through the implementation of certain taxes. For example, in Singapore, when a foreigner wants to purchase a property, he has to pay an additional buyer’s stamp duty of 15% on top of the initial 3% stamp duty that is already levied on every buyer for a property purchase. This causes additional costs and in a country like Singapore where property prices are already prohibitively higher as compared to its neighbouring countries, the additional taxes are a deterrence to foreign investors. A competitive income tax structure is also important so not to erode the earnings from potential rental income from the property investment. On top of that taxes when a property is sold such as capital gains tax should be low or close to non existent to encourage foreign investment. This is perhaps where Thailand seems to excel. Transfer fees cost 2% and are usually shared between the buyers and the sellers, annual rental value is taxed at 12.5%, if a property is sold within the first 5 years the tax payable is 3.3% of the sale price and if the property is sold after 5 years the tax payable is a mere 0.5%of the sale price. This competitive tax structure coupled with the comparatively low entry price point makes it attractive for foreigners to enter the Thai property market.

5) Legal structure

The law of a country has to make it legal for foreigners to purchase property. The title should be clean and properly registered and free of encumbrances. There are countries like Vietnam which require foreigners to register a company to hold the property as foreigners are barred from holding most forms of properties in their own name. In Indonesia foreigners have to make purchases with an Indonesian national who will then revoke his rights to the property to the foreigner. In Bangkok foreigners can purchase condominiums. There is a restriction that the total strata area of a condominium that is held by foreigners cannot exceed 49%. This ratio means that as a foreigner you can always sell your property to another foreigner or a local. Contracts are written in Thai and usually a translated copy in English is provided. In Thailand it is very easy to find a lawyer that can converse fluently in English to explain contracts that are written in Thai to you. The price for hiring a lawyer in Thailand is also very affordable.

6) Relationship with the rest of the world

It would be important to know where a country stands with the major global economies in the world. This can be an accurate barometer of where its economy should be heading in the years ahead. Singapore did well to firm up free trade agreements (FTAs) which facilitated a boom in its economy. Other open economies like Hong Kong have benefited from such open acceptance to working with outsiders as well. It would be important to take note of ASEAN’s inter-connectivity and cooperation as a trading bloc and its acceptance to embrace the growth of China as a major trading partner. Bangkok is right in the middle of the Pan-Asia Railway Network. This is a network of railways being planned or constructed what would connect China, Singapore and all the countries of mainland Southeast Asia. This rail network would further facilitate Bangkok’s trade with China and Singapore. Geographically Bangkok is right in the middle of this major trading line and the Chinese economy is slated to grow and perhaps overtake the US as the world’s largest economy in the near distant future.
Please note that these points constitute a strong case for investing in properties in Thailand, namely Bangkok. When investing in a particular project, factors to consider would be the location of the property, the developer and price that is on offer.

Yours Sincerely,

Daryl Lum

Useful articles for people looking to invest in Thailand properties

The good locations for property investment in Bangkok (2023 update)

Guide to buying a property in Thailand

Things to take note when investing in an overseas property

Thailand as a retirement destination

How to get a Retirement Visa in Thailand

My personal experience purchasing a property in Bangkok

The post A compelling case to invest in Bangkok appeared first on Daryl Lum's Blog.