High Rental Yield in Silom, Sathorn and Rama 3 Areas
In fact, condominiums in the area of Silom, Sathorn and Rama 3 are witnessing attractive rental yields as much as 7.7% per annum.
In fact, this could be mainly explained by the limited supply of land in the area that is driving the prices up.
Typically, a 1 Bedroom unit provides investors with a 6.1% to 7.7% yield, meaning a rent between THB18,000 and THB35,000 per month. Two-bedrooms units provide yields of 6.3% to 6.8% annually or monthly rents between THB25,000 and THB50,000. According to Frank Khan, CEO of Knight Frank Chartered (Thailand), these yields are more competitive than those in Singapore or Malaysia for instance. Plus, he noted that these areas only count for about 8% of the total supply of condominiums in Bangkok.
Moreover, with the emergence of ASEAN Economic Community (AEC) and thanks to Thailand’s strategic location, multinational corporations’ investments will increase and demand for residences is expected to substantially grow. A bright future ahead for Bangkok Real Estate!