Bangkok property – yields on larger apartments moderately good
Rental yields in Bangkok range from 5.0% to 8.0%. Over the past three years, we’ve seen yields on medium-sized apartments (120 sq. m.) rise significantly.
In most countries´ major cities, smaller apartments earn higher rental yields than bigger apartments. That´s not true in Bangkok. A 60-square metre (sq.m.) apartment in Bangkok’s central location now earns gross rental yields of around 5.6%, while a 120-sq.m. apartment also centrally located, earns gross rental yields of around 8.0%.
Yields have risen at the luxury end of the market, though since last year they have fallen for the large sizes, such as 250 sq. m.
The apartments included in our survey are located in Bangkok’s upscale residential areas which includes Sukhumvit Road, Silom, Sathorn, Riverside, Rama III, and Central Lumpini.
The Thai price index for single detached houses rose by 4.9% (4.11% inflation-adjusted) during the year to end-Q4 2014. The condominium index soared by 14% (13.18% inflation-adjusted), and is actually a more relevant index. Condominiums are what Bangkok people, including foreign homebuyers and expatriates, tend to live in. The price index for townhouses rose by 6.60% (5.82% inflation-adjusted).
Source:Global Peoperty Guide