Rise in Asian Real Estate Prices Drives People to Bangkok

So goes the population so goes real estate investment

As major cities in Asia continue to experience an excellent economy, prices for residential property have gone up as well. In Hong Kong alone, housing has reached exorbitant prices, so much so that buyers have begun to set their sights on other Asian locations such as Bangkok. Because of the frenzied launching of new high-rise condo units, Thailand’s capital saw in 2010, there is an abundant supply of urban housing present in Bangkok and its suburbs. Granted, not only are these housing options limited to high-rise units but incorporate townhouses and detached homes as well.

A shift to Bangkok real estate investment

Investors who have previously eyed Hong Kong have reportedly decided to seek out other opportunities for property investments in Bangkok, as prices for condos in Hong Kong have reached over five times the amounts in Bangkok. A condo unit in Hong Kong can go for as much as THB 1.2 million (US$ 40,000) per square meter, something not many people are willing to pay. This is why many interested individuals as well as companies looking for alternative real estate markets to cash in on, and why Bangkok is one of the more popular choices for investors and buyers alike.

Multiunit Residential Projects emerge in Bangkok

The “Bangkok Post” has reported sales of over THB 350 million (US$ 11.69 million) on the newly unveiled MahaNakorn tower project in its first three days following a road show. As of late, 35% of the MahaNakhon units have already been purchased, and Pace Development predicts this number to go up to as much as 45% by the end of this year, with projected sales completed by the time the tower will have been finished in 2014. The magnificent MahaNakhon is worth THB 19 billion (US$634.6 million). Its 194 condo units are priced from THB 225,000 (US$ 7,520) to THB 345,000 (US$ 11, 523). These units will make a great Bangkok real estatement investment.

Aside from residential units, this ambitious tower project has plans for Bangkok’s Ritz-Carlton in it as well as 27,000 square meters for retailers. According to Pace Development, smaller units sold well with investors while buyers looking for residential units looked more at the larger ones. These sales figures show a clear rise in interest for Bangkok property compared to other areas in Asia, and in other parts of the Western world as well. Even the pricier condo units in Bangkok’s central business district, like those close to train or subway stations, are comparatively cheaper than Hong Kong’s residential property values.

Opinion are starting to change Hong Kong Real Estate to Bangkok

Public opinion is that Bangkok remains to be an attractive alternative to Hong Kong’s steep residential property prices, as its urban lifestyle and expansive commerce has caught the attention of foreigners all over the world. In fact, Bangkok continues to see a lot of real estate action, especially in its suburbs and the resort areas surrounding the city itself. In addition, Thailand on the whole has been at its economic peak and has regained some measure of political stability. All of these put together have turned investors’ eyes in the city’s direction. A good economy and a calm political atmosphere have raised hopes and confidence levels among both Bangkok buyers and developers. This makes for good time for Bangkok real estate investment.