Phra-Khanong and On Nut: Hotspots for expats

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Are Phra Khanong and On Nut really the new property hotspots for expatriate rentals in Bangkok?

One real estate agency certainly thinks so.

After surveying the residential market for foreigners, Plus Property noted that rental rates have already risen by 10 percent in the first half of the year, and that the 5 percent to 7 percent rental yields have outperformed the previously popular expat hotspots of Thong Lo and Ekkamai area.

The agency also discovered the resale market has seen gains, with one-bedroom units fetching 24 percent higher prices per unit than launch prices just five years ago.

Anukul Ratpitaksanti, Managing Director of Plus Property Company, said that during the fisst half of 2017, 70 percent of residential condominium units in Phra Khanong and On Nut were rented by foreigners – a sharp increase from 2012’s figure of just 56 percent.

The rising demand he added, has allowed rents for units in this location to rise by 10 percent over the past three years, and that increase is higher than in Thong Lo and Ekkamai, which is the area most popular among foreigners for renting condominium units. The ratio of foreign to Thai leasees stood at 90 percent to 10 percent, he said. Over the past three years rents for the Thong Lo and Ekkamai rose by just 4 percent.

One contributing factor towards the shifting of foreigners’ attention toward renting condominium rooms within the Phra Khanong and On Nut areas is the convenience in commuting afforded by the BTS mass transit system, and its close proximity to the centre of Bangkok.

Another factor is property prices which have yet to become prohibitively expensive here.

According to the agency, average rents in Thong Lo and Ekkamai are between THB 800 and THB 1,000 per square metre, translating to an average rental yield of between 4 and 5 percent per year. One-bedroom units (of 40-50 square metres in size) achieve rents of between THB 35,000 and THB 55,000 per month, whereas two-bedroom units (of 60-80 square metres in size) achieve rents of between THB 60,000 and THB 80,000 baht per moth.

Average rents in the Phra Khanong and On Nut areas are between THB 500 and THB 600 baht per square metre, translating to rental yields of between 5 percent and 7 percent. Preferred types of room are one-bedroom units (of 30-35 square metres) and twp-bedroom units (of 50-60 square metres). The former achieve rents of between THB 14,000 and THB 18,000 per month whereas the latter achieve rents of between THB 25,000 and THB 36,000 per month.

Resale units in the Phra Khanong and On Nut areas are considered attractive, and the agency found that since 2012, one-bedroom and two-bedroom units were the most popular for resales. One-bedroom units saw unit selling price rise by as much as 40 percent from launch. Currently the average resale price stands at THB 122,000 per square metre while the average resale price for the Thong Lo and Ekkamai areas is substantially more at THB 230,000 baht per square metre. Resale prices in the Phra Khanong and On Nut areas are some 47 percent lower than in the Thong Lo and Ekkamai areas, while the rooms are also able to generate 9 percent better profits.

Whilst this data represents the situation right now, the big question for both renters and but-to-let investors is how long will this imbalance remain, and how much money can be made before Phra Khanong and On Nut are losing out to the next “hot’ area?


Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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