For Thailand property buyers and investors it’s always worth reading between the lines when it comes to property news stories.
Today’s Bangkok Post is one perfect example. A couple of lines buried deep within a story provides some interesting and potentially valuable insight.
The information in question comes from the Chief Executive Officer of Stock Exchange-listed Areeya Property.
Talking about plans to the launch the second phase of its A Space MegaBangna project (pictured) before the end of the year, he revealed that the foreign quota – 49 percent of available space for sale – was sold out in its first phase, with buyers coming mainly from Hong Kong and China.
What does this tell you as a property investor?
Reading between the lines, this could indicate there are a substantial number of buy-to-let investors in this project.
Most, but not all, foreign buyers of Bangkok property are buying for rental returns and, to a lesser extent, the hope of capital appreciation.
The project is understood to have more than 940 units, so in theory, and again reading between the lines, there could be as many as 400 rental units owned by overseas buyers that could be competing for tenants.
Looking at the location, this project is not close to mass-transit networks and is actually in Bangkok’s neighbouring province of Samut Prakan. It would likely only appeal to tenants working in the area and who are not reliant on mass-transit connections. That will likely mean an owner would need to spend more to make their unit stand out in the crowded rental market.
One Thailand property portal already lists more than 24 units for sale, and an additional 44 units for rent, starting at THB 6,500 per month for a one-bedroom, 26 sqm condo.
Although current asking prices are listed at being in the THB 60,000 per sqm range, reading between the lines this may not be the most attracting location for buy-to-let investors looking for a profitable investment in Bangkok.
If you’re considering a Bangkok property investment, or have one in your portfolio already, reading between the lines of daily news reports is something that needs to be a part of your daily routine.