Thailand property investors are being urged to look west, some 60 kilometers west of Bangkok, to a district that is currently providing rental returns of between 5 percent and 6 percent per annum.
Although not on the radar for many Thailand property investors Plus Property, a real estate agency, has identified what it says is “stand-out purchasing power” within the Nakhon Pathom property market.
It said condominiums in Phutthamonthon, Kamphaeng Saen and Nakhon Pathom City stand out due to their proximities to popular universities, allowing them to tap the purchasing power of university instructors and personnel, parents buying for students and investors who buy to rent out.
Sales of condos outperformed all other properties in the previous year, the agency reported, and the future price direction for properties is bright due to supporting factors from transportation projects.
Anukul Ratpitaksanti, the Managing Director of Plus Property, revealed an uptick in purchasing power in its most recent survey. This was especially true for the Phutthamonthon, Kamphaeng Saen and downtown Nakhon Pathom areas where projects were being developed close to universities.
The firm’s researched found that condos were the most popular type of property being developed near universities, followed by town houses and detached homes.
The survey of the Nakhon Pathom property market discovered total supply of 14,783 units from 77 projects. Demand response was 75 percent.
Most of the units were condominium rooms followed by townhouses and detached houses.
Supply of condominium rooms stood at 9,625 units (65 percent market share), supply of townhouses was 2,884 units (20 percent) and supply of detached houses was 2,774 units (15 percent share). On average, each project has been selling for between two and there years.
The survey found that the condominium market had a good absorption rate, with about 10.1 units being sold per month per project, the agency revealed.
The survey also found that average, condominium one-bedroom units of between 27 sqm and 30 sqm were being sold at between THB 50,000 per sqm and THB 60,000 per sqm. Renting out such rooms fetched an average rent of between THB 6,000 and THB 7,000 per month, equal to a yearly rate of return of between 5 percent and 6 percent.
“Nakhon Pathom has high growth prospects in the future due to transport infrastructure investments such as the Nakhon Pathom-Hua Hin dual track railway, the Bangkok-Hua Hin high-speed train, the Nakhon Pathom-Cha-am motorway and the Bang Yai-Kanchanaburi motorway.”
“These projects are supporting factors for the future growth of land prices in Nakhon Pathom,” said Anukul.