Investment condominiums may yield better returns

Supalai director and deputy man¬aging director Atip Bijanonda, who is also the president of the Thai Condominium Association, said return on investment from condo¬miniums could be as high as 200 per cent depending on what the cus¬tomer does.

For instance, if customers buy condominiums and then give them out on rent, the apartments will gen¬erate a return on investment of between 8 per cent and 12 per cent a year, depending on their location.

However, if customers buy and sell condominiums within one year, they will get a return on investment of between 50 per cent and 200 per cent, especially if they sell the con¬dominiums once they are complete and ready for occupancy.

A survey by the Thai Condominium Association shows 60 per cent of condominium buyers buy them for living purposes. Twenty per cent are speculators, who book condominiums and sell their book¬ing as soon as possible, generating an average return on investment of between 10 per cent and 20 per cent. The remaining 20 per cent are investors who buy condominiums to give out on rent as soon as the proj¬ects are completed.

"When you invest in property you can fight inflation, which is now still at about 7.5 per cent. The return is better than a deposit in the bank," Atip said.

Meanwhile, rents at Siri Residence have also gone up to Bt1,000 per square metre, which is higher than other serviced apart¬ments at the same location. That is a return on investment of about 8 per cent a year, which is higher than the present bankdeposit interest rate of 3.5 per cent per annum.

Srettha said resale price for its luxury condominium, Baan Ratchadumri, has gone up 92 per cent to Bt2.06 million per square metre within one year.

Property Perfect chief operating officer Teerachon Manomaiphibul said demand for city condominiums has grown, following a rise in trans¬portation costs that is driving a boom in the resale market for condomini¬ums this year.

Resale prices for condominiums that are ready for occupancy have increased between 50 per cent and 200 per cent, depending on their location. Popular locations include Ratchada, Sukhumvit and Sathorn, Teerachon said.