The Burgeoning Real-Estate Environment in Bangkok
If I were to buy real-estate anywhere in the world right now, unquestionably, it would be right here on Sukhumvit Rd in Bangkok. Since 2014, prices of condos on Sukhumvit have done nothing but climb higher, but it has done so in a reasonable and sustainable fashion, suggesting to me the continuation of the trend for many years to come. Naturally, this is controversial and there are probably 2 schools of thought surrounding this subject.
The first opinion would argue that there are way too many condos under development on Sukhumvit Rd, which is indeed true, and will create some form of oversupply, pushing down prices. To them, I would mention that was also true 4 years ago, and yet they continued to sell, despite new condos being built right in front of other condos and disrupting their ‘amazing views’. For those that may notion towards prices getting ‘too high too fast’ and in need of a correction, might I remind you that prices are no where near being considered expensive yet and still have much room to go higher. In addition, irrational markets tend to stay that way for a prolonged period of time. May I suggest you take a look at the real estate market in Myanmar, or perhaps Vancouver, Canada? The first is a prime example of corruption, the latter, greed – both way overvalued, but selling nevertheless, to a select few.
Millenium Residence on Sukhumvit 20
Nowadays, there is a subtle feeling of affluence in the air, one that hardly existed 5 years ago. There is no question in my mind that the sudden climb in real estate prices is supported by the expanding Thai middle class, which is growing at an unprecedented rate. Just like anywhere else, folks with newfound wealth want new homes, and they want them lavish and oversized.
Last week, I tagged along with a friend on a trip into the outskirts of Bangkok to look at some real estate, a detached home in a brand new gated villa that my friend was considering to buy. My goodness, this place was both opulent and genteel, and for the asking price, it could only be considered a bargain, if not a steal. I immediately commanded that he purchase it then and there. 10 years from now, he will regret he did not buy 2.
2 story, 225m² detached house selling for $265,000 behind Mega Bangna mall. 3 bedrooms, all with in-suite washrooms. Gold trimmings and marbled counter tops. A monster of a home.