Useful Info.
Bangkok Condo: Information Guide
CB Richard Ellis has a dedicated sales team specialising in Bangkok condo sales. We have been managing, selling and buying Bangkok Condos for over 17 years consequently our experience is unparalleled. Our Condo sales team is the market leader, currently marketing the 17 leading Bangkok condo projects.
Bangkok Condominium: Thai Definition
A condominium or condo – also known in some countries as an apartment or flat – is a building where individuals have freehold strata title of their own residential unit and where the common areas such as lifts, swimming pools and gyms are jointly owned by all the co-owners. In Thailand, foreigners are allowed to own up to 49% of the total area of a condo building. (Condo Ownership)
Typical Condominium Purchase Opportunities
There are essentially 3 choices to make when purchasing a condo in Bangkok:
1. Condominiums in new projects
CB Richard Ellis specialise in marketing and selling off plan “New build” projects. We currently have over 17 projects on our books comprising some 4000 units.
Benefits of buying a condo in a new project can include:
- A new property
- Latest built in facilities (gyms, pools, etc)
- Usually built in the most convenient locations (acess to public transport)
- Capital growth for an initial small outlay
2. Resale Bangkok Condos
CB Richard Ellis has an extensive database of condominiums available for resale. The benefits of a resale condo purchase are that it avoids the risks of an off plan sale.
- No risk of developer delays or failure
- Ready for immediate occupancy
- The chance to inspect the acutal unit, views and fittings
- The opportunities to seek in some instances bargains
3. Buying a Bangkok Condo as an Investment
Purchasing a condominium for investment can offer an attractive investment opportunity with initial capital growth and later a rental income.
In our New Bangkok Condo Projects portfolios investors buy condos “off plan” (i.e. before and during construction) paying in stage payments. Thus buyers invariably get the best prices (developers generally increase prices during construction), they also manage their cashflow as deposits and stage payments are between 10 and 30% of the total price.
Buy to let – There is a large and continuously growing expatriate population looking to rent condominiums, providing owners with solid rental returns. Speak to us about areas and property types to achieve the highest returns.
In summary early buyers usually secure a rise in value for a small capital outlay. Of note is that generally, in Bangkok, real estate developers do not restrict condominium buyers from assigning their contracts at any stage.
Legal Ownership of a Bangkok Condo
1. Freehold
The majority of condominiums in Bangkok are freehold. Foreigners can own up to 49% of the total area of a condominium on a freehold basis. (Condo title ownership)
2. Leasehold
Some developments in Bangkok are built on leasehold land with leases of 30 years and options to renew. Leasehold ownership is also offered in condos where the foreign quota for freehold title has been reached. (Condo title ownership)
Bangkok Condo Research
We conduct research on the latest conditions prevalent in the Bangkok Condo market, including supply, demand, and current property requirements of condo buyers.
With our network of offices, CB Richard Ellis has unparalleled access to resources in Bangkok, these enable us to identify trends that assist our customers.
Quarterly Highlights
- During Q1 2010, the total supply of downtown Bangkok condominiums reached 67,176 units (up 3.2% Q-o-Q and 15.8% Y-o-Y) an increase of 2,109 units (6 projects).
- In Q1 2010, the average asking price for an off-plan condominium unit (high-end and above) in downtown Bangkok was 156,460 THB/m2 an increase of 19.2% Q-o-Q or 3 %Y-o-Y.
- 1,759 units in four projects in the downtown area were launched during Q1 2010 with the majorityof new units targeting the high-end market.
- The average achieved re-sale price of units in completed upscale and above buildings increased by 18.4% Y-o-Y to 121,805 THB/m2. Central Lumpini was the area with the highest average achieved resales price level (143,338THB/m2).
Click for full access to further Bangkok Condo Research or to accss the Bangkok Property Report.
Condominium Funding/Financing
Financing
Financing for foreigners to purchase real estate in Thailand is complex and changes regularly. As at the time of writing it is difficult to source mortgages for foreigners, however we recommend that you check with your bank to get the latest details.
Money Transfer
Under the 1991 Condominium Act, non-residents who purchase condominium units must transfer the funds to pay for the unit from overseas, with the money entering Thailand as foreign currency. Purchasers need to obtain a “Foreign Exchange Transaction Form” certificate for each payment from the beneficiary bank, and all these certificates must be shown to the Land Department in order to register the condominium. (Condo Funding Procedures)
Bangkok Condo – Transaction Costs
Transfer fee:
There is normally a 2% transfer fee for new condos which is either paid by the vendor, the buyer, or is split between both parties, depending on the purchase agreement. For resale properties there may well be a fee for the transfer of the registration.
Sinking fund:
In a new condominium project, the buyer pays a one-off lump sum on transfer of the property from the developer to the purchaser. This money is to be used for major renovations and replacement of equipment when necessary. The aim of this fund is to ensure the maintenance of the building and ultimately its future value.
Legal fees:
Each party pays its own legal fees and there is no norm as the purchase can depend on many different complexities.
Common area management fee/utilities:
These fees are paid by owners for the upkeep of the common areas of condominiums and housing estates. For new residential developments, it is common to pay up to several years’ management fees in advance. Utilities are generally paid on an “as use” basis.
Bangkok Condo: General Industry Classifications
We classify Bangkok Condo units into six categories based on price per sqm. Classifications are based on the maximum number of condos in a project that fall into a category.
- Super Luxury: Above THB 180,000/m2
- Upper-mid-range: THB 80,000-THB 99,999/m2
- Luxury: THB 130,000-THB179,999/m2
- Mid-range: THB 60,000-79,000/m2
- High End: THB 100,000-129,999/m2
- Entry-level: Below THB 60,000/m2
Condominiums that are high end or above generally demonstrate common characteristics such as:
- Easily accessible locations
- Good and secure neighborhoods, ensuring privacy of residents
- Good building design, layout and decoration
- Good standard of construction using high-quality materials and specifications
- Comprehensive range of facilities, including swimming pool, gym, squash, tennis courts.
- Adequate elevators and efficient M&E system
- Professional management
- Sufficient car parking
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