Condominium Segment in Thailand

When you are looking for property investment, there are numerous choices available. One of them is a condominium located in a good location and close to mass transit. Apart from location, the condominium segment is another important criteria that you need to consider before an investment. Because it is one reason to reflect the % of capital gain and % of rental yield. Generally, the condominium in Thailand is mainly classified into five segments (City Condo, Mid Market, Hi-End Market, Luxury, and Super Luxury) with distinctive location, concept design, and material use.

Source: Nexus (update as of Dec 2018)

Based on Nexus survey, Hi-End segment was the most concentrated in condominium supply in 2018, which accounted for 41%. Then it followed by Mid-Market at 27% and City Condo 21%. Luxury and Super Luxury estimated 8% and 3%, respectively. In 2019, the company expected the City Condo, and Mid-Market segments would be the main focus for many developers.

Source: Nexus (update as of Dec 2018)

1) City Condominium

The city condominium segment comprises the price below THB 75,000/ sqm. This segment targets the first jobber and student. Location located in the Outer-Bangkok and can commute to current mass transit lines; for example,  current mass transit “Red” and the future mass transit “Pink.”

Source: The Origin Ram 209 Interchange

2) Mid- Market

The mid-market segment comprises the price range between THB 75,000 to 110,000/ sqm. This segment targets the main income customers. Location located in the Central-Bangkok (closer to the Inner-Bangkok) and can walkable to current mass transit lines (around 500 meters or more). For example, current mass transit “Light Green, Dark Green, Blue and Red” lines.

Source: The Base Sukhumvit 50

3) Hi-End Market

The Hi-End segment comprises the price range between THB 110,000 to 190,000/ sqm. Location located in the Inner-Bangkok such as Sukhumvit Road and close to current mass transit lines; for example, current mass transit “Light Green, Dark Green, Blue and Red” lines.

Source: Rhythm Ekkamai Estate

4) Luxury

The luxury segment comprises the price range between THB 200,000 – 250,000/ sqm. Consumers in this segment have high income, purchase a condominium as a second property, and keep as an investment. They emphasize the location which located in Inner Bangkok such as Sukhumvit Road, Silom Road and usually close to luxury shopping malls.

Source: The Address Siam-Ratchathewi

5) Super Luxury or Ultimate

Super-luxury condominiums comprise the price range from THB 250,000/ sqm. Customer can purchase for residential purpose as well as investment, but the % of rental yield in this segment is less than in the lower segments. 98 Wireless is an example of a super-luxury condominium. It is located on Witthayu Road and has a price of over THB 700,000/ sqm.

Source: 98 Wireless