Did you know that renovating your condominium significantly increases its property value? If you have recently purchased a condo, why not renovate it to suit your taste? If you are living in an older condo, now is the time to renovate it! It will be great to update your home by refurbishing or changing your theme.
State of Condo Renovations in Bangkok
Let’s compare the condo renovation Bangkok country versus other developed countries. In most developed cities, the condo renovations industry is huge. It is a common and mature market. In fact, sometimes there is a shortage in constructible lands. Prices are also very high for newer properties. Owners in developed cities like London, Paris, or New York renovate to get higher rental rates. They have extra condos as an investment to rent out. Thus, renovating it gives them better capital gains.
In Bangkok, most condo owners, or about 80% are locals or Thai. This is because of cultural reasons. Thai people generally do not wish to buy second-hand properties. Even if the condo is renovated, they refuse to buy.
Because of these, those who undergo condo renovation Bangkok city are mostly foreigners. These foreigners want to buy a home in Thailand as a retirement place. Thus, they buy second-hand properties and renovate them.
What are the foreigners looking for? They usually get a condo with 2 to 4 bedrooms. They also prefer prime spots in Central Bangkok. Areas are Riverside, Central Lumphini (Rajadamri, Ploenchit, Chidlom), Sathorn – Silom (Saladaeng, Chong Nonsi, Yenakart), and Sukhumvit (Asoke to Ekkamai).
Currently, the condos in Bangkok are smaller. The number of bedrooms is now also lesser. Since 2012, the trend in condos is moving to more luxurious projects. There is an increase in selling prices for newer condominiums. But for the second-hand or resale of condos, a price increase is slower. Older condominiums are also increasingly becoming attractive for resale, especially to foreigners. Resale prices vary, as it ranges from 50,000 to 400,000 THB per sq.m.
Today, there are fewer large units for sale. Since 2012, 70% of the new condos are studio type or 1-bedroom. These larger units are still smaller compared to previous years. The two-bedroom units are usually below 80 square meters. The three-bedroom units are mostly 120 square meters.
Now, there are not many three to four-bedroom units being built. But foreigners or expats want larger units. There are about 500,000 expatriates in Bangkok. In Central Bangkok, about 95% of tenants are foreigners. These foreigners prefer two or more bedrooms. They want to live in apartments that have larger living and open spaces. They want a bigger well-equipped kitchen and a balcony. The average rental rates for these types are from 50,000 to 250,000 THB.
Popular areas for these foreigner retirees are Riverside and Central Bangkok (Sukhumvit, Central Lumphini, Sathorn-Silom). The main reason is that it is close to international schools, supermarkets, malls, hospitals, parks, and sports clubs.
Factors to Consider in Choosing which Condo to Renovate
If you wish to invest in a condo for rent or sale to foreigners, renovate it. But it’s important to know the factors in choosing which condo to invest in.
For your condo renovation Bangkok project, find a property that is well taken care of. Not all condos in Bangkok are good investments. Choose one that is built with high standards and quality. The property should be in a good location. The building premises and amenities should also be well-maintained.
Consider all these before spending to renovate. Otherwise, your money may not be worth it. You might get little to no return on investment if you choose a poorly built condo in a bad location.
What Condo Type to Invest in for Condo Renovations
In Bangkok, there are three waves of development: 1.) Before 1999 2.) 2002-2009; and 3.) 2011 onwards. Good investment opportunities for condo renovations are those built before 2009.
Before 1999, the units are grade B and C developments. Uneven quality can be seen. The good thing about these condos before 1999 is that these are usually big units. The two-bedroom units’ sizes are about 80 to 200 square meters. Three bedrooms are from 200 – 350 square meters. For four bedrooms, it ranges from 250 to 450 square meters. These 1999 and below units are priced between 50,000 – 100,000 THB. Scout for units built with a high standard. Grade B units are good to renovate.
From 2002 to 2009, the units are Grade A and B developments. Unit sizes are smaller. Two bedrooms’ sizes are from 70 to 140 square meters. Three bedrooms are between 120 to 150 square meters. Four bedroom units have been reduced to less than 200 square meters. Prices for units completed from 2002 to 2009 are from 90,000 to 200,000 THB. Check out opportunities for Grade A and B units.
There is not much opportunity to renovate units built from 2011 onwards. This is due to the high price and smaller units. Two bedrooms are now between 55 to 100 square meters. Three bedrooms are from 100 to 180 square meters. Four bedrooms have less than 250 square meters. But these are not common as these are mostly very expensive penthouse units.
Ready to find a condo to renovate in Bangkok? Make sure you make your investment worth it. Choose a reliable and reputable project manager to help you.