8 Factors that Affect Apartment Prices in Thailand
Foreign nationals purchase property in Thailand for various reasons: to generate income, to live there permanently, or to use the property as a holiday home. Between 2021 and 2022, the number of condominiums owned by foreigners in Thailand increased from 8,199 to 11,561 units. Experts predict that this positive trend will continue into 2023.
Before buying property in Thailand, it’s essential to understand the key factors that influence apartment prices.
CONTENT:
- Property Location
- Area and Number of Rooms
- Safety and Amenities
- Primary/Secondary Market and Apartment Age
- Furniture and Appliances
- Weather Protection
- Window View
- Construction Stage
PROPERTY LOCATION
The price of apartments in Thailand is influenced by several factors. One of the most important is the location—how far the property is from the sea in resort areas and what kind of view it offers.
Which regions of Thailand are most popular among buyers?
Resort areas, which are highly attractive to tourists from around the world, tend to be the most sought-after. Property owners in these areas can enjoy their homes during the tourist season and rent them out when not in use. Due to high demand, finding tenants in popular resort areas is relatively easy, and rental income can be substantial. Key regions to consider include Phuket, Pattaya, Koh Phangan, Koh Samui, and Krabi. Bangkok, the capital with over 11 million residents, is also a prime area. The city attracts a large number of expats, with around half a million foreigners living there, including 70,000 Europeans and Americans. Bangkok also sees about two million visitors annually.
In Thai resorts, rental properties can generate returns of up to 10% per year. As construction progresses, property values can increase by as much as 30%. In Bangkok, rental returns average 4.45%, varying between 1.89% and 8% depending on the neighborhood.
Additionally, the development of local infrastructure plays a significant role. Properties near schools, hospitals, shopping centers, sports facilities, parks, and gardens are more expensive and appealing to tenants.
Other factors that affect apartment prices include:
- Proximity to the sea (in resort locations)
- Distance from the city center (the farther, the cheaper)
- Proximity to industrial sites with harmful emissions, gas stations, car washes, and warehouses—these lower property values.
- Availability of parking spaces, especially individual parking spots, which increase property value.
AREA AND NUMBER OF ROOMS
The larger the square footage, the more bedrooms and bathrooms, the higher the price of the apartment. Balconies and terraces also add to the overall cost.
The type of kitchen significantly impacts the property’s price in Thailand. Apartments with the same size and number of bedrooms may have different prices depending on the kitchen layout. Units with a separate kitchen, rather than an open-concept American-style kitchen, tend to be more expensive.
RESIDENTIAL SAFETY AND AMENITIES
The presence of security guards, CCTV cameras, parking spaces, a gym, and well-maintained landscaping with trees, shrubs, and flowers all contribute to a higher property cost.
Experienced investors also recommend checking whether the property is connected to central utility systems.
PRIMARY/SECONDARY MARKET AND APARTMENT AGE
The age of the property and whether it is on the primary or secondary market play a key role in determining its price. New, ready-to-move-in properties are usually more expensive than comparable older, resale apartments.
FEATURED FURNITURE AND HOUSEHOLD APPLIANCES
Furnished apartments equipped with household appliances cost more than unfurnished ones. Additionally, residences with Smart Home systems that allow remote control of the living environment typically come with a higher price tag.
WEATHER PROTECTION
Apartments in buildings that have walls designed to block excessive sunlight and summer heat are priced higher than those lacking such features, even if they have a similar layout and number of bedrooms.
Furthermore, apartments with windows facing southeast, south, or east tend to be in higher demand, leading to higher prices compared to units without access to natural sunlight.
WINDOW VIEW
A property’s price increases if its windows offer views of the sea, scenic landscapes, urban landmarks, or famous attractions. In contrast, views of industrial zones, construction sites, or busy highways significantly reduce the value.
Water views, especially of the sea, can boost property prices by 30–40%, while views of highways or industrial zones can decrease the price by up to 20%.
CONSTRUCTION STAGE
Properties in off-plan projects are usually cheaper than those in completed developments, as prices increase during construction. Once a building is completed, the price of units can rise by up to 30%.
The lowest prices are often available at the design stage, before construction begins, as developers aim to attract buyers at all phases of the project.
The Thailand-Real.Estate aggregator website allows you to explore current property listings. If you are considering purchasing an apartment or villa in Thailand, our experts are ready to assist you. Simply fill out the contact form, and we’ll help make your dream of owning property in this beautiful country a reality.
