Residential real estate in Bangkok - statistics & facts
In 2023, the residents of the Bangkok Metropolitan Region (BMR) made up around 15 percent of Thailand’s population. The number has been burgeoning over the past decade. From culture to governance, Bangkok serves as a central hub of Thailand. Many Thais moved to their country’s largest city by area and population size for job opportunities and exuberant city life. The population of the next largest city pales in comparison to that of Bangkok. The rising demand for accommodation in the BMR illustrates a bidding war that exacerbates the economic disparities among the locals and foreign inhabitants.
Popular neighborhoods in the heart of the city include Silom, Sathorn, and Sukhumvit. These areas represent Bangkok’s financial and commercial districts, making them prime locations for apartment rentals and luxury housing. Most luxury housing is situated in downtown Bangkok and typically consists of high-end condominiums, penthouses, and upscale houses priced above 10 million Thai baht. Moreover, purchasing a second or third home in gated communities and upscale condominiums further away from the city center has become desirable among upper-middle-class families.
In 2023, the closing of condos to foreigners amounted to 13.4 percent of all condominium conveyance in Thailand. This was worth around 73.2 billion Thai baht, or 24 percent of the total value of condo ownership transfers in the country. Previously, foreign nationals could not own land in Thailand. However, the five-year legislation passed in October 2022 allows foreigners to own up to one rai or about 1,600 sqm (about four times the area of a basketball court) of land within Bangkok, Pattaya, and municipal areas. The land must be used to develop residential property and cannot be sold. To be eligible, one must invest at least 40 million Thai baht. Apart from that, foreign nationals can sign long-term leases on real estate, usually for 30 years with renewal possibilities.
Bangkok residential landscape and financing
While the average monthly income per household in the BMR is the highest among regions in Thailand, this goes hand in hand with a high expenditure per household. Due to the expensive nature of housing in the city core, many Bangkokians live in condominiums, apartments, and dorms. While the majority of the rental units have a monthly price range between 10,000 to 30,000 Thai baht, only eight percent costs lower than 10,000 Thai baht. To be more economical, many chose to commute longer from the housing along the rail transport system lines in the vicinity.Popular neighborhoods in the heart of the city include Silom, Sathorn, and Sukhumvit. These areas represent Bangkok’s financial and commercial districts, making them prime locations for apartment rentals and luxury housing. Most luxury housing is situated in downtown Bangkok and typically consists of high-end condominiums, penthouses, and upscale houses priced above 10 million Thai baht. Moreover, purchasing a second or third home in gated communities and upscale condominiums further away from the city center has become desirable among upper-middle-class families.
Thailand’s housing regulation and foreign investments
The Thai government has a dedicated budget for the housing and community sector. For instance, initiatives assisting lower-income groups have been put in place to increase access to affordable housing. Other instruments the government has employed to stimulate the real estate market during downturns include tax incentives and subsidies. In terms of foreign buyer policies, foreigners can generally acquire condominiums in Thailand; however, there are restrictions on land ownership. As long as foreign ownership accounts for no more than 49 percent of the total floor space of all condominium units, foreigners are permitted to own condominiums.In 2023, the closing of condos to foreigners amounted to 13.4 percent of all condominium conveyance in Thailand. This was worth around 73.2 billion Thai baht, or 24 percent of the total value of condo ownership transfers in the country. Previously, foreign nationals could not own land in Thailand. However, the five-year legislation passed in October 2022 allows foreigners to own up to one rai or about 1,600 sqm (about four times the area of a basketball court) of land within Bangkok, Pattaya, and municipal areas. The land must be used to develop residential property and cannot be sold. To be eligible, one must invest at least 40 million Thai baht. Apart from that, foreign nationals can sign long-term leases on real estate, usually for 30 years with renewal possibilities.
