Investing a significants amount of capital into the property market requires a diligent approach in terms of analyzing and assessing what is at stake.
A good real estate investment, in Thailand or any other country in the world, is often an investment made at a fair value. This is reason why we strongly
recommend our clients to use our support in order to value the property asset that is being considered for investment in Bangkok or other parts of Thailand. Our experts
specialize in assessing residential properties, commercial properties and land.
Our main areas of expertise for property valuation are Bangkok, Hua Hin, Chiang Mai, Phuket, Koh Samui - Ko Phangan and Jomtien - Pattaya.
OUR VALUATION PROCESS IS BASED ON THE FOLLOWING FACTORS:
- Location: this
is one of the most important factors, if not the most. Accessibility to public transportation and/or to express ways, proximity
of supermarkets, shops and restaurants are key factors of decision for expats to rent your property (see RENTAL GUIDE and LIVING IN BANGKOK)
and/or investors to purchase it. For example, properties located in green and quiet streets yet close by the main Bangkok axis (Sukhumvit, Sathorn, Silom, Rama IV, etc.)
and commercial areas are generally in higher demand and therefore more valuable than remote and poorly accessible properties or properties located right on the main roads
where noise and pollution can put off investors.
- Liquidity (supply Vs. demand): just
like any other asset, propert value is driven by the laws of supply and demand. We strongly advise to check the liquidity of the market for the property
asset in question and make sure a sound price benchmark can be established. For example, before investing in a condominiums, check the number of units available
on the market at the same time - both for rent and sale. A large supply and/or properties on the market for more than 6 months for instance are generally not good signs.
- Construction, maintenance and management: In Thailand
more than in many western countries the quality of the construction is a very important aspect to consider, partly due to the relatively limited experience of some small property
developers or constructors and also to the tropical climate that tends to make constructions age faster than in western countries. The quality of properties in Bangkok, especially
condominiums, may therefore vary significantly from one to another. A thorough analysis is required before investing.
- Age and property standards: In Thailand,
the age of the property often has a direct impact on its market value - the more recent the more valuable. THe quality standards of the property, classified
in grades (cf. INVESTMENT GUIDE) which determined by parameters such as the size of the common areas, the lobby and facilities (swimming pool, fitness, etc.),
the services offered, but also features like the ceiling height, the size of the balconies and the quality of the windows and A/C system in the condominium unit,
are important factors to assess the value of your property.