2018 Investment Guide to Buying High or Low-Rise Condo in Bangkok
Bangkok is a dream residing destination for expats. It offers a variety of lifestyle that is unique and diverse. This distinctive capital has a wide selection of properties from luxurious accommodations in Sathorn or Lower Sukhumvit to condominiums that are located in local areas like Ratchada and Ladprao.
One of the most common questions that arise among investors is whether to purchase a High or Low-Rise Condominium? And which are a better option? There are many factors that determine the differences between these two types of properties which concern the aspect of Location, Number of Living Units, In-House Facilities, and Land Value.
Location and Accessibility
According to the Thai construction law and regulations, High-Rise condominiums (with 8 floors and above) are typically situated on the main city road with better accessibility and closer distance to public transportations, whereas, Low-Rise condominiums are commonly situated off the main road, on smaller roads or alleys. The reason being is linked with the Thai construction law which requires the entrance of the building to be located 6 meters away from the main road.
However, as much as High-Rise locations are generally more convenient, small roads and alleys can also be a huge advantage when navigating across the city. In addition, some Low-Rise projects have better road connectivity with multiple routes than those that are High-Rise.
Privacy and Tranquility
Low-Rise condominiums are low density as there are fewer numbers of units in the building. Structurally, these condominiums are a one building project with a maximum of 8 floors like Maestro 19 Ratchada, while it is less common, some rare projects like Metro Luxe Ratchada may contain up to 4 buildings in total or more. High-Rise condominiums may contain 2-3 or more buildings depending on the developers, with floors levels that are typically 20 or 30 floors high in height like Ideo Mobi Asoke Condominium, which can offer spectacular views of the city.
Most Low-Rise condo properties are tied to the concept of private living for residents to enjoy exclusive hospitality and a serene lifestyle. The locations of these projects are normally located inside alleys, away from the bustling light and sound of the city, which are far more tranquil and relaxing. While some High-Rise condo offers private residences and exclusive living, the environment of Low-Rise Condos is more communal and less compacted.
In terms of facilities, High-Rise condominiums are technically well-equipped as there are more spaces on the premise for the building infrastructures. This also includes higher numbers of facilities and common areas provided by the project which can accommodate more services when compared to facilities of Low-Rise condos.
A modern-day High-Rise condo may contain an array of amenities such as Infinity-Edge Swimming Pool & Jacuzzi, Roof Garden, Sky Lounge, Fitness and Aerobic & Yoga like Supalai Oriental Sukhumvit 39 Condominium.
Low- Rise condominiums on the other hand may be limited to space as there are fewer levels of storeys for the accommodation of amenities. However, most facilities are designed to support the size of the residents that can perfectly accommodate each and every person’s needs.
Land value is another significant factor to consider for investors as it anticipates the potential and the value growth of property.
The Hip Flat market statistics below indicates the increase of condominium prices in square meters for 2 High-Rise condominiums, The Room Charoenkrung 30 and The Key Sathorn Charoenrat from off-plan to 2018 prices and Metroluxe Ekkamai – Rama 4 Condominium from off plan to 2018 prices as well.
- The Room Charoenkrung 30
Off-plan price quarter 1: 162,220 baht per sqm
2018 quarter 1 price: 186789 baht per sqm
Appreciation rate: 24569 baht per sqm
- The Key– Sathorn Charoenrat
Off plan price quarter 1: 91900 baht per sqm
2018 quarter 1 price: 108843 baht per sqm
Appreciation rate: 16943 baht per sqm
Low Rise Condominium:
- Metro Luxe Rama 4- Ekamai
Off-plan price quarter 1: 115655 baht per sqm
2018 quarter 1 price: 124143 baht per sqm
Appreciation rate 8478 baht per sqm
The statistical results show that High-Rise condo’s appreciation rate slightly higher than a Low-Rise condo, this technically means, a better return on investment for property investors. The factors that may shape these outcomes are marked by the allocation of High-Rise projects that are largely located on the main city road with close proximity to public transportation and well-equipped in-house facilities in the building. However, this does not make Low-Rise condominium a less desirable choice as some projects also benefit from better road connectivity, privacy and community living.