Elite Residency Program and Top Neighbourhoods in Bangkok
Bangkok is one of the most vibrant and happening cities in the world. It is not an overstatement at all. Anything to everything can happen in Bangkok. Bangkok welcomes all kinds of people from all parts of the globe to experience its vibrant and district city life. Bangkok since 2019 have been the most visited city in the world, bring in all kind of different cultures and languages into one melting pot.
Bangkok city is a large city. A large city with a landmass and spaces to use. As Bangkok is a large city, Bangkok has various features in various neighborhoods outside of the city center or metropolitan downtown area. Bangkok city offers itself all kinds of diverse communities, from the loud and lights of Thonglor to the shopping malls centric of Siam. But outside central Bangkok, neighborhoods are receiving less attention but should shed more light on those neighborhoods.
Times are changing, Bangkok is expanding, its real estate market is adapting to middle-to-high income investors and buyers. Foreing investors have decreased during the pandemic but are still confident the market will bounce because of amendments to ownership policy and elite residency program.
Elite Residency Program
Thailand residency program is rank in the top 20 list of the world investments and residency lists. Thailand’s elite residency program hit a significant spike in 2020 as Thailand lauded for its control of the pandemic. As a result, foreign investors, especially from China and Hong Kong, quickly flocked to Thailand to invest in property. But what is Elite Residency Program in Thailand? How did the government also amend property ownership in Thailand?
Elite Residency Program in Thailand is for a foreign investor looking to invest, set a business, and enjoy Thailand and Thai citizens. To enter the program, according to businesswire.com, a five-year privilege entry visa – a similar five-year ticket (Elite Easy Access) would generally cost THB 600,000 or approximately USD 19,000 between THB 2.14 million approximately USD 68,000. Its one-time investment of property in Thailand for free visa entry between five to twenty years. As an investor, you would enjoy benefits and promotions in golf courses, high-end spas, hotels, limo services from airports, etc. In addition, you would want the first-hand experience from the ‘land of smiles.’
But, Thailand’s real estate market boom has decreased, significantly and it is trace back to some miscalculations and management of the pandemic, according to Nikkei Asia.com. On the other hand, the government is trying to amend new ownership laws in Thailand. As foreign investors gain 49% ownership of property, the new policy will turn into 70% or full property ownership in Thailand. Added to another incentive of the elite residency program, property developers are holding hands to offer ‘Elite Flexible One’ with the elite residency program to foreign investors, reported on businesswire.com. Many top property developers forecasting that Thailand real estate market will return and see an uptick in the luxury market, such as Origin Property, Sansiri, AP, etc., stated on businesswire.com. For now, developers are focusing on unsold inventory with discounts prices in various neighborhoods outside central Bangkok. Such as Bearing, Charoen Nakhon, and Ladpro neighborhoods.
Bearing: New Residential Center
A relatively new, professional working neighborhood outside central Bangkok is Bearing. Bearing area is becoming a new hotspot of residents working and living in central Bangkok. As the BTS train line (public transport) increases, people have moved to Bearing for reasonable prices and not so far from commuting to the city center. Bearing district covers parts of Sukhumvit roads, leading to people going to Pattaya beaches and streets directly leading to shopping malls in the city such as Siam Paragon and Thonglor takes 15-25 minutes.
As Bearing is a new and upcoming residency neighborhood, condominium prices are relatively in the middle range. Top property developers such as Sena developments and Origin Property have new projects with high and low-rise projects around the area. Foreign investors were working around Thonglor or factories around the Bangna area. According to Bangkokpost, Chinese and Korean investors make up most of the investors around Bearing. As property at Bearing focuses on corporate workers, condo facilities emphasize co-working spaces, outdoor garden working and charger spaces, libraries, and fitness/yoga rooms for health-conscious residents. Prices for condos range are moderate and to between 2-3.5 million baht. As Bearing area is predominately cheap and people wanted to still live near the city center, Bearing offers a fantastic choice. Rental yields at Bearing approximates between 5.6% to 5.8%, as reported in Bangkok Post.
Charoen Nakhon: Old Bangkok
The old town or old neighborhood outside central Bangkok is the Charoen Nakhon neighborhood. A district long ago held the value of being near the Chao Phraya river but left in the rear window when urbanization began. Recently, Charoen Nakorn has come back to the fold of urban planning. Significant changes with BTS and MRT (underground train) expansion and shopping malls open with Japanese investors turned the neighbor nevertheless. The neighborhood has the charm of old Bangkok. Charoen Nakhon’s surroundings are temples, riverboats, ancient street food stalls, and old themes cafe to enjoy ancient Bangkok food and culture.
Property developers have looked into the area of how corporate workers can travel into Sathorn and Silom easily. Secondly, with the charm of old Bangkok and arts and photography being prominent in Charoen Nakhon area, property developers focus on artists and corporate workers as their main focuses. Condominium facilities are co-living spaces but with incentives of photography studios of the artist, photographers, and videographers in the neighborhoods. Property developers such as Sena and Niche mode joint ventures providing investments and rental yields with condominiums range around 2-4 million to target artistic careers and business ventures in the area.
Ladprao: Start-up Culture
An up-coming start-up and fin-tech neighborhood with a young population and hipster cafes around in Bangkok is Ladprao. Ladprao is north of Bangkok and close to the famous Chatuchak Market. Ladprao is a mainly residential area of middle-class families in Thailand but changing to become a neighborhood of youth and tech start-ups in Bangkok. Ladprao is a large neighborhood covering lots of land in the North of Bangkok.
The primary appeal of Ladprao is how they offer a wide range of leisure, family activities, and major shopping malls. As Ladprao is near universities and young populations, shopping malls cater to fashions, restaurants, and cafes. Property developers look at Ladprao to be like a new business district outside of central Bangkok. Properties and real estate in Ladprao range a little higher than the previous two neighborhoods. Because Ladprao neighborhoods are one of is closest to central Bangkok and readily growing tech start-ups. Bangkok focuses on being an extensive digital hub in Southeast Asia. Investments and Elite residency programs lure specialized workers in technology and digital sectors and wealthy citizens to Thailand to invest. Ladprao is one of the jewels of property developers in Bangkok to tap into middle-of-the-road investors with purchase power, not the luxury market.
How the pandemic has affected Thailand in 2021 has cause concerns about real estate in Thailand. The confidence of last year, where the government could control the pandemic, derailed. But new amends made to elite residency programs such as property developers offering new visa-free entry, discounts, and promotions on various products and activities bring foreign investors and confidence back to the industry. Changes in property owner policy will be a significant turning point in the real estate market—the central turning point in how property developers see the opportunities outside central Bangkok. In addition, expansion on public transports and a wave of tech start-ups and content creators improve Bangkok SMEs and bring in foreign investors to set up businesses in Thailand.
All those neighborhoods have in common and where Thailand excels on the global stage are medicine and hospitals. Health is coming to the forefront of people when choosing a location to live or invests. Most of the properties in the neighborhood listed are near major hospitals to get to Thailand’s best health care service globally. Secondly, all those neighborhoods have international schools from England and America to provide educations to ex-pats living in those neighborhoods. Such as in Bearing and Charoen Nakhon, most foreign investors are from China, Korea, UK, and Germany. They are international schools all over three listed neighborhoods. Lastly, Bangkok has excellent rental yields from 8-10 percent. Outside central Bangkok is preparing for a new influx of investors to enjoy real estate in the vibrant Bangkok once again.