Investors switch from stocks to condos for better yield


The fluctuation of Thailand’s stock market due to political uncertainty after the general election, together with the slowdown of the global economy due to rising inflation, have made property for investment an attractive choice among modern investors, industry experts say.

Chanin Vanijwongse, chief executive officer of Habitat Group, said an increasing number of new generation investors aged 30-40 years are buying condominiums and renting them out for short- and long-term profits.

“Condominiums priced between 5-8 million baht have become highly popular as an investment choice to generate passive income. They offer an alternative to investment in the stock market which has high fluctuation,” he said.

Investors switch from stocks to condos for better yield

He added that the factor contributing to this trend is the recovering tourism industry that resulted in an influx of foreign visitors looking for places to stay, especially in tourist cities such as Pattaya.

Chanin added that the trend has given birth to the lifestyle investment service provided by property developers, who seek buyers to invest in their projects while providing all administrative services, including finding renters, to ensure that customers gain the best rental yield.

The CEO said that Habitat Group has eight lifestyle property investment projects in Pattaya alone worth over 16 billion baht, inlcuding three hotels opening in 2023 and one hotel opening in 2024.

Investors switch from stocks to condos for better yield

Siripong Srisawangeong, chief marketing and sales officer at Origin Property Plc, said the company’s investment property (IP) programme saw more than 2,000 units sold in the past two years. Anticipating the continued growth, Origin is setting a target for 2025 at 5,000 units under the programme.

“IP programme is a new concept in property investment. Buyers only buy for investment, but will have full right to their property,” he said. “They can sell/transfer at any time, and can even pass it on as heritage or use it as loan collateral.”

He added that return on investment is dependent on the location of the property and the demands of renters. Units in Bangkok’s CBD area o such as Thong Lor or Sukhumvit could earn up to 900 baht per sq.m. per month, while units upcountry usually go for 300-400 baht per sq.m. per month.

The company’s latest service apartment project, Origin Place Bang Na, has nearly 400 units which will be reserved for IP investors who are targeting renters in eastern Bangkok, he added.