When Belinda Carlisle sang the pop hit song “Heaven is a Place on Earth” back in the 80s, it is very unlikely that she was referring to Bangkok. However, the literal translation of its Thai name – Krung Thep - is indeed the “City of Angels”. The imagery of Bangkok city may seem a far cry from where angels would exist, yet, amidst the hustle and bustle, many around the world have discovered and are familiar with the graceful movements and warm hospitality that form a part of Bangkok’s identity.

Bangkok has been consistently ranked amongst the top 10 tourist destinations in the world, competing for the top spot against cities such as London, Paris, and New York. The allure of good food, highly affordable, and cultural attractions all play a part in attracting almost 22 million visitors as of 2015 to this sprawling metropolis. (Source: MasterCard) Famous attractions like the Grand Palace, Wat Arun, and the floating market help Thailand rake in an additional 10 Billion US dollars a year, making up approximately 20% of the nation’s GDP. (Source: WTTC)

Bangkok is also the heart of a nation that is vital to the world’s agriculture and export economy. As the second largest economy in Southeast Asia, Thailand is the Number 1 world exporter of rice, tapioca, rubber and shrimp while also being the top global exporter for electric appliance products as well as the hard disk, a major component of every computer system used worldwide. As of 2015, its automative industry was the largest in Southeast Asia and the 12th largest globally. (Source: OICA)

In a further boost to the economy, Thailand and economic giant, China, have launched a railway cooperation project aimed at bringing the two countries closer together. The 845-kilometer line will cut through 10 Thai provinces and allow Thailand to utilize its geographic advantage as a land transport hub by creating jobs, cutting transport costs, and promoting economic growth. (Source: Shanghai Daily) Such a route could shorten trading times with Europe down to 12 days from current sea transport routes which take 45 days. (Source: Asia News Network)

With high influx of capital into the city from trade and tourism, more residents find themselves able to purchase properties in much sought-after areas of Bangkok such as Asoke, Phrom Phong, and Thong Lo. Asoke in particular, is a highly popular area among both locals and expats alike due to the vital Asoke Junction that hosts the main Asoke BTS & Sukhomvit MRT interchange. This interchange is the main connection that serves to link the two transport links together and is thus the nexus for many of Bangkok’s residents and tourists. Furthermore, with the Makkasan airport express only 1 station away, Asoke is a top choice area for expats who require a convenient link to Bangkok’s international airport. In a bid to expand their development profile, Singha Estate, a subsidiary under the umbrella of Singha corporation, is investing over 3 billion Baht ($114 million SGD) in two major developments in the Asoke area. (Source: Singha Estate)

The first is an iconic 55 storey luxury condominium project located among the many office complexes of Asoke road as well as within walking distance of Asoke Junction, and the second development, “Singha Complex”, is a 4.3 acre mixed use landmark development with more than 56,000 square metres of office, hotel, and retail space as well as a 4000 seat concert and convention hall. (Source: AsiaOne)

These two developments in the Asoke area will be the projects which cement Singha Estate as a premier real estate developer, and further increase the desirability of an area that is already much sought-after.

The rise in demand for Bangkok’s properties has not gone unnoticed by international investors either. From 2010 to 2015, average prices of freehold downtown condo units have risen consistently, especially in the Asoke-Sukhumvit area, with the key criteria for growth being that projects must be situated close to a MRT or BTS station, and have a sufficient variety of amenities nearby to serve the needs of its residents.

Many investors seeking the stability and simplicity of property to gain good returns on investment look no further than Bangkok’s residential market. Property prices remain far below those in more established markets and are set to continue growing quickly. With a fast growing economy and foreign investment incentives such as low taxes, Bangkok is Asia’s hidden safehaven for investors. According to Knight Frank, Bangkok ranks amongst cities achieving strong residential price growths such as Los Angeles, New York, Dublin and Munich.

In 2016, there were seventy thousand newly completed units in Bangkok, but only ten thousand of these units were in downtown areas and this figure is expected to go down to less than two thousand in another 3 years. Furthermore, foreign investors should note that only 49% of any condominium development can be owned by foreigners. (Source: IE Singapore) This makes the number of units available to foreign buyers limited, and projects in high demand have been known to sell out in a matter of days. Opportunities to invest in Bangkok may come fewer and further between, especially for projects situated in desirable areas, but by keeping an eye out for such developments, investors may be able to build a profitable portfolio in one of ASEAN’s vital emerging nations.

- Keane.P