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Analysis of the Best Potential Districts for Buying Property in Bangkok: Part Three - Silom District, Bangkok's Wall Street
The most important indicator for buying property in Bangkok – regional investment potential.
As buying property in Bangkok increasingly gains popularity, it also prompts investors looking to achieve returns through real estate to rethink their approach: How should one choose the right home from the myriad of property developments available in Bangkok? How can one select a project that offers a higher return on investment compared to others? This confusion often leads many potential buyers, who are not well-acquainted with the Bangkok property market, to struggle in finding quality projects when investing. In reality, there are numerous factors that determine whether a development is worth purchasing, from aesthetics to value for money. If one were to meticulously compare the various factors to consider when buying property in Bangkok, it could take an excessive amount of time and make it difficult to weigh each factor’s importance in the purchasing decision. Therefore, when buying property in Bangkok, the key is to first focus on important factors to secure the desired project.
One of the most critical indicators in purchasing property in Bangkok is whether the area has potential. A promising area indicates that the investment return is relatively secure, and the future development of the location is encouraging for the property market. Projects that meet both of these criteria are generally considered good investments. By mastering this viewing strategy, buyers can then make quick and accurate judgments based on specific details and personal preferences.
The oldest financial center for real estate investment in Bangkok – Silom District.
The Silom area in Bangkok is recognized as one of the best potential investment zones in Thailand's real estate industry. Although Bangkok has rapidly developed three generations of central business districts to drive economic growth, each showing strong momentum, the latter two generations still cannot compare to Silom. As Thailand's oldest financial center, Silom gathers nearly half of Bangkok's wealth sources and is dubbed "Bangkok's Wall Street." It is home to global corporations and financial groups, as well as luxury hotels and a dense array of high-end residences, shining brightly against Silom's dazzling night landscape.
The reasons behind the development of Silom District as the area with the best potential for buying property in Bangkok are revealed.
The reason for the potential development of buying property in the Silom area of Bangkok: it was the first to align with international standards and has a well-developed political and financial circle.
Silom District is located in the Bang Rak District of Bangkok, the capital of Thailand. Established in 1851, it has witnessed the rise and fall of Bangkok over the centuries, accompanying the city's development. Today, it has become one of the most international streets in Bangkok.
As the leader among all central business districts in Bangkok, Silom District also holds titles as both the political and cultural center, as well as the financial center of Bangkok. Numerous consulate office buildings are located here, including the embassies of Australia, Denmark, Germany, Malaysia, and more. Large commercial institutions, such as the headquarters of CP Group, Bangkok Bank, and various securities firms, have also chosen to office here. The office spaces available for rent, like the Asian Center, Bangkok City Tower, Sathorn Square, and AIA Sathorn, are all classified as Grade A commercial buildings, collectively contributing to the increasingly mature political and financial sphere of Thailand.
Therefore, most people choosing to rent in the Silom District are high-net-worth individuals, such as senior white-collar workers or diplomats. This area is highly favored by foreign tenants and local social elites, making it a sought-after location for investors.
The reason for the potential development of buying property in the Silom area of Bangkok is: the BTS and MRT dual line directly connect to the city center, establishing a strong transportation infrastructure advantage.
Compared to other areas where proximity to a transportation line is sufficient to be considered a prime location, the dual-track configuration of the Silom area stands out as a leader in transportation resources among Bangkok's districts. Both of Bangkok's most advanced public transport systems, the BTS skytrain and the MRT subway, have lines running through this area and can be connected via the passage between MRT Silom Station and BTS Sala Daeng Station. Well-known commercial hotspots like Siam, Chidlom, Ploenchit, and Sathorn are only a few stops away.
MRT Silom Station intersects with Rama IV Road and allows transfers from the BTS Silom Line. Even more surprisingly, the Silom area is located in the city center, with a highly developed public transport network that includes both land and water transport, offering convenience and a wealth of choices for commuters.
Reason three for the potential development of buying property in the Silom area of Bangkok: The traditional wealthy area of Thailand gathers various resources in Bangkok, making the investment potential immeasurable.
Silom district, as Bangkok's oldest financial affluent area, has developed into the city's second-largest residential area, with most of the high-rise buildings seen here having been constructed before the 1990s. This is largely due to the majority of vacant plots in Silom being owned by the Crown Property Bureau of Thailand, which leaves very little land available for the development of large property projects. Currently, after decades of land lease expirations, some embassies have been relocated or redesigned, which means additional plots will be used for new property developments. It is anticipated that once these new developments are launched, they will be quickly snatched up by discerning investors.
Furthermore, because of its long development history, this area is already rich in various high-quality lifestyle resources. In addition to bank headquarters, financial institutions, and commercial buildings, Silom is home to numerous upscale hotels, shopping centers, and international restaurants. It is also close to Lumpini Park, the largest green space in central Bangkok, and is known for its vibrant nightlife, earning the nickname "Little Tokyo."
In the past three years, only five new projects have been launched in this area, with 85% of units selling out within six months of their release, highlighting the scarcity and demand for projects in this region. It is reported that buyers of Silom developments often include both local residents and expatriates, with annual returns exceeding 5%. Besides investors seeking profitable returns, many are parents looking for nearby prestigious schools for their children or businesspeople attracted to the area's lifestyle, reflecting the strong appeal of living in Silom.
Therefore, even though property prices in Silom remain high, the steady stream of investors signifies the area's potential and continuing upward price trend, allowing it to be regarded as a high-quality area with promising future potential.
