Bangkok: House prices soar 24%. First Jobber turns to renting instead, recommends 5 factors for renting out condos.
Bangkok: House prices surge 24%, averaging 5.49 baht/house. First Jobber groups ignore buying real estate. I would like to rent instead. Don't want to take on the financial burden. "L.W.S" recommends 5 factors in choosing to buy a condominium for rent to meet the behavior of the new generation.
On March 4, 2567, Mr. Prapansak Rakchaiyawan, Managing Director of LWS Wisdom and Solutions Co., Ltd. (LWS), stated that a survey of the living habits of young people in residential condominiums over the past 2-3 years revealed that...
Generations Y and Z, or first-time job seekers, prefer renting over buying. Over 50% of this group are renters, with an average rent payment of 6,000-10,000 baht per month and an average monthly income of 20,000-40,000 baht.
Because people in this group have a need for housing that meets their lifestyle needs. who are more likely to be alone and like living quarters that are comfortable Use technology that meets living needs. Including the behavior of living a hybrid life (Hybrid Work) and being flexible (Flexible) in working and living.
At the same time, they don't want the burden of high expenses that would affect their daily lives. Therefore, renting is a more suitable option than buying a home, which currently has high prices due to rising land prices and increased housing development costs, according to the latest research report from the research and development team.
A real estate research study by LWS found that the average price of residential properties in Bangkok and its surrounding areas in 2566 was 5.49 million baht per unit, a 24% increase from the average price of 4.43 million baht per unit in 2565.
“Housing prices are currently rising. higher than the purchasing ability of the new generation who just started working This makes this group of people choose to rent rather than buy a residence, which is an opportunity for investors. Currently, more than 65% of investment buyers are Gen Invest to create income from rental that provides an average return on investment of 4-6% depending on the location.”
From the behavior of customers who are renters, there are 5 important factors in choosing to buy housing as follows:
1. Location with potential
It is the first factor that investors must consider and evaluate carefully because it is the key factor that determines the value of a condominium. They should choose to invest in a condominium in a location that has the potential to meet the lifestyle needs of the Gen Y & Gen Z group, especially near the electric train line. and close to various conveniences
And from a survey by LWS, it was found that the behavior of more than 90% of residents considers choosing a residence based on the convenience of traveling to and from work/schools, no more than 5 kilometers or traveling no more than 20. minutes and in the case when rented It will be a long-term rental with no change of residence. Due to familiarity with that area
2. Real estate developers and professional building management companies
You should choose a condominium from a reliable real estate developer that is well known in the market. and has the idea of developing a residential project that places importance on the environment from design, construction, and sustainable living.
Including providing various after-sales services. Through technology channels and a team of building management companies with expertise in managing and maintaining common areas. Able to add value (Value Added) to the project very well. It will build confidence among investors. and makes it easier to rent out
3. Developing SMART LIVING apartments with complete amenities in common areas.
According to the behavior of the new generation, they place importance on the convenience of living, with more than 50% wanting an IoT device that can control electrical appliances in their residence.
There is a common area that meets the needs of the new generation, namely CO -WORKING SPACE with WIFI to support HYBRID WORK. There are both single and group seating, fitness, swimming pool, automatic service kiosk. and should be open 24 hours
To meet the lifestyle needs of the new generation and help attract more tenants. Ready to adjust the rental price to be higher.
4. Professional real estate agent
You should choose to use services with rental management service experts. or a professional real estate agent providing complete services from marketing Can screen potential tenants and can be rented out quickly
From the L.W.S. survey results, it was found that 48% of respondents thought that finding technicians to repair/install equipment was a hassle for condominium residents.
Next, 44%, is moving things. It's a hassle for condominium residents and they need help. Therefore, having a professional assistant to facilitate coordination on behalf of investors from CHECK-IN day until CHECK-OUT day is another matter that investors should not overlook.
5. Special services for tenants
In addition to decorating and maintaining rental rooms in good condition, Investors should provide special services during the rental period, such as free air conditioning cleaning service every 6 months and maid cleaning once within the 1-month rental contract period.
In addition to getting satisfaction from tenants, it is another way to maintain the room. Offer lease renewal incentives, such as rent discounts or free parking. It will help encourage current tenants to renew their leases. Avoid the expense of finding a new tenant every year.
From the behavior of the new generation we call Generation Rent, a group that has the ability to rent more than buy.
Therefore, developing projects to sell to investors for rental. Therefore, it is one option for real estate entrepreneurs to develop projects to meet the needs of both investors and tenants.
All 5 factors mentioned are alternatives for current housing development, especially in the residential condominium type. that both real estate entrepreneurs and real estate buyers For investment must be taken into account.
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