Decoding Success: A CFO's Guide to Investing in Condos

While housing is one of humanity's fundamental needs, modern condominium purchases are increasingly driven by investment motives rather than residential needs. Condominiums have emerged as a lucrative avenue for generating returns, whether through price appreciation or rental income. In fact, some condo investments offer returns superior to other asset classes, making them a favored choice for passive income seekers.

Among those capitalizing on this potential is Mr. Boonyakrit  Saowan, Chief Financial Officer of TTCI Corporation Public Company Limited. He has strategically invested in the Aroon project, developed by The Amarin Company over the past five years, to maximize returns through rental income.

Location: The Heart of Condo Investment Success

Boonyakrit's passion for investment began after earning a bachelor's degree in finance and accounting from Edith Cowan University in Australia. Following stints at KPMG Phoomchai Business Advisory Ltd. and an Australian bank, his financial expertise led him to diverse investment opportunities, including stocks, bonds and index funds. His first foray into condominium investment was with the Aroon 1 project, specifically targeting rental yields.

The deciding factor for this investment? Location. The project sits near Siriraj Hospital, one of Thailand’s premier medical institutions and a hub for healthcare professionals, patients and families. Its proximity ensures a consistent demand for housing from medical staff and students, who value the convenience of being minutes away from work or study. Additionally, Siriraj Hospital’s ongoing development as a leading medical hub promises to amplify housing demand, with limited supply due to the area’s urban planning restrictions.

Securing Tenants: The Key to Stable Income

“The Aroon 1 project’s five-minute walk to Siriraj Hospital was a game-changer,” says Boonyakrit. Recognizing that medical professionals prioritize convenience for their demanding schedules, he initially planned to lease to doctors. However, a medical student quickly rented the unit and signed a five-year lease—aligned with the duration of their studies. This ensured consistent rental income, reducing the stress of finding new tenants.Boonyakrit advises that not all projects adjacent to landmarks guarantee success. High-end districts like Sathorn or Sukhumvit may suffer from economic volatility and prohibitive prices. Conversely, healthcare-centric landmarks such as hospitals provide stability, as healthcare services remain essential regardless of economic fluctuations.

Low Risk, High Return: The 25%* Advantage 

Boonyakrit highlights the stark contrast between condo investments and other asset classes. Stock markets, while offering potentially high returns, are fraught with volatility and require constant monitoring of corporate policies and market conditions. In comparison, his condo investment yielded an impressive 25% return, with a unit purchased for THB 6 million appreciating to THB 7.5 million within a year. Such tangible, predictable capital gains are rare in equity markets, making property a safer bet with consistent growth potential.

Even amid the broader condominium market’s challenges—such as oversupply in some areas—strategic investments in key locations, like hospitals, remain profitable. For example, suburban condo developments along extended metro lines may divert demand from inner-city projects. Therefore, careful selection of high-demand, low-supply areas is crucial for success.

Expanding Investments in the Siriraj Area

Looking ahead, Boonyakrit plans to increase his portfolio allocation in condominiums, particularly in the Siriraj area, due to its growth potential and low-risk profile. “If new projects in this area meet my criteria, I’m ready to invest further,” he shares. With Siriraj Hospital expanding its facilities, the area is becoming a central hub for medical excellence, ensuring sustained demand for nearby housing.

His advice to aspiring investors is clear: prioritize location above all. Developers with deep local knowledge often create projects that resonate with the area’s unique needs. He also recommends smaller, low-rise developments over large-scale, high-rise projects, as they offer fewer competitors, greater privacy and faster returns due to lower investment costs.

“Don’t overlook smaller or lesser-known projects,” Boonyakrit concludes. “They often provide excellent opportunities for those willing to think beyond premium brands and flashy marketing. Local developers understand their communities best and can cater precisely to their needs.”

This CFO’s story is a testament to the power of strategic property investment, where careful planning and location-centric decisions transform condos into robust vehicles for wealth creation. 

Aroon Siriraj Triple Station, a premium condominium for sale in a prime investment location 'Siriraj area,' just 120 meters from Bang Khun Non MRT station, connecting to three train lines. High investment potential due to the demand from over 17,000 healthcare providers at Siriraj Hospital. Expected return of approximately 5-6% per year**. The project is meticulously designed, simple yet timeless, fully furnished with furniture from Chic Republic.

For more information, visit CBRE website or call +66 64 141 4414 or contact us.

**The above information was surveyed in October 2024. The estimated yield mentioned above are only projections and are not guaranteed by the project developer.