RHYTHM Ekkai STRIKES BACK

RHYTHM Ekkamai

STRIKES BACK

Many experienced investors say that if you want to buy a condo for investment, you must go for Prime Sukhumvit only because rental rates here are the best, and capital gain or appreciation value is also high.

So which part is considered prime Sukhumvit? And why does investing here yield the best returns?

Sukhumvit Road is actually very long, extending all the way to Bang Na. But the Sukhumvit area where land value is extremely expensive is divided into two parts: Lower Sukhumvit and Mid Sukhumvit

Lower Sukhumvit refers to the area from Bumrungrad Hospital, Nana, to Asok intersection. This area is popular among Middle Easterners, Indians, and Europeans. Due to the environment and the people in this area, it may not appeal much to Thai millionaires. Therefore, it is not a popular area for them to buy condos, making liquidity for renting out or reselling not so good.

Then why do we need Thai millionaires to buy here? There are lots of foreigners in this area, don't foreign millionaires buy? In reality, many people may misunderstand this. Actually, Europeans, Americans, and Middle Easterners haven't been buying our condos for a long time. Besides, their companies provide housing allowances, so why would they buy? If you have the chance to ask your friends who have made substantial profits from selling condos, you can ask them which nationality buys. It's Thais, that's right. We are genuinely wealthy, and there are many of us. Don't assume that foreigners are wealthier than us. When foreigners see us buying expensive supercars, they even ask how we dare to buy them, because they cost almost 4 times more than in their home countries. Yet here we are driving them all over the city. Thai millionaires are truly numerous, quietly and discreetly wealthy.

So which areas do they like to buy in?

Central Sukhumvit or what some investors call Prime Sukhumvit spans from Asok to Ekkamai. This is the area that well-off Thais love. Because this area has a large number of foreigners, particularly Japanese. Anyone who has rented out a condo knows that Japanese tenants are the best, because not only do they pay rent on time, they also keep the room in good condition. Most importantly, the average rental rate for Japanese is considered the highest among all foreign rentals in Thailand. It's not just about buying for Japanese tenants; Thais buy to live there a lot too, because this area offers the lifestyle that Thais love, with everything from department stores to luxury restaurants. This is the answer to why you should invest in a condo in this area.

Luckily, today our team had the opportunity to meet an investor who has been through a lot in the investment world. So we took the opportunity to consult about investing. This person doesn't want to reveal his identity, so let's call him " Mr.T ".

This is the conversation we had (shortened to the key points).

Team : Brother T, let's keep it simple and straight to the point. Which condo is worth investing in right now? Please give me some pointers.

Mr.T : Oh boy!!! If I knew, I'd be rich already. What kind of play do you want? Condos can be played in many ways. Short, long. Honestly, if you're a long-term player, anywhere with a good location works. But what makes a "good location" — you need to know how to evaluate that properly.

Team : So what kind is considered good? Being near the BTS, is that good enough?

Mr.T : Being close doesn't mean it's all good. You have to look at many things. But from experience, condos that generate good profits are mostly in the Asok to Ekkamai range. There's one in Ratchathewi, but the demand there is narrow — mostly parents buying for their kids. Other than that one, the rest are so-so.

Team : Why are prices so good in the Sukhumvit area from Asok to Ekkamai, and which part is the best to invest in?

Mr.T : Personally, I like Thonglor, because it has everything. Wide roads, beautiful restaurants everywhere, pleasing to the eyes and ears. Rich Thais love Thonglor the most. Most importantly, the rent fetches a good price. Anyone who bought first-hand 3-5 years ago got a yield of 7-10%.

Team : So we should look to buy around Thonglor, right?

Mr.T : Yes, but if you buy now, you're too late. That cycle is over. As for new projects, they don't build small rooms for ordinary people to buy anymore. They only build large units, starting at 30 million. Can you afford that? Is it worth investing? The investors you see nowadays, let me tell you, 90% are short-term players, all hoping to sell before transfer. Not that it's bad, but that's just how it is. As for those who buy to actually live in, it's strange — they like to buy when it's expensive. They buy after transfer. Sometimes the price goes up by another million and they still buy. Because people who actually want to live there need to buy and move in immediately. They won't wait for years. They don't care. If the price goes up, they can afford it. So when you see people rushing to buy during the launch, those are investors selling before transfer. Real residents don't really rush to compete.

Team : Can you recommend any condos in this area worth buying as an investment? I've seen a lot of beautiful condos coming out.

Mr.T : For a condo to sell easily, there must be other factors involved, not just using pretty pictures to sell. Anyone can take pretty pictures nowadays. Even a condo worth a little over a million baht already looks beautiful. Pretty pictures aren't that important. But factors that favor investment, that's the most important thing. From my experience, a condo worth investing in must have these 5 main factors first.

1. The location must be good. Sukhumvit between Asoke and Ekkamai carries the least risk. Some say Ratchada, Rama 9 are also good, they're developing, and not even that expensive. I'm not saying they're bad. Some people might profit from them. But from my experience, the Prime Sukhumvit area carries the least risk, because there are many wealthy people who like it, many foreigners live there, so it can be rented out at a good price. There are also plenty of malls. It has everything.

2. Must have Exposure, meaning prominence when viewed from the street. This is just as important as location. It's not just about being a tall building that stands out. Some buildings are just concrete and look ugly. They must be beautifully designed too. Things like swimming pools, placing them on higher floors creates a better vibe and makes it easier to sell, because it creates emotion for people who see it.

3. Must have a brand. Why is this important? It's very important, because when you resell, if people don't know which developer built it or whether it has a good reputation, I guarantee it will be hard to sell. There are plenty of no-name condos in god-tier locations. Go look for yourself. Are they selling well? If you had the money to buy an expensive watch to wear, would you wear a branded one or just one that tells the time?

4. Sales channels. Many people might not think about this, but nowadays this is very important. Because if you're going to sell your unit, don't think you can just list it on a website. That's outdated. I list mine too, but very few people contact me, and they also bargain until it's frustrating. You need people to help you sell. People who actually have the money to buy will go look at the showrooms. Few people will search on websites. Those who search on websites are all fellow investors. Therefore, the people who can actually sell are the ones sitting and waiting at the showroom, which are the project's sales agents. I also list on websites, but what actually sells is consigning it through the company's agents. Some companies, if you buy through their agents, you can get a loan immediately, without having to pay a large down payment. This makes it even easier to sell. Simply put, if a company has agents for resale, that's considered the best sales channel.

5. Down payment ratio. Why is it important? It's important for those who play short-term. All those investors I know who are considered good, they all play short-term. How could they transfer that fast? One person buys dozens of units. We have to accept the truth. If the down payment ratio is low, it makes it easier to sell, because buyers don't have to fork out a large sum of money. I think a good ratio should be around 10%, which is just right. Too low is not good either, as short-term speculators will come in and ruin the prices, making a mess of everything. I don't like that either. If you want to play real estate, you need to be patient. You don't just book and then sell immediately. If you do that, you don't have the heart for it. You're better off just staying home and sleeping.

Actually, there are still many minor factors, such as choosing the floor, room size, and room position. But let's keep it simple first. These 5 points. You go see what has the elements according to these.

Team : May I ask one more question? If the locations are similarly good, between new condos that are about to launch and condos in some projects that are about to be completed, but the price per sq.m. is about the same or cheaper, wouldn't it be better to go for that one?

Mr.T : Well, that's why I'm asking. So how are you going to play it? Short-term or long-term? I know the background, so I'm asking how you want to play it. A condo near completion may be cheaper and have a better location. Others have already put down millions in down payments and it still yields profit. Do you have the cash to hold on to it? If so, go for it. But once it's completed, you must be ready to transfer. Will you actually be able to transfer? Seriously, I'm asking? To invest smartly, you should take as little money out of your pocket as possible. I'll tell you this: those who invest in condos mostly play short-term. It's not that no one plays long-term, but it's much fewer. The ones who really make big profits are the long-term players. Believe it or not, some people hold 4-5 units and have to rush to sell before transfer, making a hundred thousand profit per unit. But some people hold just one unit until transfer, and after transfer, they make millions in profit. Those with multiple units put pressure on themselves. They know they can't transfer, so they have to sell quickly. That means selling off all the good stuff before the price goes up.

Staff : (laughs) Hehe, that hits the nail on the head. Thank you very much, T.

Speaking of Rhythm condos, some may think they're not as interesting as before, even though many years ago Rhythm was a favorite among investors. If anyone has bought a Rhythm condo and didn't just play short-term by only selling the booking right, they would know that most Rhythm units always sell for a good profit. Because the facilities are fully packed. Both Rhythm Sukhumvit 50 and Rhythm Sukhumvit 44/1, anyone who bought from the beginning and sells now would probably make millions in profit.

As for Rhythm Sukhumvit 42, it might be because of the one-way street, so it sells a bit slower. But once it's completed, I assure you the construction will be spectacular. Selling out won't be difficult. For Rhythm Ekkamai, it's located in a great location because Ekkamai can connect and has shortcuts to Thonglor all the way to Asok without needing to go onto the main road. So it's very convenient for drivers: you can go anywhere without having to make a U-turn on the main road. Moreover, right next to the condo, there's Parklane Mall where you can find food at any time. Of course, some people say Thonglor is better than Ekkamai. But if you're looking at the 6-8 million baht price range, it would be quite difficult in Thonglor. New projects in Thonglor will only be 30 million baht and up. Imagine this: in the next 2 years, in the Ekkamai-Thonglor area, will there be a high-rise condo with full facilities like this in the 5-7 million baht range?

We took the information of the Rhythm Ekkamai project to analyze according to the 5 criteria for investment selection, following Mr.T's approach. It can be seen that it passes all criteria.

- Location: It's in the prime Sukhumvit area

- Exposure: It's a high-rise building with a very beautiful design (truly beautiful)

- Brand: No one doesn't know this one, definitely AP

- Sales channels: Bangkok City Smart helps with resale

- Down payment ratio: According to the information received, the down payment here is 12%, paid over about 23-28 installments. This is a very comfortable installment plan. Moreover, the booking fee and contract fee are not even that high.

1 Bedroom: Booking 50,000 Baht, Contract 50,000 Baht

2 Bedrooms: Booking 80,000 Baht, Contract 120,000 Baht

Another very interesting and important aspect is the price, because here prices start at 183,000 Baht per sq.m., with the most expensive at approximately 200,000 Baht per sq.m. This is considered very surprising for AP's pricing, creating a building with this design, in this location, and selling at this price. Just in the Rama 9 area nowadays, they are already selling for 150,000 Baht per square meter. And this is Ekkamai, the actual selling price could very well be even higher than this

Another thing is that there are only 326 units here, divided into the following proportions:

It is believed that AP will have foreign customers buying 20-25% because there is news that foreign agency companies have already contacted them to ask for bulk purchases. Therefore, if they sell to foreigners, there will be approximately 245 units left for Thai buyers. With this location and only 245 units, just the people living in Soi Ekkamai alone could buy them all

The common area fee is still very cheap, only 50 Baht per square meter. Currently, most other projects are already at 60-80 Baht.

This year, it can be seen that many AP projects are going all out in terms of both design and pricing, which will appeal to both investors and owner-occupiers alike. It seems AP intentionally makes the gap or profit margin very clear. In addition, the building design is unprecedentedly fully committed. The team believes that AP is doing this because they want to celebrate their 25th anniversary, so it's considered a gift to customers. An opportunity like this doesn't come often.

Anyway, I must say that this time Rhythm Strike Back AT Ekamai #RhythmTheOriginalIsBack

Interested? Register here: http://goo.gl/NANx9n

Get a 200,000 Baht discount. If you don't register, even Super VIP customers won't get the discount. Go register now. Sales open on September 3-4 at the sales office at the entrance of Soi Ekkamai.

Someone whispered to me that large investors will be able to make bookings on August 30th. If anyone has friends or sales reps at AP, try calling and asking them.

Rhythm Ekkamai

RHYTHM Ekkai STRIKES BACK

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