“L.W.S.” recommends 5 factors in choosing to buy a condo for rent to meet the living habits of the new generation who prefer to rent rather than buy.

Praphansak Rakchaiwan, Managing Director of L.W.S. Wisdom and Solutions Company Limited or L.W.S., said about the trend of buying homes for the new generation that From the results of surveying the behavior of living in residential condominiums over the past 2-3 years, the service research team (Service Design Center: SDC) of LWS found that the new generation of people, Gen Y & Gen Z (First Jobber) At present there is more demand for renting housing than buying. The survey results found that People in this group make up more than 50% of renters and have the ability to pay an average rent of 6,000-10,000 baht/month. Their average monthly income is 20,000-40,000 baht

This is 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 do not want to be burdened with high costs. that will affect daily life Renting is therefore a better answer than buying a residence, which currently has a higher price level in line with the land price situation. and higher costs of housing development From the LWS research report, it was found that the average housing price in Bangkok-metropolitan area in 2023 was 5.49 million baht per unit, an increase of 24% from the average price of 4.43 million baht per unit in the year. 2022 Current housing prices have increased. higher than the purchasing ability of the new generation who just started working This causes this group of people to choose to rent rather than buy housing. This is an opportunity for investors, currently more than 65% of investment buyers are Gen that provides an average return on investment of 4-6% depending on the location

From the behavior of the customer group that is renters who want housing that meets the needs of renters who want housing that is in a convenient location. Able to meet the needs of living alone that comes with convenience and technology Choosing to buy a residence, especially a condominium for investors who are investors, should take into account the needs of tenants. From the results of LWS's survey of tenant behavior, it was found that there are 5 important factors for the development and selection of housing for rental that meets the needs of the tenant group 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 their workplace/educational institution. More than 5 kilometers or traveling no more than 20 minutes and in the case of renting 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. Development of SMART LIVING apartments

There are complete amenities in the 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% was 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 renters

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 services every 6 months, and maid cleaning once within the 12-month lease period. In addition to getting satisfaction from the tenants, it can also help maintain the room. Another way 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.

“The 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.”

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 in order to rent out. Therefore, it is one option for real estate entrepreneurs to develop projects to meet the needs of both investors and tenants.

Source:https://www.bangkokbiznews.com/property/1116023

at 05/3/2024