Low Floors Or High Floors Better Investment?

[rkbauer]

In general, is a property on a lower floor in a condo, or a higher floor better for investment and rental? I see some real estate agents recommended high floors, and this is true in many Western countries. But from my experiences, I have seen lower floors sell out far quicker than higher floors (floors 1-12 in my condo, which is a mid scale development geared toward Thais all sold out before the top floor) and it seems to me as if lower floors are all preferred in Thailand and much of Asia in general.

[trogers]

What do you mean by investment? Flipping, meaning booking an offplan unit and hoping to sell the booking before the unit is due for transfer? Or to hold long term and rent the unit out during the first few years after transfer?

Criteria I use are: location of the project, estimate the class of the people using the space, floor layout of the unit, direction the window or sliding door of the living room and master bedroom face (N,S,E or W), and investment outlay and estimated ROI.

In terms of height and direction, I will choose one that has unobstructed view facing the direction that is coolest during early afternoon. I do not need the unit to be on the top few floors, as the investment outlay is high and ROI is low.

I have not done flipping and cannot comment on how selection should be made.

[rkbauer]

Okay, thanks.

So pretty much, floor is not as important as direction (east/southeast facing being preferred, I'm assuming, as either direction can be hit by southeast winds), although a unit on a lower floor, that still has a good view has a better ROI?

I don't do flipping much myself, and mostly focus on rentals.

Edited February 18, 2011 by rkbauer

[trogers]

Okay, thanks.

So pretty much, floor is not as important as direction (east/southeast facing being preferred, I'm assuming, as either direction can be hit by southeast winds), although a unit on a lower floor, that still has a good view has a better ROI?

I don't do flipping much myself, and mostly focus on rentals.

Not better ROI directly, but easier to rent out then a unit with poor view or poor natural ventilation.

[trogers]

...although a unit on a lower floor, that still has a good view has a better ROI?

As an example, you compare two units facing the same direction in a 24-storey condo building.

The one on the 9th floor has unobstructed view and a unit on the 20th floor has great view. The higher unit cost 15% more. I doubt you can rent the one on the 20th floor 15% more than the one on the 9th floor. Perhaps 5% more. Thus, the unit on a high floor will give a lower rental yield compared with its price.

[tengmoh]

TROGERS,

I respect your opinion so may I ask what is the most preferred direction the largest wall of glass (living and/or master bedroom) should face for coolest daytime environment? I had believed it to be north as the sun doesn't seem to enter directly as much. In winter the sun does enter but only a few feet. So which is preferable in ranking? North followed by East? Or vice versa.

Secondly, do the trade winds alter directions throughout the year here in Bangkok or as RKBAUER notes (thanks) is it always from the SOUTHEAST? Thanks guys.

Edited February 21, 2011 by tengmoh

[bkkjames]

TROGERS,

I respect your opinion so may I ask what is the most preferred direction the largest wall of glass (living and/or master bedroom) should face for coolest daytime environment? I had believed it to be north as the sun doesn't seem to enter directly as much. In winter the sun does enter but only a few feet. So which is preferable in ranking? North followed by East? Or vice versa.

Secondly, do the trade winds alter directions throughout the year here in Bangkok or as RKBAUER notes (thanks) is it always from the SOUTHEAST? Thanks guys.

North for me thanks. Then West, East and South. Really depends E v W if you prefer your unit to be bright and hot in the morning or afternoon.

[trogers]

TROGERS,

I respect your opinion so may I ask what is the most preferred direction the largest wall of glass (living and/or master bedroom) should face for coolest daytime environment? I had believed it to be north as the sun doesn't seem to enter directly as much. In winter the sun does enter but only a few feet. So which is preferable in ranking? North followed by East? Or vice versa.

Secondly, do the trade winds alter directions throughout the year here in Bangkok or as RKBAUER notes (thanks) is it always from the SOUTHEAST? Thanks guys.

The coolest direction for Bangkok will be southeast - no afternoon sun shining into the room and catching the south breeze from the sea. If possible, get an end unit that has window/sliding door in 2 directions to enable cross flow of breeze through the unit. Also, casement windows are superior to sliding windows in catching breeze (acting like sails), and they seal better against draught and sound.

Edited February 21, 2011 by trogers

[tengmoh]

The coolest direction for Bangkok will be southeast - no afternoon sun shining into the room and catching the south breeze from the sea. If possible, get an end unit that has window/sliding door in 2 directions to enable cross flow of breeze through the unit. Also, casement windows are superior to sliding windows in catching breeze (acting like sails), and they seal better against draught and sound.

Thank you kindly for your practical insights! Will bear them in mind as I seek the ideal pad. BTW I favour high(er) floors for one major aspect: lack of mosquitoes to opened windows.

[trogers]

Secondly, do the trade winds alter directions throughout the year here in Bangkok or as RKBAUER notes (thanks) is it always from the SOUTHEAST? Thanks guys.

Just noticed a portion that I have not answered.

Cooling breeze basically follows the principle of airflow we learn in high school - air flows in the direction from cold to hot. In the day, sea water is cooler than the heated land mass, and wind blows from the sea to the land. Deep in the night to early morning, the reverse is true.

But during the winter months of December/January, cold air coming down from Siberia may keep the land mass cooler than the sea, and breezes come from north/northwest most of the time.

[tengmoh]

Secondly, do the trade winds alter directions throughout the year here in Bangkok or as RKBAUER notes (thanks) is it always from the SOUTHEAST? Thanks guys.

Just noticed a portion that I have not answered.

Cooling breeze basically follows the principle of airflow we learn in high school - air flows in the direction from cold to hot. In the day, sea water is cooler than the heated land mass, and wind blows from the sea to the land. Deep in the night to early morning, the reverse is true.

But during the winter months of December/January, cold air coming down from Siberia may keep the land mass cooler than the sea, and breezes come from north/northwest most of the time.

Thank you, TROGERS, for the added detail. As you mentioned, will test out cross-wind ventilation in the prospective units with windows opened. Although I prefer north and east facing windows myself, I do love a good breeze when we do have them so will be open to all considerations raised. Thank you indeed for adding to my mental checklist!

[hhgz]

"I have seen lower floors sell out far quicker than higher floors"

That's because the lower floors are cheaper. Some people want a place to live, not a piece of real estate in which to speculate.

[HampiK]

i have checked 4 middle class to high class condos. And on all 4 condos the upper rooms were sold much faster then the lower ones. at then end about 70%- 80% sold, it was not possible to find a room higher than half of the height.

I think most people like to buy rooms as high as possible.

[trogers]

i have checked 4 middle class to high class condos. And on all 4 condos the upper rooms were sold much faster then the lower ones. at then end about 70%- 80% sold, it was not possible to find a room higher than half of the height.

I think most people like to buy rooms as high as possible.

This conclusion may be wrong. Units at lower levels can only be sold fast if they either have unobstructed views, or are not close to the road. Then units at upper levels are sold, leaving the less desirable units unsold.

[travelmann]

They often sell them in phases also, lower first etc

[ChiangMaiFun]

it's often because of the Thai building laws? here they cannot build higher than 8 floors hence no one buys lower

[ChiangMaiFun]

I was told - always buy 8 and above as that's the building regs limit

Edited March 9, 2011 by ChiangMaiFun

[Darrel]

Anyone who has ever been in a tall building during an earthquake or a fire (I have done both) or even a simple power cut (these used to be very common not many years ago) could probably think of other advantages of low floors and I suspect that some (many?) older Asian buyers might have this in mind.

That said the relative value of a high or low floor is invariably going to boil down to the location of the building and the individual view from the unit.

[bkkjames]

They often sell them in phases also, lower first etc

Hmm, my experience is that the top end units (highest floors, penthouses) are offered in private to those in the know before the general public