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Demand for lower-end rental condos sees big jump


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Demand for lower-end rental condos sees big jump

By THE NATION

 

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Rental condos priced at under Bt15,000 a month are seeing over 20 per cent growth while there is a big drop in demand for rental units priced at above Bt25,000, an industry executive said.

 

 

Wathayut Thongphorm, managing director at Primo Service Solution, a subsidiary of Origin Property, said that the rental condominium market is growing in the price range of Bt10,000-Bt15,000 per month while condos in the range of Bt25,000 to Bt150,000 per month are seeing significant drop in customers.

 

“Rental condos priced lower than Bt15,000 per month are growing at over 20 per cent, especially in the BTS-MRT zones,” he said. “The reason behind this is financial institutions' loan-to-value regulations, which limit the loans granted to each buyer. When people cannot get loan to buy property, they go for rental options instead.”

 

“In contrast, luxury rental condos in the range of Bt25,000 to Bt150,000 per month are suffering from a drop in customers, as their main target groups are foreign travellers and executives of multinational companies, who are not able to enter Thailand at the moment due to the Covid-19 lockdown measures,” Wathayut added. “Sales of units in this sector have plummeted by more than 50 per cent, prompting some property owners to drop their prices by 20 to 30 per cent to attract other groups of customers.”

 

Wathayut said that an estimate of 40 condominium projects under its management showed that the return on investment (ROI) on condos in the range of Bt10,000-Bt15,000 per month could rise to 4-5 per cent in the second half of 2020, while the ROI of luxury condos could fall from 5 per cent to 3 per cent in the same period.

“It could be the second quarter of 2021 before foreigners are allowed into the country and this segment jumps back up again,” he said.

 

Source: https://www.nationthailand.com/business/30392277

 

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-- © Copyright The Nation Thailand 2020-08-01
 
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7 minutes ago, rooster59 said:

Sales of units in this sector have plummeted by more than 50 per cent, prompting some property owners to drop their prices by 20 to 30 per cent to attract other groups of customers.”

Great, I need a 150m2 Duplex. Wait a few months and the prices might actually be down to earth. 

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28 minutes ago, rooster59 said:

luxury rental condos in the range of Bt25,000 to Bt150,000 per month are suffering

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

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2 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

I know, right?

 

These crack smokers are asking L.A. or NYC prices for a POS that's going to start falling apart in two years in a city with crappy infrastructure.

 

LOL!

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2 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

You might be surprised...I know quite a few people renting in these prices and above

You might also be surprised as one is willing to spend when their financial  situations evolves positively. More one earns more one spends (usually...apart from the smart ones )

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3 hours ago, rooster59 said:

“It could be the second quarter of 2021 before foreigners are allowed into the country and this segment jumps back up again,” he said.

Has Khun Wathayut got hi level connections to those in control of the borders?

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3 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

Usually those sort of condos are in prime Bangkok locations and rented by foreign corporations for their top expats.

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3 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

so a 6 bedroom/6 bath 400sqm penthouse condo with a pool would not be worth the 150,000 baht in your view. My house payment in tbe US for a 4 bd/4 bath with a pool was $5000 USD per month, so to me $150,000 baht is not out of the question if I wanted to spend it. However, my condo payment is 60,000 baht per month and thats a 3 bed / 2 bath 145 Sqm penthouse. All the space is used. 

Edited by ThailandRyan
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4 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

overpaid expats with an allowance for rent ?

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4 hours ago, fusion58 said:

I know, right?

 

These crack smokers are asking L.A. or NYC prices for a POS that's going to start falling apart in two years in a city with crappy infrastructure.

 

LOL!

But in NYC , LA and for sure Central Boston the POS is a 60sq meter one bed. In BKK it’s waaaaaay better. 

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19 hours ago, BritManToo said:

There's always been plenty of decent condos for 5k/month in Chiang Mai.

Nothing seems to have changed in the past 12 years I've been here.

166 baht per day could NEVER be decent. Just really <deleted>ty fan room studios. Blows my mind how people live their twilight years like this 

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14 minutes ago, madmen said:

166 baht per day could NEVER be decent. Just really <deleted>ty fan room studios. Blows my mind how people live their twilight years like this 

Riviera in Jomtien...top quality 36sqm one bed, high floor, seaview, now available at 8.5k....20k last year...

Edited by baansgr
And still no takers.....
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19 minutes ago, madmen said:

166 baht per day could NEVER be decent. Just really <deleted>ty fan room studios. Blows my mind how people live their twilight years like this 

Unfortunately, its because they are either extremely frugal and use there money for travel, never properly saved and are living hand to mouth like a Thai, or like living with little to nothing.  Some can just get up and go when they decide its time and are not out much. Others like myself live comfortably and like to have views and room to move around inside our place or wherever we decide to call home.  We all live differently based upon our lives and our backgrounds.  I moved here because I live on about 1/3rd of what I was living on in the US and still can save while at the same time living how I want.  I could very easily move into a smaller cheaper unit and save about 500,000 baht a year, but why.

Edited by ThailandRyan
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20 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

 

That's a bit over 4000 Euro. It's a joke for a company that has to house an employee with his family.

 

 

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36 minutes ago, madmen said:

166 baht per day could NEVER be decent. Just really <deleted>ty fan room studios. Blows my mind how people live their twilight years like this 

12 years ago the basic 37.5 meter studios in my Chiang Mai condo were rented for 7000. Now they are around 12,000 baht per mo, for one year contract. Less than that duration you pay more.

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21 hours ago, ThailandRyan said:

Wow, can you say that perhaps either the units owners have decided to drop their prices to obtain renters in this downturned economy, or maybe the folks that could afford 25,000 baht a month before Covid can now only afford 15,000 baht.

A bit of both... many who were once middle-class earners are now maybe not so affluent as before... due to either lost employment or a lost business venture.
Owners of properties are having to drop rental prices to meet peoples income.

 

A phrase my dear departed father used to say to me "when the tide is high everything floats, and when it goes out everything hits the bottom"

Edited by hotchilli
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1 hour ago, ThailandRyan said:

  like living with little to nothing.  Some can just get up and go when they decide its time and are not out much.  

In one. I own almost nothing here, when the time comes that the goalposts have been moved just a bit too far, two small bags and a bicycle and I'm off.

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1 hour ago, dimitriv said:

 

That's a bit over 4000 Euro. It's a joke for a company that has to house an employee with his family.

 

 

It is as you say a joke and on the low end for the bigger companies. My buddy, who is the head of security for a multi national corp. here in Thailand, gets an allowance of 150,000 baht per month for housing which is paid to him as a separate check outside of his pay.  When his lease was up he moved into a much cheaper and bigger penthouse unit with his family and was able to use the rest for housing expenses instead of going out of pocket.  By the end of this lease, he currently has signed, he estimates he will have saved almost 700,000 baht out of his own pocket.  A nice savings for him and his family.  

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7 minutes ago, SteveK said:

In one. I own almost nothing here, when the time comes that the goalposts have been moved just a bit too far, two small bags and a bicycle and I'm off.

That is great to hear, and with plenty of savings when you bail out I would surmise.  Sounds to me that you are not one of those who is here only because of what they can afford versus staying in there home country.  However, there are plenty I know that live on a meager US SS check here and make it work to there advantage like another older friend who was a Teamsters driver in San Francisco and now at 78 lives on $1500 USD.  He has a house and truck and only has his monthly bills to pay.  For those here who use there SS to rent a house, a condo and then pay there monthly bills they may be tight every month and so a downturn in the rental market can be a good thing for them.  I myself will never be able to get any of the US SS money as I never paid into it and have a lifetime pension and my annuities which I am very fortunate to have.

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I'd like to move into the 25K and over 1-bedroom range when the bang-for-the-buck value becomes irresistible, but I'm guessing that hasn't quite happened yet. I'm only in this studio because it was convenient after a breakup. Of course if I could resume spending 3 months a year in Europe and a month in CA like pre-Covid, I'd be smarter keeping this studio, but that may not happen till the end of 2021 if we're lucky.

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21 hours ago, johng said:

150,000 baht per month for a condo !!!!     must have been some sort of corporate tax write off scheme I just can't comprehend who in "their right mind" would spend such huge amounts of money to rent a condo :crazy:

 

PS  yes I can't afford to spend that much but wouldn't even if I could ????

It is all relative. In downtown Los Angeles now, a 80sq. meter one bedroom apartment is renting for $3,750. If you are coming from that stunningly overinflated culture, 75,000 baht a month for a condo seems reasonable. 

 

And of course there is more demand for lower cost units now. This is not exactly a major development. The economy is on its knees. There is less money floating around. Unemployment is as high as it has been in decades. Basic logic. 

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