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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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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.

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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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Posted (edited)
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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16 hours ago, soi3eddie said:

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

Probably not, but being smarter than many here on tvf he plans for the worst and hopes for the best

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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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