Can we expect to see any downward price adjustments of rent in the near future in Chiang Mai? Or will this housing bubble never burst despite current economy?

 

I sometimes get the feeling the local landlord culture here has no problem increasing prices based on emotion, but equates lowering the prices in a downward market psychologically to losing face.... ie they would rather have their property unrented for a year commanding a high price instead of lowering it 20% to see it rented immediately....

In western countries, the price adjustments up or down appear more common, as economically, a home rented today at 20% discount is still more profitable than one not rented. Theres even move-in deals, like 3-months 50% off, 1st month free, etc etc... 

No!

NO NO  N O     NO  AND MORE    NO

2012-2014 rent in CM was ฿14,000

 

Similar condo in same building today is ฿12,000

I asked the old lady here how much she wanted for the small room that has been empty for 5 years, just to store stuff, was told 1500 (price she used to rent including water AND electric).

I was hoping more of the range of 500 baht, but it's been empty for 5 years now.

 

I wonder how much per year you can make from 0 per month?

 

also, when I contacted the owner across the street to rent a shophouse that should have a price of 10,000 at most, I was told 20,000.

no wonder its been empty for 16 months.

 

simple really, even if its "not enough money" you can rent for cheaper and keep the rent posting there and tell the tenant they'd have to move out within say 2 months if someone else wants to rent it full price

 

they are hoping for 16 times 20,000 is 320,000 (no one has taken that bait yet)

but instead of getting half of that, 160,000. they get zero

1 hour ago, kekalot said:

I was told 20,000.

no wonder its been empty for 16 months.

Yes, this is exactly whats blowing my mind. It doesn't make sense. In a typical economy prices go up AND down, but apparently not here. 

From a banking point of view, I'm not sure I get it either. Don't landlords owe monthly mortgage on the place? An empty place would bankrupt some people or seriously eat into their income. Or did they purchase it outright, so they can sit on it for 20 years and flip it for a profit?

I was reading Thai households have a very high debt-ratio, much higher than other nations. That was before the covid-19 mess. At some point that has to impact their real estate behavior?
 

Moved to the Chiang Mai forum for local input.

4 hours ago, creative1000 said:

I was reading Thai households have a very high debt-ratio, much higher than other nations. That was before the covid-19 mess. At some point that has to impact their real estate behavior?
 

The average Thai household does not own rental property.  

6 hours ago, Airalee said:

2012-2014 rent in CM was ฿14,000

Similar condo in same building today is ฿12,000

In 2009 I rented a condo for 5k, just before Covid in 2020 it was still 5k.

Nice condo too.

@creative1000

 

How much are you paying right now? Let us see whether it is too high or around market rate.

Not in Chiang Mai, but in Pattaya majority of condos currently 30-50% discount from actual rent before. Checked all my favorite condos in Jomtien and Pattaya. Now is time for real bargain in this area.

 

Try search AirBnb Chiang Mai.

@EricTh

Heres my last 4 years:
In 2016+2017 rented a 1-br 45sq/m new condo behind cmu for 9,500 baht (no pool, no utils, no in-room washing machine, + gym). 

In 2018+2019+2020 rented a large studio 42 sq/m new condo in the forest near int'll convention center for 11,500 (inc pool, washing machine, and a laughable "gym", no utils).

These were somewhat good economic years and easy visa years too, many places full, sold out... Tons of travelers, nomads, expats, often great condo deals were snatched up within hours of being advertised on FB post.

Fast forward to today, 2019+2020 have been slow economic years, and now covid-19 problems.  I wonder if we'll see price drops like in Pattaya like @OnTheGround has mentioned. 

Rentals are not what they use to be.  Only new expats are paying crazy high prices.

2 years ago a 2 story house in my village rented for B22,000.. Today that house rents for 10,500/mo.

Many are selling off houses they bout as rental income as they can no longer get the rent to make them pay..

rents have been gently declining here for 18-24 months now.

Jomtien prices have collapsed even befor this virus thing...Studios that easily got 10k a month 7 years ago can be had for as little as 5/6 k... there's a fully furnished seaview 48sqm studio with washing machine, nice furniture, good pool and gym...6k a month...prices are the same..37sqm studios that were 1.3 mil are now as little as 700k.

I've seen old buildings crumbling away, with a faded "For sale/rent" sign still on them.

 

It's similar to an old cartoon you've prob seen, a dusty old skeleton sitting next to a window, "Waiting for the perfect man".

It's the crazy unexplained price of the bulletproof Baht that landlords fail to understand ????

17 hours ago, BritManToo said:

In 2009 I rented a condo for 5k, just before Covid in 2020 it was still 5k.

Nice condo too.

Low end rentals never change. Most TV posters seem to be in this price range

45 minutes ago, baansgr said:

Jomtien prices have collapsed even befor this virus thing...Studios that easily got 10k a month 7 years ago can be had for as little as 5/6 k... there's a fully furnished seaview 48sqm studio with washing machine, nice furniture, good pool and gym...6k a month...prices are the same..37sqm studios that were 1.3 mil are now as little as 700k.

 

For that price (the 48 sq/m one) I would consider renting it just as a holiday flat to get out of Bangkok once a month.

Could give the keys to friends here when I'm not using it. 

Are there any decent online sites showing Pattaya properties?  A two bed place would be good, then I could go down with a mate for the weekends.

 

 

A better question is: Do rental prices ever go up?

I am seeing the same if not lower rents in CM that I saw 5 to 7 years ago.

Go 20 minutes outside the city rent a fully furnished newish house with a yard and covered garage for less then 10,000 b.

 

On 4/18/2020 at 12:49 PM, Matzzon said:

No!

20200403_124942.jpg

 

You are correct, Thai landlords would rather let their places go empty.  HOWEVER, in Thailand, unlike Western Countries, you may 've able to bargain with your new landlord a bit if you sign a longer lease. Prices in NyC, went down slightly only in certain areas after 9/11, but went RIGHT BACK UP Within two years.

1 hour ago, baansgr said:

Jomtien prices have collapsed even befor this virus thing...Studios that easily got 10k a month 7 years ago can be had for as little as 5/6 k... there's a fully furnished seaview 48sqm studio with washing machine, nice furniture, good pool and gym...6k a month...prices are the same..37sqm studios that were 1.3 mil are now as little as 700k.

ANY DETAILS?

looking for a long term 1 bed or studio in Jomtien with sea view.

near baht bus, near convenience store.

contact me on: thaisabai

There is vacant land in front of our Resort and behind it.  The Owners have been asking for 15 million baht per rai for the last 15 years.  I asked my Wife why they have not reduced the price.  "We are waiting until the price rises and then someone will buy it" was the answer.  Thai logic.

Rent has been the same for 22 years. The trick is don't bother the owner of the property, Of course I have to pay for my own everything. At 8500 p/m for 90 sq mt I can do. The keyword when you start out is NEGOTIATE. 

1 hour ago, madmen said:

Low end rentals never change. Most TV posters seem to be in this price range

Keep it nice & pay the rent on time you will be good for a long time. 

I think you have just answered your own question to a large extent.

Rents of existing domestic properties has been pretty stagnant now for 10 years.

Thais have some funny ideas on this subject, I live in a condo structure where 40 +

apartments are empty & for sale.

10 of them I would buy one of them & 4 times made an offer (less than 20% discount) only to

be laughed at. The 4 of them are still empty after 3 years

On 4/18/2020 at 3:07 PM, creative1000 said:

Don't landlords owe monthly mortgage on the place?

Not usually... many places are bought by people who have money and don't know what else to do with it... carrying costs tend to be low... so, they don't really care that much... same with the sale of houses - property/land taxes are minimal and often nil... dealing w/tenants can be annoying. 

15 minutes ago, robertson468 said:

"We are waiting until the price rises and then someone will buy it" was the answer.  Thai logic.

otherwise known as "patience" - - and if they don't really need the money, then it doesn't matter... whenever the end is - it will pay off handsomely for their family... the plan is long term. 

 You can’t make sense in Thailand of the rental market here because the people are not logical TIT