Phuket rent market - WTF!!!

[MarkT63]

This is <deleted> crazy.

We rented a 4 bedroom villa in Sai Tan at the top of Boat Avenue for four years for 150K per month, both pre and post pandemic.

Private pool, very nice villa

Left nine months ago.

Similar villa (not as nice) on the market now for 350K per month.

We are not "poor" but over GBP 8,500 per month in Thailand - WTF???

 

[stevenl]

1. They're trying, wait if they get it 

2. The market is crazy ATM, absolutely.

[ChasingTheSun]

Lots of Russian money flooding Phuket now.

[ezzra]

Even 150k a month is high in Thai standard, and as one poster commented, there's a lot of Russian and other nationalities flocking to Phuket right now that either can afford it or they're forced to pay such high rent, so if they think they can get it, good for them.

[redwood1]

I pay 10,000 a month for a pretty nice condo in Pattaya.....With 350,000 Baht a month I could rent 35 of my condos in Pattaya...

 

Villa, Phuket, swimming pool, beach view....Who cares......350,000 is a crazy price to ask.....The only people who will pay this are the very very rich or clueless suckers.....

[still kicking]

I live in the expensive west, have a 2-bedroom unit with kitchen lounge, shower toilet and pay 22100 per months and yes, I know if you live in the rip off cities you pay a lot more, but I don't live in the sticks I live in a city of 2 million people have not had an rent increase for about 6 years 

[MJCM]

That is Thai economics for you, if you can't rent it out, just increase the price to re-coup your losses

[bignok]

https://www.thailand-property.com/ads/4-bedroom-villa-for-sale-or-rent-in-sakhu-phuket_2133c5152c0a-4bd0-6b46-c52e-1998136c

 

4br 100,000

[VinnieK]

Don't feed their greed.

I always boycott in cases like this.

Even if it's a little shop somewhere..

 

[CharlieH]

You paid over 7 million in RENT ?..

[MarkT63]

36 minutes ago, CharlieH said:

You paid over 7 million in RENT ?..

Over the four years, yes. We did our research before moving here and that was the going rate for a villa of that standard in such a great location. Was "happy" to pay that, but what is happening in the market if pure craziness. 

[ChaiyaTH]

3 hours ago, MJCM said:

That is Thai economics for you, if you can't rent it out, just increase the price to re-coup your losses

The difference is that they can rent it out.

[Pink Mist]

Troll post removed

[richard_smith237]

6 hours ago, redwood1 said:

I pay 10,000 a month for a pretty nice condo in Pattaya.....With 350,000 Baht a month I could rent 35 of my condos in Pattaya...

 

Villa, Phuket, swimming pool, beach view....Who cares......350,000 is a crazy price to ask.....The only people who will pay this are the very very rich or clueless suckers.....

Debatable...  anyone in the 150,000 baht Phuket Villa market is completely un-interested in a 10,000 baht month rabbit-hutch in Pattaya....   the ‘interest’ is not even close to overlapping with the only common denominator being Thailand.

 

So.. who cares ??... someone with a higher standard of living who doesn't want to live in a box. 

 

[richard_smith237]

7 hours ago, ezzra said:

Even 150k a month is high in Thai standard, and as one poster commented, there's a lot of Russian and other nationalities flocking to Phuket right now that either can afford it or they're forced to pay such high rent, so if they think they can get it, good for them.

150k Baht month isn’t excessive when looking at where you are and what you get from such Villa’s - it simply depends on your standard of living...    I imagine the place the Op has been living is quite exceptional... 

 

With regards to the ‘elevated’ rents...  a 150,000 baht place increasing to 350,000 baht per month is insanity - however, I’m sure this simply requires a wider search to find the right place.

 

 

We suffered something similar in Bangkok a few years back.

Looking for a decent place with easy access to my Sons School (I didn’t want my Wife to be spending 3 hours a day in traffic (45mins there and back twice per day).

We found ourselves ’stuck in the middle’ - anywhere we liked was way too expensive to rent or not in the location we wanted.

Anywhere in the location we wanted that was reasonably priced was in pretty poor condition and the landlords.

We eventually found a place but the rent was too high for the quality of the place, is was also pretty ropey - we asked for a better price on rent and if we could re-decorate, we offered a 5 year contract. The owner wouldn’t budge. 

We ended up buying a place instead. 

 

 

 

 

[ChasingTheSun]

18 hours ago, MarkT63 said:

This is <deleted> crazy.

We rented a 4 bedroom villa in Sai Tan at the top of Boat Avenue for four years for 150K per month, both pre and post pandemic.

Private pool, very nice villa

Left nine months ago.

Similar villa (not as nice) on the market now for 350K per month.

We are not "poor" but over GBP 8,500 per month in Thailand - WTF???

Perhaps the 350k was mistakenly quoted as the month-to-month short term price, not the lower long term lease price for 12months+?

[MarkT63]

3 minutes ago, ChasingTheSun said:

Perhaps the 350k was mistakenly quoted as the month-to-month short term price, not the lower long term lease price for 12months+?

Nope - 350K per month for min 1 year contract ????

[DrDave]

I don't recall ever seeing a villa renting for 150,000 or more until just a few months ago. Occasionally I'd see a high-end one for 75-80,000 but even those were quite rare. I'm guessing the villas we're now seeing at 150,000 - 300,000 were previously priced around 60-70,000.

[pagallim]

It would appear that the market in part is being driven by wealthy Russians being denied access through visa denial to much of their previous favourite boltholes.   10,000 US Dollar equivalent for renting a fairly normal house in the upmarket areas of London is not uncommon.   For these people, buying assets, be it property or such as boats, runs the real risk of confiscation (although unlikelly of course in Thailand).

[Mises]

Sai Tan is an exceptional development, you get what you pay for, the owner is paying more than 30,000bt service charges for gardening, communal gardens and pool cleaning.  I am currently in a villa near Laguna where the rent was 90k a month but reduced to 70k during covid, I am nearing the end of the lease and the owner wishes to sell it but it would now rent for 150k to 180k easily.

 

A small villa that in 2019 was 50-60k is now 120k with some asking 150k.  This is all mainly due to the Russian invasion, 1/4 million people with many seemingly very wealthy even though young have to live somewhere.

 

Developments are everywhere, villas and big ugly condos so there may be a bust coming in a year or two.  Whatever, this nice quietish area of Phuket is going to be ruined, build, build, build, but no improvement in infrastructure or traffic management.

[tgw]

On 5/14/2023 at 5:00 PM, DrDave said:

I don't recall ever seeing a villa renting for 150,000 or more until just a few months ago. Occasionally I'd see a high-end one for 75-80,000 but even those were quite rare. I'm guessing the villas we're now seeing at 150,000 - 300,000 were previously priced around 60-70,000.

no, villas for 80k+ baht /month were never rare

[geisha]

On 5/13/2023 at 5:05 PM, stevenl said:

1. They're trying, wait if they get it 

2. The market is crazy ATM, absolutely.

I think a lot of the Russians buying in Phuket/ Thailand are doing so just in case the worse comes to the worse and they can relocate . I was recently in a 5/star Bali hotel. I spoke every breakfast time to a Russian lady with a very small baby, she hired a Balinese nanny to look after the little one. I asked the nanny if she was living in Russia with her boss, she said no, was hired in Bali and the family had been there nearly 4 months. Quite sure the Russians who have any sort of money are securing their future elsewhere.  Phuket has been popular with Russians for a long time, they seem to like the beach. 
The ground floor apartments in Jomtien where I spent about 5/6 years were all Russian owned. But they cooked at home and the stench downstairs was awful. Whole families were there , grannies kids the lot.,

[gravity101]

3 hours ago, Mises said:

Sai Tan is an exceptional development, you get what you pay for, the owner is paying more than 30,000bt service charges for gardening, communal gardens and pool cleaning.  I am currently in a villa near Laguna where the rent was 90k a month but reduced to 70k during covid, I am nearing the end of the lease and the owner wishes to sell it but it would now rent for 150k to 180k easily.

 

A small villa that in 2019 was 50-60k is now 120k with some asking 150k.  This is all mainly due to the Russian invasion, 1/4 million people with many seemingly very wealthy even though young have to live somewhere.

 

Developments are everywhere, villas and big ugly condos so there may be a bust coming in a year or two.  Whatever, this nice quietish area of Phuket is going to be ruined, build, build, build, but no improvement in infrastructure or traffic management.

Nailed it. Those traffic pinch points will become unbearable soon. I wonder if the environmental approval includes these issues with massive condo developments. 

 

 

[PaoloR]

I personally know two Europeans who have recently moved to Krabi from Phuket.

One has very recently rented his very nice Phuket villa for 300k per month on a two-year contract.

The other is pissed because he signed a two-year contract to let an identical villa six months ago for 200k.

Both are renting in Krabi for less than 30k per month and considering early retirement here in Krabi in houses to be built off the proceeds from Phuket.

[ukrules]

On 5/13/2023 at 9:38 PM, MarkT63 said:

We are not "poor" but over GBP 8,500 per month in Thailand - WTF???

That's out of control greed for you.....

 

I've observed this phenomenom a couple of times over the years and the people involved tend to get what they deserve in the end - which is nothing.
 

[Seeall]

On 5/14/2023 at 5:15 AM, MJCM said:

That is Thai economics for you, if you can't rent it out, just increase the price to re-coup your losses

yes, a la BG style

[Chongalulu]

On 5/17/2023 at 8:12 PM, ukrules said:

That's out of control greed for you.....

 

I've observed this phenomenom a couple of times over the years and the people involved tend to get what they deserve in the end - which is nothing.
 

If that’s a rate they  can achieve that’s what they get in the end….not nothing as you enviously hope, It’s simply reflecting supply and demand.

[ukrules]

1 hour ago, nchuckle said:

If that’s a rate they  can achieve

It's not, and they borrow against the property but in their mind this big pay day is still coming, when in reality all they face is reposession - that's the bit where they end up with nothing.

[Chongalulu]

43 minutes ago, ukrules said:

It's not, and they borrow against the property but in their mind this big pay day is still coming, when in reality all they face is reposession - that's the bit where they end up with nothing.

Except other quotes here are indicating very significant increases in rental yields for well documented reasons , especially the Russian factor. Now,if they have borrowed at reasonable rates then the equation has tilted further in their favour. That's without even accounting for the capital appreciation of the asset they will also have enjoyed resulting from increased demand. I'm not sure you understand the economic equation and perhaps are more concerned with railing against those simply benefiting from market forces.

[spidermike007]

I have gotten to the point in my life where I have no more tolerance with utter foolishness, or piracy. If faced with a dumb situation like this, I would abandon Phuket faster than you could say, WTF? See ya.