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Traditional apartments and lodging houses in Thailand are facing decline as renters migrate to more secure, amenity-rich condominiums. This shift threatens the profitability of what was once a lucrative investment within the rental market. The trend is most evident near universities and industrial parks, where tenants prefer the security and modern facilities of condos despite higher rental costs.

 

In the past, constructing small apartment blocks near educational and employment hubs was a popular investment strategy. Rents ranged from 1,500 to 5,000 baht monthly, with low operating expenses that quickly repaid loans. However, many of these older buildings now appear neglected and are often demolished for new condo developments when sold.

 

The change in rental preference is driven by several factors. In some university areas, over 20,000 new condo units have been launched, directly targeting students and workers. Additionally, land prices have surged, prompting many owners to sell their properties rather than manage aging buildings. There's also a generational shift, with younger owners opting for cash sales over continued management of traditional rentals.

 

Despite this trend, traditional rentals remain viable in provincial regions where industrial growth sustains demand for affordable lodging. Areas like Chonburi, Rayong, and Chachoengsao still witness active construction of dormitories and apartments, as do major centers such as Phuket, Nakhon Ratchasima, and Chiang Mai. Here, the market for short-term accommodations for workers keeps traditional models afloat, contrasting with Bangkok's condo dominance.

 

Key Takeaways

• Traditional rentals in Thailand are declining in favor of condos.
• Many landowners are selling due to higher land prices and management burdens.
• Traditional rentals remain relevant in regions with industrial growth.

 

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  Adapted by ASEAN Now from The Nation 2025-11-10

 

 

It would be nice if all the new Condos being built in Pattaya result in more Landlords and lower Condo rents eventually. 

On 11/11/2025 at 2:09 AM, BexMan said:

It would be nice if all the new Condos being built in Pattaya result in more Landlords and lower Condo rents eventually. 

Lower Condo rents????

tendants want more and   more , in terms of furnishing and services ,and want to pay less and less. for example in pattaya renting rates are stagnating since 15 years (please compare same projekt to same projekt....,and not old to new )  rentalrates lack by far inflationrate  

 

they already rockbottom  and absolut unprofitable

- 1 price of purchase / rent :  is in min 30  years  for high price buildings , and 20-25 medium ,10-20 low

   or net  is( after taxes ,retained money for refurbishing,sinkingfunds,ongoing cost is 2-5%)

-2  due to lack of maintenace and building quality ,price depreation is low to none#

 

#ony when salesprices crash 50 %  rental maybe profitable for new investors, but than thailand would be in a deep downturn economicly in a deep deflation scenarrio ,with all the consequences

 

On 11/12/2025 at 9:34 AM, lapamita said:

Lower Condo rents????

tendants want more and   more , in terms of furnishing and services ,and want to pay less and less. for example in pattaya renting rates are stagnating since 15 years (please compare same projekt to same projekt....,and not old to new )  rentalrates lack by far inflationrate  

 

they already rockbottom  and absolut unprofitable

- 1 price of purchase / rent :  is in min 30  years  for high price buildings , and 20-25 medium ,10-20 low

   or net  is( after taxes ,retained money for refurbishing,sinkingfunds,ongoing cost is 2-5%)

-2  due to lack of maintenace and building quality ,price depreation is low to none#

 

#ony when salesprices crash 50 %  rental maybe profitable for new investors, but than thailand would be in a deep downturn economicly in a deep deflation scenarrio ,with all the consequences

 

 

I'm kinda in the market for a cheap rental condo in Bangkok that I can use to store my goodies between monthly visa runs (from China) where I spend a few days in Thailand every month.  That way, I don't have to haul my stuff on the plane or deal with the vagaries of full hotels and price fluctuations.

 

I'm amazed at how cheap the rent is (generally) as a ratio of selling price.  I certainly don't get why anyone would buy a BKK condo (on the lower end anyway) as a rental property.  Buy it for 3 million baht and rent it out for 6,000 baht?  That makes no sense, unless it's just to hide dirty money.

 

On 11/14/2025 at 9:56 AM, impulse said:

That makes no sense

 

To our Western way of thinking.

 

Asians view real estate differently and tend to pass properties on to their children instead of making a quick profit. It's also a way of diversifying wealth.  Any Thai who got clobbered back in 97 would have learned the value of diversifying wealth.  Deposits in Thai banks are insured to 1 million baht.  Good luck collecting that insurance if there's a bank run.