Condo Rental Prices In Bangkok

[ashacat]

Hi everyone,

I have noticed in the last 6 months or so that the advertised rental prices for condos in central Bangkok has increased a huge amount. I realise that prices tend to go up and that the recent general inflationary effects will have an impact on rentals, however it seems to me that the increase is still notable.

I have not changed apartments recently nor do I work in the property sector here in BKK, so I am relying on the figures advertised on sites such as Thai Visa et al. I assume that these advertised rates are regotiable and therefore perhaps slightly inflated, but are they taking the p1ss or are some tenants actually paying 30k baht a month for a 50 square metre apartment?

Does anyone else think that people are plucking prices from thin air, or am I just living in the past?

Edited May 9, 2008 by ashacat

[Prakanong]

I was looking at some condo rental prices last week when in Thailand just out of interest and thought some of them were blowing smoke out of their <deleted> with the prices.

I saw some prices that would make Singapore blush and I thought whoosh I am in a much better condo with regards to size, quality and location in Singapore for cheaper ;-)

Then I was chatting with pals who have been living in Thailand since around 1990 and they gave the real lowdown on the market and how much they pay in the heart of the ukhumvit farang ghetto - and others who had been getting the same prices recently.

Edited May 9, 2008 by Prakanong

[roamer]

Remember a thread here a while back which boiled down to a conversation between an expat and a Thai, owner of about 6 apartments which he said he could rent out for 50K each per month,however when quizzed admitted that he hadn't managed to rent one out but if he did he would charge 50K. Therefore in his eyes they were worth 50K monthly whether rented or not!! Thai logic

[jstumbo]

If the prices of renting a condo are going up, then in Thailand that means that there is a glut of rental properties. The people raise the price so that when they do rent them, they can make up the money that they lost while it was not being rented.

Edited May 9, 2008 by jstumbo

[Travel2003]

10-15 minutes outside BKK city centers and the price drops with 50-60%.

Read an article somewhere that the prices in BKK are sky rocketing.

But also that there are 1000s of empty condos/apartments avaliable, only in BKK.

The number of avalable units increase with quite a few each year.

Makes me wonder when this bubble will blow.

[popshirt]

I discovered that condo rental prices are extremely negotiable if you are considered a "desirable" tenant.

Prices are often intentionally set high, apparently to winnow out "not-so-desirable" tenants.

[KireB]

I discovered that condo rental prices are extremely negotiable if you are considered a "desirable" tenant.

Prices are often intentionally set high, apparently to winnow out "not-so-desirable" tenants.

That's quite a marketing strategy they have then, don't they

I really wonder how many apartments in the Sukhumvit area are occupied and what ratio is still to let.

Anyone knows? I have the feeling that the price of apartments is not on par with market mechanism in this city.

Just a feeling, thus I would love to hear from someone who's specialized in this business.

[londonthai]

I am relying on the figures advertised on sites such as Thai Visa

those might be high market properties and on top of it are intended for the tourists, relocating company workers (so the company pay), foreigners, businessmen etc. Many of those properties are advertised by agents and not owners, and many owners are foreigners trying to get a fast return on the investment.

on the general rental websites (and especially in thai) you can get a wider selection of standards and most properties would be advertised by the private owners who happen to have room/house to let.

As like everywhere else in thailand, if you ask for a discount, put cash upfront for a longer period, you will get some 20% off the original price.

If you don't mind 15 minutes drive, get to the suburbs and pay a fraction of the town centre - rather don't expect high end properties, but at least you will have your private garden, fresh and cool air and no need for air con

Edited May 10, 2008 by londonthai

[flightcrew1]

The building my condo is a good example. Massive 38 stories on Satorn about 8 years old. I own two condos one that I rent, a studio, and the other a 2 bedroom that I live in. Since I moved into the condo there have many empty condos that have been offered for rent but have never been rented out. Studios are advertised at 20,000 up, one bedrooms 30,000 and two bedrooms 40,000 but in reality they never rent for that. I rented my studio out for 12,000 after being on the market for 1 month after realizing very quickly that I was not going to get near 20,000. 11,000 was my cutoff as that is what I needed to break even. But on the same floor there is a one bedroom on the market for the last 4 years but he refuses to drop the rent and has actually increased it from time to time. This is just a small example of what is going on and there are many other condos available in the building but the Thai owners won't budge to a realistic price.

I have spoken to some of the owners during the condo association meetings and they seem to feel that if they just wait someone will come along and rent at the higher price. I tried pointing out that a condo sitting empty for several months or even years will never recoup the money lost.

They look at me like I'm the crazy one and I know they are thinking "Farang Bah!"

[grantbkk]

On Wednesday I move to my third condo in five years. I used to live on Rama III because I liked the river. The Chinese owner wanted it back 16 months later for family members from the mainland so I moved to the farang ghetto, Sukhumvit Soi 5 to be around my friends and to be in the middle of the scene with another Chinese owner. Now I'm moving to a high floor back on the river to another condo owned by an Indian (think show tunes and not cigar store). I pay exactly the same rent for all three homes which were not cracker boxes. This one is 273SM and fully furnished.

The common thread for all my choices is of course each condo is not Thai owned. I easily negotiated down to my price each time by standing firm on my offer. Foreign owners realize that they need to keep their condos leased and occupied. The Thai owners, acting like aliens from space, continue to raise their rates the longer the unit stays empty. All of us can easily do the math and know if the unit stands empty for months or years no money is flowing in. It is a very unusual business practice and must be linked to some kind of "saving face" issue.

Yesterday I experienced the same uncommon type of business practice at a Power Buy store. I am quite used to their thinking but I still find it humorous to watch the salesperson's face when a customer goes "off script" and asks something they are unprepared for. I told the salesman I would take two Phillips LCD TV's. Each TV bought you get a free 32" LCD TV as part of a promotion. The script change was when I told him that I really didn't need four TV's and that I would like to give back one of the 32" units valued at Bt32,000 and take a home theater system valued at Bt21,000 instead. "Cannot" was the answer of course. I looked him in the eye and said that I am going to hand over Bt258,000 to you right now. He was very nervous and just stood there and actually started to sweat. I reminded him of the difference between the the 32" LCD at Bt32,000 and the home theater system at Bt21,000 should actually be in favor of Power Buy, promotion or not. He started talking (and shaking) to another of the sales staff. He managed to utter the word, "cannot" again. I told him he should check with the manager just in case Power Buy would like to take my offer. He took off running for a telephone, fumbled around with it and may or may not have dialed a number. He was back in less than a half minute and told me, "cannot". I walked out the door with the two sales people talking rapidly and staring at me. Too funny.

Edited May 11, 2008 by grantbkk

[candoman89]

Massive increases....................I whole heartedly agree.

After living in Suk Soi 8 for 5 years and paying 30 k a month for a 3 bed/3bath apartment (around 150 m2) my landlady (Thai) raised the rent on me last month without telling me.

Now she want the ungodly sum of.................... 31K a month.

Suppose I can manage it.

[PrBkkPr]

There are a lot of condos in Bangkok that are currently unoccupied and it is actually a "leasee's" market. Just negotiate and if not just move on and look at another one. It is not the Thais who are being unrealistic rather rental rates have gone up as a result on the govt not restricting foreigners from getting involved in the business. It is the foreign run companies like CBRE, Jones Lang Wotton and other foreign especially farang real estate agents who are suggesting or their own "marker research" results that advocate higher rates to Thai owners.(Most of these idiots makes comparisons to their back home countries and come up with their own recommendations.) MAny thing that all foreigners are rich expecially the farangs and come up with ridiculous rates.

A good suggestion is to advertise your needs in the nespaper, specifying your requirements (inc unit size,etc,locations, floors, furnishings, amenities.) and your budgets and better still tell them you are prepared to pay up rent even up to 6 months to 12 months in advance if you can in return for a better rate. A friend of mine got so many great offers from his ad in the bangkok post that cost him only about 3,800 baht to place. He got a brand new 260 sqm, 3 bed room unit properly furnished at Sukhumvit 39 for only Bt 32,000 per month! And actually avoid farang real estate agents if you can.

[Ray1167]

there's some very good information on this thread . In response to candoman89 -

quote " After living in Suk Soi 8 for 5 years and paying 30 k a month for a 3 bed/3bath apartment (around 150 m2) my landlady (Thai) raised the rent on me last month without telling me. "

The reason for the owners playing silly buggers with the rent may be because they are encouraging you to leave . But don't have the face to come right out with it. I've seen examples of this behaviour a few times actually. It's not good , but it's definately Thai .

[dotcom]

If the prices of renting a condo are going up, then in Thailand that means that there is a glut of rental properties. The people raise the price so that when they do rent them, they can make up the money that they lost while it was not being rented.

Better grab a dictionary to see what the word "glut" means. dictionary.com says:

3. to flood (the market) with a particular item or service so that the supply greatly exceeds the demand.

Now bearing that in mind (that "Glut" means oversupply) we would rationally expect prices to be coming down.

Fear of rising prices is what led me to sign a 2 year lease from the onset. I know the landlord can kick me out at any time but she has to give me 6 months notice.

Good advice about avoiding agents in any form. Units from Thonglor to Ekkamai go for 2x because it's little Tokyo. Also guys whose companies pay it have no incentive to haggle.

[samran]

there's some very good information on this thread . In response to candoman89 -

quote " After living in Suk Soi 8 for 5 years and paying 30 k a month for a 3 bed/3bath apartment (around 150 m2) my landlady (Thai) raised the rent on me last month without telling me. "

The reason for the owners playing silly buggers with the rent may be because they are encouraging you to leave . But don't have the face to come right out with it. I've seen examples of this behaviour a few times actually. It's not good , but it's definately Thai .

by raising the rent by 1,000 baht after 5 years of living there?

suspect I know where ray 1167 lives, and the building is known for a good deal and more than fair pricing.

[Ray1167]

actually , it was the missus who commented that sudden rent rises ( outside of the lease agrement ) are a typically dirty tactic often used to get rid of the present occupant , so the owner can renegotiate a higher rent with somebody else. I believe she understands her own people very well .

[Scott123]

Yesterday I experienced the same uncommon type of business practice at a Power Buy store. I am quite used to their thinking but I still find it humorous to watch the salesperson's face when a customer goes "off script" and asks something they are unprepared for. I told the salesman I would take two Phillips LCD TV's. Each TV bought you get a free 32" LCD TV as part of a promotion. The script change was when I told him that I really didn't need four TV's and that I would like to give back one of the 32" units valued at Bt32,000 and take a home theater system valued at Bt21,000 instead. "Cannot" was the answer of course. I looked him in the eye and said that I am going to hand over Bt258,000 to you right now. He was very nervous and just stood there and actually started to sweat. I reminded him of the difference between the the 32" LCD at Bt32,000 and the home theater system at Bt21,000 should actually be in favor of Power Buy, promotion or not. He started talking (and shaking) to another of the sales staff. He managed to utter the word, "cannot" again. I told him he should check with the manager just in case Power Buy would like to take my offer. He took off running for a telephone, fumbled around with it and may or may not have dialed a number. He was back in less than a half minute and told me, "cannot". I walked out the door with the two sales people talking rapidly and staring at me. Too funny.

Your example is really not a good one. "Buy one get another free" is the term and condtion for purchasing this TV. Imagine if you tell the salesperson that you need only one TV, but would like to get a 500 baht discount on this TV instead of getting a second TV for free. Will Power Buy make better profit by selling a TV with 500 baht discount rather than giving away another TV? of course, a TV certainly cost more than 500 baht to Power Buy. But will they let you just buy one TV with 500 baht discount? no.

I am sure you will get the same answer in the farangland. A promotion is not negotietable, otherwise, every customer will create their own promotion. LOL.

[Scott123]

...... I assume that these advertised rates are regotiable and therefore perhaps slightly inflated, but are they taking the p1ss or are some tenants actually paying 30k baht a month for a 50 square metre apartment?

Does anyone else think that people are plucking prices from thin air, or am I just living in the past?

well...this is my first year living in Thailand. Being not very street smart, I thought I would just see as many apartments as possible and decide. I went with 4 differnt agents, and saw more than 20 condos. I finally signed a one-year lease to rent a 52 sqm 1 bedroom condo on Sathorn, rent is 30000 baht/month. After reading all the posts on this thread, I feel I am an idiot....now I am depressed.

[jfchandler]

Nah....I wouldn't say idiot... just chalk it up to Thailand learning experience....and do better next time.

A couple of points... Silom is generally going to be a higher priced area, especially for nicer units.

Could you have gotten a better deal in Silom? Yes, but if the building's good and it's close to BTS, that's not SO bad....

Could you have gotten a much better deal in other central city areas of BKK? ABSOLUTELY, if you were willing/able to consider other locations.

When I shopped for housing originally, I looked at a lot of places on my own with Thai friends, which was a very good experience, and then also contacted a Thai agent about some condos I'd seen on their web site.

The TGF and I spent a day traveling around BKK in the agent's car, with her showing us a variety of condos. I had specified in advance I was looking for homes in the 15K to 20K per month range, all based on listings on their web site. That day, she showed me nothing less than 20K, and usually more in the 25K to 30K range...

I really wasn't happy about that, nor that none of the properties they listed on their web site that I had chosen (just a few days earlier) supposedly were still available/on the market when we went looking that day. Now, knowing more, I suppose I could imagine that many of the posted/listed 25K-30K properties she showed that day MIGHT have been negotiable down to lower levels... But at the time, she seemed to be suggesting likely downward movement of not much more than 5K...

In the end, I found a two-bedroom, two bath apartment with full kitchen, washing machine and ACs (80 sq mt. in Sukhumvit just a short walk from a BTS station) just across from where I had often stayed before as a tourist, that was better than anything else I'd seen anywhere looking all around the city. Price 15K. Found it thru a Thai friend of a friend of a friend!!!!

When I was looking, some of the best deals I saw also were at very nice condo buildings that had not advertised or listed their properties at all. Just walked into some condo complexes and asked if they had units available for rent. Typically the sales/management staff pulled out a typed or hand written sheet with a list of units and prices.

[london]

My experience is that prices have gone up MODERATELY.

Certainly, not a boom situation.

As with anything, you really get what you pay for and accommodation is no different from anything else.

As has been mentioned previously, location is the key. Second to that is the quality of the building, closely followed by the quality of the Building's management.

I have yet to see any sign of a good building, well managed in a good location either maintaining the rent as it may have been for the last year or so, or decreasing it. What I have seen are 10-15% increases. But in the scheme of things, that is to be expected....rents have been static for a while in BKK.

Another factor that is often ignored PRIOR to moving is: THE NEIGHBOURS !!! Frankly, they can make or break your stay. If you are looking at a bargain priced unit, remember too that all your neighbours are possibly likely to be bargain priced renters....who may cause you problems.

I think one factor that most foreigners should remember is that Bangkok is no longer a 3rd world city.....certainly for people with money. The days of living like a prince for a few dollars a day are long gone.

[backflip]

"Does anyone else think that people are plucking prices from thin air, or am I just living in the past? "

Perhaps both. When frequent poster and avid real estate investor "Irene" mentioned that her clientele - mostly Japanese - paid her 65,000-85,000THB/month for rent, one person claimed that she was not telling the truth. "Heck, I don't pay 85,000THB a year for rent." When Irene reiterated her original post, several TVers were knocked down several pegs. There's lots of money in real estate, generally avoided by the "what's the cheapest place I can stay" farangs.

[ashacat]

My experience is that prices have gone up MODERATELY

What I have seen are 10-15% increases

I've got to say that really is not my personal experience. When I was moved into my current place (about 1 and a half years ago) there were very few 1 bed condos in BKK for over 20k per month. The nicer ones on Sukhumvit next to BTS stations were about 20k.

I have just looked at the classifieds today and seen 1 bed condos for 55k per month and 33k per month!! And these prices are not unusual.

He got a brand new 260 sqm, 3 bed room unit properly furnished at Sukhumvit 39 for only Bt 32,000 per month!

Wow! Thats a great deal.

Edited May 13, 2008 by ashacat