Whats Going One With Prices In Phuket?

[Lorin]

It was a few years that my friends renting villas round Nai Harn and Rawai, usually they got good deals for 50-55K baht for few months in high season. This year I want to go down and stay for 3 months Dec-Feb, but the prices for same places are up significally....70K is was the last price and 6 months pay in advance for the same property that been offered for 50K last year. So what is going on? More takers? Crisis is over? Very strange and make me maybe rethink my Phuket adventure for that high season...Please comment.

[BillR]

early bird gets the worm

[Lannatyne]

In my opinion, it's the Russians.

I've got two English friends who got rental viewings from Russians. Just to try it out, they asked for 'silly money'. Guess what? The Russians just said, "Yes".

Due this widespread knowledge of deep Russian pockets, most landlords want to try and get a piece of that cake. So, naturally, they're asking everyone for 'silly money'.

Some landlords will get a nice windfall. I think there'll be quite a few empty properties around, though, as like you, not everyone has bottomless wallets these days, and will look elsewhere.

I've already posted on another thread about a well-off couple who've decided to holiday in the "cheap Caribbean" this winter instead of Phuket. It's been pointed out to me that that is only two 'old dears'. Fair comment, but they make their holiday decisions in the same way as many, many other 'old dears' around this world : value for money.

[barka]

its called .....INFLATION.....

[Lannatyne]

In my opinion, it's the Russians.

I've got two English friends who got rental viewings from Russians. Just to try it out, they asked for 'silly money'. Guess what? The Russians just said, "Yes".

Due this widespread knowledge of deep Russian pockets, most landlords want to try and get a piece of that cake. So, naturally, they're asking everyone for 'silly money'.

Some landlords will get a nice windfall. I think there'll be quite a few empty properties around, though, as like you, not everyone has bottomless wallets these days, and will look elsewhere.

I've already posted on another thread about a well-off couple who've decided to holiday in the "cheap Caribbean" this winter instead of Phuket. It's been pointed out to me that that is only two 'old dears'. Fair comment, but they make their holiday decisions in the same way as many, many other 'old dears' around this world : value for money.

[BillR]

It Soviet Russia, villa rents you.

Edited November 22, 2010 by BillR

[BillR]

the russians, in general, are great customers. They are usually with their families and they do not complain about price.

There are still very few places in the world where you can rent a 3 bedroom pool villa in peak season for $70/day or $25/day per person. If this is too expensive then maybe you should shorten your stay to fit within your budget.

[Lorin]

My friends that coming to stay in Phuket every year they are Russians, but it does not mean they like the mark up in prices. For family of 3-4 pps 65K is justified somehow, but not for me as I am single.

[petercallen]

its called .....INFLATION.....

Spot on, Its the same everywhere especially with country's that did not go into recession.

We have just returned from a holiday in Australia and the prices there have increased

a lot since we where there in February on almost everything except housing which has

had a downturn.

Generally speaking the prices are good here even on imported meats etc

As far as accommodation is concerned if you shop around you can generally pick something

up at a reasonable price but you have to do the foot work.

[katabeachbum]

its called .....INFLATION.....

Spot on, Its the same everywhere especially with country's that did not go into recession.

We have just returned from a holiday in Australia and the prices there have increased

a lot since we where there in February on almost everything except housing which has

had a downturn.

Generally speaking the prices are good here even on imported meats etc

As far as accommodation is concerned if you shop around you can generally pick something

up at a reasonable price but you have to do the foot work.

I have been renting properties for 25 years, started when I was 23. When purchase power and sales go down, rentals go up. People still want to live somewhere even if they cant afford to buy. This also affects the holiday rentals, less availability, prices increase. It is still very inexpensive to rent in Phuket, compared to other holiday destinations

[woodyleonhard]

its called .....INFLATION.....

I think it's called "Supply and Demand." Hard to fault owners for getting the best price they can. Hard to fault customers for wanting to stay long-term.

[F1fanatic]

its called .....INFLATION.....

I think it's called "Supply and Demand." Hard to fault owners for getting the best price they can. Hard to fault customers for wanting to stay long-term.

As far as I can see, it's only the 'top end' properties that can demand an increased rental price - during the high season. They're often empty during the low season.

The lower end of the market (of which I have more experience ) is not subject to the same increases. Rents for long-term rentals (i.e. expats who have decided to rent rather than buy property) are actually going down, or staying the same as they have been for a few years.

[Will1]

I have been renting properties for 25 years, started when I was 23. When purchase power and sales go down, rentals go up. People still want to live somewhere even if they cant afford to buy. This also affects the holiday rentals, less availability, prices increase. It is still very inexpensive to rent in Phuket, compared to other holiday destinations

Yeah, sensible post.

Unlike most.

[logbags]

I've got two English friends who got rental viewings from Russians. Just to try it out, they asked for 'silly money'. Guess what? The Russians just said, "Yes".

So when a tuk tuk driver asks for 'silly money' he instantly belongs to a sinister mafia cartel but when a farang does it to another farang it is a good business practice They are poms too! They never come on here whining about being gouged do they??

Didn't you just post about your friends in the old dart not coming to Phuket because it was too expensive??

So let's see, two of your English friends are not coming because it is too expensive, yet two other English friends are scalping some Russians by renting their villa out at a very expensive price.

I suspect a "farang rent seeker mafia" is operating............

[LivinLOS]

I've got two English friends who got rental viewings from Russians. Just to try it out, they asked for 'silly money'. Guess what? The Russians just said, "Yes".

So when a tuk tuk driver asks for 'silly money' he instantly belongs to a sinister mafia cartel but when a farang does it to another farang it is a good business practice They are poms too! They never come on here whining about being gouged do they??

If you cant see the difference between supply and demand and cartel / monopolistic behavior on an essential service theres not much point in going over it..

Did all the villa rental companies get together form a co-op and set a 100k a month minimum, and beat up / threaten any rentor who offered a more normal rate ???

[petercallen]

its called .....INFLATION.....

Spot on, Its the same everywhere especially with country's that did not go into recession.

We have just returned from a holiday in Australia and the prices there have increased

a lot since we where there in February on almost everything except housing which has

had a downturn.

Generally speaking the prices are good here even on imported meats etc

As far as accommodation is concerned if you shop around you can generally pick something

up at a reasonable price but you have to do the foot work.

I have been renting properties for 25 years, started when I was 23. When purchase power and sales go down, rentals go up. People still want to live somewhere even if they cant afford to buy. This also affects the holiday rentals, less availability, prices increase. It is still very inexpensive to rent in Phuket, compared to other holiday destinations

With holiday rentals you are right prices go up in the high season because of demand.

In my experience renting long term if you look after the property and pay your rent on time

landlords will offer you a discount to stay on after the renal agreement has run out and are

quite happy to let you stay on a monthly basis with one months notice of leaving.

Holiday rentals are the cream, long term rentals are the bread and butter.

You are right its not expensive to rent here compared to other holiday destinations but it

pays to look around before you do.