ezzra Posted March 6, 2011 Share Posted March 6, 2011 Hi, I have got 3 empty condos in Sukhumvit's prime location,( Soi 59) they have been so for many months now, potential renters come, look and go, the units can't be faulted, modern building,F/F,next to BTS, and the rent is reasonable too at 30-40k, It is gut wrenching to see a prime property sitting empty month in and month out, let alone 3 of them in the same building, I have put us the units on couple of the local websites and a local agents with a very little results, I know that the rental market in Bkk is soft at the moment and have been so for a while now but i didn't imagine it to be so bad, Any TV's members contributions as how to improve the situation will be welcomed, Thank you, Link to comment Share on other sites More sharing options...
gotlost Posted March 6, 2011 Share Posted March 6, 2011 I know you don't want to hear this but cut the rent. Link to comment Share on other sites More sharing options...
bifftastic Posted March 6, 2011 Share Posted March 6, 2011 yep, I agree, some money coming in is better than what you've got at the moment, which is nothing. Link to comment Share on other sites More sharing options...
gotlost Posted March 6, 2011 Share Posted March 6, 2011 It's a very hard market out there. Link to comment Share on other sites More sharing options...
whybother Posted March 6, 2011 Share Posted March 6, 2011 Have you asked any of the 'potentials' why they didn't choose your apartments? Link to comment Share on other sites More sharing options...
H2oDunc Posted March 6, 2011 Share Posted March 6, 2011 As said already. Lower the rent and see what happens. The 30-40,000 a month is maybe suffering at the moment. As said as well, follow up on the viewings and try to find out the reasons they chose somewhere else. You could also try offering a couple of freebies like internet, cable TV or a weeks free transport pass ? People like to think they are getting something for nothing Link to comment Share on other sites More sharing options...
bifftastic Posted March 6, 2011 Share Posted March 6, 2011 maybe offer a lower deposit? Say 2 weeks instead of a month? Or none at all if checkable references are supplied? Be creative, you're losing money right now you need to get someone in those apartments paying rent, the deposit is often the hardest part for new tenants, especially if they've just lost theirs from a previous landlord! Link to comment Share on other sites More sharing options...
ezzra Posted March 6, 2011 Author Share Posted March 6, 2011 I know you don't want to hear this but cut the rent. I'd gladly will entertain and consider any reasonable offers from any potential and serious people, the problems is that I'm not getting any offers what so ever, I also be willing to give 2 moths free rent on a one year contract, Link to comment Share on other sites More sharing options...
clinique Posted March 6, 2011 Share Posted March 6, 2011 Can only suggest you keep trying. Load on other websites. Bangkok Post classifieds ? If your willing to give 2 months free rent, may be better in the tenants eyes to reduce the rent by that amount instead. Or include the electric and water in the rent that you asking. (make sure you calculate it out first ofcourse) Put a notice in Villa Supermarket ?? Hang a sign at the Suk end of the Soi.. Whatever it takes. Good luck. Link to comment Share on other sites More sharing options...
ChiangMaiFun Posted March 6, 2011 Share Posted March 6, 2011 reduce rent to that which the market 'likes' I did same here in chiang mai - took 20% off and it rented Link to comment Share on other sites More sharing options...
samtam Posted March 6, 2011 Share Posted March 6, 2011 "F/F" always make me shudder. I'm not suggesting that yours are, but many fully furnished properties are simply ghastly. Link to comment Share on other sites More sharing options...
trogers Posted March 6, 2011 Share Posted March 6, 2011 Here is the answer to the reason why you cannot rent the units out! I have got 3 empty condos in Sukhumvit's prime location' date='( Soi 59) [/quote'] What do you have in your locality to call it Prime Area? Even Soi 61 is not considered prime area, and it has a Major shopping mall cum California Fitness at the entrance of the soi. Price your units to its location. Link to comment Share on other sites More sharing options...
FarmerJoe Posted March 6, 2011 Share Posted March 6, 2011 You've been in Thailand too long. Your starting to think like one. I've seen condos, shop houses and houses remain empty for years because the owner wouldn't come down on the price, therefore losing millions of Baht in revenue. Then what do they do? Raise the price to make up for the lost income. Just like in the bars. Lower your price by 5 or 10,000 Baht. Like the others said. Some income is better than none. By my estimates, you've lost hundreds of thousands of baht already. Just lower it. Hope it works out for ya. Link to comment Share on other sites More sharing options...
FarmerJoe Posted March 6, 2011 Share Posted March 6, 2011 You've been in Thailand too long. Your starting to think like one. I've seen condos, shop houses and houses remain empty for years because the owner wouldn't come down on the price, therefore losing millions of Baht in revenue. Then what do they do? Raise the price to make up for the lost income. Just like in the bars. Lower your price by 5 or 10,000 Baht. Like the others said. Some income is better than none. By my estimates, you've lost hundreds of thousands of baht already. Just lower it. Hope it works out for ya. Link to comment Share on other sites More sharing options...
jcon Posted March 7, 2011 Share Posted March 7, 2011 You gotta lower the price, period. 59 isn't that prime, for 30-40K a person can rent on the lower end on Thonglor (55) and be much closer to the action. Given a choice, most renters will take the smaller place on 55 over a larger place on 59 - it's ''just'' 2 sois, but it's a world of difference... (btw you never mentioned your room sizes so I could be wrong, esp if you have a 150sqm tastefully-furnished place going for 30k.... that could be a good deal on 59). Either way, good luck and remember anything is better than what you're getting now.... rent those babies for 20k/per and you've got 60k/month pocket money.... beats ZERO. Link to comment Share on other sites More sharing options...
ChiangMaiFun Posted March 7, 2011 Share Posted March 7, 2011 everyone is right - take the cut - example: last year I rented out a large unit: 36,500 cut to 30,000 Its just the market - BKK must be suffering like us here - last year everything was rented and this year I have two empty and i am cutting again. Link to comment Share on other sites More sharing options...
craigt3365 Posted March 8, 2011 Share Posted March 8, 2011 As said already. Lower the rent and see what happens. The 30-40,000 a month is maybe suffering at the moment. As said as well, follow up on the viewings and try to find out the reasons they chose somewhere else. You could also try offering a couple of freebies like internet, cable TV or a weeks free transport pass ? People like to think they are getting something for nothing Excellent idea. I remember an apartment that wouldn't rent where I use to live in San Diego. Why? You could hear the nearby freeway. So...they offered a free large screen TV and sound deadening curtains. Sold them in 2 weeks. These were the last units to sell in this development.... Link to comment Share on other sites More sharing options...
ezzra Posted March 9, 2011 Author Share Posted March 9, 2011 Hi to All, Many thanks for all the inputs and contributions, i get it, yes, the prudent thing to do is to lower the rent, i have already lowered the asking rental fees and also offering 2 months rent free per one year contract. Let's see what Reponses i will be receiving now. Link to comment Share on other sites More sharing options...
davejonesbkk Posted March 9, 2011 Share Posted March 9, 2011 Ezzra, would you mind pm-ing me with details of your properties and pics if possible? Link to comment Share on other sites More sharing options...
supaprik Posted March 9, 2011 Share Posted March 9, 2011 Sorry..when did soi 59 become prime? 30-40k = 2 beds, 140m3 plus evadently some did pay those prices in 2010 though Link to comment Share on other sites More sharing options...
trogers Posted March 9, 2011 Share Posted March 9, 2011 Sorry..when did soi 59 become prime? 30-40k = 2 beds, 140m3 plus evadently some did pay those prices in 2010 though Top View? Present rates for a 2-bed is more in the range of 25-30k. Link to comment Share on other sites More sharing options...
jackdawson Posted March 12, 2011 Share Posted March 12, 2011 now this is very interesting actual hard evidence of a weak / weakening real estate market and they keep pulling down shop houses , clearing lots , driving piles and putting up condos like there's no tomorrow hmmm.... Link to comment Share on other sites More sharing options...
ChiangMaiFun Posted March 12, 2011 Share Posted March 12, 2011 it is bizarre - there is over supply for sure Link to comment Share on other sites More sharing options...
Khun Jean Posted March 12, 2011 Share Posted March 12, 2011 The more cranes and building of offices and condos the closer to an economic correction. Link to comment Share on other sites More sharing options...
WarpSpeed Posted March 12, 2011 Share Posted March 12, 2011 I know you don't want to hear this but cut the rent. Yes, seems an obvious answer and it seems the rents are not as attractive as the OP thinks...Some income is better then no income with limits of course, limits I don't think he has reached yet.... Link to comment Share on other sites More sharing options...
CWMcMurray Posted March 13, 2011 Share Posted March 13, 2011 There are a lot more Condos in the 10,000 - 15,000 thb range that are now accessible by MRT and BTS, so the demand for these 30-40k condos is down. Link to comment Share on other sites More sharing options...
trogers Posted March 13, 2011 Share Posted March 13, 2011 (edited) There are a lot more Condos in the 10,000 - 15,000 thb range that are now accessible by MRT and BTS, so the demand for these 30-40k condos is down. Not true for 2-bedrm and 3-bedrm units. Most of the new stocks are studios and 1-bedrm units. Also, the new stocks are laid out like city apartments with car parks on the lower floors and a swimming pool at the top. Not adequate for families with young children, esp when they are located close to main roads with high traffic pollution and noise. I just rented out my 2-bedrm to a Japanese start of this year whose wife just gave birth to a daughter. They were staying in a building 100m from a BTS station, but chose to be much further inside the soi for the sake of the child. Edited March 13, 2011 by trogers Link to comment Share on other sites More sharing options...
Darrel Posted March 13, 2011 Share Posted March 13, 2011 "I have got 3 empty condos in Sukhumvit's prime location,( Soi 59) they have been so for many months now, potential renters come, look and go, ..... the rent is reasonable too at 30-40k" Cant believe I'm reading this. There is nothing reasonable about rent of 1000Euros per month for a condo in the third world. You can get a place in major European capital cities for less. Want to know what "reasonable" rents are? Take 4% of the purchase price and then divide that by 12. That is a reasonable rent per month. So for a 5MB condo you should be looking at 16000B/month. And that assumes that the 5MB purchase price was itself reasonable, which it probably wasnt. This country is full of unrented or unsold properties simply because the prices are too high. That is the only reason. Link to comment Share on other sites More sharing options...
trogers Posted March 13, 2011 Share Posted March 13, 2011 "I have got 3 empty condos in Sukhumvit's prime location,( Soi 59) they have been so for many months now, potential renters come, look and go, ..... the rent is reasonable too at 30-40k" Cant believe I'm reading this. There is nothing reasonable about rent of 1000Euros per month for a condo in the third world. You can get a place in major European capital cities for less. Want to know what "reasonable" rents are? Take 4% of the purchase price and then divide that by 12. That is a reasonable rent per month. So for a 5MB condo you should be looking at 16000B/month. And that assumes that the 5MB purchase price was itself reasonable, which it probably wasnt. This country is full of unrented or unsold properties simply because the prices are too high. That is the only reason. Rental rates in any major cities will depend largely on economic growth and employment prospect, and the supply of living space. Rental rates in a third world city like Bangkok largely reflect the reason why so many foreigners are making a living here instead of in a major city in their own country. Purchase prices of newly launched projects are more tricky to analyze as it is embroiled within factors like speculation and ease of finance. Prices of condo units that are 5 years or older make a better benchmark on intrinsic value. All my 5 condo units have been rented out, and I have just inked the contracts for my two largest units of 2-bedrm and 3-bedrm (121m2 and 163 m2) in Sukhumvit 24 yesterday, both to Japanese. Rental yield is over 6% pa after common fees. Link to comment Share on other sites More sharing options...
Darrel Posted March 13, 2011 Share Posted March 13, 2011 (edited) Rental yield is over 6% pa after common fees. I think you are lucky to be getting that much. I doubt I would pay that, unless it reflected a bargain purchase price. It would be interesting to know the OPs purchase price for his units, and how that compares with 40,000B rent. Edited March 13, 2011 by Darrel Link to comment Share on other sites More sharing options...
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