Does Samui Have Only Unrealistic Rent Prices

[livinthailandos]

there are a few areas Im going to put down and not a fair balance about samui but the areas has to do with chaweng areas

1. The area for rent across the street from the mcdonalds and same block as the subway and kasikornbank. Rent price starts at 110,000 Baht per month

2. The former starbucks place in upper part of chaweng next to solo bar. Price of rent 200,000 baht a month.

3. the newly empty shop next to mcdonalds and starbucks price starts 100,000 per month

4. then further down in chaweng not far from buri rasa a small shop for rent, price only 83,000 baht a month

I look forward to your posts and any comments you have on this issue.

[limbos]

Has the 'original' starbucks closed down? Didn't even know that.

There's a new sucker born every minute and some of them end up on Samui.

Edited May 9, 2011 by limbos

[carmine]

To anyone with a business brain ofcourse the rental costs are ridiculous. However, there seems to be a never ending stream of mugs that flock over here to lose their money.

[joe84330]

time will tell if it's the rent or the landlord that is unrealistic. everyone loves to complain about chaweng, "it's too busy, it's too commercialized" etc.

i suppose if all any prospective tenant can dream up is a near identical copy of his neighbors business in chaweng (tailor, lady bar, tourist trinkets) then it's probably neither the rent nor the landlord that is unrealistic, it's the new tenants expectations.

[carmine]

time will tell if it's the rent or the landlord that is unrealistic. everyone loves to complain about chaweng, "it's too busy, it's too commercialized" etc.

i suppose if all any prospective tenant can dream up is a near identical copy of his neighbors business in chaweng (tailor, lady bar, tourist trinkets) then it's probably neither the rent nor the landlord that is unrealistic, it's the new tenants expectations.

Don't the landlord and the rent go together? Are people still paying this ridiculous "thing" called "key money"? There should be a collapse and the vulturea should have to lower their asking prices but there just seems to be so many people out their who just can't wait to lose their cash.

<deleted>, in Bangrak theres stil new bars springing up!!!!!!! Unbelievable. So where are all these extra tourists going to come from? Governments across europe are imposing austerity measures. The economic situation is dire and yet for some reason people thing that europeans and Brits will come flooding here when the euro and pound is getting hammered by an unrealistically hih Thai baht. Thailand has become a very expensive family holiday.

[smokie36]

<deleted>, in Bangrak theres stil new bars springing up!!!!!!! Unbelievable. So where are all these extra tourists going to come from? Governments across europe are imposing austerity measures. The economic situation is dire and yet for some reason people thing that europeans and Brits will come flooding here when the euro and pound is getting hammered by an unrealistically hih Thai baht. Thailand has become a very expensive family holiday.

Hit the nail on the head there. See more Aussies in Phuket than Samui as well....direct flights...?

[joe84330]

time will tell if it's the rent or the landlord that is unrealistic. everyone loves to complain about chaweng, "it's too busy, it's too commercialized" etc.

i suppose if all any prospective tenant can dream up is a near identical copy of his neighbors business in chaweng (tailor, lady bar, tourist trinkets) then it's probably neither the rent nor the landlord that is unrealistic, it's the new tenants expectations.

Don't the landlord and the rent go together? Are people still paying this ridiculous "thing" called "key money"? There should be a collapse and the vulturea should have to lower their asking prices but there just seems to be so many people out their who just can't wait to lose their cash.

<deleted>, in Bangrak theres stil new bars springing up!!!!!!! Unbelievable. So where are all these extra tourists going to come from? Governments across europe are imposing austerity measures. The economic situation is dire and yet for some reason people thing that europeans and Brits will come flooding here when the euro and pound is getting hammered by an unrealistically hih Thai baht. Thailand has become a very expensive family holiday.

high rents are everywhere that people are in a buying state. 100k or 200k isn't unrealistic at all if you have a business model that will support it. one glance at chaweng should be enough to see that there are people there that will support that rent, it should also be enough to see that the vast majority of chaweng (and most of the rest of the island) is functionally obsolete. key money is obviously ridiculous and most sane business people would consider other options first. fortunately or unfortunately, samui attracts loads of insane "business" people.

as for bang rak, well that's just insane people on a tight budget.

[robsamui]

time will tell if it's the rent or the landlord that is unrealistic. everyone loves to complain about chaweng, "it's too busy, it's too commercialized" etc.

i suppose if all any prospective tenant can dream up is a near identical copy of his neighbors business in chaweng (tailor, lady bar, tourist trinkets) then it's probably neither the rent nor the landlord that is unrealistic, it's the new tenants expectations.

Don't the landlord and the rent go together? Are people still paying this ridiculous "thing" called "key money"? There should be a collapse and the vulturea should have to lower their asking prices but there just seems to be so many people out their who just can't wait to lose their cash.

<deleted>, in Bangrak theres stil new bars springing up!!!!!!! Unbelievable. So where are all these extra tourists going to come from? Governments across europe are imposing austerity measures. The economic situation is dire and yet for some reason people thing that europeans and Brits will come flooding here when the euro and pound is getting hammered by an unrealistically hih Thai baht. Thailand has become a very expensive family holiday.

Maybe after the forthcoming elections the place will be crawling with bar-crawling Thai taxi drivers who are running their new credit cards up to the max . . .

R

Edited May 9, 2011 by robsamui

[Samui Coconut]

time will tell if it's the rent or the landlord that is unrealistic. everyone loves to complain about chaweng, "it's too busy, it's too commercialized" etc.

i suppose if all any prospective tenant can dream up is a near identical copy of his neighbors business in chaweng (tailor, lady bar, tourist trinkets) then it's probably neither the rent nor the landlord that is unrealistic, it's the new tenants expectations.

Don't the landlord and the rent go together? Are people still paying this ridiculous "thing" called "key money"? There should be a collapse and the vulturea should have to lower their asking prices but there just seems to be so many people out their who just can't wait to lose their cash.

<deleted>, in Bangrak theres stil new bars springing up!!!!!!! Unbelievable. So where are all these extra tourists going to come from? Governments across europe are imposing austerity measures. The economic situation is dire and yet for some reason people thing that europeans and Brits will come flooding here when the euro and pound is getting hammered by an unrealistically hih Thai baht. Thailand has become a very expensive family holiday.

Maybe after the forthcoming elections the place will be crawling with bar-crawling Thai taxi drivers who are running their new credit cards up to the max . . .

R

We are in for some very slow next few month......

[williamrobson]

Regarding Key money to secure a position in a good location I believe nearly everyone pays it. I am located in Lamai close to Fusion and the rent + key money works out as a fraction of the monthly cost of just the rent in Chaweng.

Next April the 3 year contract is up and I know to renew the contract I will have to pay key money and that it will increase from when we last paid it, but the land owner couldn't care less. If I leave sure a pharmacy or one of the other likely candidates will take my spot and they know that so what ever they ask I just have t work out if its worth it.

[BigC]

property is only worth as much as what people are willing to pay.

thats about it. they may ask for 110 k per month but they might only rent for 1 month in a year up to them. or they might get 110 k per month so why would they want to change.

also i have noticed a nasty trick where a lease expires and the business that is renting is making allot of money. so the land lord puts the price up to a stupidly high price to take the business away.

such as that nice gym in chanweng called neptune and they had a nice restrant called sea quest with sharks swimming around.

now upstairs it just empty for years and down stairs are just tourist market stalls.

shame really hard to brighten up the place with greedy business people.

sometimes they people ar4e so greedy that they lose out in the end.

u would think that after a few bad deals they would learn but.

i am sure u know the answer

Edited May 9, 2011 by BigC

[itishothere]

Are rental prices unreasonable? Well obviously not if someone pays the asking price. You only need one buyer!

There have been many such buyers around in the past. Samui Airport takes over a dozen flights a day, each with a fair amount of holiday makers escaping their depressed country and miserable climate. Of the hundreds arriving each day, there is at least one who believes they can live the dream and open a bar or shop or something. I have no idea what they would pay for a shop on the High Street back in their own country, but it will be a lot more than THB 100,000 a month once you add in rates and service charges and such. To those dreamers, the prices here still look affordable. So, in the past, an owner of a place to rent just had to wait until someone said yes. They usually did!

Of course the real question now is, how many dreamers visit here? My guess is, not enough.

Will prices therefore come down? I find that difficult to see happening. A Thai owner would rather have an empty place than lose face by reducing the price. It is goiing take a long time for ordinary market forces to balance things out.

I think.

[NALAK]

not only unrealastic rent prices, the minute you book that unrealistic flight price thats it, every thing for farang and Thai is unrealsitic price. those ferries must be awfully expensive.

[BigC]

not only unrealastic rent prices, the minute you book that unrealistic flight price thats it, every thing for farang and Thai is unrealsitic price. those ferries must be awfully expensive.

buying or renting a property i not have a problem with un realistic rent price as there are so many to chose from but bangkok airways have the manopoly which means that we have to pay if we want or need quick transit to bangkok.

funnily enough i was chatting to one of the ground staff and i asked her where she goes on holiday.

she told me where she would like to go . ( inside thailand ). She told me that it was a long drive though.

i asked why she does not fly bangkok airways.

she told me it was too expensive,

can even the boss of BBK airways aford to use his own planes lol

If someone was to have the manoply of house and shop rentals then there would be noone here. or not here for long. thank god.

[limbos]

Big C and all other posters, how come that a thread about rental prices in Chaweng ends up in dragging BKK Air in it again. Don't get me wrong, I agree that they are overpriced and I no longer defend the good old; 'they took the risk years ago and now they are entitled to profit' line. IMHO they are hampering Samui's development right now.

To get to the point though, why does BKK Air has to get dragged in too many threads here, can we stay on topic? Thx.

[ESB7]

200,000/30 days...6.5K...average coffe at starbucks.???120 baht???...thats only like 50-60 a day to pay the rent...salaries etc dont cost that much so in perspective, its not an outrougeous amount for Starbucks

[itishothere]

200,000/30 days...6.5K...average coffe at starbucks.???120 baht???...thats only like 50-60 a day to pay the rent...salaries etc dont cost that much so in perspective, its not an outrougeous amount for Starbucks

Well, Starbucks is no longer there, so something must not add for them?

THB 120 for a coffee? I would guess less on average. And then you need to factor in such stuff as hot water, milks, creams, air con, big clean mugs. Oh and coffee. At a guess, i would say you need double those sales of 50-60 at least to make things work out?

[Japhrodisiac]

There are just so many commercial units available now for rent or sale, unless you have to be on the beach road in Chaweng, I would look elsewhere. I was just back for a month after almost a year away, soi Reggae is half empty, lots of businesses gone under and moved on, possibly hundreds of empty shophouses from Maenam to Chaweng. Those same (Tailor/T-shirt/ Luggage/Copy Painting and repeat) shops all struggling for business. Landlords here seem to have no idea of market driven economies, they just keep their price high and wait years to rent. It never ceases to amaze me. I was looking at a double shophouse unit in Bophut, the guy hasn't rented it in 3 yrs, wants big key money and high rent. TIT.

[BigC]

Big C and all other posters, how come that a thread about rental prices in Chaweng ends up in dragging BKK Air in it again. Don't get me wrong, I agree that they are overpriced and I no longer defend the good old; 'they took the risk years ago and now they are entitled to profit' line. IMHO they are hampering Samui's development right now.

To get to the point though, why does BKK Air has to get dragged in too many threads here, can we stay on topic? Thx.

yes i agree my hatred is so deep in my veins that it pops out at random time. apperntly the bst thing to do in this situation is sing

[BigC]

There are just so many commercial units available now for rent or sale, unless you have to be on the beach road in Chaweng, I would look elsewhere. I was just back for a month after almost a year away, soi Reggae is half empty, lots of businesses gone under and moved on, possibly hundreds of empty shophouses from Maenam to Chaweng. Those same (Tailor/T-shirt/ Luggage/Copy Painting and repeat) shops all struggling for business. Landlords here seem to have no idea of market driven economies, they just keep their price high and wait years to rent. It never ceases to amaze me. I was looking at a double shophouse unit in Bophut, the guy hasn't rented it in 3 yrs, wants big key money and high rent. TIT.

maybe samui is future a tropical version of Hayes in middlesex loads of storage depos. YES !!!

[PoorSucker]

I pay 40.000 / year and 4000 in rent.

Beach road, South Chaweng.

[joe84330]

samui has a lot of unrealistic things. expectations probably tops the list imo.