Will the Condo-/Apartment rental market shrink significantly after the current Visa crackdown?

[siam2007]

Hi all,

just wondering what is your opinion regarding the Condo- and apartment rental market. Where is it headed after probably a lot of long stayers can not meet the new requirements anymore and are set to leave the country soon? Do you already feel an impact? Where I live, BKK suburb, the number of available units in my Condo Moo Ban area with around 1200 units spread over 12 buildings is clearly on the rise, even it is not actually a very "Farang" area - but still quite a number of Farang and particularly many East Asians live here.

Some desperate Unit owners now rent out on a daily or weekly basis to mainland Chinese tourist (our local SEVEN is being assaulted by them every evening when they buy their MAMA NOODLES and scream and yell and drop rubbish everywhere and try to cut the line unless you physically hold them).

This must be even worse in Farang-prefered places such as Pattaya or Phuket, right ?

Easier to get affordable Condo-units / apartments there nowadays ? Better negotiating position for potential tenants ? What is your recent experience ?

[trd]

What new requirements?

[siam2007]

What new requirements?

feel free to browse thaivisa for the multiple Visa threads that are currently running (but this is meant to be a real estates topic, not a Visa topic)

[BookMan]

What new requirements?

feel free to browse thaivisa for the multiple Visa threads that are currently running (but this is meant to be a real estates topic, not a Visa topic)

http://www.thaivisa.com/forum/topic/870548-the-multiple-entry-tourist-visa-topic-metv/

[trogers]

When demand falls while supply increases, rental prices, would fall. Just that there would be a lag time of 12 to 15 months as annual leases expire and owners cannot fill their vacant units after 6 months thereafter...

[mcfish]

What new requirements?

feel free to browse thaivisa for the multiple Visa threads that are currently running (but this is meant to be a real estates topic, not a Visa topic)

what new requirements? be specific please and if its visa specific then why bring it in the first place?

[trd]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

[siam2007]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Selling has nothing to do with RENTING OUT.

You can still buy a Condo and own it, but not be able to find a tenant if you don't plan to stay there yourself

[fang37]

In CNX. no chance of a shortage.

There is an excess supply of condos.

[trd]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Selling has nothing to do with RENTING OUT.

You can still buy a Condo and own it, but not be able to find a tenant if you don't plan to stay there yourself

What markets are you're referring to. In resorts like Phuket most condo rentals cater for tourists who will get a two month tourist visa. Then there are plenty of expats on retirement extensions like me, so unaffected. Then business people with work permits. No change there.

[trogers]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Selling has nothing to do with RENTING OUT.

You can still buy a Condo and own it, but not be able to find a tenant if you don't plan to stay there yourself

What markets are you're referring to. In resorts like Phuket most condo rentals cater for tourists who will get a two month tourist visa. Then there are plenty of expats on retirement extensions like me, so unaffected. Then business people with work permits. No change there.

Holiday rentals are just that...2-month visas...

I am positive that the supply of studios and 1-bedrooms overwhelms the number of bachelor retirees. Those with wives and kids would either build their own homes or rent larger units.

[trd]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Selling has nothing to do with RENTING OUT.

You can still buy a Condo and own it, but not be able to find a tenant if you don't plan to stay there yourself

What markets are you're referring to. In resorts like Phuket most condo rentals cater for tourists who will get a two month tourist visa. Then there are plenty of expats on retirement extensions like me, so unaffected. Then business people with work permits. No change there.

Holiday rentals are just that...2-month visas...

I am positive that the supply of studios and 1-bedrooms overwhelms the number of bachelor retirees. Those with wives and kids would either build their own homes or rent larger units.

There has been an oversupply of condos for a long time now, well before the introduction of the METV. I can't see it having much effect in the bigger scheme of things. Unlike the resort areas, the Bangkok condo market is dominated by Thais, not foreigners.

[elgordo38]

In CNX. no chance of a shortage.

There is an excess supply of condos.

Sprouting up faster than weed all around me. Most are dark at night.

[yellowboat]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Selling has nothing to do with RENTING OUT.

You can still buy a Condo and own it, but not be able to find a tenant if you don't plan to stay there yourself

What markets are you're referring to. In resorts like Phuket most condo rentals cater for tourists who will get a two month tourist visa. Then there are plenty of expats on retirement extensions like me, so unaffected. Then business people with work permits. No change there.

Many second home types have left Thailand; contract workers and entrepreneurs. Foreign companies are not rushing into Thailand and not hiring expats, so the number of those working there is down also. It is not as hospitable as it once was.

[Krataiboy]

I'm no real estate expert, but. . . Checked at a new local 500-unit development near Cha Am where work is still going on and they have 50 per cent residency. The salesgirl told me only ten percent of the buyers were foreigners. Most were Thais, mainly from Bangkok. The capital is sinking and the hi-so's are snapping up properties in places like Cha Am and Hua Hin as an investment to rent out, as a weekend retreat or as a permanent possible bolthole when Big Mango goes under. So, bearing these facts in mind, I think one can expect the market at places not too far from the capital to stay pretty buoyant.

[williamgeorgeallen]

I have heard estimates that there are approx. 30 000 units being completed per year in pattaya. I know people who own rental units who tell me rents have not increased in the last 5 years. one friend who has an apartment had to recently drop the monthly rental from 14000/month to 10000/month just to get someone in. more units being built and less tourists who do monthly rental coming. there has to be a decrease in rental return. rental is becoming so cheap in pattaya I wish I had not bought here.

[dotpoom]

I rent out a couple of condos and couldn't care less. I take life as it comes.....especially when it is out of my control and I occupy my mind with more useful thoughts.....like what I might do differently around the house for the upcoming Christmas.....but..as always...."each to his own".

[oxo1947]

Some desperate Unit owners now rent out on a daily or weekly basis to mainland Chinese tourist (our local SEVEN is being assaulted by them every evening when they buy their MAMA NOODLES and scream and yell and drop rubbish everywhere and try to cut the line unless you physically hold them).-----Siam2007

It could be worse Siam----you could have "Quality" tourist in there--like the ones that are reported on TV most weeks, urinating in the street.....trying to sell drugs to undercover police....... cutting up bar girls , so they fit into a suitcase before they dump them in the canal...etc ..etc But you obviously have real big problems in your 7-11 line up........

[lordblackader]

In CNX. no chance of a shortage.

There is an excess supply of condos.

Only true for certain areas such as Nimman, Suthep, out towards Chang Phueak around Canal Road, even in the Chiang Mai business park.

Very little places that I can find close to the city south in Haiya and Chang Klhan which is where I'd prefer to live (currently looking for a bigger place, a studio is too small for two people) as the girlfriend works for a company on the Hang Dong Rd near Tesco Lotus (I'm told "Nimman too far, too much traffic).

[TheKnave]

METV (or actually, the withdrawal of double and triple-entry tourist visas) plus the intent to get rid of foreign English teachers will definitely have an effect on the lower-end, affordable rental market.

The real issue is, who in their right mind would invest in a condo, or attempt to retire in Thailand now, given the junta's apparent desire to get rid of long-term Western residents?

Anyone who depends on a retirement extension to stay, had better be looking for an emergency parachute, post-haste. It's just a matter of time until they make it more and more painful to renew it. If you have a lot of money, it will not affect you as soon, but I truly fear for those on a month-to-month budget.

Of course, those with money will suggest that you shouldn't be here in the first place...

[GAZZPA]

I am not sure how many will be effected by the clampdown in visa law.

For me, I have a work permit, most of the people I know are on work permits, retirement visas and a few still on student visas. Not sure I know too many that are here simply on tourist visas which they are constantly extending.

I think there will be a surplus of condo's for rent simply because like many other Asian countries they are all jumping on the new money bandwagon and over investing in building after building after building.

China has entire towns and cities virtually empty for this very reason.

It will come crumbling down eventually as debt rises (as it is in Thailand, both personal and government).

So, in short I think the visa clampdown will not make a lot of difference in my view.

[hawker9000]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

And as someone who spent twelve years selling property here, I expect you'd like to keep doing so. And that'll be harder to do if prospects are warned off, won't it? Tout your "insider knowledge" all you want; in your case its a 2-edged sword. As an "outsider" I have to say that much is apparently being made of heavily discounted condo units if there's really nothing to it.

Oh, I see. Retired now. So "special knowledge" is no longer current/firsthand... Or maybe you're just heavily invested. 'Just don't see how anyone can be so dismissive of obvious signs of oversupply. Visa tightening probably just one on a list of reasons though.

Edited November 15, 2015 by hawker9000

[Suradit69]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

Generally topics about things that supposedly will negatively impact tourism or real estate or whatever in Thailand are quite popular here at TV. Dire predictions of everything going downhill seem to excite some farang.

What new requirements?

feel free to browse thaivisa for the multiple Visa threads that are currently running (but this is meant to be a real estates topic, not a Visa topic)

Since the topic heading includes: "... after the current Visa crackdown," it seems quite reasonable to ask what crackdown.

I suppose there will be a small decline in the number of foreigners renting bedsits with ceiling fans at weekly rates, but I doubt those who are likely to seek middle to upper level rentals will be put off by the need to get the correct visa or extension of stay.

Edited November 15, 2015 by Suradit69

[mogo51]

I have heard estimates that there are approx. 30 000 units being completed per year in pattaya. I know people who own rental units who tell me rents have not increased in the last 5 years. one friend who has an apartment had to recently drop the monthly rental from 14000/month to 10000/month just to get someone in. more units being built and less tourists who do monthly rental coming. there has to be a decrease in rental return. rental is becoming so cheap in pattaya I wish I had not bought here.

You are spot on, a couple of months ago, rented a very nice 1 br condo, great location, 97sqmts was 27k, got it for 18k. Renters only want bargains here and there are heaps of choices.

[trd]

As someone who spent twelve years selling property here, I can tell you that the OP's story is a story about nothing.

And as someone who spent twelve years selling property here, I expect you'd like to keep doing so. And that'll be harder to do if prospects are warned off, won't it? Tout your "insider knowledge" all you want; in your case its a 2-edged sword. As an "outsider" I have to say that much is apparently being made of heavily discounted condo units if there's really nothing to it.

Oh, I see. Retired now. So "special knowledge" is no longer current/firsthand... Or maybe you're just heavily invested. 'Just don't see how anyone can be so dismissive of obvious signs of oversupply. Visa tightening probably just one on a list of reasons though.

No special knowledge since I retired, because I have been living in a cupboard since then. Obviously.

[Happy Grumpy]

Will the Condo-/Apartment rental market shrink significantly after the current Visa crackdown?

No.

Don't be silly.

The sky has been falling every month or so since I moved here 10 years ago as a new visa-crack down has been announced.

[Maestro]

Removed an I incomprehensible post and the reply to it.

[theguyfromanotherforum]

How do you rent short term? Condos are not hotels and it can become a police matter as most condos that I've seen in Bangkok have rules against short term rentals and have notice posted on the main door which is the equivalent of trespassing.

[Thunderbirds20]

Is it just me or is the Thai Government determined to rid the country of Farang .... I have seen a dramatic drop in Farang numbers in the last 6 months especially, .... We face ever mre stringent and silly rules to be here, ... but we have the choice of going to many other places that are much more welcoming than Thailand now seems to be.

On the other hand, the worst people in the world are now coming here in droves, because Thailand has opened the doors to them ,,,spcifically Russians and Chinese! This amazes me because these two groups have no respect for Thai culture, Customs or Religion, ... indeed they do not even like Thai food or Thai people, ...but they come here because Thailand is the easiest place for them to go!!!

You never see Russians anywhere but beach resorts like Phuket and Pattaya. You will never see one in Isaan, Chiang Mai or Chiang Rai! They do noit support Thai businesses but prefer to use their own restaurants, hotels and tour companies.

This will have disastrous effects on the Tourism industry and put many more Thai people out of work!

[IAMHERE]

No, those in the market for a condo have their papers in order. Renters and such may be dodgy but not those putting the cost of a condo into Thailand will be visa dodgers sort.