The Booming Rental Market in CM.

[condo bought]

I have a newly renovated condo in CM, about 10 minutes from Thapae Gate, so not exactly downtown.

It's not a studio shoebox, and is priced accordingly.

It wasn't really bought as a rental property, but as I'm not there now, decided to put it on a classified's site as available from next month.

I honestly wasn't expecting much interest as it's out of the city center, and priced higher than other units. In fact, I didn't really expect anybody to be interested at the price I listed it as. (I listed the rent as the total cost of unit and renovation divided by 7.5 years.)

It was only listed yesterday evening and already 3 people are due to look at it over the next few days (International Uni student, Indian NGO, digital nomad), with 2 of them asking how they can book it to ensure they get it when it becomes available next month. Just from one listing on one site.

Pleasantly (and very) surprised.

With the endless tightening up of the visa situation, the doom and gloom nonsense that you read, you'd think the opposite. But hey, TIT and the doom and gloomers will just be doom n gloomers.

Looks like the rental market in CM is doing very, very well indeed.

Edited March 18, 2016 by condo bought

[TheSiemReaper]

Looking is not the same as buying as many a broke retailer knows. I can't speak for your advert, as I don't know if I have seen it, but there are a ton of incredibly dishonest postings out and about for places here - we've all gone round a hundred places (or more) to find them much different from what's listed. I have a very, very healthy budget for a condo but it took a while to find somewhere worth spending it on. "Western style kitchen" does not equal "gas burner on a shelf instead of the floor". "Fully furnished" is not the same as "full of broken, badly worn stuff". "Great location" is not "next to industrial sewer". A swimming pool is not a paddling pool. And so on...

[TheAppletons]

Congratulations on your apparent success in renting the condo. Though I'm pretty sure the fact that you have three people interested in renting it is not the sort of optimistic referendum on Chiang Mai that your OP seems to imply. Good for you but difficult to extrapolate a single data point beyond just that.

[Oscar2]

3 lookers, not buyers. around where i live i would guess 75-80% of all rentals are sitting empty and will be for years to come.

[anto]

3 lookers, not buyers. around where i live i would guess 75-80% of all rentals are sitting empty and will be for years to come.

I live 10 km out from the moat ,a 15 minute scooter ride .Load of houses for rent and in my village rents are going down to attract renters .

[LivinLOS]

Either someone is paying them, or the asking prices seem to have gone stratospheric in the last few months.

Houses, not mansions or grand villas.. 50 - 60.. Normal 4 bed with some garden, no pool, 48.. The next door to mine (mirror image house, identical) 54...

I dont know whose paying that, but thats what they are asking. Then again I am seeing some of these properties on the market since I arrived to CNX.

I just found a lovely place, 3/4 rai of garden, pool, loads of covered parking for cars and bikes.. Outdoor workshop.. huge 2 bed and a separate office.. Really 'cool' structure with mango trees on the sunny side.. 2 big covered patios and lots of windows.. 11k with pool service included (I pay 2k a month for that now plus chemicals).

[anto]

^They ask those high prices hoping to attract a rich foreigner who is not in the know .Rents in my Moobaan now at B8000 a month for a 3 bed house ,and just 10 km from Thape gate .

[LivinLOS]

^They ask those high prices hoping to attract a rich foreigner who is not in the know .

I sort of understand it on some really nice home with a pool and grounds.. Something thats in the 10 - 15 mil range.. Then simply by virtue of 5% return you can understand it being asked. I think finding a good long term tenant who is happy to pay it may not be easy, but I understand.

But when I see some place asking high 40s or more when frankly its 'just a house'.. Not with a pool or any special private garden.. Seems very ambitious.. Especially as theres so much inventory available (much of it not that nice but damn if there isnt a lot of choice). Thats Phuket pricing and theres much less land restriction than there.

I was a little bit shocked when the family rented next door.. 50 something was the asking rent for a house and pool thats identical to the one I pay 30 for.

[northernjohn]

Just my opinion but most posters don't realize there is a big difference between people that want a studio and people who want a big house in a village or outlaying area with the upkeep that goes along with it.

[LivinLOS]

Sure... But they all are elements of the 'rental market'..

I just remain baffled by asking prices so far out of what I see places rented at..

[1FinickyOne]

op - What condo is that or area? And how many km? 10 minutes walk or drive? Also, there is a big difference between a very interested phone inquiry and someone actually showing up and putting money down... hope it goes well for you.. let us know.

Edited March 18, 2016 by kenk24

[MadMac]

I don't buy this story. May be locally isolated and just a lot of luck.

Lots of expat population broke away, particularly teachers and other visa runners after the 30 days back to back was literally killed. And these were the people that rented in the lower price segment, like studios or 2 bedroom apartments below let's say 15...20kTHB. These people are gone and unlikely to come back anytime soon.

If you look at the higher price segment 20...30k up there are ridiculous prices asked, like 9mTHB to buy a house that goes for 20k a month rental. No business case at all. The gap between selling and rental prices are in Chiang Mai out of any possible logical explanation. Looks a bit better in BKK, but there it is location, location, location. Otherwise large oversupply. So no, I would not invest in any condo or house for rental anytime soon again.

[phil2407]

LivingLOS - very interested in house with pool for 11k PM me please

[MaeJoMTB]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

Edited March 18, 2016 by MaeJoMTB

[MESmith]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

Condo or bedsit?

[MaeJoMTB]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

Condo or bedsit?

That would depend on if you're American or British.

[anto]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

Condo or bedsit?

Bedsit is one room with shared bathroom/toilet right ? .A studio condo will have its own bathroom/toilet.

[laolover88]

Usual stuff. Complete mismatch of value/long term value/expectations. Continue to be amazed why anyone would invest in One Brick let alone a condo in CM or anywhere else in LOS. To be fair we do have a house in CM but that is in my Luk Khreung daughter' sole name. Not the same!

Edited March 18, 2016 by laolover88

[Robert24]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

that is usually called an apartment.

[bazza40]

There are a couple of condos in CM which have a bad reputation. One has foul tap water, the other has unreliable elcctricity supply.

I know of a massive house and 1 acre garden in the San Pouloei area which has no takers at 8000 baht/month. It's been vacant for 2 years now.

Personally, I would not be interested in any condo that does not have a swimming pool.

Good luck to the OP if he succeeds in renting. However, I get the feeling the rental market in CM is definitely in favour of the buyer.

[WinnieTheKhwai]

I believe it. Buy something for around a mil, spend 250k to do it up, post nice pics and a 10 minute distance from Thapae gate and you definitely get some interest even at 13K or whatever.

If you actually rent it at the asking price depends on how much the lobby smells like cat pee and the creakiness of the elevator.

Edited March 18, 2016 by WinnieTheKhwai

[evenstevens]

to the O/P

booming rental market, huh , huh,

cobber , get a good hold of your light bulbs,

a total black out, is on your way

E/S

[anto]

>> and a 10 minute distance from Thapae gate<<..we still do not know if that is walking or driving distance.

[Happy Grumpy]

Houses and condos.... 2 very, very different markets.

[pgrahmm]

We don't live in a condo, but in a nice Moo Baan.....

Places have been waiting years with for rent signs on them.....

When they got more stringent on visa qualifications I watched a whole other Moo Baan that was thick with Russians empty out over a few weeks time....

There's a lot of good places at reasonable prices around....There are also some that are just plain stupid in what they want....

Good luck with the condo....I have a buddy that has a nice one....They seem to do OK renting it out but get a lot of lookers before they find a tenant.....It can go a couple of months of showing/meeting/no shows/ time wasters/hustlers/price beat down negotiators/flakes before they find a good one.....

[anto]

There are 1000s of new Condos all around C.M. Its a renters market .

[WinnieTheKhwai]

>> and a 10 minute distance from Thapae gate<<..we still do not know if that is walking or driving distance.

Walking distance is quite difficult as there is no high-rise development allowed in the old town. Would have to be driving distance.

Very likely near the Railway Station / Makro Superhighway Intersection.

[LivinLOS]

LivingLOS - very interested in house with pool for 11k PM me please

I took it

[SooKee]

I'd certainly agree that there is a glut in terms of supply, but far less so with anything of any quality. We saw loads of rubbish, I mean loads. Probably 95% was just a non starter. Awful designs (living room designed so the only place to put a T.V. was shoved in a corner), many suffering from lack of maintenance, abysmal quality furniture and fittings (stuff I would have thrown out or burned) or just plain filthy hovels. And the prices people are asking for this crap, totally beyond belief.

Not sure how the condo market compares but when I was scouting for a friend, not much different I guess, especially if you want more than a studio / bedsit or a place with a 'living room' where you can't even spin round with your arms stretched out.

Yep. Lots of stuff out there but IMO it's a struggle to find anything worthy of paying the rent for, let alone the astronomical prices for total junk that many seem to be asking here.

Good luck with the rental.

Edited March 19, 2016 by SooKee

[LivinLOS]

I'd certainly agree that there is a glut in terms of supply, but far less so with anything of any quality. We saw loads of rubbish, I mean loads. Probably 95% was just a non starter. Awful designs (living room designed so the only place to put a T.V. was shoved in a corner), many suffering from lack of maintenance, abysmal quality furniture and fittings (stuff I would have thrown out or burned) or just plain filthy hovels. And the prices people are asking for this crap, totally beyond belief.

EXACTLY the same..

I had to find a new place last year, to a deadline... The amount of utter junk.. And owners with a straight face saying 35 but we can discount if you pay a year up front.. For old dusty dirty houses they didnt even bother to clean with miss matched god awful index furniture. Its like who do they think will pay that ??

If a pool is a requirement suddenly its very short lists. Theres a real lack of small quality places here. I dont need a 4 or 5 bed home, but I do want nice fixtures and fittings, etc etc..

Also the 'agents'.. Dont even get me started.