Logo of Phnom Penh Post newspaper Phnom Penh Post - Demand for lower-end Thai condo rentals sees big jump




Demand for lower-end Thai condo rentals sees big jump

Content image - Phnom Penh Post
Thailand's rental condominium market is growing in the price range of 10,000-15,000 baht ($320-480) per month while condos in the range of 25,000-150,000 baht per month are seeing a significant drop in customers. PIXABAY

Demand for lower-end Thai condo rentals sees big jump

Rental condos priced at under 15,000 baht ($480) a month in Thailand are seeing over 20 per cent in growth while there is a big drop in demand for rental units priced at above 25,000 baht, an industry executive said.

Wathayut Thongphorm, managing director at Primo Service Solution Co Ltd, a subsidiary of Origin Property Pcl, said the rental condominium market is growing in the price range of 10,000-15,000 baht per month while condos in the range of 25,000-150,000 baht per month are seeing a significant drop in customers.

He said: “Rental condos priced lower than 15,000 baht per month are growing at over 20 per cent, especially in the BTS-MRT zones.

“The reason behind this is financial institutions’ loan-to-value regulations, which limit the loans granted to each buyer. When people cannot get loans to buy property, they go for rental options instead.

“In contrast, luxury rental condos in the range of 25,000-150,000 baht per month are suffering from a drop in customers, as their main target groups are foreign travellers and executives of multinational companies, who are not able to enter Thailand at the moment.

“Sales of units in this sector have plummeted by more than 50 per cent, prompting some property owners to drop their prices by 20 to 30 per cent to attract other groups of customers.”

Wathayut said an estimate of 40 condominium projects under its management showed that the return on investment (RoI) on condos in the range of 10,000-15,000 baht per month could rise to four-to-five per cent in the second half of this year, while the RoI of luxury condos could fall from five to three per cent in the same period.

“It could be the second quarter of 2021 before foreigners are allowed into the country and this segment jumps back up again,” he said.

THE NATION (Thailand)/Asia News Network

MOST VIEWED

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • Deminers unearth ancient lion statue

    Cambodia Mine Action Centre (CMAC) director-general Heng Ratana told The Post on Tuesday that a statue of a lion was found by mine clearance experts while they were digging for a development project. It was sent to the Ministry of Culture and Fine Arts last