There continues to be a glut of rental properties in Bangkok, the Thai capital. which begs the question:
Why are rental prices in the luxury areas of Sathorn, Sukhumvit and Silom so high?
Well, the answer to that question really lies in the question itself; the luxury areas are the most sought after and consequently, the prices for rent and purchase are out of kilter with the rest of the condo market.
There are some key considerations when looking for a condo for rent in Bangkok but first an overview post-COVID.
We are still in the post-COVID era when it comes to Bangkok real estate. Tourism has picked up in the kingdom and is now at around 70% of pre-pandemic levels. Retail is picking up.
Reports indicate that the purchase sectors in real estate in commercial and residential have picked up but not by 70%. This is mainly due to the reluctance of the Chinese to invest as much as they did prior to 2020. Factors here include a slowdown in the Chinese economy as much as Thai factors.
Rental markets in those luxury areas are picking up ahead of outlying areas mainly thanks to foreign buyers while Thai purchasing power increases gradually with the spending of an increasingly upwardly mobile middle class.
Key factors when it comes to rental values, as well as purchase prices are accessibility to transport links. Many new condo projects advertise the precise meterage not so much of the floor space of a condo but how many metres they are from the BTS, underground MRT or Airport Rail Link.
Real estate developers are falling over themselves to stage their properties for maximum appeal in what is a highly competitive business sector.
However, there is certainly a glut in the market and the savvy consumer can use this to look for deals away from the main areas but still on the BTS/Skytrain making travel to work just as easy relatively as being in the central business area where rents have skyrocketed.
Areas in the north of the city such as Chatuchak, Ratchayothin, Saphan Mai (all on the Green Line BTS that transects the central city) as well as the more central area of Rachada (on the MRT) have properties that are a fraction of the prices seen in Sukhumvit, Silom or Sathorn.
Retail tends to spring up around collections of condominium projects so living out may still be highly convenient as well as eminently more affordable.
The modern transport links now available in Bangkok have transformed the condo market. Conversely if proximity to the Skytrain is unimportant to you then you will have the choice of the best deals.
That said projects such as Bangkok Riverside, 185 Rajdamri, Athenee Residence, the River Condominium, Magnolia Waterfront, The Met and The Esse Asoke and @Silom remain highly sought after.
Look for transparent pricing and remember to do your due diligence when renting or buying in Bangkok.
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