Have Bangkok Condo Rental Prices Fallen?

I am certain that they have. Despite often over hearing conversations between agents and their clients from time to time ‘talking up the market’ as they so often do when trying to sell an investor a nice little condo in Bangkok , I am seeing a very real and quite substantial drop in the actual prices achieved in rental deals.

I have lived in this city on and off since 1998, but spend very much the main part of those years actually here (had a stint in the Phuket property market also for a couple of years).  When I moved back to Bangkok in 2003 I can well recall being shown studio apartments and one bed condos for rent at prices at least 10-15% higher than they are at today.

I also know this to be the achieved rate of the day as I was paying around 15% more then that people are now for the exact same size and style of rooms in the exact same condo development. Of course I had a large circle of friends then also, and know that they are now all of them paying less in relative terms. Furthermore of course being that I am actively still working in the Bangkok property rental Market, I see evidence of this everyday.

Is this simple financial market forces and affects, or is there much more to it? Well, of course I am sure that the last 4 years of financial upheaval in the world will not have helped, but to be fair what I am seeing is this all being brought about by a much more educated market.

The usual regular influx of new expats wanting to work here in Bangkok has dropped of a lot in recent years and as a long term Bangkokonian myself I have also seen many long term friends leave as finding work here has gotten harder and harder. So in the rental market now we are left mainly with the long term expats and of course having been here many years they know the prices and true values of Condos and thus this I think is also driving down prices.

Along with this, there is the entrance into the market of many more Thai tenants than there has been before as more and more Thai people flock to the city to work in search of fame and fortune. Of course Thai’s know their own country and market prices well, and like so many Asian people they are not afraid to bargain with owners and agents on prices.

So all in all we are left with a market that has without dropped in terms of rental prices here in Bangkok, or should I say achievable rental values. Good for me being that I live here, good for people also looking for a Bangkok condo to rent right now, but not so good perhaps for those owners who bought some years ago on the expectation of achieving the rates of the day. Oh how this shows that when buying a condo in Bangkok , one really does need full on correct and accurate advice.