What happened to Onnut Condo Rental prices

I have lived in Bangkok for the best part of 14 years and during that time have watched in awe as Onnut has grown, not just in terms of its popularity as a choice spot to look for your Bangkok condo rental deal, but in terms of how prices have shot up.

Time fly’s by so fast these days that I often forget maybe 5 or 6 years have passed since I last really looked at rental prices in Onnut. I was once very seriously considering it myself as a place to live, based on it being such a nice area, convenient for Tesco and Big C and of course the BTS line.

But now I look again with even more sincerity and I see a 2 bed Onnut Condo for rent at 28,000, higher than where I live right now in the Nana to Asoke strip, which was has historically always been a more expensive area. That said, let us be honest and state for the record that in this case it is in fact a Sansiri development.

So I look again and find a truly delightful one bedroom condo rental at 16,000 and again I think to myself, that is way over the top for Onnut condos. But it is no longer the case, this is I see now the going rate. Great place for a single dude or perhaps even a couple, but not for me as it is way over my budget with wife and kids.

It looks as if my search for a new Bangkok condo rental will continue just a little longer. How is yours going? Written by David Smith of Siam Distinction (http://www.siamdistinction.com/)

Is Ari the new Thong Lor?

Distinctly different for sure, but there are some undeniable similarities in that some of the nearby malls, restaurants, super-markets and such like are very similar to those found in Sukhumvit Soi 55, right in the heart of Thong Lor.

Fuji, Tops Gourmet, brand name hospitals and private clinics, private bistro’s, café and whatnot, Ari has it seems all of the exact same ingredients and perhaps more as its illustrious cousin. Yet you can still come around here and rent a condo for a substantially lower price.

Take this 2 bed, 2 bath, executive condo, found very close to BTS Sanam Pao. It maybe a little older than a new Noble or Sansiri condo but it offers great quality of life within a short hop to anyone of the aforementioned amenities whilst also offering 78sqm of living space, nice pool and gym, all in a nice green and quiet setting.

How much would pay for such a Bangkok Condo rental? Normally if in Thong Lor I suspect around 30-35K per month, yet this owner is offering this property out at just 22K a month for long term tenants. So check out what it is you are looking for and need and where you want to be nearby to and you may just find you can slot yourself in to this condo rental nicely, s save yourself quite a few Baht I the process.

Buying a Condo in Bangkok for Investment

There is a great amount of debate on this subject right now and a great many opinions. Personally, as I will show in the next few articles in the coming week, opinions from any of us are likely as valid as any of those that come from the experts and commentators on this subject.

                             

I guess the first question should be, is the Bangkok condo sales market heading for a period of overheating, overbuilding oversupplying, call it what you will. Potentially yes, this is a danger for any such developing nation’s capital city and I have to say from my first hand experience there are a few red flags out there the could stop this bullish market.

To dive into this any further and in any great detail we would have to take each market sector as a totally separate market entity as from what I see they are all suffering slightly or very different fates. For example, right now the very low end of the market, say under 1.5m baht condos aimed at the indigenous market, seems to be doing very well and I see little evidence of swathes of empty rooms.

Not so for the medium and higher ends of the market. I will name no names, but in recent outings to towers in Thong Lor, Ekamai and Onnut I have found a great many rooms unsold and or unoccupied. In one new tower in Ekamai I have seen a range of condos on sale from around 4 Million to 20 million perhaps 60% sold only. Of the remaining ones sold hardly any had been rented.

And here lies a potential issue. I have found that a great many of these condos have been bought out by single investors who buy 10-20 at a time if not more. These units will often remain empty as the owners have no time not true intention or inclination to let their new condos out to the market, leaving some new towers perhaps 50% occupied or less.

Of course by holding them in this manner, they are falsifying the Bangkok Condo Rental stats as a whole, as perhaps thus encouraging further new developments to crop up and up as we feel there are not enough room available to fill the gap in supply. Should even 50% of these types come onto the rental market we could see an overstocked situation right away.

And here ends the first piece of guidance. Is the future Bangkok Condo rental market secure enough? Will you always be able to rent you condo for say 11 months a year minimum to gain the ROI you bought it for? Or will it as so many do, stay empty for at least a third of the year?

In my next piece I will write in more depth about the best sector of the rental market at present and how I believe it will evolve in the next few years and beyond.

What Floor is too Low for you?

When is a condo rental just not attractive to you? Too small, price too tall, messy, old, tired, smelly…there are many legitimate reasons I know. But in the case of a low floor in a low rise, is this so that it can be too low?

Walk up and down Soi Langsuan in the centre of Bangkok and find a 2 Bedroom condo rental under 40,000, go on I challenge you. Likely it is not going to happen if it is anything half decent in one of the developments on that street.

Now turn right at the top of Soi Langsuan into Thanon Sarasin…some nice little bistro type cafes and such like along there, and right opposite from Lumpini Park, so without question an awesome place to live. So what stops this 2 Bed Condo rental from becoming a 2 bed condo tenanted? 

 When I first went to see it, it was on the market at 45,000 per month and to be honest that did not strike me as way over board. However, try as we may it would not budge, so now we find it on the market asking just 37,500. Much more buzz and activity around the place but still, no takers.

Oddly it seems a condo can be considered as too low, in terms of the floor on which it sits. I could understand this if it was about passing traffic and pedestrian noise, but that would not be the case in this side street which is at best a ghost street. Further more having the pool, gym and steam room on the same floor just about 15 meters walk from your front door surely is of huge appeal no?

Take a look at the page on our website for this Bangkok Condo Rental that just wont shift! and if you see anything specific, drop us a comment below!

Bangkok Penthouse Rental at Silom Condo Price

Following on from yesterdays post about how rental rates have fallen here in recent years, I immediately thought of this as a perfect example of how the Bangkok condo Rental market has altered.

When you think penthouse you think, top floor, huge, lots of outdoor balcony and terrace space and a great area in which to live. Well, this penthouse in a Silom condo development certainly ticks all those boxes, and at a price normally associated with run of the mill 2 bedroom condos in any part of Bangkok.

It is indeed top floor; it takes up all the 21st floor of the tower development it occupies alongside the BTS sky train station. It is indeed huge, weighing in at 187sqm. It has many balconies and outdoor terrace, garden spaces with awesome views in all directions! And being in the heart of Silom and Sathon roads, it is indeed in a first class location.

 So at 60,000 a month, you would think it very well priced considering it comprises 3 – 4 bedrooms, 1 or 2 living rooms, 2 kitchens multiple bathrooms and so much balcony space yes? Now take a look at the agent advert for this Silom Penthouse and faint when you see it still available at the same price one would normally find a 2 bed condo for rent in Thong Lor!

Perhaps you know some one who would like to know more about this....please do share, tweet, digg on!!!

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.