For the first time in three years, there is a surge in demand to rent luxury condominiums in Thailand, mostly from foreigners affected by the Russia-Ukraine war and long-term-stay foreigners. Rents of high-end condominiums in Bangkok have soared to 100,000 baht per month.
Sunchai Kooakachai, director and head of research and consultancy at Knight Frank Thailand, believes it would be a positive sign for the condominium market if rentals start to recover as the Covid-19 crisis eases, and people start travelling overseas again. In Thailand, this is reflected in the increasing number of foreign tourists since the end of last year, as well as foreign corporate workers and long-term-stay foreign visitors.
The recovery of the condominium market has been partly facilitated by the Russia-Ukraine war, especially in Bangkok, where there has been an influx of Russian tourists. The increase in demand has helped stimulate the condo rental market. Moreover, with China opening up, there would be a group of FIT (free individual travellers) visiting Thailand, which would help stimulate the condo rental market, Sunchai said.
This is an opportunity to generate income from renting out to foreigners, especially high-end condos in the central business district where foreigners are interested in staying for extended periods (long-stay), pushing up rental rates. For example, the rent of a one-bedroom condo in the Lumpini, Sathon, and Silom areas near a large department store during the Covid-19 period dropped to 35,000 baht per month, but now the price has increased to 50,000 baht per month, on par with before the pandemic, Sunchai added.
The rental market for condominiums in Bangkok still has limitations due to the large number of hotels that are ready to accommodate tourists. However, there are still groups of tourists who want to travel independently and prefer to rent condos instead of using hotel services, as it is more expensive. This trend is growing and the strong demand is driving up condominium rental rates, according to Sunchai.
Recently, there has been a significant increase in demand for condos in the rental range of 50,000-70,000 baht per month up to 100,000 baht per month. This group of customers has high purchasing power that focuses on renting high-end condos, Sunchai said.
Source: The Nation
