condominiums for lease
Offices, Apartments & condominiums - How Have Things Changed In The Past ten Years In Bangkok?
Rental costs of most apartment buildings have raised rather marginally in the last ten years. Whereas a spacious three bedroom apartment in Sukhumvit location will have cost 70,000 Baht ten years ago, it might set you back 85,000 Baht today. That is just a 20% increase more than ten years, actually less than inflation, and in some ways an apartment is less expensive right now than ten years back.
Why? It is hard to say though I'd estimate that ongoing political issues, two coups, and also quite a stagnant economy rarely kicking over at around three % growth in GDP annually would be the reasons. This particular degree of development might be appropriate for a world leading created country, but for Thailand that (let's experience it) continue to has plenty of way to go in terms of development, it is not really good.
The apartment rental market place in Bangkok is usually governed by expats. Thai individuals do not rent at these costs, possibly they do not generate enough, or are smart enough to purchase a home in the suburbs, or perhaps are part of the hugely wealthy elite plus already own a number of blocks in main Bangkok. As the quantity of expats has stayed pretty constant, as have rental prices.
Newly built condominium buildings can see an increase in rental costs, and thus there'll usually be considered a tiny number of individuals who have enough budget and just wish to live someplace very much brand new, something is very true of Japanese renters, though the brand new buildings can be aged and when they've been built in addition to a rental amount is created, you'll realize that the cost will remain fairly stagnant from next on.
This's really the same with condominiums on the market. When a building has completed building, a sales price and also rental price is established, and yes it is going to remain stagnant at this amount for decades to come.
Though costs are actually increasing in Bangkok, everybody knows that!! And so am I wrong?
Condominium Sales Prices Bangkok 2008 - 2018
I do not believe I am wrong. There are several condominium buildings which experienced a really excellent quality of capital appreciation in the recent past, but "on average" they have not.
Sure, prices are already increasing substantially in Bangkok, and this's one thing that all designers will happily market to you when offering you their brand spanking new project. They are going to show you graphs with an upward trend in costs, and also demonstrate that costs are rising a minimum of 5 10 % year on season.
Prices of new buildings are increasing a 5 10 % season on year, however, not completed buildings.
This's mainly done to spikes in land prices. As farm land prices increase (and to some degree construction costs) and so keep price of new buildings. So brand new buildings become more and more costly, but are finished buildings following suit?
No. And this's the reason I am not wrong. A structure which cost 150,000 Baht/sq.m. five years ago, may perhaps now simply be 160,000 Baht sq.m. In this particular instance around 1.5 % compound development. This particular building was completely new five years ago, and a fresh building right now still under construction could set you back 200,000 Baht/sq.m. that is 33 % more than the brand new building was five years back, hence the 5%++ combination development.
Though the simple fact remains, the construction that YOU bought five years ago might have increased just 1.5 % combination per season.
This's the ongoing pattern with Bangkok property. New buildings constantly set brand new benchmarks in prices, after which remain exactly the same. With even more recent buildings including a level on top, establishing new benchmarks, after which staying at the very same level. Even more recent buildings still, just keep on adding another level on top.
This's exactly why you are going to find such massive price discrepancy between structures, even in case they're placed right next door to one another. A good example is Lumpini twenty four, a new condominium situated on Sukhumvit Soi twenty four, in which costs will fetch around 250,000 Baht/sq.m. Thus, a sixty sq.m., tiny little two bedroom unit is going to cost around 15,000,000 Baht.
Immediately next door is an old condominium known as President Park, in which costs have stayed stagnant at around 60,000 Baht/sq.m. Thus, an extremely spacious three bedroom product of 260 sq.m. is going to cost you around 15,000,000 Baht.
4 times larger, situated immediately next door, however the exact same price tag! And so the old adage "Location, area, location" does not use here. It's ONLY depending on the age of the structure.
Find More Information: parc clemantis showflats