| > | | | | mortgage payment to furnish. Thai landlords tend |
| With the current global economic crisis, many | | | | to be more willing to let a property stay empty |
| wonder how that has affected the property | | | | than to let someone insult them with a low ball |
| market in Asia. Does that mean cheaper rentals? | | | | offer. Of course, there are exceptions to this rule, |
| If so, by how much? How about sales? Is the | | | | and the longer a property is vacant, the more |
| property market in Thailand as badly affected as | | | | willing to negotiate most owners become, which |
| that in the West? | | | | brings me nicely onto ...... |
| With what is happening in the world economically, | | | | The property sales market is suffering here in |
| we get a lot of enquiries from people expecting | | | | Thailand, the same as everywhere, though |
| that rental rates here in Thailand will drop/have | | | | certainly not to the same extent. The |
| dropped and that it's now possible to live in a 500 | | | | government's actions reducing the property |
| square meter detached house with private pool | | | | transfer fee and special business tax has had a |
| for 50,000THB per month. | | | | good effect, and combined with the fact |
| Well, the truth of the matter is that the rental | | | | mentioned above, that this is not a credit market, |
| market has not been affected in a very large | | | | but more of a cash market, I don't foresee |
| way at all in Bangkok yet, and I'm not sure that it | | | | property prices falling a great deal in Thailand. You |
| will be affected at all. 'How is that possible?' I hear | | | | have to remember here that when people are |
| you cry, and here I give my explanation. | | | | not buying, they still need a roof over their head |
| Firstly, one needs to remember that the majority | | | | and this is the time when they rent and wait it |
| of rental properties, especially the condominiums | | | | out to see what happens next. This means that |
| are owned by local thais and have been bought as | | | | occupancy rates, especially in the Sukhumvit and |
| an investment property. The vast majority of | | | | Silom areas stands at around 88%. This figure |
| Thais buy their properties, either investment or | | | | varies slightly from quarter to quarter but in |
| for residential purposes in cash, not using bank | | | | general, high quality apartments that are |
| credit facilities such as a mortgage. Indeed, since | | | | reasonably prices at market rent, continue to |
| the economic crisis of 1997, Thai banks have in | | | | enjoy 100% occupancy, for most parts of the |
| general been very over cautious when it comes | | | | year. With occupancy rates so high, it is no |
| to granting loans and home loans have been very | | | | wonder that prices aren't as flexible as one would |
| difficult to obtain. For a foreigner wanting to buy | | | | predict given the global financial conditions. |
| property in Thailand, while there are avenues to | | | | Finally, even considering the political turmoil which |
| facilitate this, the fact is that is very difficult, and | | | | has gripped the country in the last few months, |
| the interest rates are not too attractive. What all | | | | including the ridiculous closure of the main |
| this means is that property owners in Bangkok | | | | international airport, the number of foreigners |
| don't 'need' a tenant in their property as much as | | | | coming to Bangkok hasn't seen the huge |
| , say a property owner in the U.K. who has a | | | | reduction that was predicted. |