The Property market in Thailand and particularly in Real Estate in Bangkok does not react the same way as it does in Western country, such as the US & UK. Prices do not rise as fast in general and on the flip side, they also rarely collapse (exceptions to this have been the early 1990’s and of course 1997) when prices did alter considerably. However the pattern is a lot more stable than it is in the UK and US and a lot of that is due to the fact of the different fundamentals of the Bangkok Real Estate market, and the key factors are:

1. In the West we generally borrow most of the money to buy properties from the bank
2. In Thailand owners and investors in Thai property are generally cash-rich, they don’t need to borrow most of the money from the bank, and have often bought the property with 100% cash.
3. In the West we understand market movements, we understand that property prices rise and fall, and therefore the property market is full of a lot more speculators than in Thailand.
4. Thai Real Estate investors are in it for the long-term. With Thai Baht difficult to move out of Thailand and the SET in its infancy and unstable, then there are few options for Thai investors to broaden their portfolio. Bangkok Real Estate therefore becomes a very popular choice.
5. Thai property investors on Bangkok or elsewhere are in it for the long-term. They know the market will rise as land in key locations becomes scarce and therefore are happy to invest in Bangkok condos and townhouses that may just increase 5% p.a. on average over a 10 year period or more.

So in answer to the question of how the Bangkok property market is coping in this climate, then we have to look at the mentality of the Bangkok property owners and investors. They are not looking necessarily of a short-term gain, and so they are not fazed by a few problems in the near future. So when the Red-shirts encamped in the Rajaprasong area there was no knee jerk reaction. There was no mass fire-sale or drop in prices, and even the Bangkok rental market has remained pretty stable.

The owners have sat tight, knowing that the market, and the political situation will eventually right itself. The current political situation has been dragging on for a number of years, even before the political coup in September 2006, there had been murmurings of discontent from various factions. But against this back drop Thai people continued to invest in Thai property and in some years between 2006 ~ 2009, the Bangkok property market saw double digit gains.

With this memories in mind, most investors and owners I have spoken to in the last few weeks, have been speaking with relative confidence about the market. There is very little of the fear and anxiety that the Western media would like to depict in Bangkok.

For those looking to rent in Bangkok, there is some good news though, and it is not really due to the political crisis in Thailand, but more to do with the recent increase in supply of condos in Bangkok.

As anyone who has been living in Bangkok in the last 3-5 years will tell you, and anyone who has followed the Bangkok real estate market developments, there has been an increase in condos, apartments, townhouses and service apartments along side the BTS & MRT lines. This has meant that supply has recently been greater than demand. And whilst most Thai condo owners and apartment owners in Thailand have been sticking to their guns and not reducing prices too much, so of the smarter Bangkok landlords and landlady’s have been taking advice from Bangkok property agents and have reduced their prices to suit market demand.

We have seen prices for condos in Thonglor, apartments in Phrom Phong, townhouses Sukhumvit and properties in Sathorn all reacting to the change in the market fundamentals. With reductions of between 10-15% we can hardly call this a fire-sale and any sort of panic reaction, but it is better news for those looking to rent in Bangkok, and is a trend that looks like it will last a lot longer than the redshirts in Rajaprasong district.

So should you be scared about renting in Bangkok at this time? Well the simple answer is no! As a foreigner the redshirts are not interested in us, in fact they want our approval, they certainly don’t want to upset us. And this is the same of any of the other factions, they want the outside world to recognize and sympathize with them, so it is not in their interests to involve foreigners in any negative way.

What the future holds for Thailand on a broader political scale is difficult to say and I ma far from a political expert or analyst, but as for how it effects the Bangkok Real Estate will be more up to the attitude of the landlords and investors of property in Bangkok and Thailand. The Thailand real estate market, is here for the long term, it is recognized by many Thai’s as a great way to take advantage of capital growth. And as long as it remains difficult to invest outside if Thailand for the average Thai person, then the Thailand Real Estate Market and in particular the Bangkok property market, will remain attractive and therefore buoyant.

If you are a foreigner looking to invest in the Bangkok property market, this may be a good time to do it, as prices are perhaps currently relatively stagnant, but don’t expect any fire-sales or the bottom falling out of the market, as Thai property investors are not in short-supply and in the long-run they know the Bangkok Real Estate market is cheap compared to close neighbors like Hong-Kong and Singapore.

They also know political crisis are part of the make-up of Thailand and will come and go as they always have.

A Property in Agency in Bangkok cannot only save you time, save you money, offer you the peace of mind and the security you crave in the new city and country that you are not familiar with like the Real Estate Market in Bangkok, Thailand. And in addition you are offered expert advice from professionals very familiar with the Bangkok property market and with their fingers on the pulse.

However there re even more advantages from dealing with a Bangkok Real Estate Agency, and these will be discussed below:

1. Depth of Knowledge & Skills. Of course any respectable and established Bangkok Property Agency should have a large and frequently updated website which you can use like www.easyhomes.tv or www.mrroomfinder.com to find Bangkok condos or apartments in Bangkok with ease to view and enquire about. However the Bangkok property market like the real estate market in any city is a constantly changing entity. For example a Sukhumvit condo for rent at 9am in the morning may be not available by 10.30am as a client saw the unit, was seen and taken at 10am. However if the Bangkok Real Estate Agency is well established and has a wide and deep coverage of the Bangkok property market, then they should not only the Bangkok condos, apartments in Bangkok and Town Houses etc that they have on their websites, but also they should have a whole host of Bangkok Houses, Town Houses, apartments and condos off-line as well.
   
   

   On a regular basis we will have clients call us for properties that have seen on our website and ask to see them. Many times, upon seeing the unit specified the client decides that is does not quite suit their needs for whatever reason. This is when a Bangkok Real Estate Agent with knowledge and skills becomes invaluable. The Real Estate Agent should then have a good knowledge of Bangkok and then can advise and tailor the meeting to suit the needs of the client. Here at EasyHomes Property Service Co., Ltd. we pride ourselves on being able to help the client find the property that suits them directly, and not just trying to ‘sell them something off the shelf!’
   
   

   This type of knowledge and assistance can help in some many ways, remember a good quality Bangkok Property Agent will pride themselves on their knowledge. They will have received months of training and developed years of experience in dealing with anything from apartments in Sukhumvit, to condos in Silom to Townhouses in Ratchada or Detached Houses in Bang Na. The bottom line is that the experience, knowledge and expertise will be there.
   
   

   And again don’t forget these people are to help you, a good quality Real Estate agent in Bangkok will have your interests at heart, so use their skills, knowledge and experience to make you life easier. Why should you spend hours trailing all over Bangkok looking for the perfect property, when you can get Property Agent to do that all for you at no cost to yourself?
   
   

   For example if I want tailor made suit then I go to a quality recommended tailors in Bangkok, I don’t sit at home on the internet downloading endless instruction manuals on how to cut my own suit. Then spend hours and hours traipsing around Bangkok material shops trying to find the correct materials. Instead I would consult with an expert and get them to do it for me. Why? Because I am no seamstress or tailor and to become ones would take me months if not years of work and training, and for what? A one-off deal or at least a rare one.
   
   

2. Negotiation Skills: In Hollywood each and every actor and actress has an agent who works for them to get them the deal they want. In the Premier League in England every footballer has an agent work for them to get them the deal they want. Very rarely these agents work exclusively with an actor, actress or football player. More often than not they work on behalf of several clients at a time. So why not be like a Hollywood or football star, and use a qualified Bangkok Real Estate agent to get the deal you need?
   
   

   While Leonardo Di Caprio’s agent is off negotiating with Universal Studios about his next movie, he can concentrate on his current job and acting skills. Whilst Fernando Torres’ agent is off negotiating with Liverpool Football Club about an pay increase or contract extension, he can concentrate on the next Premier League match and his training.
   
   

   Why not be the same as them? We are all specialists in one way or another, so whilst you’re concentrating on your specialized skill why don’t you let your Bangkok Real Estate Agent concentrate on getting the best deal for you?
   
   

   Whether you are an English teacher in Bangkok, a business owner here in Thailand, someone who has decided to take early retirement to live in Bangkok or someone who has recently taken contract up with an international company to work in Bangkok; you cannot be expected to be an expert at what you do AND be Thailand Real Estate Expert.
   
   

   Just a Real Estate Agent in Thailand, probably knows little about Real Estate in Australia, Japan or Dubai.

So there is no need to try and be all things and to waste your own time, just contact a respectable, established and trustworthy Bangkok Real Estate Agency and or Property Agent in Thailand, and let them to the work for you…it won’t cost you a thing!

Around the world we are knows by so many different names, so to relate to Bangkok we are known as Bangkok Real Estate Agents, Bangkok Property Agents, Bangkok Real Estate Brokers, or just plain Bangkok Estate Agents, but we all do the same job the world over. We find you suitable properties and help you arrange a deal to Buy or Rent a property. Or if you are an existing owner we help you Sell or Lease out your property.

But why use a Real Estate Agent in Bangkok, how can they help you?

The reasons for using a Property Agent in Bangkok are numerous, but let’s just look at the main reasons here.

1. Saving you time: Walking around Bangkok looking for Property can be a hot and exhausting experience. Going to one condo or apartment to the next can often be an exercise in frustration and can make even the most patient person angry! Each and every condo or apartment in Bangkok will have its own rules, regulations and style of dealing with walk in clients, and not all are super friendly. We have had clients in the past come to us and tell us how they had been home hunting in Bangkok themselves and had just been hitting brick-walls at every step, that is why they have turned to us. I always tell clients it really goes down to how much you value your own time and to certain extent sanity. Many of our clients will be looking for a property in the region of 20 000 – 50 000 Baht/month to rent, and so will be on comfortable incomes at their place of work. Therefore it is far better for them to spent their time doing what they do best and earning themselves more money, then be traipsing all over Bangkok getting angry and frustrated and achieving nothing or very little.
   
   
2. Expert Advice: If you go to a reputable Bangkok Real Estate Agency, one that has been established for a few years and has professional and hardworking staff, then you will be helped with expert advice. Whether you new to Bangkok or Thailand or whether you are a well established expat in Thailand, the chances are that if you don’t work in the Thailand Real Estate Market then you will not be aware of every law or movement or market variable in Thailand’s property market. It is important that if you are making a transaction, whether it be for a contract to rent in Thailand or to buy property in Thailand, then you are aware of all the latest details involved in and transaction. Thailand is a country that often changes its rules and regulation to suit the latest government stances and these can change often and overnight. If you are not aware of them they will catch you out, and with large sums of money at stake with any Bangkok property agreement you don’t want to be left with egg on your face. Landlords will not always reveal all the details of the deal to you as it may not be in their interests or they may have difficulty communicating with you, so having a reliable bilingual or English speaking Bangkok Property broker there to help you can make sure that the deal is 100% understood by both parties.
   
   
3. Peace of mind: Again whether you are new to Bangkok or an seasoned expat in Thailand the chances are that when you eventually agree to Buy or Rent a property in Bangkok, you will be meeting the existing landlords or landlady for the very first time and what is why you will want an well established trustworthy Bangkok Real Estate Broker there to help you negotiate the deal. Also then this offers you another fall-back. If you have chosen a respectable, reputable and established legally registered Bangkok Real Estate Agency, then you will have some sort of legal security. At the very least they will have a registered office where you can go to complain about the serviced you have received if you do not feel you have been treated fairly. However one quick word of caution is that you should never use a free-lance Real Estate Agent in Bangkok, as this will give you no protection at all. Please read more about this in the below previous Bangkok Property Blog:

   
   

   http://www.easyhomes.tv/blog/rogue-traders-in-the-bangkok-real-estate-market/
   
   

4. Can save you money! Ok I know this reason will be the one that you will think is the most unbelievable. I mean why would a Real Estate Broker in Bangkok want to save me money? I mean they are there to make money out of me aren’t they?

Well this is a sort of Yes and No answer. Yes by serving you correctly that is how we make money. You are our client and when you use our services fully and complete a transaction with us of course we make money, which is the same in any Service Industry anywhere in the world not just in Real Estate in Bangkok. However the answer is also No, because even if you are looking to rent an apartment in Bangkok or buy a condo, or perhaps rent a Bangkok Townhouse, we want to help you succeed and be happy. We want you and the Landlord or Seller to be happy, and as long as both are truly interested in doing a deal we will help you find common ground where both parties feel they are happy! A reputable Bangkok Real Estate Agency, will not be looking to rip-of their client, over charge Clients or make bad deals fro Landlords or Sellers either, after all with so many competitors in the Bangkok Property Market, we live and die by our reputations, so aim to please all out clients no matter how what level of deal is being operated on. Repeat business and word-of-mouth is certainly something we ar EasyHomes Properry Services Co., Ltd. value and pride ourselves on receiving.

Therefore we will try to get you the best deal possible so that you can recommend us to friends, colleagues and acquaintances. We often know the landlords that we introduce you to very well and we know how the Bangkok Property Market works, so we can use this knowledge to cut a deal that is good for both parties.

So how to Bangkok Real Estate Agents get paid?

Well unlike Real Estate Markets in other part of the world, in Bangkok we get paid by the Landlord or Seller, the client does not have to pay one extra Baht. Whether is be a Bangkok Rental or a Thai property purchase we will be paid in the exact same way, and the landlords will know that, so no surprises will await you as the client later.

You would think then it is in our best interest to boost prices and add on margins. Well although I have heard rumours of some disreputable Bangkok Property Agents doing that, I have know that at EasyHomes we will never practice such a procedure…why would we? It is so easy for you as a client to find us out if we did. For example if a 1br at Bangkok Condo A was priced at 20 000 Baht/month to rent and we told you it was 23 000 Baht/ month, then all you would have to do is call another Bangkok Estate Agency and enquire to the price they offer. When you found out that most of the 1br units in that building rent for 20 000 Baht/month then not only would you be angry with us, but also probably tell others about your experiences.

Instead at EasyHomes we would not only tell you the truth that the Bangkok condo you enquired to rent was 20 000 Baht/month, but also we would try and get you the best deal possible and may be able to negotiated a 5-10% discount for you?

So as you cans see whether you are Buying a Property In Thailand or just renting a condo in Bangkok, a Bangkok Real Estate Agency can not only save you, time and effort, but money too and give you the peace of mind to allow you to live in your new Thai property in comfort.

So you want to rent a condo or apartment in Bangkok. So how do you go about it? Who do you ask advice from? Who is offering you a good deal? Is the landlord trustworthy? Will you get your rental deposit back?

Lets answer the above questions one at a time with good and bad example of renting in Bangkok.

So how do you go about it?

So you have just arrived in Bangkok, or perhaps you have not even got here yet and are just looking at the Bangkok Real Estate market on the internet. Perhaps you have been to Bangkok before on holiday, or perhaps you have a friend already living in and renting in Bangkok to help you. Any of the above could apply to you, and hopefully this blog article will help explain or at least reassure you of the common practices for renting a condo or apartment in Bangkok.

First of all let’s explain the differences between a Bangkok condo and a Bangkok apartment, as the two are technically not the same. One can be bought, rented and leased out, whilst the latter can only be rented or leased out.

There are of course quite a few other technical and detailed differences, if you want to know more about which one appeals more to you and why then please go to the previous Bangkok Property Blog article which goes into far greater detail:

The Thailand Condo Vs the Thai Apartment – Confused?

Ok so assuming you have read the above article and that you are familiar with the differences between Bangkok condos and Bangkok apartments then let’s look at the payment terms of renting in Bangkok.

Fortunately payment terms for renting a condo in Bangkok or for to rent an apartment in Bangkok are the same and also standardized throughout the city. And they are:

1. 2 Months Deposit
2. 1 Month Advance

So a total of 3 months, so a simple example is that you want to rent a condo or rent an apartment in Bangkok for THB 20,000/month then you must give the landlord THB 60, 000 up front. Then after that you only have to pay another 11 months (on a year’s contract) or another 5 months on say a 6 months rental contract.

This is basically the how the financials work in the Bangkok rental market and people who tell you otherwise should be viewed with suspicion. I can guarantee that is you were to call 10 reputable Bangkok Real Estate Agents after reading this blog, then you would get 10 Bangkok Property Agencies telling you the exact some thing.

Who do you ask advice from?

Well of course we would be delighted if you asked advice from us here are EasyHomes Property Services Co., Ltd. We could certainly not only offer you free professional advice, but we could also help you find a property in Bangkok at no cost to yourself. In Bangkok property agents do not charge viewing fees and there is no cost to you the client at all, our fees are paid for in the form of commission from the landlords in Bangkok whom we work with.

Our advice in general though would be to approach a reputable, established Real Estate agency in Bangkok. We do not recommend that you try and arrange a deal thorough a well meaning friend or worse still or a freelance property broker here in Bangkok, as we have heard some nightmare stories. Please check out the blog below about such ‘rogue’ traders who pray on expats new to the Bangkok property market.

Rogue Traders in the Bangkok Real Estate Market

There are plenty of quality national or international Real Estate brokers in Bangkok who can deal with clients from budgets of THB 10,000 or over so there should be no need to contact free-lance property agents or unprofessional brokers in Bangkok.

Not only will an established Bangkok property broker be able to offer you more security and knowledge, but given their established relationships with landlords they should be able to negotiate you a better rental contract than you could get yourself.

Who is offering you a good deal?

Well of course like any deal or negotiation every deal is unique and there are so many variable to one that it is impossible for me to judge on individual deals in this blog. A Bangkok condo or apartment may have a better than average view of Bangkok city center, it may be in a particularly good condominium building or the amenities in the Bangkok apartment block in which unit you choose may be unsurpassed. What I can tell you though is that I have met dozens if not hundreds of people in Bangkok whom tell me they have the best Bangkok rental deal in town, only to find out where they live and on 99% of the occasions it turns out to be no better than an average deal. In a free market economy like the Bangkok Property Market, you usually end up getting what you pay for.

However you will enhance your chances of getting a good deal by using the knowledge, help and expertise of a Bangkok Real Estate agent.

For general rules of thumb though here is a rough guide to rental prices on Sukhumvit road, the most popular are in Bangkok.

For Condos for Rent on Sukhumvit:

1. Grade C or below – THB 200-300/sqm/mth
2. Grade B – THB 350 – 500/sqm/mth
3. Grade A – THB 600 – 800/sqm/mth

For apartments for rent on Sukhumvit:

1. Grade C or below – THB 150 – 250/sqm/mth
2. Grade B – THB 300 – 500/sqm/mth
3. Grade A – THB 500 – 750/sqm/mth

As you can see Bangkok apartments are generally cheaper than condos in Bangkok, but of course this is a very rough guide and so many variables such as age of buildings, maintenance levels, location, amenities & facilities will all come into play. As will of course the styling of the building and the units within.

And what of the Grading of these apartments in Bangkok or the condos highlighted above. Well mainly they will be more obvious upon visiting the property, but if you are not sure ask your real estate agent for advice.

Is the landlord trustworthy?

Well to be quite honest when you are meeting a person for the first time or renting a property it is difficult to know. There are of course smiling assassins in this world. However if you are working with a trusted Bangkok rental broker with an established company and reputation, then they should know the landlord/ landlady, and by definition should not be recommending them if they are not.

Will you get your rental deposit back?

This is in many ways the easiest to answer.

If you have taken good advice and have chosen an established and reputable property broker, then the answer should be an undeniable ‘Yes!’ as long as you stick to the terms of the rental agreement.

If you do not choose a reputable real estate agent, and or you do not stick to the terms of the rental agreement you have signed, then it is impossible to answer, and I would often urge on the side of caution and say ‘Don’t expect the rental deposit back!’

An oversupply of condos in Bangkok would be a reason to stop buying condos in Bangkok, as the Bangkok Real Estate Market becomes awash with new condos for rent and sale.

So what are the figures and how can we draw this conclusion about the Bangkok condominium market?

Well even as early as February 2008 Bangkok Real Estate Market Analysts where remarking that the supply was becoming too great. With a total residential demand in the Bangkok property market of between 66,000 – 80,000 per year in all types of residential property in Bangkok. Which includes Town-Houses, Detached Houses and various other low-rise developments, that do not include condominiums in Bangkok.

However given this rate of supply there were in fact 80,000 – 90,000 condominium units launched in 2008, which in 2010 will come to completion and be launched on to the market. This of course will be in addition to all the other existing condos in Bangkok that are currently unoccupied.

One does not have to be a Bangkok Real Estate expert to deduce that the figures do not add up, and the increased supply of condos on to the Bangkok market cannot be met by the demand of the residents of Bangkok.

In July 2009 the Thailand Business News released an article stating that in deed not only was the demand cited in 2008 was too low for condos in Bangkok, but that also the general demand for condominiums was in fact on the decrease with more residents of Bangkok seeking alternative forms of property such as Town Houses or Detached Houses. In fact companies like Preuksa and Property Perfect released statements claiming that they would be releasing less condos in Bangkok than they had previously planned.

Of course there are developers who have bucked the trend of launching condominiums in Bangkok, Asian Properties (AP) being one such company. Ironically AP has long been known for building some of the best Townhouse and Detached House developments in Bangkok. One of Thailand’s leading English language newspapers, The Nation, reported in May 2009 that AP had decided to launch 12 new residential projects in 2009 and 7 of them where to be condominium projects.

In the autumn of 2009 AP launched The Address Sukhumvit 28, The Address Sathorn, The Address Phayathai and The Address Asoke. These projects are mainly located to existing BTS stations in Phrom Phong and Surasak and in addition are also located near the new Airport Link stations on Makasan and Ratchaparop which will allow residents easy access to the Suvarnabhumi International Airport. The Address brand is a high-end Bangkok condominium development and attracted a lot of the high-end property market whom were willing to pay over THB 100,000/ sqm for a condominium in central Bangkok.

In fact the most expensive of these Bangkok residential developments was The Address Sukhumvit 28, which was being sold at an average price of THB 150,000/sqm. This condominium development sold 85% of its units in the first pre-sales weekend!

In addition AP has launched 10 ‘Life’ branded condominium developments spread all over the city center. Also located near BTS and MRT stations these properties have offered a slightly lower level of development aiming at the mid-end market. But with an average of 500 units per building split into Studio, 1br and 2br units that makes about 5 000 units hitting the market over the next 2 years from this brand alone. And with the new Address units incorporated into the market, the Bangkok property market can expect see and increase in Bangkok condos from AP to the tune of 7,500 – 8,000 units alone!

So why are people buying these Bangkok condos?

Well many are buying multiple condo units, with investors buying as many as 10 a time in some buildings in Bangkok. But if they are buying them for speculative purposes to ‘flip’ them at the time of transfer then they are playing a very risky game, as we know that the demand is not meeting the supply of units, and this demand is often including the speculators.

The other reason is for the buy-to-let market, but again this indeed is a risky game. The only people in large numbers that rent condos in Bangkok are foreigners or expats. And there are just not that many expats in Bangkok that can afford to pay THB 25,000/month or more for a decent sized and located unit.

So there look like there will be an awful lot of Bangkok condominiums left unoccupied on the market however stylish, well located or attractive they are.

So our advice?

Stop buying new condos in Bangkok!