Does the Current Economic Crisis Spell Cheaper Rentals in Bangkok, Thailand?
With what is happening in the world economically, we get a lot of enquiries from people expecting that rental rates here in Thailand will drop/have dropped and that it’s now possible to live in a 500 square meter detached house with private pool for 50,000THB per month. Well, fact of the matter is that the residential leasing market here in Bangkok has not been affected in a very large way, especially if you compare it to what’s been happening in the West. Whether it will get to that stage is up for grabs but I seriously doubt it. ‘How is that possible?’ I hear you cry, and here I give my explanation. Firstly, one needs to remember that the majority of rental properties, especially the condominiums are owned by local thais and have been bought as an investment property. The vast majority of Thais buy their properties, either investment or for residential purposes in cash, not using bank credit facilities such as a mortgage. Indeed, since the economic crisis of 1997, Thai banks have in
