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Thailand Property Price Rental Index 2023
Published October 7, 2023
Updated October 21, 2023
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Thailand rental property is gaining momentum in 2023. Thailand's real estate industry comprises 10% of GDP towards the economy. Two-thirds of the property market resides outside the capital city of Bangkok. Where spacious lands and homes trump crowded high-rise condos. From 2018 to 2022, low-rise housing permits climbed from 57% to 65%, catering to demand for affordable homes in Thailand rental property market.
Now, economic revival propels the provinces into overdrive. Across many islands and charming second cities, once overlooked markets leap ahead as investors chase rental yield and renters seek different lifestyles. But can supply keep pace? With non-Thais restricted from owning property, how can developers unlock demand? The data reveals a complex representation of risks and rewards beyond Bangkok's borders. Let's dive into the key trends, opportunities and challenges shaping Thailand rentals property resurgence in 2023.
Table of Contents |
Overview Thailand Rental Property Outlook 2023
In Bangkok, condo rentals slowed with Q3 volumes down 10% and average prices hitting 119,000 THB, indicating budget-consciousness renters in Thailand property rentals market. In contrast, the islands of Koh Samui and Phuket saw a rental rebound. Rental condos in Phuket leads doubled from Q2 alongside surging villa deals over 1,00,000 THB. Pattaya presented similar trends, with 332 condo rentals but rental houses averaging 1,00,000 THB. Provincial cities tell varied stories - Chiang Mai condos for rent lag at 15,000 THB average rental price but houses hit 226,000 THB average rentals, showcasing money inflow.
Across main regions in Thailand. In Phuket, the Chinese and Europeans drive demand, snapping up entire buildings or whole floors for condo developments in Phuket. Pattaya saw more economical rental purchase, with condos averaging at 29,922 THB. While Bangkok contends with condo overcrowding, second cities offer affordability. Developers pivot in response - large national developers such as Sansiri, AP Thai, Supalai are targeting condos in provincial capitals while boutique developers build open-space villas.
Trends Analysis of Thailand Rentals Real Estate 2023
Thailand rental property market is well-known for two major reasons. High-rise condos in Bangkok with amazing views and infinity pools. Secondly, open-space villas on the island of Phuket and Koh Samui overlooking the calm beaches and the warm white sands.
But what happens inside the market trends? We need to understand how landlords market their rental property price depending on seasonality or depending on Thailand macroeconomics outlook? On the other hand, what trends are renters looking for in the property they wish to rent either in Bangkok, Phuket, or Chiang Mai.
We break 6 major regions in Thailand by discussing Bangkok rental market of high demand with 1-bedroom condo units. To oversupply in Bangkok condo rental market because of the disruptions happening with COVID. Secondly, Phuket and Koh Samui villa rental market is gaining momentum and showing an upward trend. Thirdly, how Pattaya rental condo market is attracting Chinese buyers for investment reasons and how the EEC (Eastern Economic Corridor) is shaping the real estate market in Pattaya, Chon Buri. Lastly, Chiang Mai rentals condo market is focusing on digital nomad moving to Thailand.
Bangkok Property Rental Market Demand 2023
FazWaz real estate data insights reveal a slowing condominium market in Bangkok during economic uncertainty. Total demand of condos to rent in Bangkok dropped over 10% from Q2 to 156 rentals condo inquiries in Q3 2023. The average rental deal value declined as well to 117,730 THB, 23% lower than the national average. An indication that more economical buyers in Bangkok, focused on smaller, affordable condo units to rent for 2023 and looking ahead to 2024.
Search Your Bangkok Rental Properties Now!
Location data underscores a shift away from the city center. While established districts like Sukhumvit saw 30% rental leads, emerging outer regions like Phra Pradaeng and Min Buri accounted for over 20% of demand. Developers need to re-strategies their focus towards Bangkok's suburbs rather than the crowded city center around Siam and Sukhumvit districts.
Bangkok Property Rental Market Supply Q2 - Q3 2023
In Q3 2023, massive condo listing volumes like 4,417 units in Khlong Toei sat in contrast to slowing demand, with only 156 total condo leads. Sathorn saw condo rents dip from 46,128 THB to just 37,033 THB from Q2 to Q3. Meanwhile, outer regions with fewer listings like Min Buri saw rents sustain at around 60,000 THB alongside steady demand.
The data indicates affordability has become a major bottleneck. Average condo rents in Bangkok slid to around 20,000 THB, misaligned with average incomes. With vast supply across downtown neighborhoods, landlords are struggling to attract tenants at current rates. The outlook remains uncertain unless developers recalibrate towards smaller and more modestly priced rental projects. For now, Bangkok once rapacious condo demand has cooled rapidly in the face of extreme oversupply. You have a complete guide on Bangkok property rental market guide for 2023 here.
Phuket and Koh Samui Property Rental Market Trends 2023
In contrast to Bangkok, Phuket and Samui showcase robust rental demand, driven by tourism revival. Phuket saw 67 condo and villa leads in Q3, up 50% from Q2 showcasing its enduring popularity. Samui condo rental leads doubled quarter-over-quarter as its off-the-beaten-path allure attracts investors.
Villa vacations powered resurgent demand. In Phuket, villa rental deal values reached 1,400,000 THB, 4X higher than condos indicating surging ultra-luxury interest. Across both islands, over 60% of villa leads came from European source markets like UK, Russia and Switzerland seeking beachside privacy and indulgence.
The data suggests strategic opportunities. Develop luxury villa enclaves in undiscovered areas beyond crowded sub-districts of Patong and Chaweng. Target marketing to Europe, especially post-pandemic markets like Scandinavia and Italy likely of 4-bedroom villa nearby leisure and entertainment facilities in Phuket. For existing inventory, offer long stay discounts in low season to fill vacancies and boost rental yields. A complete guide on Koh Samui property price rentals of 2023 is here.
Phuket and Koh Samui Rental Property Supply Risks in 2023
Phuket and Samui have seen rental demand rebound robustly. Phuket registered 337 condo and 361 villa rentals in Q3, lifted by returning foreign direct investments and tourism. However, its over 700 total listings raises oversupply risks going forward. Samui paints a similar picture - strong demand with 63 villa rentals averaging over 200,000 THB, yet its 16 rental villa listings may soon saturate the limited market. For more information on villa and condos rentals in Phuket rental price index 2023, click here.
Drilling down, the data reveals location risks. Phuket hotspots like Rawai and Choeng Thale saw massive supplies of 199 and 275 villas respectively, vastly outpacing demand. With tourism projected to keep rising, developers risk over-building in crowded areas. Instead, they should pivot to underexplored districts and curate unique branded projects that attract elite renters. For islands reliant on tourism, ensuring the right supply mix across locations provides resilience amidst churn.
Search Your Phuket Rental Properties Now!
Chiang Mai Emerging Rental Trends
Chiang Mai emerged as a hidden gem, with rental leads growing over 15% from Q2 to 40 in Q3 2023. Condos saw 17 leads catering to younger professionals at 15,000 THB average rental values. But detached houses accounted for 23 leads at much higher average rental price at 226,000 THB, indicative of families and expat relocators seeking space.
The data reveals rents are still relatively affordable compared to Bangkok, driving migration north. Chiang Mai offers spacious houses to rent from recognized developers like Pruksa and Supalai for under 3,000,000 THB, almost 40% cheaper than equivalent projects around Bangkok price per square meters. Proximity to nature, family-friendly amenities and cost of living attract relocators.
However, condo oversupply poses risks, with nearly 2,800 units launched in 2022 leading to rising vacancies. Strategic opportunities exist in detached and townhouse projects for owner-occupiers, not investor-grade condos. Market globally to position Chiang Mai as a vibrant, liveable city to curb slowing population growth. The data shows that leveraging local lifestyle advantages and steering clear of overcrowded sectors can unlock future success. For an in depth guide on Chiang Mai rental demand and supply index 2023 click here.
Hua Hin Uprising Rental Market in 2023
On the supply front, Hua Hin saw 557 total property rental listings in 2022, with 349 condos rentals and 208 villas rentals. Condos carried a lower average price of 33,012 THB compared to villas at 45,701 THB. Geographically, Hua Hin City unsurprisingly accounted for most property listings with 142 condos and 75 villas. However, Nong Kae surfaced as an upscale district with 70 premium villas catering to premium rentals demand. Overall, the supply mix indicates a mature Hua Hin market able to serve both mid-market condo and luxury villa renters.
Transitioning to demand, 2022 saw 236 condo and 83 villa rental leads. Condos maintained a strong following among Thais with 31 leads averaging 518,000 THB. Meanwhile, villas attracted foreign interest, notably from Denmark, Australia and the US. Average villa rental deal values topped 2,200,000 THB, over 4X higher than condos, again evidencing two tiers of renters. While condo demand spreads across Nong Kae and Hua Hin City, villa rental leads are concentrated on the beachfront like Thap Tai. For landlords, the demand mix signals solid potential from elite foreign villa seekers alongside steady Thai condo interest. A complete story of Hua Hin property price rental demand supply of 2023 is here for your reference.
Pattaya Leading Beachfront Rentals Market 2023
Pattaya saw robust supply in 2023, with 1,512 total listings split between 1,223 condos and 282 houses. Condos in Pattaya for rents have an average rental price of 26,036 THB compared to houses at 63,242 THB. Geographically, downtown Pattaya accounted for most of the inventory with 887 condos and 171 houses. Surprisingly, outlying Nong Prue also saw substantial supply with 171 houses, likely newer developments. The ample listings across property types highlight Pattaya's push to attract both domestic and foreign renters.
On the demand side, Q2 and Q3 2023 brought 332 condo and 61 house rental leads. Condos maintained strong Thai interest, while houses saw foreign demand from Australia, UK and the US. Signaling budget-consciousness, condos averaged just 29,922 THB, almost 3X lower than the 9,900,000M THB average house rentals supply. Geographically, leads concentrated in the downtown and beachside neighborhoods as expected. With its listings skewed towards affordable condos, Pattaya seems poised to absorb rental demand from middle-class Thais and with the emergence of EEC (Eastern Economic Corridor) in the region. With the emergence of Thailand as a digital and technology hub of Southeast Asia, the government plans to make EEC the leading digital hub, manufacturing hub and supply hub for exports and imports. We can further explain how Pattaya will lead the rental markets from foreign demands for new jobs. Even domestic demand for moving into Pattaya. A complete guide on Pattaya properties rental price of 2023 to compare between demand and supply.
Renters and Landlords: What Should I do?
With all the supply and demand of Thailand property rentals in place. You have to decide on how to move forward as a landlord or as a renter. As a landlord it is best to think of maximizing your property to find the best rental price.
On the other hand, for renters you want to find properties in Thailand that are within your budget. But in areas where rental prices are not fluctuating.
For Renters:
How do you get premium properties to rent at an affordable price point? Here are two main trends and advice to look for in Thailand rental market of 2023.
As a renter in Thailand real estate market, you first need to understand your needs and preferences. Whether you're looking for a condo near-by Bangkok BTS station and with an infinity swimming pool overlooking the city. Or a relaxing private pool to rent villa in Phuket, or wallet-friendly condo in Chiang Mai, take the time to explore various options. Prioritize proximity to amenities, public transport and your workplace, if needs be. Additionally, inquire about the lease terms and negotiate where possible to secure favorable rental conditions, as secondly timing and seasonality is important. Which needs the second advice of understanding pricing and seasonality. We have listed on how to find cheap condos to rent in Bangkok for 2023 - 2024.
Thailand rental market often experiences seasonal fluctuations. Be aware of peak tourist seasons, which may lead to higher rental rates in popular destinations like Phuket and Pattaya. Conversely, consider taking advantage of discounts rental prices during the low season for April - August.
For Landlords:
To maximize the profits for your rental properties but also having great tenants in your property in these six competitive markets. Here are two main pieces of advice and suggestions to look for in 2023.
As a landlord, recognizing the diverse needs of renters is essential. Be flexible in tailoring your property to accommodate different preferences. Consider offering furnished and unfurnished options, as well as short-term and long-term lease agreements. This adaptability can attract a wider range of tenants and maximize your rental income.
Effective marketing is crucial in a competitive rental market. Utilize online platforms, local real estate agencies, and social media to promote your property. High-quality photos, detailed descriptions, and accurate pricing information are essential for attracting potential renters. It seems like a lot of work. To cut all the work down and to provide maximum marketing and reach. Use FazWaz platform to list your property for rental investments. Additionally, consider investing in professional property management services to streamline the rental process and ensure a positive experience for both you and your tenants.
Your Opportunities in Thailand Rental Real Estate
As we venture into the dynamic real estate landscape of Thailand for 2023-2024, it's evident that the property sector plays a vital role in the country's economy, contributing significantly to its GDP. While Bangkok remains a bustling hub, it's essential to recognize that the true gems of Thailand's real estate market lie beyond the city's confines.
List your properties on the FazWaz platform to reach a wide audience of potential renters, streamline your marketing efforts, and maximize your rental income.
Explore the diverse properties available across Thailand's regions on FazWaz to find your ideal rental, and take advantage of the insights shared in this article to make informed decisions.
As Thailand's real estate market continues to evolve, informed choices will be your key to unlocking the incredible opportunities it has to offer. Whether you're a renter searching for your dream home or a landlord seeking to optimize your investments, the future of Thailand's real estate market holds promise for those who are well-informed and proactive.