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Offices, Condominiums and Apartments

Hi. I’ve been doing its job a real estate agent in Bangkok since 2006. In that time I have observed some changes, but surprisingly almost no has changed. Let me explain.

Apartment Rental Prices Bangkok 2008 – 2018

Rental prices of many apartment buildings have raised very marginally within the last 10 years. Whereas a spacious 3 bedroom apartment in Sukhumvit area could have cost 70,000 Baht decade ago, it is you 85,000 Baht today. That’s only a 20% increase over decade, actually a great deal less than inflation, plus many ways a condo is cheaper now than a decade ago.

Why? It’s difficult to mention but I would estimate that ongoing political problems, 2 coups, as well as a pretty stagnant economy barely kicking at around 3% increase in GDP each and every year are the reasons. This degree of growth can be acceptable for a global leading developed nation, except for Thailand that (after all) is still equipped with some way to get in terms of development, it isn’t very good.

The apartment rental market in Bangkok is usually governed by expats. Thai folks don’t rent at these prices, either they do not earn enough, or are sensible enough to acquire a property inside the suburbs, or are area of the immensely wealthy elite and already own several blocks in central Bangkok. As the quantity of expats has always been fairly constant, so have housing costs.

Newly built condominium buildings have noticed a rise in the cost of rent, there will always be half the normal commission of people who adequate budget and just want to live somewhere very new, something is specially true of Japanese renters, even so the new buildings can be old as soon as they are already constructed and also a rental price continues to be established, you will see that the price will remain relatively stagnant after that.

This is in fact the same with condominiums available for purchase. Once a building has finished construction, a sales price and rental costs are established, and will also remain stagnant with this level for years.

But prices are actually increasing in Bangkok, everyone understands that!! So am I wrong?

Condominium Sales Prices Bangkok 2008 – 2018

I don’t believe I’m wrong. There are some condominium buildings which have experienced an incredibly good amount of capital appreciation recently, but “on average” they haven’t.

Yes, prices have already been increasing significantly in Bangkok, which is something that developers will happily promote to your account when selling you their new project. They will provide you with graphs through an upward trend in prices, and explain to you that price is increasing no less than 5-10% year on year.

Prices of fresh buildings are actually increasing a 5-10% year on year, although not completed buildings.

This is mainly down to increases in land prices. As land prices increase (also to some extent construction costs) so have the price tag on new buildings. So new buildings get increasingly expensive, but you are completed buildings following suit?

No. And this is the reason why I’m not wrong. A building that cost 150,000 Baht/sq.m. five years ago, may now simply be 160,000 Baht sq.m. In this example around 1.5% compound growth. This building was completely new 5 years ago, plus a brand new building today still under construction might run you 200,000 Baht/sq.m. and that is 33% greater than the new building was 5yrs ago, hence the 5%++ compound growth.

But the fact remains, the dwelling that YOU purchased 5yrs ago may have raised only 1.5% compound a year.

This could be the ongoing trend with Bangkok property. New buildings constantly set new benchmarks in prices, after which remain a similar. With even newer buildings adding a layer ahead, setting new benchmarks, then remaining at the identical level. Even newer buildings still, just keep adding another layer on the top.

This is the reason why you will find such huge price discrepancy between buildings, even though they are located right next door to one another. An example could be Lumpini 24, a different condominium situated on Sukhumvit Soi 24, where prices will fetch around 250,000 Baht/sq.m. So, a 60 sq.m., tiny little 2 bedroom unit costs around 15,000,000 Baht.
Immediately to your neighbors is an older condominium called President Park, where prices have remained stagnant about 60,000 Baht/sq.m. So, an exceptionally spacious 3 bedroom unit of 260 sq.m. will run you around 15,000,000 Baht.

Four times bigger, located immediately to your neighbors, though the same price! So the old adage “Location, location, location” doesn’t apply here. It is ONLY in accordance with the age of the structure.

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Buying a Condo in Downtown Toronto

Condos in downtown Toronto are invariably in high demand and may be sold to find the best value by using an experienced condo specialist team. If you are serious about buying or selling a downtown Toronto condo, this is because condos are particularly appealing to working professionals, executives and real estate investors.

The price to get a prime resale condo in downtown Toronto ranges from $700 – $800 per square centimeter (resale condominiums). For a pre-construction, luxury condo in downtown Toronto, the purchase price per feet square is between $850 to $1,000 per square foot, and is also even higher for just a super luxury building such as projects like the Four Seasons residences, One Bloor Street and The Trump Tower. Downtown Toronto condos near to the University Line TTC Subway stations (Yonge-University Line) are certainly popular as well.

Toronto comes with a safe haven to condominium buyers who look to invest their in a stable environment. There are lower interest levels, low unemployment rates, and strong economic rise in Toronto. However, before you purchase a condo in downtown Toronto there’s a lot that you should know.

Downtown Toronto Condos – Prices in 2018

Everywhere you peer in downtown Toronto, you will discover construction cranes and constant development, but finding a flat to call home has become increasingly more difficult, and expensive, for just a legion of desperate renters.

Urbanation, a genuine estate firm, recently compiled data to demonstrate rental costs have spiked in tandem that has a sudden supply shortage. According to Urbanation’s annual report, monthly condo rent from the Greater Toronto Area has risen 9 per cent inside fourth quarter with an average cost of $2,166. The average monthly price was even steeper in downtown Toronto at $2,392. But it also appears that individuals are renting condos using a more long-term basis, and also a large number of construction projects remain incomplete, leaving fewer units on the market to renters.

Urbanation’s Key Findings

Per-square-foot rent has risen by 5.8 % to $2.93, marking a slower rate of growth than previous quarters on account of compositional changes from the shift in activity on the suburbs. The number of units leased from the fourth quarter fell 11 % annually as listings dropped 16 percent. Supply may be weighed down by low condo completions and reduced rental turnover rates. The average amount of time between lease transactions has risen to a a lot of 23 months. The share of units leased through companies rather than individuals was 10 per cent inside the fourth quarter. Rents for available purpose-built units built since 2005 grew 10.8 percent, with vacancy of 0.3 per-cent, and rental development increased to your two-decade most of 7,184 units under construction. With an 11 per-cent increase, the normal cost for just a studio condo is currently $1,665. To rent a one-bedroom condo in Toronto would cost $1,847. Rent increases by $644 for just a two-bedroom apartment and increases further to get a three-bedroom apartment, which costs $3,663.

“Lease activity declined in 2017 to 8.3 %, the lowest level of condo rental turnover since 2013,” Urbanation said. “Lower condo rental supply in 2017 emereged as the result of an increased share of units resold as investors took selling point of quickly rising condo prices, together with a decline in new project completions with a four-year low.

“At one time, high rent levels and new rent control regulations are leading tenants to advance less often, further reducing available supply.”

But Urbanation believes these drastic supply issues will undoubtedly push developers to keep building new developments at the faster pace.

“Persistently strong rent growth throughout 2017 was fundamentally the result of demand fundamentals for renting far outweighing supply” said Shaun Hildebrand, Urbanation’s senior vp.

“This has raised the confidence of developers to incorporate more units for the pipeline, a trend that could need to carry on in order to meet future housing needs to the GTA.”

How to Save using a Condo Rental in Downtown Toronto

It sounds obvious, though the number one approach to saving on an apartment rental in downtown Toronto would be to know that you want to live. Toronto comes with a wide range of neighbourhoods, each having its own unique characteristics and drawbacks, particularly if it comes to affordability. Knowing which Toronto neighbourhood that suits you and could afford to are now living in will save you time!
Given your competition caused by the high need for condo space, calling ahead and getting a quick talk to the listing agent before hand can create a helpful connection. Being flexible along with your availability for viewing times is additionally beneficial for the overall search.
Be completely honest together with your rental agent. Tell them the genuine reason for the reasons why you decided to leave your last place or details of your wages. When you are considering dealing with your chance agent or landlord, these are your representative, hence the more they do know the better they’re able to present a clear picture individuals as a tenant.
An ideal minimum credit worthiness is 680. If your credit worthiness or your employment status is probably going to hurt your rental application, see whether there is a person that can cosign to suit your needs, just like a parent/guardian or perhaps a friend. If a cosigner will not be an option, sometimes offering several months’ rent beforehand can help provide landlord confidence inside your ability to carry the price of rental.
As general rule, exactely monthly rent to monthly income should ideally not exceed 33 percent.
Applicants with long-term employment for a company get preference over newly employed people.
Landlords prefer single occupants for any one-bedroom condo, with no more than two occupants for two-bedroom condos which is commonly belief that more tenants causes more deterioration.
Most landlords possess a no pets rule for his or her units, and this also could be a deal breaker if tenants elect to disclose their pets. Although the Residential Tenancies Act does void a “no pet” provision, a landlord can refuse a package if a tenant mentions their pet.