A recent local media report suggested that rental rates for one-bedroom condominiums in Bangkok could fall due to an oversupply of these types of units.
The report quoted one line from a comprehensive multi-page agency report, yet headlined the ‘one-bed’ decline as opposed to the overall findings which showed that rental rates in Bangkok were rising for the first time in 20 years.
But are rentals for one-bedroom condominium units in Bangkok likely to fall? This sector is arguable the most popular in Bangkok and developers, who certainly aren’t stupid, will know the market. They only build what they know they can sell, so any suggestion of an oversupply of these types of units could be wide of the mark.
I know a good number of Thais who rent in Bangkok during the working week and commute upcountry to their natural home at weekends and holidays. Thai investors too like this sector. They like to buy units and keep them.
Why the media in question chose to go with the headline about one small aspect of a long report is beyond me. The better story, which we published on DDproperty.com, is that rentals are rising across the board – and that has to be good news for all investors.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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