Condos Erode Thailand’s Traditional Rental Market
Traditional apartments and lodging houses in Thailand are facing decline as renters migrate to more secure, amenity-rich condominiums. This shift threatens the profitability of what was once a lucrative investment within the rental market. The trend is most evident near universities and industrial parks, where tenants prefer the security and modern facilities of condos despite higher rental costs.
In the past, constructing small apartment blocks near educational and employment hubs was a popular investment strategy. Rents ranged from 1,500 to 5,000 baht monthly, with low operating expenses that quickly repaid loans. However, many of these older buildings now appear neglected and are often demolished for new condo developments when sold.
The change in rental preference is driven by several factors. In some university areas, over 20,000 new condo units have been launched, directly targeting students and workers. Additionally, land prices have surged, prompting many owners to sell their properties rather than manage aging buildings. There’s also a generational shift, with younger owners opting for cash sales over continued management of traditional rentals.
Despite this trend, traditional rentals remain viable in provincial regions where industrial growth sustains demand for affordable lodging. Areas like Chonburi, Rayong, and Chachoengsao still witness active construction of dormitories and apartments, as do major centers such as Phuket, Nakhon Ratchasima, and Chiang Mai. Here, the market for short-term accommodations for workers keeps traditional models afloat, contrasting with Bangkok’s condo dominance.
Key Takeaways
- Traditional rentals in Thailand are declining in favor of condos.
- Many landowners are selling due to higher land prices and management burdens.
- Traditional rentals remain relevant in regions with industrial growth.
Adapted by ASEAN Now from The Nation 2025-11-10
Source: https://aseannow.com/topic/1378432-condos-erode-thailands-traditional-rental-market/
