The bubble may not have fully burst but the tyres have definitely been deflated.
April has seen a sharp reduction in both rental prices achieved and demand. This merely reflects a potential return to ROI levels that are perhaps more realistic.
We estimate at least 30% from January highs. Where do we go from here? May and June must certainly see an opportunity for long term renters to shave potentially another 20% from asking prices in our opinion.
However July/August could see the Russian/Ukraine 4-6 month fixers looking to relocate.
This could just be a “shuffling of logistics” on the island.
As we highlighted in a previous post the island may receive an influx of visitors who have sought sanctuary in Dubai as Temperatures exceed 50 Degrees. At the time of writing ultra luxurious prime 2 bed villas are achieving 70-90,000THB and 3/4 Bed luxury sea view between 125,000-150,000.
Cookie expects landlords to continue to reduce prices but with no end in sight of the War in the West she sees “rentals” stabilising throughout summer months.
The “China reopening “ has yet to have any material impact.
In fairness the airlines need time re-scheduling of planes and services and we can expect an uplift in the second half of the year. Whilst the first 3 months of China reopening have been concentrated on Domestic travel ,we are keeping an open mind for the the “Revenge Spending” that the search engines are telling us is directed towards Asian Pacific travel.
