Want to Buy a Home in Thailand? You Have More Than 450,000 to Choose From

[webfact]

Want to Buy a Home in Thailand? You Have More Than 450,000 to Choose From

By Natnicha Chuwiruch

 

Photographer: Brent Lewis/Bloomberg

 

>> A supply glut will see developers look to clear excess stock

>> Chinese investors are pulling back amid local capital controls

 

A glut of condominiums as Thailand’s economy waversand stricter mortgage-lending rules kick in is creating a buyer’s market in Bangkok.

 

Some 65,000 new apartments were added to the city last year, an 11% increase over 2017 and the most since 2009. Demand, however, is tepid with developers reporting take-up rates of just 55% and average asking prices decreasing 6% year-on-year, a Knight Frank report shows.

 

It’s a chance to get into the market as home builders look to clear excess stock at lower prices, according to Aliwassa Pathnadabutr, a managing director of CBRE Group Inc. in Thailand.

 

Full story: https://www.bloomberg.com/news/articles/2019-05-15/bangkok-s-empty-condos-create-buyer-s-market-as-foreigners-flee

 

-- Bloomberg 2019-05-16

[4MyEgo]

Not a good time to enter the market as it hasn't bottomed out yet, give it another year or two says I.

[ThomasThBKK]

But they said the chinese will not stop and buy everything

???????? 

 

 

[geoffbezoz]

Despite the evidence there are posters here in total denial about falling prices as stated above. Guess Farangs are no different to locals and don't like to loose face and admit they paid too much for their property I guess 'cos they thought they would make a profit. 

 

Wonder how long before somebody replies and say his property must be an exception 'cos its now worth more ?

[BritManToo]

Surprised @madman hasn't trashed the OP yet.

[BritManToo]

48 minutes ago, 4MyEgo said:

Not a good time to enter the market as it hasn't bottomed out yet, give it another year or two says I.

I'd wait and see if I had to buy an expensive (and probably worthless) Thai health insurance policy before I brought any more of my money into the country. Just imagine owning a home here only to be told you need to pay another 100k/year for insurance.

[Mavideol]

17 minutes ago, ThomasThBKK said:

But they said the chinese will not stop and buy everything

???????? 

 

 

not as easy as before, Xi is tightening control over money leaving the country..... less chinese will be traveling overseas as well

[Mavideol]

55 minutes ago, 4MyEgo said:

Not a good time to enter the market as it hasn't bottomed out yet, give it another year or two says I.

if things are so slow why I see new construction sites (mostly condo/apartments/high rise buildings) starting up on a weekly/month basis, is the money easy and cheap to borrow in Thailand?

[ExpatOilWorker]

The 450,000 units "only" include unsold inventory from developers, as far as I read it. If the secondary market is included, this actually is starting to look dicey.

My guess it that the 300-400,000 baht/m2 market will take a haircut and the 50-100,000 baht/m2 segment will remain stagnant for the next 5 years.

 

[madmen]

"Still, some developers remain sanguine. Sansiri Pcl says it continues to see "real demand" from foreign purchasers despite recent challenges, adding they account for as much as 30% of the firm’s sales.

Knight Frank believes the glut and falling prices may be short lived, citing Bangkok’s resilience and planned infrastructure projects that will renew the city.

“Ask anyone who’s been in property how many times they’ve heard the bubble will burst?,” the firm’s Bangkok-based head of residential, Frank Khan, said. “I’ve heard this more than 10 times, but in my last 15 years, it’s never burst.”"

[BritManToo]

^^ Surprisingly restrained so far.

[geoffbezoz]

27 minutes ago, BritManToo said:

Surprised @madman hasn't trashed the OP yet.

Took him a time but he just managed it in post #10. He must or his employers or other partners must have made some very poor investment choices.  KingCanute would be proud.

[ExpatOilWorker]

6 minutes ago, madmen said:

 

“Ask anyone who’s been in property how many times they’ve heard the bubble will burst?,” the firm’s Bangkok-based head of residential, Frank Khan, said. “I’ve heard this more than 10 times, but in my last 15 years, it’s never burst.”"

Famous last words?

[baansgr]

When agents  post on FB that they have just done a years rental at 15k a month as like its some massive sale of commission....things must be dire.

[madmen]

Thais will deal with it by increasing selling price by 20% ????

[GeorgeCross]

19 minutes ago, madmen said:

"Still, some developers remain sanguine. Sansiri Pcl says it continues to see "real demand" from foreign purchasers despite recent challenges, adding they account for as much as 30% of the firm’s sales.

Knight Frank believes the glut and falling prices may be short lived, citing Bangkok’s resilience and planned infrastructure projects that will renew the city.

“Ask anyone who’s been in property how many times they’ve heard the bubble will burst?,” the firm’s Bangkok-based head of residential, Frank Khan, said. “I’ve heard this more than 10 times, but in my last 15 years, it’s never burst.”"

 

i've been in the property business 22 years and i seem to remember a teeny weeny blip just around 1997.. shhh cherry pick ya data George ????

[KittenKong]

1 hour ago, webfact said:

Some 65,000 new apartments were added to the city last year, an 11% increase over 2017 and the most since 2009. Demand, however, is tepid with developers reporting take-up rates of just 55% and average asking prices decreasing 6% year-on-year, a Knight Frank report shows.

They'll never sell if they dont come with their own helicopter like this one in Pattaya.

 

[BritManToo]

5 minutes ago, GeorgeCross said:

I've been in the property business 22 years and i seem to remember a teeny weeny blip just around 1997.. shhh cherry pick ya data George ????

When I first came to Chiang Mai in 2009, I had a little hobby of visiting derelict and abandoned building sites and Moobaans in the area. There were dozens (or maybe hundreds) of them, really big places, there are plenty still around.

[GeorgeCross]

 

Just now, KittenKong said:

They'll never sell if they dont come with their own helicopter like this one in Pattaya.

 

 

hahaha telling the pilot "drop me off bottom of soi6 please mate"

 

 

[ThomasThBKK]

They'll never sell if they dont come with their own helicopter like this one in Pattaya.  

 

 

Funny enough that u can not really own a private heli here or even get a valid license for these pads. Marketing bullshit deluxe, instead of a nice rooftop garden with swimming pool and bbq area you get a non functional heli pad.[emoji19][emoji120]

 

 

As laughable as these new luxury penthouses here that have no balcony/terrace or if they have one than it's just for housing the AC.

 

Maybe actually build some stuff where people can LIVE in might be a niche developers could look into...

 

Add a garden, rooftop terrace, balconies, bbq area, kids playground etc. Old condos have these amenities but overpriced luxury chickenboxes don't

[emoji2961][emoji2961][emoji120][emoji19]

 

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[Vacuum]

1 hour ago, ThomasThBKK said:

But they said the chinese will not stop and buy everything

???????? 

 

 

That was last week...

[sammieuk1]

With the pound sliding into shrapnel I can still afford to buy a Peppa pig wendy house but not the ground to put it on????

[Tropposurfer]

30 m/2 boxes what a shit life.

[geoffbezoz]

3 hours ago, GeorgeCross said:

 

i've been in the property business 22 years and i seem to remember a teeny weeny blip just around 1997.. shhh cherry pick ya data George ????

And I've been involved in the lottery business a lot longer than that but does not mean I know enough to win it ????

[gunderhill]

Who in "their right  mind" with the new govt and constant changes in immigration with often no warnings would be dumb enough to.

Remember there was a time when buying a condo for 2-3  million got you a  visa.

[Lacessit]

Funniest OP I've read in years. Buy property in a city which is more subject to the effects of global warming than just about any other location on the planet, with visitation rights of a maximum of one year, subject to the whims of Immigration? I couldn't make this up if I tried.

[Pravda]

4 hours ago, madmen said:

Thais will deal with it by increasing selling price by 20% ????

 

There is a lot of truth to what you say.

 

However, Thais can afford to hold and wait. It's their country and they don't have visa rules and hospital bills to worry about.

 

Farang can't wait, that is the problem. 

 

This is why Chinese and Russians prefer to buy in countries they can get residency and will not kick them out.

[ThomasThBKK]

 
There is a lot of truth to what you say.
 
However, Thais can afford to hold and wait. It's their country and they don't have visa rules and hospital bills to worry about.
 
Farang can't wait, that is the problem. 
 
This is why Chinese and Russians prefer to buy in countries they can get residency and will not kick them out.

No they just have mortgages to pay...

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[4MyEgo]

5 hours ago, Mavideol said:

if things are so slow why I see new construction sites (mostly condo/apartments/high rise buildings) starting up on a weekly/month basis, is the money easy and cheap to borrow in Thailand?

Could be that money is cheap, especially if some banks are in partnership with the developers, most times you won't hear about it, but banks have their fingers in a lot of pies, besides, it suites developers to have the banks on side, as the costs are much lower as the banks are funding around 50% of the partnership if you get my drift.

 

Also greed, some that have too much money think they can make money when the market is down, only to lose in the long run, but it's a risk that can pay good dividends if the market turns upwards.

 

There could be a thousand scenario's, but anyone with half a brain knows when not to buy.

[IAMHERE]

Don't these numbers have to be divided by 2 because only half (49%) can be purchased by falang?