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webfact

Fears that the condo bubble is about to burst in Bangkok - especially if foreigners pull out

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Fears that the condo bubble is about to burst in Bangkok - especially if foreigners pull out

 

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Picture: Thai Rath

 

Thais were busy sharing a Thai Rath story about the condo glut in Bangkok. 

 

Despite a sluggish economy cheap housing especially in the form of condos and town houses continues to be built in the capital. 

 

There are fears that a property crash is about to happen - especially if the Chinese pull out. 

 

Dr Sophon Pornchokchai of the Agency for Real Estate Affairs who are property consultants, spoke of the oversupply and mushroom like growth. 

 

He has said that construction on hundreds of project continues yet few ordinary people have the money to buy. 

 

There are fears that if foreigners pull out - especially Chinese - this could precipitate a crash. Some 20% of condo units are being bought by foreigners. 

 

He had said earlier in the year that a crash could come in 2019 but this has so far not been seen despite properties being discounted. 

 

The ongoing trade war between the US and China was seen as problematical. 

 

The outlook remains risky with the possibility of a crash over the next year or two. 

 

Source: Thai Rath

 

 

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-- © Copyright Thai Visa News 2019-08-01

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12 minutes ago, webfact said:

The outlook remains risky with the possibility of a crash over the next year or two.

A replay of 1997 crash. All those overpriced shoe boxes turn out to be completely worthless, who would have thought......

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Hoping for a crash so that I can buy-in

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Anyone surprised? They go up using cheap materials and cheap labour so they deteriorate real quickly. I have friends who are in condos only a few years old that leak, the plaster is cracking and things are stopping working. Not an investment I'd be keen to make. Especially with many condo buildings forbidding AirBnB as a form of income. 

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Who was about in 97?

 

What kind of bargains we talking about? If that property crash happened in bok does it spread nationwide?

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I can't imagine why any foreigner is paying 100,000 baht + a sqm with the current exchange rates. A small condo in Bangkok for $300,000 !!

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am already  selling  2 of my  condo !!!  Any buyer  ?as  they  treat me shit  saying am not tourist when i come stay there.  

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24 minutes ago, RotBenz8888 said:

A replay of 1997 crash.

it will not be anything like 1997. just a bubble in condo prices.

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Well the "experts " on this forum have been denying it for ages, mainly I suspect because they invested heavily and don't want to admit they will lose money. Also many of these self same "experts" have been predicting that the Thai economy is sound under the current regime and won't falter.

 

Well let's see once the Thai economy goes into free-fall due to the policies of the current puppet government including spending on military hardware yet wanting a 2020 fiscal budget with higher deficit forecasts,  exports suffering due to the policies of the last few years artificially ensuring that the baht is too strong, let's see how the many experts fair then.

 

It would appear that several voices within Thailand are now becoming realistic as to the Thai economy's weaknesses and the reliance upon foreign buyers, notably the Chinese, to artificially increase demand, thus pushing up condo prices, so all I would ask is ;  Where are the shops selling those rose tinted glasses that once worn eradicates all common sense and economic pointers ? Perhaps those so called "experts" on this forum could advise where they bought their own from 😉

 

 

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1997 all over again. NO it will be much worse now. 
In 97 the Thai’s who owned those unsellable condos sat on them and would not budge no matter what. Cognitive dissonance ...the same with that ole Mitsubishi Pajero they own. “But I paid 1.6 million and it’s only 15 years old”. Ha! 
This time there are many many more owned by foreigners, but the majority of those vacant condos are bank owned....keep the lights on at night to keep “Dracula” away, because the loans are being held by the banks. 
It won’t be pretty this time and they keep building them as I speak, but “tempus fugit”. 

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2 minutes ago, NCC1701A said:

it will not be anything like 1997. just a bubble in condo prices.

And the Baht...😜

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Foreigners buying i.e. westernes, are not the biggest buyers, Chinese, Indian and Malaysians are the people with the money, i have bought a 3 bedder condo in a middle of Sukhumvit back in 2001 when the build quality was still good, still living in it hassle free and the price gone up 5 forlds... 

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44 minutes ago, RotBenz8888 said:

A replay of 1997 crash. All those overpriced shoe boxes turn out to be completely worthless, who would have thought......

Probably read up on the 1997 Asian financial crash.  Now Thailand has among the largest cash reserves in the world.

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1 minute ago, ezzra said:

Foreigners buying i.e. westernes, are not the biggest buyers, Chinese, Indian and Malaysians are the people with the money, i have bought a 3 bedder condo in a middle of Sukhumvit back in 2001 when the build quality was still good, still living in it hassle free and the price gone up 5 forlds... 

That's what the article said.  It was worried about the Chinese never mentioned Farang.

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28 minutes ago, Henryford said:

I can't imagine why any foreigner is paying 100,000 baht + a sqm with the current exchange rates. A small condo in Bangkok for $300,000 !!

The Chinese are doing and have been doing it for a couple of years to get their money out of China.  The Farang don't matter much in this market anymore.

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