Jump to content
You are not logged in ▶️ Click here to sign-up or login ×

Up to 17.5% of condos in Bangkok and surrounding areas are empty - good time for buyers

webfact

By webfact
in Bangkok News

Recommended Posts

webfact Grand Master Member

webfact

Posted
Posted

Up to 17.5% of condos in Bangkok and surrounding areas are empty - good time for buyers

 

6pm.jpg

Picture: Daily News

 

The head of the Appraisal and Estate Agents Foundation has revealed figures for empty properties in Bangkok and surrounding areas. 

 

In some districts 14% of all properties are vacant. With developers instigating price wars with inducements to purchase this represents a buyers' market, he said. 

 

Dr Sophon Pornchokchai was speaking at a news conference yesterday. 

 

He was referring to all manner of property in the city and outskirts. The figures related to condos, single houses, townhouses and other dwellings where less than 15 units of electricity were being used deeming them to be unoccupied. 

 

In total there were 525,889 such vacant properties. 

 

The top three areas for vacancies were Nonthaburi (north west of the central area) with 335,421 available properties with 45,848 unoccupied or 14%. This percentage was also true of Bang Na (south east of Bangkok) with 231,192 properties, 31,289 unoccupied.

 

Bang Yai - to the far north west of the capital - has 221,492 with 28,016 unoccupied or 13%. 

 

Places with the lowest unoccupied dwellings are Bang Plee (south east) with 8% unoccupied, Minburi (north) 9% and Lat Krabang (south east) 9%. 

 

Dr Sophon said that when it comes to condominiums in Bangkok and the surrounding areas between 13.5% and 17.5% are unoccupied. 

 

This glut has prompted a selling war with discounts and deals, he said. 

 

Enticing deals such as free furniture and air-conditioning and "cashback" have become common on billboards throughout the city, notes Thaivisa. 

 

Source: Daily News

 

 
thai+visa_news.jpg
-- © Copyright Thai Visa News 2019-09-11
Link to comment
Share on other sites
Nyezhov Gold Member

Nyezhov

Posted
Posted

and the madness continues...

 

I counted 15 new condo sites between Bang Wa and Talat Phlu on the BTS line. And Im sure I missed some. And those are usually bigger buildings than in the center corridors....

Link to comment
Share on other sites
outsider Gold Member

outsider

Posted
Posted
1 hour ago, webfact said:

Enticing deals such as free furniture and air-conditioning and "cashback" have become common on billboards throughout the city

 

Upcoming deals include TM30-exempt for one year for foreigners who buy one unit, and five-year exempt for foreigners who buy two units at the same time.

 

Link to comment
Share on other sites
humbug Silver Member

humbug

Posted
Posted

2 days ago i read in the 'other' paper's business section an article by a property assiciation saying the take up of new properties 2019 is at 15% an all time low, the previous low was 34% in 2010, these are depression not recession times now in thailand

Link to comment
Share on other sites
Drax Explorer Member

Drax

Posted
Posted

Not the right time to buy yet. Still overpriced. I’m renting for 16k on my condo yet average price is 22k and the sell price is 5.5m. Why would I pay 5.5m when rent so Cheap ????. Average price is 22k but most of these condos are empty. I haven’t seen anyone in my floor yet despite like 20 condos. 

Link to comment
Share on other sites
yellowboat Gold Member

yellowboat

Posted
Posted

Please edumicate me as to why Bangkok property is a great deal.  My prejudices:

 

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

2. If you die, the building owner can take your condo, unless you take provisions otherwise.

 

3. The public areas look terrible after a few years, making your condo hard to sell or rent (from personal experience). 

 

 

Link to comment
Share on other sites
from the home of CC Platinum Member

from the home of CC

Posted
Posted
2 hours ago, yellowboat said:

Please edumicate me as to why Bangkok property is a great deal.  My prejudices:

 

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

2. If you die, the building owner can take your condo, unless you take provisions otherwise.

 

3. The public areas look terrible after a few years, making your condo hard to sell or rent (from personal experience). 

 

 

3.a   public areas get slummed up by the traffic generated from those who turn their condos into a hotel rooms through airbnb rentals. Who in their right mind would buy a room in a hotel, and if they're doing it in the building where you now live don't expect to ever sell it..

Link to comment
Share on other sites
mlmcleod Advanced Member

mlmcleod

Posted
Posted

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

Link to comment
Share on other sites
bkk6060 Ruby Member

bkk6060

Posted
Posted
40 minutes ago, mlmcleod said:

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

It certainly is not "impossible" for me to stay here in fact quite easy.

A very inaccurate naive comment I assume from one who has issues meeting the financial requirements..

 

I think Bangkok if 40 to 50% over priced now.

Your expert predictions of a crash have been commented on and guessed in Pattaya for the past 4 years. 

The "crash" is actually currently in play in some areas here I think.

But, the Chinese are buying many of the new construction keeping the general/average price higher.

 

You would be surprised how many properties are for sale in the one million b range away from central.  Cannot get that in BKK.

 

However, my opinion is anyone who buys real estate here is very foolish.  No transparency, no multiple listing, no real documentation on the terms of any sales.  No nothing.

Add to the fact your quiet condo building turns into a short time hotel.

But, if ones ego needs to own, good luck with it.

 

 

Link to comment
Share on other sites
Golden Triangle Platinum Member

Golden Triangle

Posted
Posted
42 minutes ago, mlmcleod said:

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

Only 35% ? Just have a look at all those new buildings along Jomtiens 2nd road, (the one that runs parallel to the beach road), I'm sure that there are more than 35% of them empty & they keep on building 55555 Sheer lunacy. 

Link to comment
Share on other sites
moontang Gold Member

moontang

Posted
Posted

it is high, but many may be second or third homes, or pure speculation...Gee, I can't imagine why someone would NOT want to deal with renters.  Money talks, but there are few reports of anyone stealing one.  A friend was offered a condo at Takiab for about a third off, what the guy had paid three years ago, but he had paid way too much.  He had just sold his house for about 9 million and was ready to buy a smaller condo in the 3-5 range..he didn't make a single offer, and had a few agents out looking.  He did mention a tennis ball size piece of concrete that he found on  a damaged pool umbrella that had fallen off a five story condo he was staying at, and would have missed his head by two feet, had he not left to go buy beers.

Link to comment
Share on other sites
newnative Ruby Member

newnative

Posted
Posted
1 hour ago, from the home of CC said:

3.a   public areas get slummed up by the traffic generated from those who turn their condos into a hotel rooms through airbnb rentals. Who in their right mind would buy a room in a hotel, and if they're doing it in the building where you now live don't expect to ever sell it..

    Sometimes true, but not always.  I just sold my 19th condo in Thailand--at a profit.  #19 was a condo in a building in Pattaya with a substantial percentage of airbnb rentals but the project has a fairly high condo fee and the building is being maintained.   I didn't want to live in a 'hotel' so I moved out.  

     The condo project is in a good location without a lot of competition from other condos.  The unit I sold was on a high floor with great sea views and city views.  It was also a 2 bedroom/2 bath at a reasonable price, especially compared to new construction.  Perhaps a little less competition with 2 bedrooms vs. 1 bedrooms.  The buyer was--wait for it--Chinese.  Which makes 5 sales in a row to Chinese buyers.

Link to comment
Share on other sites
dimitriv Advanced Member

dimitriv

Posted
Posted
3 hours ago, yellowboat said:

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

 10% is a lot. And not only in Thailand. I am sure that even in Europe you will not get 10%. Half of that is more realistic.

 

And that is still not bad. If you have your investment back in 20 years and the value of your property also increased you still make a nice profit. After 20 years all rent you will get is 100% profit.

 

Interest rates at banks are 0% now, and they even expect a negative interest rate which means that you will have to pay to keep money at a bank. 

 

But I have my doubts about the build quality of condo's in Thailand.  I don't believe that the average condo will survive much more than 20 years.

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...