ASEAN property market takes a hit as people delay buying a home

[webfact]

ASEAN property market takes a hit as people delay buying a home

 

This aerial photograph shows apartment buildings in the outskirts of Bangkok. (Photo by Mladen ANTONOV / AFP)

 

Half of Thai consumers decide to put off buying and selling property for the time being

 

The governments of many ASEAN countries have taken measures to stimulate their economies over the past few months in the hope of building up confidence among consumers and encouraging them to spend. But slow growth and insecurities about the future are putting many off laying out their hard-earned savings on purchases, especially on major items like cars and houses. This reticence is having a major effect on the property market across the region.

 

The World Bank‘s “Global Economic Prospects” report shows that the economic outlook for the East Asia and the Pacific in the short term remains highly uncertain as a result of the COVID-19 pandemic. Even if the pandemic subsides, the economic damage from last year’s recessions could prove deeper and more durable than expected. “Consumer and business confidence may be even slower to recover, resulting in more protracted weakness in domestic demand,” the report notes.

 

The real estate sector in ASEAN continues to be affected. This is because purchasing a property is a long-term financial burden especially when consumers are facing challenges from an economic slowdown and the pandemic. Understandably, all except the very rich are sticking to strict financial planning and postponing their real estate purchase plans.

 

Full story: https://www.thaipbsworld.com/asean-property-market-takes-a-hit-as-people-delay-buying-a-home/

 

 

-- © Copyright Thai PBS 2021-03-01

 

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[nausea]

 

22 minutes ago, webfact said:

in the hope of building up confidence among consumers and encouraging them to spend

You can't spend what you don't have, and most guys are up to their eyes in debt already. I don't know how close to collapse we are, but when it happens it's gonna be dramatic. 

[BritManToo]

4 minutes ago, nausea said:

You can't spend what you don't have, and most guys are up to their eyes in debt already. I don't know how close to collapse we are, but when it happens it's gonna be dramatic. 

Yep, I think the effects of the worldwide COVID restrictions are going to have a far worse economic impact than any government has dared predict.

 

PS

I don't see any signs that the effects of the government restrictions are subsiding.

Edited March 1, 2021 by BritManToo

[spidermike007]

No question demand is way, way down. And few in a position of authority are facing the music. Courageous of BAM chairman Bunyong Visatemongkolchai to state the truth. The pain will be felt for many years to come. I anticipate condo prices to drop by half. A friend of mine recently moved to Pattaya. He looked at condos in Jomtien. He walked into one of the nicest towers, looked at a 36th floor unit with panoramic views, and when he was quoted 28,000 a month, he offered 10,000. The rental manager tried to look shocked. Then he started pummeling her with questions. How many units are in this building? 400? How many are currently occupied? 10? How many offers have you been getting? 

 

They settled on 13,000 baht. He said the agent more or less admitted the building was nearly empty, and they could not rent to sell anything, at this time.

Demand is way down. The Chinese market is nearly gone, Russians and others are very hesitant to commit. With the quarantine, they do not even want to come here to inspect the units that they already committed to. And the long term tourists are gone too. So, who does that leave? Wealthy Thais, many of whom see the market collapsing, and would rather wait and see how all of this shakes out, and ex-pats, many of whom are smart enough to be shopping for bargains right now, or would prefer to wait. Anyone interested in buying a condo right now, would be better off waiting awhile. Timing is on your side. Time is now your ally. The economy is going remain devastated here, for a very long time to come. And the longer this goes on, the more people are going to be affected by it, and the more desperate some will become. For the wealthy it barely matters. But, there are many middle class who have money invested, and there are alot of Chinese and Russians who bought, and cannot even visit Thailand. Some of them will want to unload their properties. Wait. The condo market is severely overbuilt. And demand is low, for all but the top buildings.
 

[GeorgeCross]

found out yesterday that the air hostess who bought my house a year ago hasn't made a SINGLE payment on it. apparently those working (or furloughed) from various industries, air in this case, are exempt from mortgage payments for the foreseeable future.

 

stunning if true, the banks must be hurting too

 

 

[DividendGuy]

If Thailand really wants to get out of this real estate over supply mess there is a simple answer. Let foreigners buy houses that have been vacant for over a year. Or just let it continue to rot until it has no real value to anyone.

[sammieuk1]

There is no end of 3 million worth properties at 6-9m on offer at a knock down price of 6-9m from my 1 year in exile's worth of looking though ????