Property

[Ducati]

Hi, Advice please

Anyone know much about Prasarnmitr Thani Asok area Soi 23. Looked at the possibilty of moving there, was told it was full, apart from one, very nice etc but concerned that it really is'nt as full as informed. Wife went to see it yesterday lunch time, said she saw a few people, great facilities for kids/family but I went today this eve around 6.30 and it was empty, not a soul around. Also have now been told this particular Apt has been vacant for two plus years. I ask my self "WHY" as it really is a great looking place.

Can any one share a light on this matter.

cheers on all helpful ans. And if any one else has recommendations as to where a family of five should move, much apprecaited, contract expires May.

[backflip]

"concerned that it really is'nt as full as informed"

Why would THAT concern you?

[stevieff]

"concerned that it really is'nt as full as informed"

Why would THAT concern you?

Why don't you just <deleted>, Backflip, until you can provide some one a reasonable and intelligent response. Your crap is getting old.

[Ducati]

Thanks Stevieff, my thoughts exactly.

Still no info though?

[rgs2001uk]

Thanks Stevieff, my thoughts exactly.

Still no info though?

some details as to your requirments might help.

must it be apt, or would house do?

must you be near sky train?

how much are you willing to pay?

how old are the kids?

need to be close to school?

are you working or not working?

must it be in the centre of bangkok?

etc etc etc, you didnt really give us much too work on.

you can rent a 3 bedroom house across the soi from me for 8,000 baht a month, but somehow i dont think it fits your needs.

[cclub75]

Anyone know much about Prasarnmitr Thani Asok area Soi 23. Looked at the possibilty of moving there, was told it was full, apart from one, very nice etc but concerned that it really is'nt as full as informed. Wife went to see it yesterday lunch time, said she saw a few people, great facilities for kids/family but I went today this eve around 6.30 and it was empty, not a soul around. Also have now been told this particular Apt has been vacant for two plus years. I ask my self "WHY" as it really is a great looking place.

Can any one share a light on this matter.

It's totally normal.

If the Thai tells you that it's full, and that you can see that it is empty... well... both of you are right.

Make a test : drive around thoses nice new buildings at night, at 9h30 PM. Few lights, isn't it ?

This simple test allow to understand the reality of the condo market in Bangkok. It's a bubble.

Rich thais buy everything. They don't care about renting. When the building is completed, they wait for the opportunity to sale. With a nice margin.

We have to face it : there is no thai market for renting condos at 20 000 and more per month. A high and middle income family would buy instead. For themselves. And all the low class workers rent typical rooms less than 5000 THB per month.

So ? Now you start to understand : medium/high range condos is a market for... foreigners. And speculators. Mainly.

However, as westerners it's difficult for us to understand this.

But a thai would never lower the price of the property he wants to sell. Never. Instead, he can wait many years. Therefore, the mechanism of the bubble is there. They buy. And -try- to resale. And all thoses appartements remain empty. Meanwhile, it's magic, prices are going up. The "market is healthy".

And they continue to build.

Another proof : look at the ads for real estate in papers and website. Usually, you'll find this wording "to rent : XXXXX. Or to buy XXXXXXX". It's an opportunity game. If they can find a sucker to buy at this price, then fair enough. Or a foreigner to rent. Okay. If not, mai pen rai.

Kriss Condo on Ratacha (completed last year), Noble Lite in Soi Aree (completed in october)... you name it. Very nice. And empty.

Last thing : there is a "mystique" of real estate in asian countries. Many people see real estate as another form of:

-bank account (to park liquidity)

-saving (take a loan on 20 years, small monthly repayments)

-leverage mean (real estate is perfect for colateral to obtain loans)

I don't say that this situation (bubble) is typical of Thailand. Actually the problem is global.

However, even with astronomical price, an investor will always find a way to rent his property, in Paris or London. The scarcity is real (no land, extreme rules regarding the height of new buildings etc.). And the demand is real.

But in Bangkok ?

Edited February 16, 2007 by cclub75

[Heng]

One's mileage may vary but for Bangkok, our occupancy is near 100%. Outside of Bangkok, much lower and yes... plenty of 'vacant for years and decades' type of lots. Will let the next generation deal with that. Granted, none of these are the high end condos referred to, but shop houses and land.

As for 'rich Thais,' like everything else, it's all relative. Most like land, but not all do. There are plenty of nouveua riche actors and actresses, mia nois, singles with no intent to marry, etc... who are living in rented or financed high end condos. As with any other product, there are folks who can't afford to pay cash, don't have the loan collateral (contrary to popular belief, the banks don't just loan to anyone... especially if they aren't underwriting the project), but like their poor cousins 'want it now.'

edit: not to mention folks in the lower end of the black economy (whether it's drugs, gambling, or gals working at the Violin or Piano) and don't have the legit docs to purchase high ticket items. Often not rocket scientists, they make up a portion of the high end rental market as well. Your supposition isn't incorrect, but like all things... there's an entire spectrum to the market.

Edited February 17, 2007 by Heng