There is a staggering $41 BILLION in unsold property in Thailand

[rooster59]

There is a staggering $41 BILLION in unsold property in Thailand

By The Nation

 

 

A total of 454,814 residential units across the country were left unsold last year, with a total value of US$ 41 billion, according to Sopon Pornchokchai, president of the Agency for Real Estate Affairs, said yesterday.

 

The unsold units in Bangkok constituted 40 per cent of the total units left over from last year and 55 per cent of the total value. 

The total number of housing units developeed in 2018 was 26,224,081. The number of units by private developers amounted to 454,814 units or 1.73 per cent of the total existing housing stock.

 

 These 454,814 units could be absorbed within 2 years. Consequently, the number of units sold each year could reach 227,407 units. 

 

Source: http://www.nationmultimedia.com/detail/Real_Estate/30362000

 

 

-- © Copyright The Nation 2019-01-12

[BestB]

You could double that if you add properties which are empty and for sale. 

 

Ie owned but up for sale

[PatOngo]

Build it and they will come...……...well, maybe not!

[Odysseus123]

House of cards.

[Pattaya46]

18 minutes ago, PatOngo said:

Build it and they will come...……...well, maybe not!

9 minutes ago, Odysseus123 said:

House of cards.

454,814 may seems a lot,

but it's less than 2% of the total existing housing stock.

It's peanuts.

[PatOngo]

Buy one, get one free???

[LomSak27]

Along with the the fake economic indicators the media churned out, this is something we knew but again the media was in denial about for a long time. 

 

This is a danger. How many of the posters here were here back in 97? No I wasn't either but I have friends that were, not nice times and a couple left at that time, for good .... no matter if it became cheaper.

 

I don't think it will crater and implode like 97, but does not bode well.

[BestB]

3 minutes ago, LomSak27 said:

Along with the the fake economic indicators the media churned out, this is something we knew but again the media was in denial about for a long time. 

 

This is a danger. How many of the posters here were here back in 97? No I wasn't either but I have friends that were, not nice times and a couple left at that time, for good .... no matter if it became cheaper.

 

I don't think it will crater and implode like 97, but does not bode well.

I do not see how another 97 would negatively affect foreigners in Thailand . If anything would double their spending money.

 

working class who are mortgaged up to their ears are the ones to get affected. 

 

The rich or even not so rich but with cash will actually do well as well by buying up cheap properties and cars 

[ChipButty]

Lots of villas around here cannot get their money back, one next door to me I know he paid 12 million cant even get 8 million

[ezzra]

And yet, they continue to build apartments like crazy around mid sukhumvit, huge projects each unit costin mega millions, maybe they have different outlook on the above article...

[Justgrazing]

Yep and it's teetering on the edge .. Too many investor/speculators loaded up to the max on debt not wanting to miss out .. But an in increase in base rate which is being mooted will start off the crash chain reaction that becomes difficult to put the brakes on until a sense of reality comes to the market .. 

[LomSak27]

17 minutes ago, BestB said:

I do not see how another 97 would negatively affect foreigners in Thailand . If anything would double their spending money.

I have worked in economically depressed countries. If all you're doing is drinking Leo and watching footie then likely it would not affect you. If you have pursuits it does affect you.

[BestB]

3 minutes ago, LomSak27 said:

I have worked in economically depressed countries. If all you're doing is drinking Leo and watching footie then likely it would not affect you. If you have pursuits it does affect you.

Pursuits like what ? And what are Economically depressed countries ? UK? US? Australia ? 

[baansgr]

Remember  reading  posts similar  to this ten years ago..... Also why are land offices all over the country jammed  packed everything day of the week, that's a far better indicator than how many lights are on at night 

[worgeordie]

Does that mean its a bubble ?, cannot sell, raise the prices !

regards Worgeordie

[Enoon]

1 hour ago, Pattaya46 said:

454,814 may seems a lot,

but it's less than 2% of the total existing housing stock.

It's peanuts.

 

I thought that the problem in such situations was the amount of borrowed money invested in them and the money borrowed against their notional value.

 

Not the number of units.

 

$41 billion sounds quite a lot of money not being "returned".

 

No doubt someone will put me straight on that.

 

 

[janclaes47]

Near my home is a newly build moobaan from a renowned developer with 270 houses starting 6 million up.

 

Moobaan sold out, but my estimate is 20% occupied, and I know many similar projects all over the Eastern seaboard.

 

These are obviously not included in the unsold units, as they are bought by " investors " who think they can pass them on at a profit before the project is completed.

 

Well the project I'm talking about, as well as the many others, was completed quite some time ago so that didn't work out well.

 

All these investors are there because mony in the bank earns nothing, or they are laundering, so this far nothing is lost yet.

 

Now wait until interest get to an acceptable level again. They started rising already and it may move fast in the coming year in my opinion.

 

That is when we will see blood in the real estate market

[smedly]

strong baht - social divide - asking price way too high for Thailand - No foreign ownership, the list goes on 

[smedly]

1 hour ago, baansgr said:

Remember  reading  posts similar  to this ten years ago..... Also why are land offices all over the country jammed  packed everything day of the week, that's a far better indicator than how many lights are on at night 

They are all sellers 

[Titan1962]

its a thought I have often pondered,people can go to places like Australia with next to nothing. Receive government hand outs like housing,medical and money. 

Yet you are willing to come to Thailand and be fully self funded,buy a condo,help support the gf and family. Put a lot of money into the economy,depending on your financial circumstances.

Yet they think you are trying to rip them off. 

It would be nice to see the government change a few things and make it a bit more retirement friendly. I think if you invest here,have been a good person,respect the Thai culture,things would be a bit more inviting and safe to invest.I live here,have a home,car,bike but shit you gotta jump through some hoops.

plus the constant worry about visas and changes to policies and procedures regarding none Thais living here.

But then again we can only dream.

[tebee]

In regards of the resale market, my wife has a number of houses she rents out. Been looking at buying another one and checking out bank repossessions in the bangkok outskirts.

 

She been send me the details of some and a good number have got unrepaired flood damage - tide marks on the walls noticeably - presumably from the 2011 floods. Have the been sitting empty that long?

 

They are cheap, (circa 1.5 mill) but not that cheap. 

[janclaes47]

26 minutes ago, smedly said:

They are all sellers 

And there was me thinking that for every seller there must be a buyer

[baansgr]

31 minutes ago, smedly said:

They are all sellers 

So who are they selling to.... Other sellers? 

[smedly]

13 minutes ago, baansgr said:

So who are they selling to.... Other sellers? 

trying to sell because they ran out of money 

[BlackJack]

3 hours ago, worgeordie said:

Does that mean its a bubble ?, cannot sell, raise the prices !

regards Worgeordie

No a bubble is when there are to few properties being inflated by to many buyers

this is a glut!!

 

GF says buy gold

 

She could be right

 

[peter14]

Well issue visa for people who buy property  when we might buy  more..... 

[Krungbin]

5 hours ago, LomSak27 said:

Along with the the fake economic indicators the media churned out, this is something we knew but again the media was in denial about for a long time. 

 

This is a danger. How many of the posters here were here back in 97? No I wasn't either but I have friends that were, not nice times and a couple left at that time, for good .... no matter if it became cheaper.

 

I don't think it will crater and implode like 97, but does not bode well.

I was there and I do agree with you.

[Torrens54]

Ah well, better to be UNSOLD than to allow those Evil Ferangs to buy Real Estate. 

[Krungbin]

37 minutes ago, BlackJack said:

No a bubble is when there are to few properties being inflated by to many buyers

this is a glut!!

 

GF says buy gold

 

She could be right

 

I do believe she is. And this is valid not only for Thailand...

[anon7854]

4 hours ago, ezzra said:

And yet, they continue to build apartments like crazy around mid sukhumvit, huge projects each unit costin mega millions, maybe they have different outlook on the above article...

You obviously don't know how money laudrying works ????