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

[Assurancetourix]

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...

what better way to launder dirty money ?

 

one of my uncles is a high ranking civil servant in Udon Thani Province;
lastly he told me that the Thai economy is in the red and even the red very dark; contrary to what can be read in the official press

[edgarfriendly]

7 minutes ago, anon7854 said:

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

is it in any way similar to money laundering?

[mickymouse1]

I was expecting the bubble to burst  in 2011 as it was overdue but I was wrong.Few reports last year indicated a strong market which many outsiders doubted.Now I wonder if there will be a real BIG BANG& when????

[wombat]

41 Billion ?...meh....Pablo could fix it.

 

[baansgr]

1 hour 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

 

Golds lost 20% the past few years.  Did she study finance at University?

[RichardColeman]

I know my maths is not great, but that would put the average property at 90k baht ? 

[Fallangpakwan]

look at all the factories, warehouses., etc all long ago built and empty too.

[Fallangpakwan]

look at all the factories, warehouses., etc all long ago built and empty too.

[phantomfiddler]

A crash is coming ???? Only solution is to rent out cheap and weather the storm !

[Lacessit]

No surprise here. Chiang Mai is flooded with condos and gated community developments which are battling for 20 - 30% occupancy. And more keep going up. It's like the Red Queen's race.

[BestB]

5 minutes ago, phantomfiddler said:

A crash is coming ???? Only solution is to rent out cheap and weather the storm !

That’s been said for past 15 years and yet nothing has happened 

[rickudon]

26 minutes ago, RichardColeman said:

I know my maths is not great, but that would put the average property at 90k baht ? 

$$$, not baht ....... still cheap at western prices.

[DuiDui48]

5 hours ago, Justgrazing said:

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 .. 

..as we all know all to well already,applying breaks in Thailand isn't easy..And we read that the NPL loans are getting more of by the day..not good..breakfaliure to blame i guess ????

[Cake Monster]

A more worrying aspect is just how much money borrowed is leveraged with the Banking Sector ?

 

[HHTel]

9 hours ago, rooster59 said:

The total number of housing units developed in 2018 was 26,224,081.

Over 26 million new units in last year alone,  Really??

[Pedrogaz]

I lived in Florida for a while and when I came to Thailand I was reminded of the situation in Miami. Massive overbuilding, unsold units, massive pressure on prices when anyone 'has' to sell. It's why I never bought a condo here in Thailand.

[Ulic]

Not even a drop in the bucket when compared to the Ghost Cities in China. Makes for plenty of options for rental accommodation so keep building I say. 

[roquefort]

This article is total bo***x. Just some random numbers copied by a "journalist" without any critical thought applied.

There is no way 26.2M units were developed in 2018. That would be approximately 1 unit for every man, woman and child in Thailand! I suspect that is the total housing stock, although it still seems high given that many dwellings in the countryside are little more than wooden shacks. Do they count as "units"?

Supposedly "the number of units by private developers amounted to 454,814"..............exactly the same as the total units unsold! Fact check anyone?

 

 

[fruitman]

11 hours ago, rooster59 said:

The total number of housing units developeed in 2018 was 26,224,081

26 million housing units for 70 million thai? All built in one year??

 

Wait....they used the Thai calculator again right?????

[fruitman]

10 hours ago, BestB said:

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

 

And the banks as well, it'll be a thai financial crisis which has to be stopped by the government or the banks will fall....with all the 800.000 baht accounts of the farang as well!

 

Also the baht might drop hard if all collapses in a short time...so it won't hurt the families with high debt but the ones with large saving accounts in bahts.

[fruitman]

8 hours ago, tebee said:

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. 

I have thai familymembers who have the watermarks halfway their walls and never bothered to paint it since 2011....they even don't see it anymore as they say....also in the livingroom and yes they live there and sure can afford some paint.

[Sydebolle]

Well, 1997 is in the making ........... ???? 

The legend has it that the Tower of Babel was built for different reasons but I cannot rid myself when seeing, what is being built left, right and centre - despite lot of empty new and second hand houses, town houses and condominiums all over the place. 

A developer in the suburbs of Pattaya once told me that he bought a plot of land (1 rai or 1'600 m2) for THB 10 million. He split it into 40 three-storey town houses (17w2 or 70m2 floor space) with narrow public space; to build a town house cost him THB 550'000. Work the figures, THB 10M (land) and THB 22M (buildings) = THB 32M. Then he went to sell of the first 14 units at a staggering THB 4.4M each. As far as he is concerned he would not mind selling off the remaining 26 units but his cut is more than done already. Nobody complaining as the financing bank got their loan back, everything is paid and those 14 sold units most likely got financed at 8% p.a. over 30 years. So who is the big loser here? Nobody, except that the 14 units were seriously overpriced but followed the rule of availability and demand! 

[fruitman]

21 minutes ago, roquefort said:

This article is total bo***x. Just some random numbers copied by a "journalist" without any critical thought applied.

There is no way 26.2M units were developed in 2018. That would be approximately 1 unit for every man, woman and child in Thailand! I suspect that is the total housing stock, although it still seems high given that many dwellings in the countryside are little more than wooden shacks. Do they count as "units"?

Supposedly "the number of units by private developers amounted to 454,814"..............exactly the same as the total units unsold! Fact check anyone?

 

 

26 M units developed...by who? That will take 100M constructionworkers for a full year i assume...

 

As usual you can't believe any numbers here in Thailand.

 

And if you look around those new skytrain lines there will be new condominiums at every station...some have started but others are still left bare...or have crappy builsings on them which will get demolished once the day is there.

 

If there comes a crisis i think it won't hit as hard at those skytrain units....one day or the other Thailand will also have to start stopping pollution from cars, and there will be floodings as well in the future...so a high floor condo at the skytrain will be a winner....

[fruitman]

19 minutes ago, Sydebolle said:

8% p.a. over 30 years.

That's far too high me thinks...

[madmen]

Must me $ 10 billion sold through massively overpriced failed time share alone on phuket.

[Krungbin]

5 hours ago, baansgr said:

Golds lost 20% the past few years.  Did she study finance at University?

Well, maybe she did not.

But she knows that:

- Gold prices mostly move down when the dollar gains strength.  It is hardly the case these days, and I do not think it will be the trend this year.
 - When gold prices do poorly, then other investments do well. And vice versa. And I think that the trend is that "other investments" do not do too well these days... And...
- Gold is still useful to own during times of market stress. And I do believe the stress is coming...

[MyFriend You]

7 hours ago, mickymouse1 said:

I was expecting the bubble to burst  in 2011 as it was overdue but I was wrong.Few reports last year indicated a strong market which many outsiders doubted.Now I wonder if there will be a real BIG BANG& when????

June 2019..................then recovery December 2020

[MyFriend You]

1 hour ago, Krungbin said:

ago, baansgr said:

 Golds lost 20% the past few years.  Did she study finance at University?

 

Well, maybe she did not.

But she knows that:

- Gold prices mostly move down when the dollar gains strength.  It is hardly the case these days, and I do not think it will be the trend this year.
 - When gold prices do poorly, then other investments do well. And vice versa. And I think that the trend is that "other investments" do not do too well these days... And...
- Gold is still useful to own during times of market stress. And I do believe the stress is coming...

Gold has gone up almost $100 an ounce since Dec 15th...........the lady may not be far off the mark, but you would need to buy in Kgs, not Ounces to make money in the Gold market, I dont see it reaching the $2000 again in the next 10 years.  Me & my lady bought a KG .9999 in Camdodia in August@ $1091...........holding to sell in Vietnam with the next year.  Jewlers are calling her every day but we are holding.

 

If you are buying Thai Gold, sell it in Thailand because anywhere else you will take a big hit, 'cept maybe in the USA.

[tebee]

3 hours ago, fruitman said:

I have thai familymembers who have the watermarks halfway their walls and never bothered to paint it since 2011....they even don't see it anymore as they say....also in the livingroom and yes they live there and sure can afford some paint.

Maybe you're right - they look just this side of derelict though .

 

http://www.bam.co.th/bam/property/chattel/detail/51102

 

http://www.bam.co.th/bam/property/chattel/detail/41416

[theguyfromanotherforum]

14 hours ago, Pattaya46 said:

454,814 may seems a lot,

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

It's peanuts.

 

Source?