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

[fruitman]

48 minutes ago, tebee said:

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

9 years old is what i read, so it was a year old when flooded and after that nobody cared to pain the wall because that's such a hard job, it might even make you sweat.!

 

That's real Thai, and yes those houses look exactly like the ones from my family.  Their sunday buckets of KFC chicken cost even more than the bucket of paint to do the whole house.

You can easy paint them, plant some mangotree's and rent them out...baan suan resort i think i have seen that in BKK. Or i even might have been there.

 

[d2b2]

I believe many of those properties could easily be sold if Thailand developed a multiple listing database. 

[cracker1]

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

I suspect this figure is wrong ?

It would mean one new house / unit was built for every third Thai person ?

[Pattaya46]

9 hours ago, theguyfromanotherforum said:

23 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?

 

Seriously?... Did you read the OP? Apparently no... 

[theguyfromanotherforum]

12 minutes ago, Pattaya46 said:

 

Seriously?... Did you read the OP? Apparently no... 

 

So, you have no clue and are referring me to a source that says "the total number of housing units developed in 2018 was 26,224,081."

 

Nice try.

 

Considering that Canada last year built around 180,000 units, having close to 500k unsold units in Thailand is a huge number.

 

Considering the horrendous maintenance standards in this country, it will be no surprise if these unsold units will go down in value. 

Edited January 13, 2019 by theguyfromanotherforum

[NanLaew]

23 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.

Good point.

 

What Thai budgetary yardstick do we need to compare the estimated value of US$ 41 billion with to make it more relevant?

[Pattaya46]

8 minutes ago, theguyfromanotherforum said:

18 minutes ago, Pattaya46 said:

> Source?

 

Seriously?... Did you read the OP? Apparently no... 

 

So, you have no clue and are referring me to a source that says "the total number of housing units developed in 2018 was 26,224,081." Nice try. //

???

From the OP :

On 1/12/2019 at 8:31 AM, rooster59 said:

The number of units by private developers amounted to 454,814 units

or 1.73 per cent of the total existing housing stock.

 

[theguyfromanotherforum]

6 minutes ago, Pattaya46 said:

???

From the OP :

 

 

Sorry for lashing out at ya, but the article makes zero sense. So, it's a total stock now, not the units developed in 2018 which, of course, seemed high.

 

However, the 450,000 unsold units is being compared to all the units built in Thailand since its existence? No, it should be compared to the number of units built in 2018. I understand a lot of units sold are not new developments, but it would put things more into perspective.

 

[ExpatOilWorker]

2 minutes ago, theguyfromanotherforum said:

 

Sorry for lashing out at ya, but the article makes zero sense. So, it's a total stock now, not the units developed in 2018 which, of course, seemed high.

 

However, the 450,000 unsold units is being compared to all the units built in Thailand since its existence? No, it should be compared to the number of units built in 2018. I understand a lot of units sold are not new developments, but it would put things more into perspective.

 

Total value of all residential real-estate in Thailand is about $1.1 trillion, so the inventory of unsold units is about 4%. 

No doubt it will result in a slowdown among the SET listed developers, they have already fallen more than the index, but it will not significantly affect the broader Thai economy.

Just for comparison, total global real estate is worth about $230 trillion.

[NanLaew]

24 minutes ago, theguyfromanotherforum said:

 

Sorry for lashing out at ya, but the article makes zero sense. So, it's a total stock now, not the units developed in 2018 which, of course, seemed high.

 

However, the 450,000 unsold units is being compared to all the units built in Thailand since its existence? No, it should be compared to the number of units built in 2018. I understand a lot of units sold are not new developments, but it would put things more into perspective.

 

I can't quote the numbers off-hand but I was told by a friend of a Pattaya realtor that the number of empty new condo units is significant. There was 00,000's involved but mostly in the newer constructions. Most of the original, much older units from Naklua to Jomtien are all sold and were always this way. I think the only significant vacancies in any of these legacy condo's may only be View Talay 6 on Beach (the north side with the views of Central Festival's parking garage) and the one on Jomtien that infamously had a higher unit built between them and the sea.

Edited January 13, 2019 by NanLaew

[thaichiro]

On 1/12/2019 at 10:41 AM, 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 

Er, they’re jammed because of endless paperwork and 1st gear civil servant work rate. 

[oldrunner]

Es no my problem man.

[MadMuhammad]

On 1/12/2019 at 3:31 PM, 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????

Every year people justify their reasoning that the next big crash is coming. And most years (9 out of 10 as a rule and quite often much longer for the ‘big one’) they are wrong including the so called experts on the media.

Throwing big numbers around that start with B as compared to a decade or more ago is always the first warning sign of a sensationalised article. It goes without saying there is so much more money in the market (housing and stocks) now than what they’re comparing to and without any context it’s just that, a number. 

[Sydebolle]

On 1/12/2019 at 8:46 PM, fruitman said:

That's far too high me thinks...

 

Well, the MLR (Minimum Lending Rate) is 6.025% and on top of this the banks add another few percent. In all practicality Thais borrow very expensive money and the lender throws in a house for good measure ???? 

[lannarebirth]

4 hours ago, MadMuhammad said:

Every year people justify their reasoning that the next big crash is coming. And most years (9 out of 10 as a rule and quite often much longer for the ‘big one’) they are wrong including the so called experts on the media.

Throwing big numbers around that start with B as compared to a decade or more ago is always the first warning sign of a sensationalised article. It goes without saying there is so much more money in the market (housing and stocks) now than what they’re comparing to and without any context it’s just that, a number. 

What a lot of people fail to consider whether it be with stocks or housing, is that up and down are not the only two directions they can go.

[KittenKong]

23 hours ago, d2b2 said:

I believe many of those properties could easily be sold if Thailand developed a multiple listing database. 

First they would have to develop competent real estate agents. Cant really see that happening any time soon.

[KittenKong]

22 hours ago, NanLaew said:

I think the only significant vacancies in any of these legacy condo's may only be View Talay 6 on Beach (the north side with the views of Central Festival's parking garage) and the one on Jomtien that infamously had a higher unit built between them and the sea.

I'm not sure exactly what makes a "legacy" condo, but View Talay 7 and 8 are about 9 years old and both are largely unsold.

View Talay 5D is older and also has unsold units.

[racket]

If this bubble bursts then perhaps Thais will once and for all educate themselves to reduce prices in order to attract new buyers which goes hand in hand in every kind of business whether it be selling food or condoms. The opposite of this economic morality seems to have lived for too long if you ask me... but hopefully they wont exaggerate this by adding the words promotions and flash sales inside a food menu..

[WinnieTheKhwai]

Quote

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

 

Huh?   In a country with only about 69 million people in total, they build 26 million housing units in a single year?

 

Why is it that newspaper articles with numbers in it never make sense around here?   Or is something lost in translation, and is 26 million the total number currently in the country?   So many questions more than answers. Every. Single. Time. with this newspaper.

 

And yes that matters, because why would any of the other numbers be more correct?  Is there even a story here?  PLEASE hire better journalists.

 

 

Edited January 15, 2019 by WinnieTheKhwai

[WinnieTheKhwai]

This seems to be the press release that the Nation article is based on.  It remains a mystery where the number of 26 million  residential units in 2018 comes from.  That number isn't in the article, and I also could find any other site that has this number:   https://www.area.co.th/thai/area_announce/area_press.php?strquey=press_announcement2827.htm  (in Thai)

 

[Titan1962]

I lived in a nice two bed condo in Kata phuket for 12 months,no issues,quite,good management. Upon leaving after 12 months,the French owner asked if I was interested in buying it,he would take off the rent I paid ro reduce the price to 7 million baht. I was not interested at the time,but have been keeping a close eye on the prices in that particular complex. Since I left 3 yrs ago most of the condos that were up for sale are still there at the prices they where asking for them back then. 

Checked the other day and I see the prices have gone up about 1 million baht on the condos I was keeping an eye on. Maybe they put the prices up due to high season,not sure. But you think after being on the market for 3 yrs they would have at least left the prices the same or reduced the price. 

Just goes to show how over inflated the prices are in some areas. So if I was to buy a condo even to live in,i would really have to be prepared to live in that area for a long time,or get it a huge discount to allow for the time it might take to sell later on Incase my circumstances changed.

[GinBoy2]

I'd be amazed if anyone who has dabbled in Thai real estate is in the least bit shocked by this.

 

Bangkok is a 'somewhat' normal, if totally overbuilt, market.

 

The resort locations overbuilt and overpriced.

 

I had BKK condos and I never conned myself they were for equity appreciation, that just doesn't happen, they were solely for rental income.

 

I did OK, I got back what I paid when I sold up, but in truth I was lucky that the location next to BTS meant they held value...just!

 

The same is not true for most, it becomes a bit of a fire sale

 

Outside of the BKK condo market, even more bizarre.

 

On the road from Chum Phare to Khon Kaen I watched them build and build single family homes right on the edge of Khon Kaen. I watched this with interest. Houses remained empty for at least 7 years, often with a 'For Rent' sign pathetically hanging there.

 

One of the more uncomfortable truths is that there really isn't a secondary market for older homes. Most Thai's outside of the real urban areas prefer to use a piece of family paddy and build new

Edited January 16, 2019 by GinBoy2

[KittenKong]

4 hours ago, Titan1962 said:

Checked the other day and I see the prices have gone up about 1 million baht on the condos I was keeping an eye on. Maybe they put the prices up due to high season,not sure.

Very common practice to increase prices in high season.