Up to 17.5% of condos in Bangkok and surrounding areas are empty - good time for buyers

[webfact]

Up to 17.5% of condos in Bangkok and surrounding areas are empty - good time for buyers

 

Picture: Daily News

 

The head of the Appraisal and Estate Agents Foundation has revealed figures for empty properties in Bangkok and surrounding areas. 

 

In some districts 14% of all properties are vacant. With developers instigating price wars with inducements to purchase this represents a buyers' market, he said. 

 

Dr Sophon Pornchokchai was speaking at a news conference yesterday. 

 

He was referring to all manner of property in the city and outskirts. The figures related to condos, single houses, townhouses and other dwellings where less than 15 units of electricity were being used deeming them to be unoccupied. 

 

In total there were 525,889 such vacant properties. 

 

The top three areas for vacancies were Nonthaburi (north west of the central area) with 335,421 available properties with 45,848 unoccupied or 14%. This percentage was also true of Bang Na (south east of Bangkok) with 231,192 properties, 31,289 unoccupied.

 

Bang Yai - to the far north west of the capital - has 221,492 with 28,016 unoccupied or 13%. 

 

Places with the lowest unoccupied dwellings are Bang Plee (south east) with 8% unoccupied, Minburi (north) 9% and Lat Krabang (south east) 9%. 

 

Dr Sophon said that when it comes to condominiums in Bangkok and the surrounding areas between 13.5% and 17.5% are unoccupied. 

 

This glut has prompted a selling war with discounts and deals, he said. 

 

Enticing deals such as free furniture and air-conditioning and "cashback" have become common on billboards throughout the city, notes Thaivisa. 

 

Source: Daily News

 

 

-- © Copyright Thai Visa News 2019-09-11

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[NCC1701A]

shocking to see so much truth in one article.

 

and no line like "we expect thing to improve by... bla bla bla".

[Nyezhov]

and the madness continues...

 

I counted 15 new condo sites between Bang Wa and Talat Phlu on the BTS line. And Im sure I missed some. And those are usually bigger buildings than in the center corridors....

[mok199]

Spin Dr...try ,''Bad time for sellers'' and Thailand

[MadMac]

Numbers are probably way higher, given downpayments have been made and will not be serviced as we have seen all the time before. The banks own it all anyways. Not a good time to invest at all.

[outsider]

1 hour ago, webfact said:

Enticing deals such as free furniture and air-conditioning and "cashback" have become common on billboards throughout the city

 

Upcoming deals include TM30-exempt for one year for foreigners who buy one unit, and five-year exempt for foreigners who buy two units at the same time.

 

[humbug]

2 days ago i read in the 'other' paper's business section an article by a property assiciation saying the take up of new properties 2019 is at 15% an all time low, the previous low was 34% in 2010, these are depression not recession times now in thailand

[legend49]

Enticing deals such as free furniture and air-conditioning and "cashback"

 

Nah in China when I buy a condo they throw in a free BMW car.

[Drax]

Not the right time to buy yet. Still overpriced. I’m renting for 16k on my condo yet average price is 22k and the sell price is 5.5m. Why would I pay 5.5m when rent so Cheap ????. Average price is 22k but most of these condos are empty. I haven’t seen anyone in my floor yet despite like 20 condos. 

Edited September 11, 2019 by Drax

[yellowboat]

Please edumicate me as to why Bangkok property is a great deal.  My prejudices:

 

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

2. If you die, the building owner can take your condo, unless you take provisions otherwise.

 

3. The public areas look terrible after a few years, making your condo hard to sell or rent (from personal experience). 

 

 

[scorecard]

4 hours ago, mok199 said:

Spin Dr...try ,''Bad time for sellers'' and Thailand

True, but I'm waiting for development groups like this to ask for a government bailout.

[lust]

Expect that number to increase with Thailand’s draconian laws and lack of overall intelligence. 

[vivananahuahin]

i will wait until 2024,with so high bath impossible to invest in anything now,it will be like in Spain a few years ago,crash in the home  market.

[Isaan sailor]

Bad time for expats--Baht artificially kept high.  Also bad for tourists.  And bad for exports.  Do they get the picture now?

[Destiny1990]

Not much of a surprise.

 

 

[Chrisswe]

17.5 % OF WHAT ????

[from the home of CC]

2 hours ago, yellowboat said:

Please edumicate me as to why Bangkok property is a great deal.  My prejudices:

 

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

2. If you die, the building owner can take your condo, unless you take provisions otherwise.

 

3. The public areas look terrible after a few years, making your condo hard to sell or rent (from personal experience). 

 

 

3.a   public areas get slummed up by the traffic generated from those who turn their condos into a hotel rooms through airbnb rentals. Who in their right mind would buy a room in a hotel, and if they're doing it in the building where you now live don't expect to ever sell it..

[mike787]

no surprise here, many expats are leaving, tired of the immigration circus...

[mlmcleod]

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

[timendres]

3 hours ago, legend49 said:

Enticing deals such as free furniture and air-conditioning and "cashback"

 

Nah in China when I buy a condo they throw in a free BMW car.

They will need to be more creative. Free BMW does not excite me.

[Skallywag]

1 hour ago, Chrisswe said:

17.5 % OF WHAT ????

Condos, google it, they are residences in large buildings 5555

[bkk6060]

40 minutes ago, mlmcleod said:

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

It certainly is not "impossible" for me to stay here in fact quite easy.

A very inaccurate naive comment I assume from one who has issues meeting the financial requirements..

 

I think Bangkok if 40 to 50% over priced now.

Your expert predictions of a crash have been commented on and guessed in Pattaya for the past 4 years. 

The "crash" is actually currently in play in some areas here I think.

But, the Chinese are buying many of the new construction keeping the general/average price higher.

 

You would be surprised how many properties are for sale in the one million b range away from central.  Cannot get that in BKK.

 

However, my opinion is anyone who buys real estate here is very foolish.  No transparency, no multiple listing, no real documentation on the terms of any sales.  No nothing.

Add to the fact your quiet condo building turns into a short time hotel.

But, if ones ego needs to own, good luck with it.

 

 

Edited September 11, 2019 by bkk6060

[Golden Triangle]

42 minutes ago, mlmcleod said:

That number is probably half the real number of empty condos in Bangkok.  I suspect that the number in the Pattaya area is close to 35% empty.  A crash is on the way for the bloated real estate market in Thailand.  You can't keep building and then make it almost impossible for expats to stay here.

Only 35% ? Just have a look at all those new buildings along Jomtiens 2nd road, (the one that runs parallel to the beach road), I'm sure that there are more than 35% of them empty & they keep on building 55555 Sheer lunacy. 

Edited September 11, 2019 by Golden Triangle

[StayinThailand2much]

A bubble (almost) ready to burst?

[StayinThailand2much]

50 minutes ago, mlmcleod said:

That number is probably half the real number of empty condos in Bangkok.  

It will soon be like big cities in China: city full of high-rise condo- and apartment buildings, but half of the (completed) buildings unlit after 8 p.m., i.e. empty!

Edited September 11, 2019 by StayinThailand2much

[moontang]

it is high, but many may be second or third homes, or pure speculation...Gee, I can't imagine why someone would NOT want to deal with renters.  Money talks, but there are few reports of anyone stealing one.  A friend was offered a condo at Takiab for about a third off, what the guy had paid three years ago, but he had paid way too much.  He had just sold his house for about 9 million and was ready to buy a smaller condo in the 3-5 range..he didn't make a single offer, and had a few agents out looking.  He did mention a tennis ball size piece of concrete that he found on  a damaged pool umbrella that had fallen off a five story condo he was staying at, and would have missed his head by two feet, had he not left to go buy beers.

Edited September 11, 2019 by moontang

[RichardColeman]

I'm sure they'll be a contradictory story tomorrow about demand outstripping supply. There always is.

[newnative]

1 hour ago, from the home of CC said:

3.a   public areas get slummed up by the traffic generated from those who turn their condos into a hotel rooms through airbnb rentals. Who in their right mind would buy a room in a hotel, and if they're doing it in the building where you now live don't expect to ever sell it..

    Sometimes true, but not always.  I just sold my 19th condo in Thailand--at a profit.  #19 was a condo in a building in Pattaya with a substantial percentage of airbnb rentals but the project has a fairly high condo fee and the building is being maintained.   I didn't want to live in a 'hotel' so I moved out.  

     The condo project is in a good location without a lot of competition from other condos.  The unit I sold was on a high floor with great sea views and city views.  It was also a 2 bedroom/2 bath at a reasonable price, especially compared to new construction.  Perhaps a little less competition with 2 bedrooms vs. 1 bedrooms.  The buyer was--wait for it--Chinese.  Which makes 5 sales in a row to Chinese buyers.

[Happyman108]

3 hours ago, legend49 said:

Enticing deals such as free furniture and air-conditioning and "cashback"

 

Nah in China when I buy a condo they throw in a free BMW car.

Here they throw in a wife.....u can go Baccara to select yours ????

[dimitriv]

3 hours ago, yellowboat said:

1. Rule of thumb being is to make 10% back a year on renting out a flat.  Can you get that in Bangkok?  Full recuperation on investment in 10 years.

 

 10% is a lot. And not only in Thailand. I am sure that even in Europe you will not get 10%. Half of that is more realistic.

 

And that is still not bad. If you have your investment back in 20 years and the value of your property also increased you still make a nice profit. After 20 years all rent you will get is 100% profit.

 

Interest rates at banks are 0% now, and they even expect a negative interest rate which means that you will have to pay to keep money at a bank. 

 

But I have my doubts about the build quality of condo's in Thailand.  I don't believe that the average condo will survive much more than 20 years.