Property Perfect sees condo market as ‘worst in a decade’

[snoop1130]

Property Perfect sees condo market as ‘worst in a decade’

By THE NATION

 

 

The horizontal property market in Thailand will grow only 3-5 per cent this year and the condominium market is likely to end up 25 per cent in the hole – the most severe situation in 10 years, the executive director of Property Perfect Plc said on Wednesday (October 2).

 

Wongsakorn Prasitwipat blames the loan-to-value (LTV) measure imposed by the government in April, a sluggish economy in general and the baht’s appreciation, which together have driven up condo prices and sapped foreign demand for property here.

 

“The LTV measure has had the most impact on condo sales in the past 10 years,” he said. “The government should introduce measures to stimulate market recovery, which should take approximately a year.”

 

To boost sales in the last quarter of this year, Property Perfect will unveil a scheme called “Condo of the Year: Book a condo to win a trip to Japan”.

 

“This campaign is expected to hit Bt1.5 billion in sales from our Bt6 billion worth of stock,” Wongsakorn said.

 

Its “Yuruay Condo” scheme, part of the Government Housing Bank’s “One Million Houses” project, is meanwhile aiming to target buyers beyond just low-income earners to the employees of private firms with monthly salaries between Bt20,000 and Bt30,000. Each unit sells for Bt899,000.

 

“Property Perfect plans to focus on horizontal low-rise condo projects next year to avoid economic risk and secure a quick return on investment,” Wongsakorn said. 

 

It’s eyeing Srinakarin-Romklao and New Krungthep Kreetha roads, also considered a desirable location for condos by Sansiri, SC Asset and AP due to the convenient commute between downtown and Suvarnabhumi Airport.

 

Source: https://www.nationthailand.com/news/30376987

 

-- © Copyright The Nation Thailand 2019-10-02

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[Just1Voice]

They threw them up as fast as they could, cramming them everywhere, now they have a glut on the market, with an unfavorable baht. Som nom na

[BestB]

Brand new condo on 3 road , luxury living, right next to tony gym . Totally empty . Maybe 5-10 tenants. I also do not see much advertising for it. So either all sold out but no one moved in or they know can not sell and just waiting out. Starting price from memory around 4-5 mill up to 35 mil.

 

 

[giddyup]

4 minutes ago, BestB said:

Brand new condo on 3 road , luxury living, right next to tony gym . Totally empty . Maybe 5-10 tenants. I also do not see much advertising for it. So either all sold out but no one moved in or they know can not sell and just waiting out. Starting price from memory around 4-5 mill up to 35 mil.

 

 

Sorry to be pedantic, but 5-10 tenants isn't totally empty.

[BuckBee]

Lol

well I guess 49% of potential condo buyers/renters moved to malaysia, cambodia and vietnam .

foreign tenants taking hit as if landlord not willing offer up documents for tm30 they got move on once dealing with immigration on major visa issues .

Strong baht also big concern and that hit the chinese buyers along with the tm30 which they not liking concept of fines/hassle and could hit them hard as many been buying multi units for illegal air b&b rental .

Other concerns are political stability and flooding along with fact lot of the new builds over priced .

Even lot of slightly older builds taken hit on resale value and not great living experience thanks to air b&b running from them ...

Edited October 2, 2019 by BuckBee

[fforest1]

Well the Russian condo buying ship sailed years ago....

 

The Thais have been burning the midnight oil thinking up new way to make farangs feel unwelcome for a few years now....

 

I never heard of the Indians EVER being condo buyers......

 

The Chinese are now getting bad exchange rates like the rest of us and their appetite for condos in Thailand seems to be drying up.....

 

Which only leaves Thais to support the ENTIRE condo market....

[david555]

I see many  resales  repeatedly appearing again on Baht&Sold …. but they are still dreaming to get their investment back from the good condo market prices years before ….  and preferable with some extra profit …… the real fire sales go quick …. so I think many are not real desperate to sell  

[olfu]

Still waiting for Pattaya condo prices to crash.

[trainman34014]

Not just Condo's; they just keep on building Houses, Shops and Shop Houses which then remain empty for years.  Someday the house of cards is going to come tumbling down and that day is becoming ever closer.

[BestB]

45 minutes ago, giddyup said:

Sorry to be pedantic, but 5-10 tenants isn't totally empty.

When it’s 500 or something hundred unit development I call it totally empty????

[bkk6060]

Maybe people are finally realizing it is a poor investment in Thailand.  A dead money white elephant.

[fforest1]

2 minutes ago, bkk6060 said:

Maybe people are finally realizing it is a poor investment in Thailand.  A dead money white elephant.

There is only a limited supply of people who can/will drop 10-15 million baht for a condo Sukhumvit....

[bkk6060]

26 minutes ago, BuckBee said:

well I guess 49% of potential condo buyers/renters moved to malaysia, cambodia and vietnam .

This is just an ¨I heard recently¨ comment.

 

I was told that recently the Chinese made a deal with Cambodia to basically redevelop 1/2 of the city of PP.

Do not know where or any other details.

And the plan is to build many high rise western type condos, shops, restaurants, etc.

A study said over the next 10 to 15 years, there will be a demand for approx. 700,000 housing units in PP alone.

Should be interesting.

[fforest1]

5 minutes ago, bkk6060 said:

This is just an ¨I heard recently¨ comment.

 

I was told that recently the Chinese made a deal with Cambodia to basically redevelop 1/2 of the city of PP.

Do not know where or any other details.

And the plan is to build many high rise western type condos, shops, restaurants, etc.

A study said over the next 10 to 15 years, there will be a demand for approx. 700,000 housing units in PP alone.

Should be interesting.

Well if this is true tourist and expats will be enjoying their 100 dollar budget hotel rooms their 200 baht noodle soups and their 5000 baht ST...... 

[NCC1701A]

20 minutes ago, olfu said:

Still waiting for Pattaya condo prices to crash.

they did after the Russian Ruble tanked starting in July of 2014. Prices have come back now. 

[david555]

2 minutes ago, NCC1701A said:

they did after the Russian Ruble tanked starting in July of 2014. Prices have come back now. 

Prices came back ...yes …. but not the effective sales ..unless the now and then rare one 

Edited October 2, 2019 by david555

[geisha]

I’m quite sure that Thais will not pay the rent that foreigners are paying. Ridiculous prices, nearly the same prices of an apartment to rent in the south of France. Except that here in France the sea water is a shiny blue, and my shelves don’t all fall off the walls and the windows don’t block. 

[Number 6]

Absolutely hilarious. They built a glut of shixxy condos then blame potential punters for not buying them and not qualifying for risky second mortgages. So risky the banks couldn't backstop the gambits any longer.

 

But now they not oy have no buyers but a load of tiny, ugly, charmless boxes to unload at 125,000sqm. Rotglffao

[Number 6]

36 minutes ago, fforest1 said:

There is only a limited supply of people who can/will drop 10-15 million baht for a condo Sukhumvit....

And not to be snarky but in this market puffery 15m condo won't buy you much on Sukhumvhit or even in any of the better areas. You'd think for developing country with all it's problems 2 bath, nice roomy kitchen and master. Windows, nice balcony. A view.

 

Not even close.

Edited October 2, 2019 by Number 6

[DrTuner]

Interesting. Maybe I should buy a whole building when it's rock bottom and dig a moat around it. Always wanted a lookout tower.

[moe666]

In the end you cannot keep building units for sale that will be rented out by some chinese who never comes to Thailand

[Fex Bluse]

Now that the Chinese Communist Party is fighting capital flight, the mostly dirty Chinese money doesn't flow so freely into the Thai property market. 

 

Who will buy all the grossly overpriced, poorly designed, flip-flop built ugly concrete boxes? 

[woogoo]

1 hour ago, bkk6060 said:

This is just an ¨I heard recently¨ comment.

 

I was told that recently the Chinese made a deal with Cambodia to basically redevelop 1/2 of the city of PP.

Do not know where or any other details.

And the plan is to build many high rise western type condos, shops, restaurants, etc.

A study said over the next 10 to 15 years, there will be a demand for approx. 700,000 housing units in PP alone.

Should be interesting.

I went to Cambodia for the first time in 2014. Spent my time on the islands in the south. At the time, the place was abuzz about a huge project going on the island of Koh Rong. They were starting to build roads and they planned an airstrip and golf course as well as a number of very high end resorts. 

 

Went there again in mid-2015 and the main Chinese investment group bankrolling the project had pulled out. The dirt roads are still there where they had begun infrastructure development. But that’s about it. I wouldn’t trust too much in the plans of Chinese investors in Cambodia. Or anywhere else for that matter. They are only slightly less fickle than the people in these parts.

[BuckBee]

57 minutes ago, geisha said:

I’m quite sure that Thais will not pay the rent that foreigners are paying. Ridiculous prices, nearly the same prices of an apartment to rent in the south of France. Except that here in France the sea water is a shiny blue, and my shelves don’t all fall off the walls and the windows don’t block. 

Well I would say Thai's pay more

From my condo renting times I was paying a lot less than thai's in same building and floor and less than most thai work colleagues and friends . I had look at lot of rooms that for sale and had tenants and besides japanese the Thai tenants paid okay .
Westerners tend be more aware of value and make more effort find/make a deal, Thai's just pay the price and worry about it when can't afford a meal and 3 months behind on rent ????

[MadMuhammad]

1 hour ago, david555 said:

I see many  resales  repeatedly appearing again on Baht&Sold …. but they are still dreaming to get their investment back from the good condo market prices years before ….  and preferable with some extra profit …… the real fire sales go quick …. so I think many are not real desperate to sell  

Agreed. I see many properties that were at least 50% overpriced as new and that or more used. It can only go backwards from here one would think 

Edited October 2, 2019 by MadMuhammad

[dcnx]

Don’t worry, they will keep building them. There are four under construction near me despite most of the ones in the area being at least half empty.

 

 

[david555]

9 minutes ago, MadMuhammad said:

Agreed. I see many properties that were at least 50% overpriced as new and that or more used. It can only go backwards from here one would think 

As from beginning I came Thailand 10 years already ...I follow the market ….. half year ago this 40sqm Jomt.Beach Paradise condo remarkable was sold for ? (real sold price not knowing) asking price 1250K baht ….and sold in 1 week  , proving for a good price a firesafe goes flash speed …..http://www.2thai.asia/object/jomtien-beach-paradise/3826/

I even congratulated the R. agent with  a 1 week on sale closed deal  , and first time I did that as I am not much liking them in general ….

 

Don't buy from those who just wish to make more bucks in this times ...

[tobikoproject]

Every country is unique. Thailand is more unique, why make Condos, why not build things more Thainess. Its not N.Y. come on folks its Thailand.

[Airalee]

1 hour ago, bkk6060 said:

This is just an ¨I heard recently¨ comment.

 

I was told that recently the Chinese made a deal with Cambodia to basically redevelop 1/2 of the city of PP.

Do not know where or any other details.

And the plan is to build many high rise western type condos, shops, restaurants, etc.

A study said over the next 10 to 15 years, there will be a demand for approx. 700,000 housing units in PP alone.

Should be interesting.

I’ll place my money on “ghost cities” similar to those in China.

 

https://allthatsinteresting.com/chinese-ghost-cities

[Lacessit]

I don't know about elsewhere, but monthly rentals in Chiang Mai and Chiang Rai are tanking. Oversupply of condos in both cities.