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

[NanLaew]

14 hours ago, fforest1 said:

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

Despite the appearance of most people living in some form of semi-detached bin liner on the sidewalk, some of the most luxurious and expensive condo's I ever stayed in or visited were in Mumbai. Right up there with Dubai's extravagant best.

 

There's a huge amount of money that very, VERY affluent Indians have been struggling to move overseas since the current Indian government put some serious monetary controls in place about a year ago. The Thai condominium industry was predicated on the old 'build it and they will come' mantra. They just need to hold out a bit longer while those very, VERY affluent Indians work out a new way to get their cash of their country.

Edited October 3, 2019 by NanLaew

[RobbyXNorway]

No surprises here. Check out "The Energy" project up between Hua Hin and Cha Am. Have never seen anyone in rooms or lights on in rooms at night time. Unfinished buildings close to the road. About 6000 units in this project alone.

 

Living in a relatively new project in Hua Hin, about 120-150 units I would think. About 20% occupancy I would estimate. 4-5 people who use the community pool throughout the day so I usualy get the pool to myself when I go for a swim.

[Darkside Gray]

The developers have created this vast glut of properties and they are still building, the crash is coming have no doubts on that, and with this inept, corrupt government God help us.

[hotchilli]

15 hours ago, snoop1130 said:

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”.

Yeah that's really going to get people interested... I'll buy a condo... maybe win a trip to Japan?

[rossco1]

and still more will be sold as people are now realizing that its all about money here 

Im sure someone could have a Billion bht in the back but still more money is needed 

the only thing here that anyone appreciates is money not people what's the old saying what goes around comes around so now Thais can buy condos and live in them while whitie moves on 

[rossco1]

6 minutes ago, hotchilli said:

Yeah that's really going to get people interested... I'll buy a condo... maybe win a trip to Japan?

i think the appeal is gone most people are giving it a big miss now other countries are more welcoming and its not all about money money money money money as everything is here

 

[LomSak27]

Just now, rossco1 said:

and still more will be sold as people are now realizing that its all about money here 

The news article states that they ARE NOT selling. For all the money ... there are not enough buyers. No Surprise there. Hotel market is the same. They built it up over the last 5 years, but they need people to stay in them. 

 

Go Figure  ????

 

 

[MaxLee]

With a bad economy and rising cost of living, Thai will be scramming back to their families again in one tiny house,.....

[Jaxxper]

I understand that a lot of Russians who bought condos up to mid 2014 are selling for less than they paid in Thb, because the exchange rate drop of the Ruble since that time still gives them a net gain when converting the Thb back into Rubles, assuming it was all legit money it was bought with, and can be repatriated to Russia.

 

[spidermike007]

The developers are insatiable, engage in absolutely no market research, and just assume if they build it, the units will sell. Thailand is in for a reckoning. All but the top 2 or 3% cannot afford these units, except for the silly 30 meter units at 2 million baht. Who wants to buy a condo the size of a hotel room? A free trip to Japan? Is that the best they can do? How about a 45% discount on the unit? That might be what it will take to move some of these units already  on the market, and the tens of thousands coming onto the market. The market is not unlimited. No market is unlimited. And a lot of investors want a decent return on their money. The rents here are ok, if you can find a tenant. But, will you ever see any appreciation, at these prices? I always say, never buy at the historic peak of the market. Not a smart move. 

 

Hopefully, some of these developers will get crushed. Only through pain and sorrow do some people finally learn something.

[mngmn]

30 minutes ago, hotchilli said:

Yeah that's really going to get people interested... I'll buy a condo... maybe win a trip to Japan?

Designed to appeal to Thais. Typical Thai goes crazy over the possibility of getting something 'free' and grossly overestimates the chances of winning.

[YoungBrit]

10 hours ago, Chazar said:

Funny, Wife  rented out a  room yesterday for 10k a  month she bought it for 1.65million about 7% return, shoeboxes  actually  doing quite  well  now, anything  over 15k is harder, renter was Chinese who has business here owns a restaurant she brought  along her Thai translator who she employs whilst  she is in Thailand. Nice  looking girl the Chinese one. Shoebox  close to the BTS is not too hard to still rent out shoebox =30-40m2

Still fairly common in Chiang Mai too. 

[david555]

2 hours ago, newnative said:

Well, maybe not totally drying up.  I sold 2 condos I owned to Chinese buyers this year.

Well congratulations …. must be a good feeling to be a "white rhino" ...of course not dried up completely as then it would be the "condo bubble" cracked already...

Edited October 3, 2019 by david555

[NanLaew]

1 hour ago, newnative said:

Well, maybe not totally drying up.  I sold 2 condos I owned to Chinese buyers this year.

Did you make like a bank robber on the deal though?

[Airalee]

10 minutes ago, YoungBrit said:

Still fairly common in Chiang Mai too. 

Show me a ฿1,650,000 condo renting for 10k in CM.

 

Chiangmaiproperties.co.th

[JonnyF]

It does feel like the perfect storm.

 

Strong Baht

Chinese government tightening up on funds leaving the country

Thai government making life increasingly difficult for foreigners in the country

High domestic debt

 

I have no regrets buying mine, but I bought it for convenience and a sense of stability rather than as an investment. Made 30% on FX and saved 4 years rent so far but the condo value is the same as when I bought it.

 

A very poor investment if you're borrowing money in the hope of renting it out IMO. However, a lot of Thais where I work have done exactly that.

 

 

[blackcab]

Off topic posts have been removed.

[UKresonant]

15 hours ago, fforest1 said:

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

 

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

The Indians must be quite sensible people, or they added the million on to the asking price for the elite visa so they may access it, and thought, ???? nah..I'll not bother.

 

I don't think the Thai's are supporting it either, I may know someone that is considering not taking on a new build at the imminent completion (and not because of mortgage issues)

 

 

[Chazar]

6 hours ago, tjo o tjim said:

...how long ago did she buy?  Tha is in

 

15k is one break-point where there is a pretty good market below, but the risk will be on the smallest units first as rents drop on the 40-50m2 size range.  At some point, many landlords prefer to keep the place vacant rather than adding depreciation. 

She has 7 units in various BTS  locations, most are 1  bed theres  one  2  bed and one studio, this unit she bought this very week, put an ad downstairs in the  lobby and  bingo, rented the next day, deposit  paid , tenant in. The only one we have now which has been empty for 1  month is at Le  Luk condo 1  bed as its 20k and we  will probably  moce into this ourslevs  to adapt to market conditions and rent  out our smaller 1  bed at On Nut bts for 15k.

Sge doesnt buy willy  nilly, being as shes an agent she knows what they "sell"  for not asking price sale  price, these ones go for about 1.9-2.0  million , we bought for 1.65 inc  all taxes.

[banagan]

27 minutes ago, Airalee said:

Show me a ฿1,650,000 condo renting for 10k in CM.

 

Chiangmaiproperties.co.th

Any one plus in a decent location, example, http://bit.ly/2o3QSR5

http://bit.ly/2n5PI7b

 

Also older condos in very good locations, like Hillside 2, 3 and 4, with some decent furniture, not that creepy old lanna Thai stuff.

Still possible to get a decent return if you know where to look, but yes, many way over priced new condos, with awful returns. 

Not to mention airbnb, very good returns if you're in the right location.

 

[banagan]

32 minutes ago, JonnyF said:

It does feel like the perfect storm.

 

Strong Baht

Chinese government tightening up on funds leaving the country

Thai government making life increasingly difficult for foreigners in the country

High domestic debt

 

I have no regrets buying mine, but I bought it for convenience and a sense of stability rather than as an investment. Made 30% on FX and saved 4 years rent so far but the condo value is the same as when I bought it.

 

A very poor investment if you're borrowing money in the hope of renting it out IMO. However, a lot of Thais where I work have done exactly that.

 

 

 

Same, I bought mine at a bargain price, great location. I'm confident I could get a 7% return, but may end up living there. 

 

Lots of condos here in CM I wouldn't touch with a barge pole, way overpriced. 

 

[tomazbodner]

3 hours ago, fxe1200 said:

Who wants to invest in a stinking sinking city?

Well, some people need to live here. Not everyone buys a place for investment...

[Mac98]

Beachfront condo prices won't explode upwards until Bangkok workers consider buying one to live in to be a viable option (high-speed rail), or Thailand runs out of buildible beachfront land (74.5 years from now). 

[newnative]

51 minutes ago, NanLaew said:

Did you make like a bank robber on the deal though?

     Nope, sure didn't.  But, that might be one of the problems if a condo is sitting for a long time unsold--perhaps the seller is wanting to 'make like a bank robber on the deal...' .

     We netted about 400,000 baht each on the 2 condos after expenses, agent commission, and closing costs.  Most of our condo renovations have netted around 500,000 baht on average although we have had a couple that netted more.  We normally don't hold our condos long so we don't expect a huge appreciation in a short time period and are happy with our modest profit.

    

[ThomasThBKK]

4 minutes ago, Mac98 said:

Beachfront condo prices won't explode upwards until Bangkok workers consider buying one to live in to be a viable option (high-speed rail), or Thailand runs out of buildible beachfront land (74.5 years from now). 

Prolly faster, erosion is doing its job.

That's what you get when you overbuild the beaches and remove all mangrove trees and vegetation.

The poor young thai generation will have to deal with this <deleted> when the dinosaurs left the earth... it will be a harsh reality. Not only here tho.

[newnative]

57 minutes ago, JonnyF said:

It does feel like the perfect storm.

 

Strong Baht

Chinese government tightening up on funds leaving the country

Thai government making life increasingly difficult for foreigners in the country

High domestic debt

 

I have no regrets buying mine, but I bought it for convenience and a sense of stability rather than as an investment. Made 30% on FX and saved 4 years rent so far but the condo value is the same as when I bought it.

 

A very poor investment if you're borrowing money in the hope of renting it out IMO. However, a lot of Thais where I work have done exactly that.

 

 

     I think the Thais buying condos to rent out are doing it because many don't have any retirement pension.  In some cases they just get a lump sum payment at retirement.  I have two Thai sisters-in-law and both have bought condos to rent out in the hope that they will have some income coming in to help support them after the companies they work at will force them to retire at 60.

[Peterphuket]

It is true, I have my own studio for sale for more than 2 years in Hua Hin.

[Skallywag]

13 minutes ago, banagan said:

, but yes, many way over priced new condos, with awful returns. 

Not to mention airbnb, very good returns if you're in the right location.
 

As always, bad for foreigners good for Thai.  Meeting at condo where I live in Pattaya last week called by disgruntled Foreign investor following the rules ( 1 month minimum rentals) and losing tenants because they are uncomfortable or have lost their privacy/peacefulness they expected at a condo because of all the inconsiderate and noisy Indians and Chinese using the place as a hotel, staying 2-3 days at a time

 

Seems builder/banks made sweet deals with Thai "investors".  Thai can basically invest in a condo here with no money down, just start paying a mortgage. Sales pitch was that they will make big money renting short term AirBnB.  And they are doing just that.  

I assume some foreigner owners may be renting AirBnB short term, yet they would be risking a lot more if caught someday IMO.  Maximum fines,  Immigration problems, deportation, who knows - I certainly would not risk it.

Management company and foreign owners cannot enforce the by-laws or laws when 51% ownership is Thai. 

[Dnyy]

1 hour ago, Chazar said:

She has 7 units in various BTS  locations, most are 1  bed theres  one  2  bed and one studio, this unit she bought this very week, put an ad downstairs in the  lobby and  bingo, rented the next day, deposit  paid , tenant in. The only one we have now which has been empty for 1  month is at Le  Luk condo 1  bed as its 20k and we  will probably  moce into this ourslevs  to adapt to market conditions and rent  out our smaller 1  bed at On Nut bts for 15k.

Sge doesnt buy willy  nilly, being as shes an agent she knows what they "sell"  for not asking price sale  price, these ones go for about 1.9-2.0  million , we bought for 1.65 inc  all taxes.

Le Luk and Skywalk are among the <deleted>tiest places I've ever lived in Bangkok. Bad management and swarmed by Airbnb but 20k seems like a good deal.

[PomPolo]

54 minutes ago, tomazbodner said:

Well, some people need to live here. Not everyone buys a place for investment...

Nobody lives here we are all just tourists!