Northeast sitting on oversupply of homes, says GHB official

[snoop1130]

Northeast sitting on oversupply of homes, says GHB official

By THE NATION

 

Vichai Viratkapan

 

Thailand currently has 220,000 residential units waiting to be sold, some sitting unoccupied for a considerable length of time, an official of the Government Housing Bank said at a seminar on the situation in the Northeast on Tuesday (October 29).

 

Vichai Viratkapan, an inspector at the bank and acting director-general of its Real Estate Information Centre, said there were 16,206 units available in Udon Thani, Ubon Ratchathani, Khon Kaen, Nakhon Ratchasima and Maha Sarakham in the first half of 2019, including 12,472 single-storey homes in housing estates, 3,496 condominium units and 238 villas. 

 

Of those, 13,327 were unsold, a 0.9-per-cent drop from 2018, representing a Bt50.96-billion investment value.

 

“The unsold units were in 316 projects, including 10,382 in housing estates and 2,779 condos, and most of them in Nakhon Ratchasima,” Vichai said.

 

He expressed concern about the substantial supply remaining unsold from 2014 to early 2019, such as the 1,140 units waiting for buyers in Nakhon Ratchasima, Khon Kaen and Udon Thani.

 

“The worrying condominium stocks in Nakhon Ratchasima are in the area of Khao Yai National Park, where there are also 211 villas available. In two other provinces, there is stock remaining from three years ago – particularly condos in Udon Thani – and yet buyer demand still isn’t satisfied.”

 

Current supply is close to the average of the past five years of 13,000 units, suggesting that oversupply in the future will be no higher. 

 

“The most worrying issue, though, is condos for sale at Bt2 million-Bt3 million that are being purchased at a lower rate than the average in the past,” Vichai said.

 

He said the Northeast was projected to have 9,574 units available in 2020, including 7,233 in housing estates and 2,341 condos. 

 

“Single houses will make up 45.6 per cent of the total, townhouses 24.5 per cent and semi-detached houses 14.2 per cent.”

 

Vichai predicted that the government’s stimulus package for the property market, which will reduce transfer fees and mortgages throughout 2020, will boost sales by end of next year. 

 

“Around 180,000 units will be affected by the positive impact of this measure, allowing the overall market to turn positive in 2020,” he said.

 

Source: https://www.nationthailand.com/news/30377896

 

-- © Copyright The Nation Thailand 2019-10-30

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[DNPBC0]

It will almost certainly 'turn positive' within the next decade as Bangkok people see their region progressively inundated due to sinking land and rising sea levels. Now is probably the best time to invest in northeastern property.

[bkk6060]

11 minutes ago, DNPBC0 said:

It will almost certainly 'turn positive' within the next decade as Bangkok people see their region progressively inundated due to sinking land and rising sea levels. Now is probably the best time to invest in northeastern property.

Which is such nonsense thinking.

Like saying no one wants to live in Los Angeles due to fires and earthquakes, yet housing is limited and very very expensive.

[NCC1701A]

20 minutes ago, DNPBC0 said:

It will almost certainly 'turn positive' within the next decade as Bangkok people see their region progressively inundated due to sinking land and rising sea levels. Now is probably the best time to invest in northeastern property.

[NCC1701A]

Yes! Over building keeping rents super low for decades to come. 

 

Thank you Thailand.

[farmerjo]

A mate in Loei had 5 houses back in 2005 and he said the average selling time was 7 years back then.

[Yinn]

2 hours ago, snoop1130 said:

The most worrying issue, though, is condos for sale at Bt2 million-Bt3 million that are being purchased at a lower rate than the average in the past,” Vichai said.

IMO Who want to buy condo in Issan for 3 million???? Live in a box? 

 

can get house and land for 2 million, close to city.

 

maybe I wrong. Just IMO

[CGW]

1 hour ago, DNPBC0 said:

It will almost certainly 'turn positive' within the next decade as Bangkok people see their region progressively inundated due to sinking land and rising sea levels. Now is probably the best time to invest in northeastern property.

When I first moved to Bangkok the time frame for the city to be unlivable due to rising sea levels was 30 years! that was 31 years ago, you might wan't to reconsider?

 

[Destiny1990]

1 hour ago, Yinn said:

IMO Who want to buy condo in Issan for 3 million???? Live in a box? 

 

can get house and land for 2 million, close to city.

 

maybe I wrong. Just IMO

Who wants to live in Isarn regardless!

[Scouse123]

12 hours ago, Destiny1990 said:

Who wants to live in Isarn regardless!

Me!

[baansgr]

13 hours ago, Yinn said:

IMO Who want to buy condo in Issan for 3 million???? Live in a box? 

 

can get house and land for 2 million, close to city.

 

maybe I wrong. Justase IMO

Thais that think Issan condo prices will increase same as BKK...no idea about investing whatsoever.

[moe666]

Bangkok has a over supply, Chiang Mai has over supply. All areas have over supply due to over building it is basic supply and demand.

[RotBenz8888]

8 minutes ago, moe666 said:

Bangkok has a over supply, Chiang Mai has over supply. All areas have over supply due to over building it is basic supply and demand.

Yet, they are very reluctant to reduce the price. Just like Thailand is holding on to the Baht value. They just can't accept they're living in a fantasy world.

[justin case]

new houses here, not for farang to own, made with cheap labor and even cheaper materials, never last long before defects show up, but there you go, you got 1 year warranty on it

 

 

[BritManToo]

31 minutes ago, justin case said:

new houses here, not for farang to own, made with cheap labor and even cheaper materials, never last long before defects show up, but there you go, you got 1 year warranty on it

My house is 6 years old now, the water pipe broke this year due to ground shrinking from the drought.

I've replaced some of the shower hoses, and the wheels on the driveway gate, and it needs repainting but I can't be bothered.

 

That's as good as any house I've ever owned in the west, if not better.

[ubon farang]

1 hour ago, Scouse123 said:

Me!

Me to  

[Happy Grumpy]

No problem.

 

They'll just lower the prices to sell them.......

 

 

....

...

..

.

 

 

 

????

[uffe123]

Going down the tube. Who will buy all the units in polluted Bangkok. Gas mask included in sale.

Maybe the will sell them with free health insurance. 

[Pedrogaz]

Either and oversupply of homes or an undersupply of real jobs. 

[CGW]

1 hour ago, uffe123 said:

Who will buy all the units in polluted Bangkok.

Lots of Thai and expat have to live in Bangkok, they have little choice, the smart discerning retiree expat will move to Chiang Mai  

For sure pollution is going to put a lot of people off Thailand - rightfully so - to date they have taken zero positive action! 

[MartinKal]

2 hours ago, RotBenz8888 said:

Yet, they are very reluctant to reduce the price. Just like Thailand is holding on to the Baht value. They just can't accept they're living in a fantasy world.

People with money dont reduce the price. For others it's that or repossession

[CGW]

13 minutes ago, MartinKal said:

People with money dont reduce the price. For others it's that or repossession

The people lending the money are the same people who end up getting very cheap assets! given that they never had the money that was loaned out in the first place  - profitable business to be in. 

[Assurancetourix]

On 10/30/2019 at 7:23 PM, Yinn said:

maybe I wrong

Surely you are ...

 

Maybe should you come by yourself instead of stupid questioning ...

 

However, I am very dubious about this statement

 

" Vichai predicted that the government’s stimulus package for the property market, which will reduce transfer fees and mortgages throughout 2020, will boost sales by end of next year. "

 

With what money will they be able to buy a house or an apartment/condo when they are for the most part over-solders?

[Assurancetourix]

On 10/31/2019 at 10:28 AM, ubon farang said:

Me to  

Me too also , since 14 years in the same village ; and for nothing in the world I will not leave it .

Edited November 3, 2019 by Assurancetourix