Oversupply In Upper And Middle Condo Markets

[stevieff]

"That is why Japanese (have a) low proficiency in English language "

Where did you get this bit of misinformation?

You don't see where I am? Or you know better? From google?

The sentence means "That is why Japanese' low proficiency..."

And, when will you stop adding drivel and parasiting on my posts? Get lost!

Drivel is pretty much the only thing Backflip truly knows. And yes, you are correct, the Japanese do have a low proficiency with english.

[quiksilva]

Perhaps one way of looking at this is that those who talk down the market are those who are actually looking to buy - but at anothers expense - Good luck to them - suckers

Now, what stands out here is - there were no more foreigners than Japanese stationed in Thailand for work. Over past decades could be million + people, including their families. They would have an idea about the country and what it is like to live there. And now, they are leading in number of visitors - 1.3 million last year, almost twice the number of Americans.

Then, why are they (Japanese) not leading in property purchases?

Hardly any traces of them even participating although I could see sales signs in Japanese around Thong Lor. Whatever their real estate activities are, it's far bellow the proportion of their presence/flow through Thailand.

Firstly real estate is more than just housing, the Japanese are the single biggest investors in Thailand. Toyota's new plant in Chachoengsao for instance sits on over 1800 Rai (its quite a sight!) which they own via BOI privelleges, the same can be said for the likes of Bridgestone, Mitsubishi, Honda etc. all of which make significant contributions to the real estate market here, albeit in the industrial and commercial sectors as corporations.

This also has a knock on effect though, as the Japanese expats tend to be on 2 year contracts so individuals don't buy that much, but their contribution as tenants is significant and is certainly not overlooked. In fact its undoubtedly drives the development of serviced apartment buildings. They tend to prefer large serviced / semi-serviced units in the Sukhumvit 31/39- Eakamai locales for Bangkok and in the Sri Racaha area for the Eastern Seaboard.

On the whole they tend to stick together preferring to use Japanese agents, and select buildings that have strong Japanese ties, either by JV's with Japanese developers (there are more than a few here) and contractors like Thai Obiyashi etc. which I think is why they tend to fly under the radar of most expats here.

[skippybangkok]

"That is why Japanese (have a) low proficiency in English language "

Where did you get this bit of misinformation?

You don't see where I am? Or you know better? From google?

The sentence means "That is why Japanese' low proficiency..."

And, when will you stop adding drivel and parasiting on my posts? Get lost!

Drivel is pretty much the only thing Backflip truly knows. And yes, you are correct, the Japanese do have a low proficiency with english.

LOL - second that motion

[think_too_mut]

Firstly real estate is more than just housing, the Japanese are the single biggest investors in Thailand. Toyota's new plant in Chachoengsao for instance sits on over 1800 Rai (its quite a sight!) which they own via BOI privelleges, the same can be said for the likes of Bridgestone, Mitsubishi, Honda etc. all of which make significant contributions to the real estate market here, albeit in the industrial and commercial sectors as corporations.

This also has a knock on effect though, as the Japanese expats tend to be on 2 year contracts so individuals don't buy that much, but their contribution as tenants is significant and is certainly not overlooked. In fact its undoubtedly drives the development of serviced apartment buildings. They tend to prefer large serviced / semi-serviced units in the Sukhumvit 31/39- Eakamai locales for Bangkok and in the Sri Racaha area for the Eastern Seaboard.

On the whole they tend to stick together preferring to use Japanese agents, and select buildings that have strong Japanese ties, either by JV's with Japanese developers (there are more than a few here) and contractors like Thai Obiyashi etc. which I think is why they tend to fly under the radar of most expats here.

I have been to that Toyota plant in Chachoengsao. Quite impressive.

Well, you said basically the same as I did, with the addition of Japanese oriented agents whose importance I have overlooked.

Whatever, people would see Japanese buyers everywhere on the real estate market, even if they were just 1/5 of the numbers they are represented with.

But, at least I haven't heard, of charter planes Japanese and Hong Kong residents were coming on just for an 1 hour property auction - as it was happening in Sydney and NZ, Canada.

Risk averse? Don't like it there?

To me, there is an eering quietness that Japanese make around residential property market in Thailand.

[backflip]

For whatever reason, the Japanese love the Waterford Diamond.

[bingobongo]

so many pretty colors........except for thailand (not adjusted for inflation as seen in zimbabwe numbers)

regardless, thailand is falling.....

[bonobo]

The oversupply must be rather localized.  I haven't seen it where I have been looking.

I looked at Lumpini Pin Klao in 2005 before I went to Iraq, and did not buy because of my upcoming (and unexpected) deployment.  The asking price for a two-bedroom was 2.4.  I came back, and the building was finished. There were two units available from investors, but they were asking 3.5 (no air, ktichen, etc.).  I countered with 3.1 and was basically laughed away.

Lumpini Pin Klao 2 has barely begun building, and all units are sold except for a handful of studios.

I went to Metropark on New Sathorn.  They had two two-bedroom units left in the first phase (which is being completed now) from people who hadn't made their payments.  I chose one, telling them I wanted my partner (a Thai who invests in property) to take a look first. By the time he arrived, that unit was gone, and I ended up with the final unit in t

e phase. 

So from my experience in Thonburi, I sure haven't seen any signs of oversupply.

[Gary A]

Raising prices when times are hard is simply the Thai way. There are shop houses sitting empty in Jomtien that have been empty for years. Has the price ever gone down? The price goes up every year and they are STILL empty. Bar business bad? Raise beer prices to make up for the lack of customers is the answer. I know of one business in Jomtien owned by a Thai woman that has gone from 1.8 million 8 years ago to 8.0 million today. It is a going business and she has improved the property BUT from 1.8 to 8.0 million?? Is she making money? Yes, probably, but anyone who pays 8 million will NEVER see any profit from their investment.

[skippy]

Amazing how there are so many newspaper reports claiming that the "middle and top end condo market is saturated" when Raimon Land have just launched The River development. Incredibly expensive units. Opening day saw 100 get snapped up by wealthy Thai buyers...I can't help but think it's all for show. Are they really using their brains here?

Raimond Land operates in the silly market, this is not yet saturated.

]

Edited December 22, 2007 by skippy

[ray08]

Amazing how there are so many newspaper reports claiming that the "middle and top end condo market is saturated" when Raimon Land have just launched The River development. Incredibly expensive units. Opening day saw 100 get snapped up by wealthy Thai buyers...I can't help but think it's all for show. Are they really using their brains here?

Raimond Land operates in the silly market, this is not yet saturated.

]

I looked at the River , just to see what all the advertising was about , from my office everyday i look at the Traffic across the Taksin Bridge and for me, i personally do not like that side of the River , Wrong side ok for hotels offering short time stay but not to live there fulltime , anyway i never really beleive sales claims by developers , but they are advertisng very heavy , means a few things like

a) Sales are so great when they Advertise that they must do, or

B ) Really need to sell , la Raffine 2 has also taken fullpage in Bangkok Post

, But i won,t hide the fact

, I am anti Bangkok property market for lots of reasons like , no real secondhand market , Price to demand does not stack up if you look at all empty units , and units take hel_l of a long time to sell, also notice when they don,t sell they put the price up after 6 months not down , reason is that market price has gone up , i can,t get my head around this logic ,

Edited December 22, 2007 by ray08