Bangkok Has 100,000 Empty Apartments. It Could Soon Have More

[webfact]

Bangkok Has 100,000 Empty Apartments. It Could Soon Have More

By Suttinee Yuvejwattana and Natnicha Chuwiruch

 

Photographer: Dario Pignatelli/Bloomberg

 

-- Chinese buyers were key foreign purchasers of condominiums

-- But travel curbs, economic slowdown are keeping them away

 

Bangkok’s condominium market, once a favorite of Chinese investors, faces a bleak year as the novel coronavirus outbreak keeps buyers away.

 

Foreigners are set to account for as little as 10% of purchases in 2020, down from a fifth two years ago, consultancy Agency for Real Estate Affairs estimates. Chinese buyers used to provide the bulk of overseas interest but are now hampered by the travel curbs and economic havoc sparked by the disease.

 

“The demand from foreigners may disappear in the first half following the outbreak,” said Sopon Pornchokchai, the consultancy’s president, adding that there are 100,000 vacant condominiums in and around Bangkok. “We’ll need to rely on local buyers, but that won’t be easy.”

 

Full story: https://www.bloomberg.com/news/articles/2020-02-23/bangkok-has-100-000-empty-apartments-it-could-soon-have-more

 

-- Bloomberg 2020-02-24

[ThreeEyedRaven]

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

[NCC1701A]

you can't apply western sensibilities to Thai real estate. 

[BestB]

Interesting OP, considering that only 49% can be foreign owned , And OP suggesting market is dead because Chinese are not buying   Does that mean 51% of thai also not buying ? So perhaps it’s not the virus but crappy local economy that’s the problem ?

[Just1Voice]

Bound to happen when you throw them up like mushrooms in the forrest after a Spring rain. 

[ChipButty]

Over priced trash anyway

[RichardColeman]

46 minutes ago, webfact said:

“We’ll need to rely on local buyers, but that won’t be easy.”

Oh, well, I guess that's one sold

[Metapod]

Nah, if anything there is going to be less empty apartments

 

Thailand just instituted property taxes...

 

I don't think people are aware of this or how much property taxes are going to change the market here.

[ChipButty]

Tax Updates: 

New Property Tax Law in Thailand.

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

[Curmudgeon1]

3 hours ago, ThreeEyedRaven said:

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

 

3 hours ago, ThreeEyedRaven said:

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

Except locations like ocean front... they always hold value above commodity 

[MaxLee]

Scrap the TM 30, problem half ways solved

[BobbyL]

I reckon it is far, far higher than that. 

 

We have recently bought a house, but actually inquired about purchasing our rented two - bed condo near Asoke last year. There are two towers there with 917 units in total. Just over 200 of those were still unsold. 

 

I would guess the total number must be well into the hundreds of thousands with the amount they are building and trying to sell at ludicrous prices. I saw the other day the prices in that new Esse complex near Asoke are around 8M for a 38SQM hotel room ????

[Guderian]

4 hours ago, ThreeEyedRaven said:

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

No, Thai Economics 101 says that when there are fewer sales you must maintain your revenues by putting UP the prices, not lowering them, lol!

[findlay13]

3 hours ago, NCC1701A said:

you can't apply western sensibilities to Thai real estate. 

Or much else????!

[Gracas]

I'm just waiting for the 2 for 1 sale.

[blazes]

4 hours ago, ThreeEyedRaven said:

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

"highly likely to fall"???  But this is Thailand, where the prices go UP to compensate for lost income.  The concept of "making an offer" seems not to apply in LoS.

[rocket3rider]

Happy hour?

[wombat]

never ceases to amaze me....the world hiccups for a few weeks and the money market uses it as yet another excuse to convince everyone the worlds economy is stuffed so the money market controllers can make money by selling short

 

[Destiny1990]

Why buy if staying long term For foreigners is made more complicated. 

[legend49]

4 hours ago, NCC1701A said:

you can't apply western sensibilities to Thai real estate. 

Build more condo's?

[Jimbo2014]

The bubble is bursting.  1997 here we come!

[sahibji]

4 hours ago, ThreeEyedRaven said:

Bangkok is not going to be alone. There is a glut of empty property in Pattaya and they are still building more. I wouldn't be buying right now, as it seems prices are highly likely to fall given the surplus.

very prudent approach.

[Khun Yaaai]

51 minutes ago, Gracas said:

I'm just waiting for the 2 for 1 sale.

That actually exists. I've seen a number of developers/agents offering this in BKK mall exhibitions. Of course they will try to make you pay premium for one of the units and the 2nd one is 'free'.

[sahibji]

1 minute ago, Jimbo2014 said:

The bubble is bursting.  1997 here we come!

too early to confirm. depends on the mortgage leverage for bubble to be burst.

[sahibji]

builders tend to keep on building without analysing the demand in the equation. it should be alright as long the bank loans are repaid. the music will stop when the buyers are not able to service the loans.

[sahibji]

4 minutes ago, Khun Yaaai said:

That actually exists. I've seen a number of developers/agents offering this in BKK mall exhibitions. Of course you they will try to make you pay premium for one of the units and the 2nd one is 'free'.

sounds interesting. any good developer to recommend.

[sahibji]

18 minutes ago, legend49 said:

Build more condo's?

not only thais but most asians are guilty of this over building.

[bbbbooboo]

Hmmm... maybe Falangs are not investing in Thailand because they aren’t wanted here. I suspect that soon Thailand will just be for Thais, good luck to them?

[sahibji]

4 hours ago, BestB said:

Interesting OP, considering that only 49% can be foreign owned , And OP suggesting market is dead because Chinese are not buying   Does that mean 51% of thai also not buying ? So perhaps it’s not the virus but crappy local economy that’s the problem ?

economy does have a role but more important for the domestic buyers is whether the pricing is for the "foreigners" or fairly priced for the local consumers.

[fhickson]

like a lot of things here it just appears to be stupidity on the surface.

 

your better off just not getting involved and remember rule #1 keep all your money offshore.