Any drop in prices from this time last year? I'm in CM

[banagan]

I'm in Chiang Mai. I bought 2 units in my building around this time last year. There's some more for sale, same condition, same seller. They're asking for the same price. 

 

Are prices generally down in Thailand/Bangkok/Chiang Mai

 

I'm a cash buyer, so if I was to make an offer, you think 10% less than last year is fair?

[Davo369]

Yes and no. 

[blackcab]

Offering less is probably not the best way forward, especially as you are known as a previous buyer of good standing.

 

My advice would be to explain to the seller that you would like to purchase X quantity of units, but you really do need a good price because times are very difficult and there are many other properties for sale.

 

Then ask the buyer to let you know what their best price is, including who pays for what in terms of taxes and fees at the Land Office.

 

Wait and see what they come back with. It might take a few days as the seller will often discuss the matter with family or colleagues to get a consensus on the price.

 

You might be pleasantly surprised.

[banagan]

9 hours ago, blackcab said:

Offering less is probably not the best way forward, especially as you are known as a previous buyer of good standing.

 

My advice would be to explain to the seller that you would like to purchase X quantity of units, but you really do need a good price because times are very difficult and there are many other properties for sale.

 

Then ask the buyer to let you know what their best price is, including who pays for what in terms of taxes and fees at the Land Office.

 

Wait and see what they come back with. It might take a few days as the seller will often discuss the matter with family or colleagues to get a consensus on the price.

 

You might be pleasantly surprised.

Thanks, good advice, the old face play.

[WhatsNext]

I like that advice, where i come from it's more direct : you look at the place and put down an offer with the mention that you are not flexible on that "take it or leave it" in the current market. Will try your advice with a thai seller / landlord

[baansgr]

Why do you want to buy more.. you already feel prices are coming down...

[eyup]

at least 30%. less

 

[banagan]

9 hours ago, baansgr said:

Why do you want to buy more.. you already feel prices are coming down...

I'll buy another one if the price is right.

[HashBrownHarry]

If you're not embarrassed by your first offer then it's not low enough.

[1FinickyOne]

The prices are determined by the owner - - there really is no market value here as there are few or no customers...

 

If your building has a bulletin board, I would post a sign there "wanted to buy" - and state you are looking for a reasonable price... this is a great time to get really cheap in your offer. 

[vukovar77]

It is crazy to buy now in Thailand.Wait a year or two or buy foreclosure property.

[KKr]

1 hour ago, kenk24 said:

The prices are determined by the owner

the prices are determined by the amount of money a buyer is paying.
Always was, and always will be.
Owners are many times wishful-thinkers.

Having said that, logically speaking the prices in densily populated areas should start underperforming prices in lower density neighbourhoods / cities / provinces in view of pollution and contagion risks.

[1FinickyOne]

13 minutes ago, KKr said:

Owners are many times wishful-thinkers.

And here, many don't really have to sell - - normal market factors that would compromise prices are not always working here until someone "has" to sell and that would likely be a farang... Thai will just hold it. 

 

ps - if the owner does not accept an offer, there is no sale - owners determine the asking price... buyers willingness to pay is just the other side of the coin, 

[bkk6060]

Pick 10 properties offer 30 to 50% less then asking.

Every condo owner ignorantly thinks their property is worth more.

They will say offer this and that.  Mostly they are in a dead money depreciating funnel of purgatory.

Such desperation now offer way low good time to buy.

[Kurtf]

Heck I've got a house for sale on 2+ rai 40 km north of Chiang Mai and I am asking 7.8 million baht fully furnished. I would be tickled if I got ANY offers.

[LukKrueng]

On 5/21/2020 at 11:39 PM, banagan said:

I'm in Chiang Mai. I bought 2 units in my building around this time last year. There's some more for sale, same condition, same seller. They're asking for the same price. 

I would guess that a person who owns multiple properties is less likely to be desperately effected by the current situation. The fact that he sold some units a year ago suggests he probably has something else he would like to invest in, or maybe just want to cash the profits on those units

[deej]

The Chiangmai Real Estate market . whether condo.s  or houses for sale or rental

have been heading south

 for at least 5 yrs and Covid 19  factor has not even kicked  in .

Over Supply in all areas and Very Few Genuine buyers around. and the Real Estate  Agents are asking for   Kings Ransom price tags on their propertys placed on their books

Perhaps  a 50% discount may get a buyer.( if lucky)  

Chiangmai Real Estate is a

Busted Flush Full Stop

[shortstop]

20 hours ago, bkk6060 said:

Pick 10 properties offer 30 to 50% less then asking.

I'm thinking of buying next year if I can find a great deal and am in the process of trying to educate myself about buying condos.

 

The information that's lacking is the actual sales price of units that were sold.  It's difficult to determine the correlation between the asking price and the actual selling price.  It's difficult to tell if the lowest asking price of comparable units is really priced to sell.  

 

OTOH if real estate agents have let's say 10 one bedrooms for rent in a large condo complex then the asking rent for the lowest priced rental is probably a pretty good indication of where the market is.   Sure the view, floor, condition all will have impact on the rental price but the lowest priced unit is probably priced to rent.   If there are many units available it probably doesn't make sense to ask for a much higher price than other similar rental units.   

 

Then one could apply a Gross Rent Multiplier.  A gross rent multiplier of 10 would mean that an unit renting for 10K a month would be valued at 1.2 million baht.  So I'm wondering if 10 is a reasonable gross rent multiplier?

 

I'm also thinking that those buying multiple units as an investment would be very cautious buying in the current environment where many units won't be rented out.  So probably the few buyers out there are people who just want to buy one unit to live in.   I would also think that there won't be too many sellers at the bargain basement price that  buyers are looking for but the few people who must sell will be foreigners so perhaps the price of foreign owned units and Thai owned units will converge somewhat.

 

Perhaps the CM market is far different than the Pattaya market but I am staying on the sidelines for the time being thinking that if there is no high season this year that selling prices might fully adjust by February.  It appears to me that rental prices are already adjusting.

 

Anyway these are just ideas and putting this out there to find the flaws in my thinking.   

 

 

[banagan]

I bought in my building a year ago and am interested in another, same owner. 

 

They're asking the same price last year. Which, was a 7% increase from 2017, a realistic price should be at least 2017 prices or less, but understand wishful thinking.

 

Another option I'd be interested in would be purchasing it with monthly instalments, paid over 12 - 24 months, as there is practically no loan or mortgage options here for foreigners.