Thailand's condo market sinks as Chinese investment ebbs

Coronavirus travel bans speed drop sparked by stronger baht and trade war

JASON TAN, Contributing writer

 

Thailand's coronavirus lockdown left central Bangkok deserted. The pandemic has rubbed salt in the wound left by falling Chinese real estate investment. (Photo by Akira Kodaka)

 

BANGKOK -- Beijing native Bobby He has a dozen Chinese friends who own condominium units across Thai hot spots such as Bangkok, Phuket and Pattaya.

 

"Some even bought three units at the same project," he said. "They plan to retire in Thailand, so one unit is for self-stay while the other two are to rent out to support retirement life."

 

Though property in Thailand seemingly offers an attractive bargain for Chinese buyers compared with their home market, these Thai investments are plunging in value as the coronavirus pandemic hammers the global economy.

 

Full story: https://asia.nikkei.com/Economy/Thailand-s-condo-market-sinks-as-Chinese-investment-ebbs

 

-- © Copyright Nikkei Asian Review 2020-06-10

 

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I'm due to complete/exchange on a newly built bkk condo next October (if I have the money) I'm not worried about it not being finished or losing what I've already put in as it's with Supalai..but I'm wondering if it will now be delayed or if they will give people longer to complete after covid (i suppose they would do this anyway even in normal times)...the agent still says it will be ready on time..

1 hour ago, Keyser Soze666 said:

I'm due to complete/exchange on a newly built bkk condo next October (if I have the money) I'm not worried about it not being finished or losing what I've already put in as it's with Supalai..but I'm wondering if it will now be delayed or if they will give people longer to complete after covid (i suppose they would do this anyway even in normal times)...the agent still says it will be ready on time..

I live in a Moo-Baan built by Supalai, and all the workers have been active during the virus outbreak. I wouldn't worry to much, because Supalai is one of the few trustworthy  companies in Thailand.

Good luck with your new condo.

10 minutes ago, rasmus5150 said:

I live in a Moo-Baan built by Supalai, and all the workers have been active during the virus outbreak. I wouldn't worry to much, because Supalai is one of the few trustworthy  companies in Thailand.

Good luck with your new condo.

Thanks. That's useful to know they have always been active.  I did say that I wasn't worried. So all good with Supalai?

 

Hopefully I can go ahead with it, still got plenty of time but finances have taken a dip recently. They do it pretty fairly I only had to pay approx 15% then 85% on completion slated for Oc 21.

Any farang that has bought a condo in the last 2 years with money they can not afford to lose has a few screws loose..

 

Bad exchange rates....

Ever tightening visas...

Anti farang sentiment....

Retirees barely tolerated...

Unrealistic condo prices....

Thailands fun factor being in decline year after year...

 

Cant think of any thing positive really...

 

 

 

15 minutes ago, redwood1 said:

Any farang that has bought a condo in the last 2 years with money they can not afford to lose has a few screws loose..

 

Bad exchange rates....

Ever tightening visas...

Anti farang sentiment....

Retirees barely tolerated...

Unrealistic condo prices....

Thailands fun factor being in decline year after year...

 

Cant think of any thing positive really...

 

 

 

Less tourists. 

This topic and thread have potential, but can any of you people come up with more specifics?

1 minute ago, Enzian said:

This topic and thread have potential, but can any of you people come up with more specifics?

We'll  follow your lead.

11 minutes ago, SEtonal said:

We'll  follow your lead.

So far it all seems anecdotal. Rental prices are soft in the Sukhumvit area, but how soft it's hard to tell. There are rumors of price drops on outright sales, but little that's specific. Maybe some agents will chime in. I will predict that if prices are indeed dropping, they will drop more before it's over.

48 minutes ago, redwood1 said:

Bad exchange rates....

Not bad when you earn THB. 
 

48 minutes ago, redwood1 said:

Ever tightening visas...

Not an issue when you have a stable job here. 
 

48 minutes ago, redwood1 said:

Anti farang sentiment....

Retirees barely tolerated...

Never noticed any of those. 

 

48 minutes ago, redwood1 said:

Unrealistic condo prices....

Agree on this one. Wasn’t going to buy a condo here anytime soon anyway. 
 

48 minutes ago, redwood1 said:

Thailands fun factor being in decline year after year...

I like it here. Much better than home. 

 

well what a surprise.  It would have crashed at some point in any event,  Covid just brought it on a little sooner. Anyone who buys a condo in Thailand needs their head examining, bar arguably in Bangkok, but even there, stupid prices for match box condos dont make financial sense. 

Edited June 10, 20206 yr by Pilotman

9 minutes ago, Pilotman said:

well what a surprise.  It would have crashed at some point in any event,  Covid just brought it on a little sooner. Anyone who buys a condo in Thailand needs their head examining, bar arguably in Bangkok, but even there, stupid prices for match box condos dont make financial sense. 

You know what they say about opinions, right? I assume the above is just YOUR opinion?

Just wish they all would be too broke to travel back to Thailand.

Isn't it much nicer now without them here ?

1 hour ago, redwood1 said:

Any farang that has bought a condo in the last 2 years with money they can not afford to lose has a few screws loose..

 

Bad exchange rates....

Ever tightening visas...

Anti farang sentiment....

Retirees barely tolerated...

Unrealistic condo prices....

Thailands fun factor being in decline year after year...

 

Cant think of any thing positive really...

 

 

 

Not forgetting travel out to your home country for a visit .....and you can not come back to your lovely Thai condo ????...no exception being owner , 10 million investment visa , married with Thai or resident .....lovely prospect ????????

Edited June 10, 20206 yr by david555

2 hours ago, redwood1 said:

Ever tightening visas...

Anti farang sentiment....

Retirees barely tolerated...

Unrealistic condo prices....

Thailands fun factor being in decline year after year...

You read ThaiVisa too much !

- No much changes in visa... and many expats don't need visa anymore.

- Anti Farang? Not in Pattaya or places I visited anyway...

- Retirees also are welcome as regular costumers in these same places... 

- The market decide the price! As long as you can buy and sell yours, it's realistic price.

- Fun: Maybe changing, surely not declining. 

1.9 million for a shoebox of 24 m square 30 km outside of the city, not even near airport link... 

1 hour ago, Pilotman said:

well what a surprise.  It would have crashed at some point in any event,  Covid just brought it on a little sooner. Anyone who buys a condo in Thailand needs their head examining, bar arguably in Bangkok, but even there, stupid prices for match box condos dont make financial sense. 

Bought one back in 98 for 1 M baht....on Silom

Even if I sell it half the current estimated value ...I will still make a great return on investment

I will check with my physician then ????

14 minutes ago, alyx said:

Bought one back in 98 for 1 M baht....on Silom

Even if I sell it half the current estimated value ...I will still make a great return on investment

I will check with my physician then ????

I was of course talking about today's market, not one over 20 years ago. 

3 minutes ago, Pilotman said:

I was of course talking about today's market, not one over 20 years ago. 

Noted but sincerely I have been hearing this for decades.

However if I were to buy today I would go for Costa Rica rather than Thailand ( if I sell -not the right timing- I might even consider that )

On the other hand, if there is a crash as it happened 23 years ago ...then potential buyers should have a look into the market prices 

How are the illegal AirBnB's doing, eh?

 

Ah, the glorious schadenfreude. I shall revel in it while it lasts. Somnamnaa.

I've always wondered about the economics of buying a condo here. E.g., I rent my place near Victory Monument, 5 min. from the BTS, 14th fl., 60+ sqm. for 20k/mth.

 

The price in the vicinity to buy is min 150k/sqm. So, I am paying 240k/yr for a property worth at least 9mil. Which is about 2.7% annual. The US stock market returns on the average 7%/yr. inflation adjusted.

 

So unless a condo appreciates spectacularly renting seems to make more sense.

2 hours ago, Keyser Soze666 said:

You know what they say about opinions, right? I assume the above is just YOUR opinion?

well as I wrote it, who's else would it be? 

Edited June 10, 20206 yr by Pilotman

32 minutes ago, Pilotman said:

well as I wrote it, who's else would it be? 

Glad you agree.

33 minutes ago, Why Me said:

I've always wondered about the economics of buying a condo here. E.g., I rent my place near Victory Monument, 5 min. from the BTS, 14th fl., 60+ sqm. for 20k/mth.

 

The price in the vicinity to buy is min 150k/sqm. So, I am paying 240k/yr for a property worth at least 9mil. Which is about 2.7% annual. The US stock market returns on the average 7%/yr. inflation adjusted.

 

So unless a condo appreciates spectacularly renting seems to make more sense.

But it's not always about the money is it, some people buy as a HOME. You know THEIR place/security and not somebody else's. Also, as something to leave behind for children etc, and can use as security for loans etc.

 

I rent myself, but it's just plain daft for anyone to say they cannot understand why some people buy. Horses for courses innit.

 

The rent/buy 'dilemma' has been spoke about for decades on here. 

59 minutes ago, Pilotman said:

I was of course talking about today's market, not one over 20 years ago. 

Of course you were.

And the Baht goes marching on.

????????

The Thai Bhat will do what it does.  The government wants it down too, but they can't truly control it.  There's only so far anyone can go, then they become a country that is labelled a currency manipulator which is serious.  They have done enough to be on the watch list.  

 

Housing prices are dropping all over the world, it's not just in Thailand.  

14 minutes ago, Blumpie said:

The Thai Bhat will do what it does.  The government wants it down too, but they can't truly control it.  There's only so far anyone can go, then they become a country that is labelled a currency manipulator which is serious.  They have done enough to be on the watch list.  

 

Housing prices are dropping all over the world, it's not just in Thailand.  

Check the latest figures in the UK since estate agnts opened up there has been a massive surge in property buying ,prices have hardly moved(i am  talking about homes not investments)

1 hour ago, Keyser Soze666 said:

Of course you were.

why the sarcasm?  Why would I be commenting on the market in 1998? 

1 hour ago, Keyser Soze666 said:

But it's not always about the money is it, some people buy as a HOME. You know THEIR place/security and not somebody else's. Also, as something to leave behind for children etc, and can use as security for loans etc.

 

I rent myself, but it's just plain daft for anyone to say they cannot understand why some people buy. Horses for courses innit.

Don't want to derail the topic but to answer your points:

There's no difference in security renting/owning. And you can leave behind the money, lots of it, that you save.

 

But I see the point of pride of ownership plus that you can do "as you please" in your own place, e.g., modify, renovate, etc.

 

I did buy in the US, not really for the sake of owning, but because the numbers were upside down from Thailand, it worked out cheaper to own and pay off the bank and enjoy the tax breaks.

 

What I worry about owning here is that I have little rights. Don't get me wrong I love living here but at the same time realize that any legal issues and I will pretty much always be on the wrong side. And  5mil+ property, whatever it is, always raises the potential of issues.

 

Right now, if things go pear shaped I can leave the country in 24hrs. leaving about 10k worth of stuff behind. I like that feeling though like I said I couldn't ask for a better life than here.