Condo market devastated by pandemic - Chinese can't pay for their properties

[rooster59]

Condo market devastated by pandemic - Chinese can't pay for their properties

 

Image: Reuters

 

A leading figure in the Thai property market told the media that the Covid-19 pandemic has devastated the condo market in Thailand. 

 

Dr Apha Atthaboonwong who heads a Thai condo association and is an executive at Richy Place in Charan Sanitwong, Bangkok said that the biggest problem is the almost complete lack of new foreign investors in the market. 

 

He said travel restrictions meant that 98% of potential buyers couldn't get to Thailand. Most of these were Chinese people from the mainland and investors from Hong Kong.

 

Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. 

 

Channel 3 said that 10,000 units had only been partially paid for and instalments had ceased during the pandemic.

 

In many cases 30% had been paid and 70% was due but not coming.

 

Calls are being made for a government 5 billion fund to be established to help with loans for repayments to help condo developers who have cash flow difficulties due to the lack of inflows from foreign investors. 

 

Dr Apha also indicated that the domestic market for condos to live in would probably take one to two years to recover.

 

Source: Channel 3

 

-- © Copyright Thai Visa News 2020-09-12

 

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[andre47]

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

[holy cow cm]

14 minutes ago, rooster59 said:

Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand.

Huh?

[mommysboy]

6 minutes ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

It's an excuse of course.  The fact is even China is in dire economic straits (or its ordinary people anyway).

[Jack Mountain]

Money cleaning involved, so no banktransfers?

[Orton Rd]

so should be thousands of repossessions coming up and bargains to be had?

[CorpusChristie]

18 minutes ago, rooster59 said:

Calls are being made for a government 5 billion fund to be established to help with loans for repayments to help condo developers who have cash flow difficulties due to the lack of inflows from foreign investors. 

Hungry and homeless people should be a higher priority than people buying property 

[jmccarty]

5 minutes ago, Orton Rd said:

so should be thousands of repossessions coming up and bargains to be had?

Plenty with some money in hand bought at very low prices during the Asian economic crisis in 1997.  This was also due to a contagion. 

Edited September 12, 2020 by jmccarty

[AlfHuy]

And still building everywhere.

[johng]

6 minutes ago, jmccarty said:

during the Asian economic crisis in 1997.

There are still some unsold condos around from that time..its seems the banks just sit on them  waiting and waiting for someone to come along and clear the debt + interest  somehow avoiding writing it off as non performing loans.

[GeorgeCross]

31 minutes ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

 

chinese are highly limited in the amount they can transfer abroad

 

Quote

Chinese citizens do have a limit on how much foreign currency they can convert or purchase per year — US$50,000 as of August 2019. If you're sending USD to China, the money can be counted towards that limit. The $50,000 a year limit also applies to money being sent out of China.

 

so they have to get err creative in order to buy condos and things

 

[Puchaiyank]

Thai logic...too many vacant condos...raise the price!

[Orton Rd]

9 minutes ago, GeorgeCross said:

 

chinese are highly limited in the amount they can transfer abroad

 

 

so they have to get err creative in order to buy condos and things

 

That is why the have agents for travel to arrange having an 'anchor baby' abroad, mainly in the USA. Baby will have USA nationality so future way to transfer money as well as other benefits.

[PatOngo]

1 hour ago, rooster59 said:

He said travel restrictions meant that 98% of potential buyers couldn't get to Thailand.

Does'nt your heart just bleed for the poor Chinese! ????

[onebir]

1 hour ago, andre47 said:

Why cannot transfer funds?

- Owners facing cash flow problems in China?

- Currency controls?

[JusticeGB]

The Chinese have the zero dollar tours for a reason. Severe currency controls. They bring over cash to pay for their condos illicit cash. Same as the Russians in order to launder or make safe money from their respective Governments. 

[blackcab]

An off topic post has been removed.

[Pilotman]

well, well what a surprise; actually, to absolutely  no one with any sense at all. 

[Pilotman]

1 hour ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

who cares? 

[Pilotman]

1 hour ago, AlfHuy said:

And still building everywhere.

well you can't fix stupid. 

[sungod]

1 hour ago, GeorgeCross said:

 

chinese are highly limited in the amount they can transfer abroad

That would explain why they are all 'at it' when they get here.

[Nout]

1 hour ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

Chinese government rules are very strict on currency exports.

[allanos]

Strict currency controls in China are the reason why the Chinese have to bring cash on their person to pay for their condo liabilities.  They are now pouring money into Bitcoin, to get around the regulations. Bitcoin can be transferred instantaneously with only miniscule charges, or kept in a digital wallet of some kind until it needs to be used.  Large purchases of Bitcoin in restrictive countries like China, Argentina and Turkey are helping to bolster the price.  

[Nout]

1 hour ago, johng said:

There are still some unsold condos around from that time..its seems the banks just sit on them  waiting and waiting for someone to come along and clear the debt + interest  somehow avoiding writing it off as non performing loans.

'some'!....thousands you mean. Around Pratumnak there are hundreds of empty condos. Even people who have paid cannot keep up the service charges, taxes, maintenance fees etc...eventually go into default and are sold at a blind auction via City hall.

[Baerboxer]

1 hour ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

 

I did read that China was restricting money transfers to foreign countries.

 

I did wonder where all the customers were coming from for all these very expensive condos.

[thaibeachlovers]

2 hours ago, rooster59 said:

Calls are being made for a government 5 billion fund to be established to help with loans for repayments to help condo developers who have cash flow difficulties due to the lack of inflows from foreign investors. 

I'm sure they are rich enough to wait it out. Why should taxpayers help people that were only in it for the profit? Not like Thailand needs them, is it?

[wombat]

1 hour ago, Orton Rd said:

so should be thousands of repossessions coming up and bargains to be had?

my crystal ball says there is gunna be some bargains around xmas time and beyond.

[polpott]

1 hour ago, GeorgeCross said:

 

chinese are highly limited in the amount they can transfer abroad

 

 

so they have to get err creative in order to buy condos and things

 

Correct many heavy suitcases coming over from China, going back empty.

[Guderian]

It looks like there are going to be some property developers filing for bankruptcy before the year is out. We just need to figure out now which banks are the most exposed to them, and make sure your 800,000 Baht isn't in one of them. I wonder if Immigration would be understanding when trying to renew your retirement extension, "Sorry officer, I had the 800K Baht in my K-Bank account as you can see, but then the bank folded and I was left with nothing." Ugh!

[rvaviator]

2 hours ago, andre47 said:

''Even those who had already bought units were unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand. ''

Why cannot transfer funds?

Not so easy to get money out of China ... You need export license and lots of paperwork to do a bank transfer  ... I am sure lots of people who buy Condos in Thailand from China just carry lots of cash in the past ... That in itself is a interesting proposition as the largest denomination you get in Chinese money is 100RMB ...  That is 15US$  ????