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

[Peterw42]

19 minutes ago, Scot123 said:

I read something interesting that the banks use all these properties on their books at up to 3 times their real value meaning  its one of the biggest frauds in Thailand. 

Isn't that essentially what the GFC was ?

[bkk6060]

They also are mostly in arrears with their maintenance fees, electric, water.

The Jurasic lady in my building said most are one year behind on fees.

And it seems like everyday now I see a guy carrying an electric meter that they detached from the board due to lack of payment. At some point there will be a bottom in the real estate market.  I think commercial is very close but residential seems to still be holding out.  Should be interesting how all this pans out.

 

 

[FlyingThai]

50 minutes ago, rvaviator said:

For an expat who are paid in RMB - You can expert the money out, "no problem" as long as the company you work for can show proof that they have paid your income tax. Depending on the company you work for .. or if you change jobs etc .... That can sometime be a problem. Or working for big companies who will issue the required document once every year.  Its a lot of paperwork that you have to give to the bank when you do your wire. Once done, its super fast .... Much faster than sending money from US to Thailand.

Having worked in Beijing and Shanghai for a few years and still being in contact with many expats there I can tell you it's gotten much worse. And yes even in the case they do allow you a foreign wire you have to show all types of paperwork. Most of my friends have family at home withdraw money at the ATM with their bank card or have Chinese friends do the transaction which is easy as long as it's a reasonable amount. Unless the company would allow me to draw large parts of my salary abroad I'd not do business in China again.

[BernieOnTour]

3 hours ago, rooster59 said:

that 98% of potential buyers couldn't get to Thailand

That statement alone is already complete bullish.t !

The condominium act allows only 49% in foreign ownership.

 

Developers, already miscalculating before Covid in a pyramid “style” trying to get their hands in taxpayers’ coffers ...

[Autonuaq]

3 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?

Easy answer to that, chinese are allowed to send a certain amount per person per year legally abroad by the rules set by the chinese goverment.

 

This is the problem for the Chinese as well the condo sellers / developers are now aware of that this also applied to chinese who buy in Thailand too

Now Covid-19 makes the weak spots of the Thai economy become more and more clearly.

 

[Hi Tea]

3 hours ago, Jack Mountain said:

Money cleaning involved, so no banktransfers?

Which condo developers accept full payment in cash and which Land Departments do not require a Foreign Currency Exchange confirmation letter from a bank for a purchase by a foreigner?

[Megasin1]

I had some agents running around looking for a villa, but have put it on hold as there is no hurry, just waiting for the real crash to happen, and if it doesn't crash, well really you've lost nothing but a bit of time, they certainly won't be going up in price any time soon ???? keep up the good work little general, for as long as you can last!! I'm not being shellfish, that sort of thing can land you a Thai jail visit, and I do feel sad for the Thai people but they've been floating on an overinflated balloon for quite a while now. Its the old sage adage of you shouldn't put into Thailand what you can't afford to lose, it's just that a lot more people are about to discover that lesson for themselves.

[smew]

They created this mess... this virus so... poetic justice shall we say //\\ 

[Deli]

Call the CCP. They created the situation, it's their duty to fix and pay for it

[Voltaren]

simple 4 close and sale for the remainder or funds due!!!!!  

[DJ54]

Ok go to back of line...Next.

[meinphuket]

3 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?

sounds like a load of rubbish

[Orton Rd]

44 minutes ago, FinickyFarang said:

I believe you’re talking about Simon at Land of Smiles Thailand (LOST).  
 

 

 

 

Yes that's him nice guy and probably the best of the vloggers on Thailand, a lot are low life's. He broke the golden rule of not investing more here than you can afford to lose.

[aussienam]

3 hours 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

 

There was a huge expose documentary on HSBC bank turning a blind eye to billions of dollars of laundered money.  Wasn't that long ago.  

[JEM53]

Many Chinese property buyers traveled to Hong Kong with their (dirty) money and placed them in a foreign bank account. Transfer and tax problem solved.

They can not do that any more and I am sure you know why. 

[Bender Rodriguez]

can we expect major discounts soon ?  I wanted to invest some millions ...

 

maybe it is time that overpriced condo's the price higher than 1st world hubs can start to go down , lol

[Orton Rd]

49 minutes ago, Mister MXYZPTLK said:

Why are all of you so ‘Down’ on the Chinese. Why are you against them?  There are a wonderful race. And let me remind all of you, they make the best Chinese Food in the world!

Might be they way they go about things in Thailand, they are not a race of course but many ethnic groups. We have 6 Chinese families within a few yards of our house, none were legally entitled to buy (ok company route) but all paid cash as far as I know. None are allowed to work here but they all do and most are fiddling their visa ie claiming a Thai is a childs father when he's not to obtain an extension to stay until the kid has grown up. I know this because they get me to copy their documents and passports. Bloke round the corner has the same retirement extension as me with employment prohibited stamped on it, goes out to work every day. They all stick together and have all but one family disappeared recently, assume to China, to be blunt they are crafty, not all of them of course, and can work the system as well, if not better than Thais can.

[Youlike]

4 hours 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.

In our mubahn there's a house which belongs to the bank now for many years (6 years)...they do absolutely nothing to maintain it, it's a huge jungle now..

IT's bad for the rest of the street but also the value of that house goes down fast...maybe soon it needs to be rebuilt and is only 10 years old.

 

I don't understand why Thai banks can do this with their property....they could at least maintain the garden of it.

[Reigntax]

Didn’t stop them transferring  COvid around the world!

[thaichina]

1 hour ago, Destiny1990 said:

Seems prior to corona it was mainly the chinese still buying units in Thailand begs the question why did the other nationalities stop buying?

Because the prices are insane in mainland China.

[Mavideol]

4 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?

because they don't have ANY to transfer 555  Chinese economy not doing as well as they tell the world, hard times there as well

[RichardColeman]

4 hours ago, Puchaiyank said:

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

NO, raise the price and build more more apt

[kingstonkid]

4 hours 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.

John is there a process I know of a house and would love to take it over

[Mavideol]

4 hours ago, Orton Rd said:

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

wishful thinking.... I would bet more on the Thai way of business,  price increase to compensate for lack of buyers, just like the bar owner, before had 10 customers for beer @ 100 bath he made 1,000 baht, now only has 2 customers still wants 1,000 baht, guess the price of the beer  555

[Jingthing]

3 hours ago, PatOngo said:

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

Why not?

[Mavideol]

4 hours 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.

smart way of business.... they only need 1 "pigeon/sucker"

[scubascuba3]

This is only half the story, you think Thais are going to continue payments for ghost condos in ghost towns. 

 

If I was buying I'd be going to auctions over the next 3-9 months

[PatOngo]

4 hours ago, mommysboy said:

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

Don't worry about the rich Chinese, they have plenty of underground networks to transfer and launder money! Remember the Chinese guy in Pattaya last week that got robbed of 10 million IN CASH!

[johng]

2 minutes ago, kingstonkid said:

John is there a process I know of a house and would love to take it over

Ask the banks...sometimes though its a very wealthy Thai that will just leave the place "vacant" for years and years they never rent it out or come to stay  it just sits there "waiting" and looking un-owned.

[PatOngo]

3 minutes ago, Jingthing said:

Why not?

You either like them or you don't, up to you!