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

[IAMHERE]

6 hours ago, Orton Rd said:

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

Absolutely; if you too are part of the upper 1% there is a good chance you'll get some bargains.

[splodger]

6 hours ago, CorpusChristie said:

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

Homes are for people not profit

[Ireland32]

6 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

 

Yes, now have to ask permission from Chinese Govt to withdraw funds ,China still trying to Bully to deflect its problems in-country 

[balo]

7 hours ago, andre47 said:

Why cannot transfer funds?

Chinese investors , they carry big bags of cash.  

[Dumbastheycome]

12 minutes ago, ThailandRyan said:

In what country does a Building devalue?  Houses only drop in value when there is an economic downturn, but so does the land they sit on as they are valued together normally.  In the US homes that were foreclosed upon and sat vacant for many years at least had the banks hiring gardeners and such to keep the house looking good for a sale when the right buyer came around, and always at an increase on the owed amount and the banks always turned a profit.  Leaving a house to rot is just poor action on the banks part.

Marketing and  accountancy are often good  bedfellows .

Unless adversely effected by environmental changes land value increases due to the inescapable fact it can not be manufactured. That same factor incrementally increases plot prices in new developments disproportionately to old in real currency prices. The marketable price is  based on a combination of  both land value  and  building  cost. From a commercial perspective the building is a depreciative component from day one. But in terms of taxation the  land appreciates and is therefore  subject  to  incremental increases  in extraction of.

Cities suffer the eventual problem of high rise  slum areas due to the depreciation of high rise  buildings becoming  zero  valued although sitting on  high  value  land because the  demolition or upgrade of  said buildings  exceeds commercial value in such redevelopment at that point in time while from an accountancy advantage can be tax  deducted against new development further away.

Urban sprawl is a product.

To assume Banks that endeavor to  off  load properties acquired  by  default do not do so selectively according to marketing advice could  be a  mistake.

The US housing loans situation was a disgrace ! In base terms the Banking Institutions were  bailed out but left to further extract their profit from the public they had over lent to.

 

 

 

[Ireland32]

6 hours ago, PatOngo said:

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

The Bullies get Payback 

[itsallmine68]

"Chinese can't pay for their properties" Or wont pay

[Susco]

7 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?

 

Could it be that is actually not a case of cannot, but instead don't want?

 

All those condos were purchased to be traded on airbnb and be converted in semi hotel rooms for their fellow Chinese.

 

From what I can observe right now, and at the horizon, I don't think it is a lucrative business for the foreseeable future.

[polpott]

1 minute ago, Susco said:

All those condos were purchased to be traded on airbnb and be converted in semi hotel rooms for their fellow Chinese.

Far from all. No doubt that getting some cash from Airbnb was a nice little bonus but their primary objective is to park their money out of country. I know of one Chinese lady who bought a whole floor of condos in a near new complex in the wilds of Pratumnak. None were advertised on Airbnb.

[DaftToPutRealName]

5 hours ago, Captain Monday said:

And dirty "ai Farang" like me keep paying  6 months condo fees at a time for residences we cant access in a Kingdom we are not allowed to enter.

 

At what point do you just walk away, like the Chinese?

Literally any time you'd like. That's how the locals do it too - just disappear back up-country somewhere any time they feel like it. Somehow that's less loss of face, too!

[metisdead]

Some posts using trolling memes have been removed. 

[newnative]

5 hours 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?

    They didn't.  The last condo I sold in July was to a Swiss buyer.  Buyers from France, Germany, Japan, Singapore, and the US also looked at it--and likely some other nationalities I've forgotten.  The Chinese stand out because there were so many of them; before the Swiss buyer my previous 5 condo sales were to Chinese--from Hong Kong and mainland China.  Even with covid, buyers were still looking and we had a number of condo viewings.  

[Destiny1990]

19 minutes ago, newnative said:

    They didn't.  The last condo I sold in July was to a Swiss buyer.  Buyers from France, Germany, Japan, Singapore, and the US also looked at it--and likely some other nationalities I've forgotten.  The Chinese stand out because there were so many of them; before the Swiss buyer my previous 5 condo sales were to Chinese--from Hong Kong and mainland China.  Even with covid, buyers were still looking and we had a number of condo viewings.  

So why nobody can find Prior to corona a buyer for their condo except you? 
Prior corona the  farangs already stopped coming so they automatically also stopped buying and now everybody stopped coming and stopped buying. Only you keep on selling properties to “ghosts” i assume.

[newnative]

5 hours ago, BernieOnTour said:

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 ...

   The 98% might indeed be 'complete bullsh.t' but not because of the 49% foreign ownership rule.  If the foreign quota is filled, foreign buyers can still buy in company name.  They would still be considered foreign buyers, but without a foreign quota condo. 

[Letseng]

8 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?

Illegal money sits in a foreign account they can't access as they can't get there. Singapore? If you transfer you leave a trail. You take the money and pay it personally into developer account.

[newnative]

18 minutes ago, Destiny1990 said:

So why nobody can find Prior to corona a buyer for their condo except you? 
Prior corona the  farangs already stopped coming so they automatically also stopped buying and now everybody stopped coming and stopped buying. Only you keep on selling properties to “ghosts” i assume.

    Your blanket incorrect statements are getting more ridiculous.  You managed 3 howlers in just this post.   1.  'Farangs already stopped coming'.  No, they didn't, prior to covid, and many still want to return.   2. '...they automatically also stopped buying...".  No, they didn't.  I just posted that I recently sold a condo to a Swiss buyer and there were also other interested foreign buyers.  3.  Only I can find a buyer.  Totally, laughably false.   Obviously, you have absolutely no idea regarding condo sales but that doesn't stop you from making ridiculous claims like this one.  Plenty of people have sold their condos--there have even been a number of posts on TVF attesting to this--I remember several saying they did ok because of the current exchange rate.  Rein it in already.

Edited September 12, 2020 by newnative
posted before finished typing

[impulse]

3 hours ago, ThailandRyan said:

In the US homes that were foreclosed upon and sat vacant for many years at least had the banks hiring gardeners and such to keep the house looking good for a sale when the right buyer came around, and always at an increase on the owed amount and the banks always turned a profit.  Leaving a house to rot is just poor action on the banks part.

 

To a large degree, banks paid to maintain the houses because if they didn't the Home Owner's Association would, and send the bill to the bank.  If the bill wasn't paid, the HOA would file a lien on the property. 

 

And they didn't always turn a profit.  Millions of homes were abandoned because they were underwater, with the home being worth a lot less than the outstanding balance.

 

[Bkktodd]

9 hours ago, Orton Rd said:

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.

My USA nationalty isn’t doing squat for me now.  No more benefits than EU If we are staying on topic with Thailand

[Isaan sailor]

Wuhan virus strikes the Chinese condo owners?  Karma.

[PatOngo]

3 hours ago, splodger said:

Homes are for people not profit

When was that change introduced???

[Miami007]

I am surprised it took that long for people to realize that closed borders impact so much more than tourism. I had been saying this for months

Let's see how many company closures and unemployed will result from the real estate problem. Especially when new development or construction stops. Another huge part of the economy down the drain

Just waiting for the reports of factories not being built or being closed by Japanese and Korean companies. Construction of high-speed rail between airports already is delayed as far as I know..

 

Soon Thailand will be left with civil service, military and agriculture as economic engines

[P100]

 

"unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand."

 

<deleted> k all those Chinese who pay with black money, illegaly taken out of China. They all made Thailamd real estate prices skyrocket. Poor guys, they could wire payments if the money would be clean but of course dirty money requires personal transportation to Thailand.

 

Edited September 12, 2020 by P100

[PatOngo]

29 minutes ago, Isaan sailor said:

Wuhan virus strikes the Chinese condo owners?  Karma.

It only strikes the peasants, not the communist party elite!

[PatOngo]

1 minute ago, P100 said:

 

"unable to continue with payments due to problems in transferring funds as they couldn't get to Thailand."

 

<deleted> all those Chinese who pay with black money illegaly taken out of China. They all made prices skyrocket. Poor guys, they could wire payments if the money would be clean but of course dirty money requires personal transportation to Thailand.

 

Or a vast array of underground networks! They do exist!

[PatOngo]

1 hour ago, Bkktodd said:

My USA nationality isn’t doing squat for me now.  No more benefits than EU If we are staying on topic with Thailand

Join the US military for the upcoming conflict with the Chinese! WWIII !

[mickylongtime]

9 hours ago, Nout said:

'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.

Is that true city hall has a list of condos and houses, maybe the banks has a similar Lists.? 

[eeworldwide]

It's all very well saying that it might take a year or 2... thats being optimistic and possibly based on the existence of a vaccine with high efficacy.

 

Lets just wait and see, shall we, when the vaccine DOESN'T appear and Thailand are FORCED to make real DECISIONS as to who can come in and out of the country WITHOUT quarantine.....

 

This is going to make 1997 look like a day trip to the kindergarten......

[redwood1]

4 hours ago, newnative said:

    Your blanket incorrect statements are getting more ridiculous.  You managed 3 howlers in just this post.   1.  'Farangs already stopped coming'.  No, they didn't, prior to covid, and many still want to return.   2. '...they automatically also stopped buying...".  No, they didn't.  I just posted that I recently sold a condo to a Swiss buyer and there were also other interested foreign buyers.  3.  Only I can find a buyer.  Totally, laughably false.   Obviously, you have absolutely no idea regarding condo sales but that doesn't stop you from making ridiculous claims like this one.  Plenty of people have sold their condos--there have even been a number of posts on TVF attesting to this--I remember several saying they did ok because of the current exchange rate.  Rein it in already.

 

Quit trying to put lipstick on a sick pig.........Ok you sold a condo great......But the overall market has been stinking for a few years.....And now the condo market is in the ICU............Over supply, high baht, unrealistic pricing, visas requirements that change on a moments notice.......and now Covid..........Time time to get some more lipstick for the sick pig I guess....... 

[scubascuba3]

7 hours ago, Susco said:

 

Could it be that is actually not a case of cannot, but instead don't want?

 

All those condos were purchased to be traded on airbnb and be converted in semi hotel rooms for their fellow Chinese.

 

From what I can observe right now, and at the horizon, I don't think it is a lucrative business for the foreseeable future.

by the time those off plan condos are built the Airbnb racquet will be strong again. If too many people pull out though, the developer runs out of cash and the condo doesn't get built. A few round my way have stalled for months, nightmare if someone has bought off plan

[kiwikeith]

14 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?

Can not transfer funds because me velly serlios me know plice drop and get velly good bargain soon, developer velly sad me merry klissmas