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

[torturedsole]

Mass events of default by the Chinese coming up to wreak further havoc on the Thai economy. Going to be tough trying to enforce repayments on the Chinese, isn't it! 

[rupert the bear]

there are strong currency controls in mainland.hk less but russian buyers are also having problems,theres pent up demand in many countries for thai condos ,this is another barrier to employment and a functioning economy.investor retirees people separated from loved ones all should be able to come in with a neg test ,a test at the airport thats neg and this disgusting racist rip off with the hotels needs to stop,the ins scam too,people have seen it so many times ,its like the standard racist pricing policies here.

[akampa]

16 hours ago, Guderian said:

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!

It seems that Siam commercial bank has announced there 2nd quarter profit was 8,4 billion and there 1st half year profit was 17.6 billion.should be safe then maybe  

[newnative]

4 hours ago, redwood1 said:

 

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....... 

    I'll be the first to admit that things are not good now with no international travel but even now there are buyers, just not as many.  Pre-covid, there were plenty of foreign buyers, some buying to live in and others buying for investment to rent out--lots of them using Airbnb type websites.  There is also the domestic market--several Thai buyers looked at the condo I sold.  One thing I'll stress is it does take some work to sell a condo--getting it listed everywhere with good photos that show it to the best advantage, pricing it realistically, presenting it beautifully and looking perfect at every showing, and buying smartly in the first place.  That was true in America and true here, too.  

[meinphuket]

They are well known for their flip-flopping and reneging on deals agreed.

[DB58]

19 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?

I transfer funds every month to pay rent, and expenses even though have no idea when will be allowed to return to my house... sounds to me like they just don’t wish to pay for the investment...

[thailand49]

19 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?

Maybe it has to be " cleaned and laundry first? "????

[AussieBob18]

19 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.

Nail on the head hit.  The Thai banking 'system' means their actual true 'book value' is far less than they report that they are.  Not only are the Thai banks carrying massive property bad debts that western banks would be forced to write down, they are also carrying massive bad debts for vehicle purchases and farm debts going back 3-5 years.   

 

This story is from 2019 and it is much much worse now.  It will all come to a head soon. 

https://www.thailand-business-news.com/banking/72269-thailands-biggest-debt-trap-is-not-chinese.html

 

 

[kwak250]

There is a nice bit of land for sale near us going for 7 million about a year ago.

I got the wife to ask again and it's now 8.5 million.

The reason it's gone up the owner says is because of the uncertain times he wants more now.

Got to love the thai logic. 

 

[luckyluke]

4 minutes ago, kwak250 said:

The reason it's gone up the owner says is because of the uncertain times he wants more now.

Got to love the thai logic.

Doesn't seem that illogical, he is hoping someone is preparing to pay that amount now.

He doesn't know what he will be able to get in the future.
 

Sure is, he doesn't seem desperate to get whatever what amount now.

[TPI]

The Condo builders are proud of their Chinese heritage, the people who build them are from Cambodia or Myanmar and the people who buy them are from China....why is this a Thai problem?

[spidermike007]

21 hours ago, AlfHuy said:

And still building everywhere.

And chances are, these developers who do NO market research, will be sitting on these units for a very long time, unless they are steeply discounted. A reckoning is coming. 

[rvaviator]

18 hours ago, NightSky said:

 

Wouldn't it be a bit eerie being one of a handful living in a 20 story block?

and you (the few left) are the only one left to pay for all the upkeep ... 55555

[Pravda]

You can put as many lol reactions as you like, but now or soon is a great time to buy a condo. 

 

When Chinese are allowed back in the prices will shoot 100%. 

 

The weak farang hands have left Thailand. Bon voyage.

[AlfHuy]

42 minutes ago, Pravda said:

You can put as many lol reactions as you like, but now or soon is a great time to buy a condo. 

 

When Chinese are allowed back in the prices will shoot 100%. 

 

The weak farang hands have left Thailand. Bon voyage.

shoot up 100%. 555

I just bought a whole condo building. Hope your predictions are true.

[johnarth]

22 hours ago, Puchaiyank said:

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

Australia real estate has the same logic, will force people out of their homes in near future

[ThailandRyan]

I walked pat the Q on Sukhumvit yesterday.  The price tag to buy a condo there ranges between 30 MB for 95 SqM, and 175 MB, granted the top units are 3 bedroom 4 bath, or 4 bedroom 5 bath, and between 300 SqM and 366 SqM, but seriously 450,000 baht per SqM average price is a little crazy, especially for the Nana Area. However, obviously some folks have the big money as I watched as 2 Ferrari's drive out from the gate as I walked on by heading out to eat dinner, and listen to some music while having a drink last night.

[gerritkaew]

good,, this chit all comming from Chinese, let them pay for all the problems wats in the world right now.

[PatOngo]

2 hours ago, TPI said:

The Condo builders are proud of their Chinese heritage, the people who build them are from Cambodia or Myanmar and the people who buy them are from China....why is this a Thai problem?

Thai's own the land!

[thairookie]

On 9/12/2020 at 2:08 PM, mommysboy said:

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

I have said many times.  One sixth of China is submerged in water and crops are being destroyed which will then precipitate a famine.  The locusts from Africa have also arrived in the Western part of China, and we are talking about billions of locusts ravaging the crops in areas which have managed to escape the flooding. 

 

A war between India and China looks imminent while the technology war between US and China has already begun.  China will be pegged backwards many years as US and Japan moved their factories away from China.  China will no longer be the biggest factory in the world, and the Chinese will be impoverished by the war against the world.

 

The sooner the Thai government realizes this, the better for Thailand.  When RMB is finally depegged from the USD, China will be back to the good old days just like Cambodia and Laos are right now.  They will visit Thailand as labours, not tourists.

[PatOngo]

3 minutes ago, thairookie said:

I have said many times.  One sixth of China is submerged in water and crops are being destroyed which will then precipitate a famine.  The locusts from Africa have also arrived in the Western part of China, and we are talking about billions of locusts ravaging the crops in areas which have managed to escape the flooding. 

 

A war between India and China looks imminent while the technology war between US and China has already begun.  China will be pegged backwards many years as US and Japan moved their factories away from China.  China will no longer be the biggest factory in the world, and the Chinese will be impoverished by the war against the world.

 

The sooner the Thai government realizes this, the better for Thailand.  When RMB is finally depegged from the USD, China will be back to the good old days just like Cambodia and Laos are right now.  They will visit Thailand as labours, not tourists.

The Chinese fishing militia are causing havoc in the South China Sea as fish stocks diminish, causing problems for Malaysia and Vietnam as they squabble over fish ground boundaries.

[sanuk711]

When will the banks move on non payments--I mean for everyone. I know people owing on cars, condo's, houses etc. Even a small boutique hotel  near us, the owners have walked away from, 3 months ago,  but no foreclosure notices from the bank on it.

 

The private finance companies seem to be starting actions. I just wondered how long the government can keep the banks on hold.

[jadee]

1 hour ago, ThailandRyan said:

I walked pat the Q on Sukhumvit yesterday.  The price tag to buy a condo there ranges between 30 MB for 95 SqM, and 175 MB, granted the top units are 3 bedroom 4 bath, or 4 bedroom 5 bath, and between 300 SqM and 366 SqM, but seriously 450,000 baht per SqM average price is a little crazy, especially for the Nana Area. However, obviously some folks have the big money as I watched as 2 Ferrari's drive out from the gate as I walked on by heading out to eat dinner, and listen to some music while having a drink last night.

The contrast between rich and poor in Bangkok is insane; the uber-luxurious Q is virtually surrounded by all manner of adult establishments like bj bars etc 

[Percy P]

On 9/12/2020 at 1:10 PM, CorpusChristie said:

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

 Your quite right, I'm helping 2 families .My Thai friend and his wife were laid off with no salary  Applied for the 5000 Baht supposedly hand out but we're told they didn't qualify for it .so I've made up for it. I'm sure the real estate will get there compensation. Mouths are more important 

[bwpage3]

This might answer some questions as to the Chinese, Condo's and how they get loans.

 

• Bangkok Bank (No.5 Overseas Chinese Bank and No.1 Thai Bank)
• Kasikorn Bank (No.7 Overseas Chinese Bank and No.3 Thai Bank)
• Bank of Ayudhya (No.8 Overseas Chinese Bank)

https://en.wikipedia.org/wiki/Overseas_Chinese_banks

[bwpage3]

Great articles on Thailand's Condo Market

 

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

[david555]

On 9/12/2020 at 4:26 PM, 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!

"they make the best Chinese Food in the world! "

 

yes i like #36 as favorite and second # 54   ????

[jomtienisgood]

On 9/12/2020 at 1:00 PM, 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?

indeed, very strange.....

[ThailandRyan]

24 minutes ago, jomtienisgood said:

indeed, very strange.....

Because they can only send out so much money from China without it being a red flag with the Chinese Government.  It is called Money laundering.  So that's why they visit here every quarter and make payments until it is paid off. The unit next door to where I lived prior to where I live now is owned by a Chinese family.  They were buying a bigger Condo here in Bangkok that was being built, and the uncle would come and go every 4 months staying for a week at a time bringing in money to make the payments.  I have no Idea if they stayed or left.

[Nout]

They are still building in Pattaya.  Its getting silly now.