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

[Nout]

On 9/12/2020 at 2:50 PM, sungod said:

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

at what?

[ThomasThBKK]

5 minutes ago, ThailandRyan said:

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.

 

I think the limit they can send per year is 50k usd out of china, it's not even a red flag if they sent more, it will simply not work on their end. Normally they brought the money to HK and then sent it to Thailand, or just brought it to thailand - they prolly can't do that anymore, and China is also cracking down hard on money outflows. It's not that they are suddenly all broke now, they simply have no possibility to pay even if they had the money. 

The thai condo builders have known this well and simply ignored it as a risk...

[jomtienisgood]

1 hour ago, ThailandRyan said:

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.

That is also very correct. Even working there issuing an invoice is sometimes a bit of a problem getting the money out.

[kwak250]

On 9/13/2020 at 10:26 AM, luckyluke said:

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.

 

The  problem is that it's been for sale for at least 5 years when people had jobs and now it's gone up.

[polpott]

2 hours ago, kwak250 said:

 

The  problem is that it's been for sale for at least 5 years when people had jobs and now it's gone up.

Inflation. 555

[luckyluke]

Remind me of a house for sale, years ago in the Darkside Pattaya : 900000 ThB.

No buyer, after about a year ( maybe more ) a 1 was added to the 900000, not even in the same color !

Something like another year passed, than one day it was occupied.

I suppose the buyers found 1900000 a good price, and didn't care it was less a few years before.

[ChipButty]

Some years ago I rented out a villa we owned at that time, a couple of Chinese guys wanted to rent it and were willing to pay me 3 months up front they paid me with brand new Thai Baht the bank wrappers said Bank of Laos, it's all money

[AlfHuy]

On 9/15/2020 at 11:05 AM, ChipButty said:

Some years ago I rented out a villa we owned at that time, a couple of Chinese guys wanted to rent it and were willing to pay me 3 months up front they paid me with brand new Thai Baht the bank wrappers said Bank of Laos, it's all money

Mate, that's not bank notes, that's a beer sticker.

[Kwaibill]

On 9/12/2020 at 1:09 PM, Orton Rd said:

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

The usual scheme seems to be to double the price in such circumstances.

Seen a number of rental ads lately in the 100,000 to 200,000 baht range. Am I crazy, or do those seem a bit steep for condo rentals?

[smutcakes]

18 hours ago, Kwaibill said:

The usual scheme seems to be to double the price in such circumstances.

Seen a number of rental ads lately in the 100,000 to 200,000 baht range. Am I crazy, or do those seem a bit steep for condo rentals?

There are people out there who pay it. I know a Thai guy who paid 350K per month for a condo at the Met Condominium.

Plenty of Japanese (not as many as there were) who pay up around the 150-200K mark.

Really top end condos you would be looking for 1,000 THB per sqm as an owner.

[AlfHuy]

4 minutes ago, smutcakes said:

There are people out there who pay it. I know a Thai guy who paid 350K per month for a condo at the Met Condominium.

Plenty of Japanese (not as many as there were) who pay up around the 150-200K mark.

Really top end condos you would be looking for 1,000 THB per sqm as an owner.

You must be sick to pay 4,2 Million baht rent a year.

[smutcakes]

4 minutes ago, AlfHuy said:

You must be sick to pay 4,2 Million baht rent a year.

Or rich enough not to worry about it.

Its 100K UK Pounds- companies would regularly pay that for executives in many capital cities and many individuals as well.

[andre47]

15 minutes ago, smutcakes said:

Or rich enough not to worry about it.

Its 100K UK Pounds- companies would regularly pay that for executives in many capital cities and many individuals as well.

sick world

[smutcakes]

Just now, andre47 said:

sick world

Not denying that. But 100 K per year on the grand scale of things in sporting, corporate etc world is not a great deal of money.

[fdsa]

I wonder why Chinese do not buy property with cryptocurrency, given that China is the major issuer of said currency.

Edited September 22, 2020 by fdsa

[bristolgeoff]

You can buy a condo in a afternoon.It will take years to sell  sometimes.The chinese can transfer money if they want to anyone.if cash is used they can not get there,then the problems start and the black money harder to get rid off.lots of cheap deals soon i,am sure

[Airalee]

12 hours ago, smutcakes said:

Or rich enough not to worry about it.

Its 100K UK Pounds- companies would regularly pay that for executives in many capital cities and many individuals as well.

There are only so many “executives” in Thailand and not nearly enough to fill all those high priced rentals.  I know of plenty of Japanese nationals (and other foreign expats) working for Japanese, American and other MNCs living in 12-18k baht condos.  

[chrisandsu]

Maybe the Chinese have just figured that the resale market in Thailand is pathetic . They are still buying like crazy in my country as they have seen plenty of their Kin make bundles in property . I’m almost hoping for a massive crash just so the little scrouts get their fingers burnt . 

[techietraveller84]

Would a big condo crash be a boon to the regular Thai people, mostly affecting wealthy Thais and foreigners?