Bangkok housing glut: Nearly a trillion baht of empty properties - govt urged to extend stimulus measures

 

Picture: Daily News

 

Daily News quoted a banking and real estate analyst as saying that the value of empty properties in Bangkok and surrounding provinces would soon approach a staggering ONE TRILLION baht. 

 

Wichai Wirat urged the government to extend transfer and stamp duty charges for a further year in an effort to arrest the slump.

 

He said that current figures show there are 185,993 empty condos and houses worth 937,707 million baht. 

 

Unless there is government help this will expand to 193,415 properties worth 956,086 million within the next six months. 

 

Easing of transfer and stamp duty charges - currently at 0.01% of the assessed value of properties - is set to end in December. 

 

Wichai said this should be extended for a further year and should be expanded to include people buying second hand properties in the 3 - 5 million baht range as this makes up 20% of the empty supply.

 

The media reported that the places with the highest proportion of the glut are Pathum Thani (a province north of Bangkok) with 40.4%, Nakhon Pathom to the west of the capital with 9% and Samut Prakan (south east) with 5.7%.

 

Bangkok itself continues to outperform the surrounding properties in shifting the glut with Nonthaburi and Samut Sakhon some way behind. 

 

Source: Daily News

 

 

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Unless somebody is wiling to buy them they are not worth anything, many will sell at a price people are willing to pay.

32 minutes ago, webfact said:

He said that current figures show there are 185,993 empty condos and houses worth 937,707 million baht. 

do you mean unsold new properties?

33 minutes ago, webfact said:

Unless there is government help this will expand to 193,415 properties worth 956,086 million within the next six months. 

what happened to a trillion baht in the headline?

I think he was talking about BKK and the surrounding areas not the country as a whole when stated 186k of empty properties.

3 hours ago, NCC1701A said:

do you mean unsold new properties?

what happened to a trillion baht in the headline?

Trillion, nationwide but the article was referring to bkk and its surroundings when stated 185993 empty properties. 

3 hours ago, NCC1701A said:

do you mean unsold new properties?

what happened to a trillion baht in the headline?

950 billion (956,086,000,000) is very nearly a trillion as the headline states... just saying... westerners would probably stated 956 billion, but Thais say 956,086 million

That's the way, subsidize the greedy hiso speculators! Nevermind supply and demand! 

Not sure i understand the op is there no transfer tax at this moment?  only .01%

Watch the prices go up and up... 

5 hours ago, webfact said:

Bangkok housing glut: Nearly a trillion baht of empty properties - govt urged to extend stimulus measures

You just know the stimulus measures will be aimed at building more of them

Try to figure out why they haven’t sold. 

Doesn't look like good news for anyone.....including the banks that have financed the building of them. Memo to self: split all bank accounts that have more than 1 million  in them.

Make affordable prices masses can pay (max 10000 THB/month) and people flood those empty buildings.

 

No wonder they are empty with moon prices not many can afford. 

8 minutes ago, thaibestlover said:

Make affordable prices masses can pay (max 10000 THB/month) and people flood those empty buildings.

 

No wonder they are empty with moon prices not many can afford. 

 

so essentially you want a government bail out for property developers/banks? how about that government money being spent on education, the health service instead of making the rich richer?!

This doesn't surprise with the amount of condos and apartments that have been built in BKK over the last 5 years or so. On top of that is the empty hotels and rental market which would have taken a massive hit due to the lack of travellers. It will take 5 or 6 years to recover maybe longer.

Overpriced Junk so it is

If the belief that charging 5000Bt in fees/duties is the reason why people are not buying 5,000,000Bt properties, I think they may be barking up the wrong skyscraper.

WOW !

If these developers default with the banks there will be a Major issue for the Country to contend with.

This 1 Trillion Baht, of empty properties is only for Bangkok and surrounding provinces.

It beggars the question " What is the figure for the Nation wide empty properties and the addition of Commercial properties and Installations "

Mind Boggling

8 hours ago, webfact said:

Daily News quoted a banking and real estate analyst as saying that the value of empty properties in Bangkok and surrounding provinces would soon approach a staggering ONE TRILLION baht.

Maybe ask the developers to stop building on every postage sized stamp for the next year until they've sold what they've got vacant.

4 hours ago, Destiny1990 said:

Try to figure out why they haven’t sold. 

No one too buy

939,707,000,000 baht, decided by 185993 equals average of just over 5 million. In BKK, I am thinking this might get you a parking spot. Or a shack under the bridge over the river.

Next week Breaking News!!!!!

 

The 39 Chinese tourist which arrived yesterday purchased 165000 apartments and soon, the remaining 20000 or so will also be soon the new home of our billionaire friends which are coming end of this month.

 

What a relief.

11 hours ago, NCC1701A said:

12 hours ago, webfact said:

Unless there is government help this will expand to 193,415 properties worth 956,086 million within the next six months. 

what happened to a trillion baht in the headline?

956 thousand million? Close enough to 1 trillion

1997 Redux?  I know.  Just keep hammer the economic coffin lid closed in the name of a virus leaves 7.79 billion out of 7.8 billion people alive and well, 

2 hours ago, Scott Tracy said:

939,707,000,000 baht, decided by 185993 equals average of just over 5 million. In BKK, I am thinking this might get you a parking spot. Or a shack under the bridge over the river.

     I am thinking you're wrong.  Earlier this year my partner and I bought a 52sqm condo on the 37th floor in a quality building a 2 minute walk to the Phetchaburi MRT for 6MB.  Smaller 1 bedrooms of 41 to 48sqm in the project can be had for your 5MB.  No, not huge, but not a 'parking spot' or 'shack', either.

2 hours ago, Scott Tracy said:

 I am thinking this might get you a parking spot. Or a shack under the bridge over the river.

In other words, a typical shoebox-studio. 

9 hours ago, samsensam said:

so essentially you want a government bail out for property developers/banks? how about that government money being spent on education, the health service instead of making the rich richer?!

 

I believe the poster was implying the exact opposite of that -- that the property sellers themselves need to adjust their prices to reflect current market conditions. Personally, I cannot imagine paying the prices being asked for those concrete boxes. And there is no question that the prices are beyond the means of most Thai buyers.

How about having some sort of development controls to ensure unnecessary condos and commercial offices are not built in the first place?

 

Daft suggestion, I know.  Will never happen here.

18 hours ago, mickymouse1 said:

Trillion, nationwide but the article was referring to bkk and its surroundings when stated 185993 empty properties. 

Bloody hell, that's my military service number!

10 hours ago, newnative said:

     I am thinking you're wrong.  Earlier this year my partner and I bought a 52sqm condo on the 37th floor in a quality building a 2 minute walk to the Phetchaburi MRT for 6MB.  Smaller 1 bedrooms of 41 to 48sqm in the project can be had for your 5MB.  No, not huge, but not a 'parking spot' or 'shack', either.

That is 115,000 baht per m2

Wow.

 

Close to me, a new apartment building almost finished was advertised at 150,000 baht/m2 now massive sign saying, reduced to 99,000/m2

 

Others are already down to mid 80,000/m2

 

Soon, others will follow.

If new build condos are not shifting at +80,000/m2, how are others justifying +100,000:m2

 

The ball is just starting to roll.

 

Rent prices are dropping massively. Just ask. Landlord doesn't want to lower, move. There are plenty of empty condos and landlords desperate to get someone in to pay their mortgage.

 

Renters market, for sure.