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


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

 

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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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-- © Copyright Thai Visa News 2020-10-22
 
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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?!

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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

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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.

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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.

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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.

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