Explore High-end Condos In Thailand 'before They Vanish'

[LaoPo]

Explore high-end condos in Thailand 'before they vanish'

Despite political and economic uncertainties in Thailand, long-term investors are increasingly interested in buying up condominium units, an international property consultancy, has said.

According to a study by CB Richard Ellis (CBRE), while the stock of existing condominiums in Bangkok has increased, the luxury-end of the market has declined, which means supply is now limited.

This has prompted CBRE to recommend that investors take action now and enquire about a high-end condo before they all disappear.

CBRE Thailand managing director Aliwassa Pathnadabutr said that luxury condo units in prime locations like Saladaeng continue to generate "good" sell-out prices.

And according to client feedback, investment returns in the form of rental yields and capital appreciation is between five and seven per cent.

Furthermore, she said that luxury condominium projects in Bangkok continue to be much cheaper than in neighbouring nations, which makes it more likely that investors will be keen to snap up available property.

According to Thailand Real Estate & Property Guide, overseas and Thai investors are pushing up land and property prices on the island of Phuket as the tourism sector starts to improve after the devastating tsunami on Boxing Day 2004.

From:

http://www.propertyshowrooms.com/thailand/...ticle-1054.html

LaoPo

[SiamSquare123]

interesting, i always thought demand created supply, but apparently we should buy now because there is no demand.

[LaoPo]

Here is a link to the latest press releases of Richard Ellis real estate agents, covering several reports; rental, sales and other areas in Thailand such as Phuket, Samui etc.:

interesting read...

http://www.cbre.co.th/inet_newsmanager/NewsListFront.aspx

edit:

From the link in post #1:

Thailand an 'attractive long-haul investment prospect'

British property investors should seriously consider expanding their horizons and choose a more far-flung destination to enhance their portfolio, an expert has said.

Article Date : Tuesday, April 03, 2007

Peter Conradi, editor of the Sunday Times property section, has said that long-haul destinations such as Thailand are particularly attractive because they offer cheap property prices, a long rental season and affordable flight access.

He also asserted that Egypt and Morocco are other long-haul countries places to consider, reports property news blog Nubricks.com.

"Many of these places have very healthy rental markets and so could be worth comparing with short-haul destinations if you are just focussed on the pure rental return," Mr Conradi remarked.

He added: "It does all come down to research and understanding exactly what your potential renters will want and having realistic expectations about the kind of returns that you can make."

According to Property Frontiers, foreign buyers are increasingly looking to the likes of Thailand, which is dependant on the Chinese economy, but is not as restricted when it comes to foreign investment.

From:

http://www.propertyshowrooms.com/thailand/...ticle-1000.html

LaoPo

Edited May 3, 2007 by LaoPo

[sfokevin]

Has CB Richard Ellis (CBRE) ever published a study suggesting that one should NOT invest in real estate?

[LaoPo]

Has CB Richard Ellis (CBRE) ever published a study suggesting that one should NOT invest in real estate?

that's a good one....and I don't even have shares..

LaoPo

[dumspero]

Promotion. Advertising/marketing because business is off.

[chanchao]

This has 'Dogbert Consulting' written all over it in smudgy black paws.

Personally I think *ANY* condominium is overpriced, given the mostly reasonable price of land. And a big gamble in terms of upkeep of the buidling; what seems like highly desirable now (or in a brochure) can be a cheap dump a couple years down the road.

[wintermute]

If you look at actual real estate analysis that isn't generated by industry shills then you'd realize that there is actually an oversupply of high-end units out there. They vastly overestimated the foreign market and with the new potential changes in ownership laws the percentage of buyers are probably going to get even smaller.

[soundman]

Promotion. Advertising/marketing because business is off.

Have to agree, whenever business is down in real estate, I've noticed that RE companies tend to try & create false hype to get better results from the smaller list of prospective buyers. When there is a large pool of prospectives, the RE companies don't need to do this because the competition between buyers drives the price up.

Are we about to witness a slump in the property market accross the board in Thailand? I think so. Not so much available money out there now that the cabinet members & their families & cronies of the previous govt. has lost their "cash cow".

Cheers,

Soundman.

[Soju]

What a bunch of crap that CBRE report is! Good for some laughs though. Don't know why anyone would believe anything from them as they've blown their credibility many times in the past by making these same type of crap reports.

This has prompted CBRE to recommend that investors take action now and enquire about a high-end condo before they all disappear

Truly amazing that they think anyone with money to be buying a high-end unit would believe such utter rubbish.

[nick2k]

like I said in another post..

what is 5,000 real estate brokers at the bottom of the ocean like?

answer - a good start.

[JacksonGlurk]

There is no 'investment' at all in so-called high end units here, at least not in the usual sense of the word, because there is absolutely no resale market for expensive codos. None. Nada. Zilch.

You can probably count on two hands the number of Bangkok condos priced above twenty million that have been resold at any price over the past five years in the way usual in the UK or the US -- i.e. from one owner occupant to a new owner occupant. I can't tell you how many large, expensive, empty, and abandoned apartments I know of here.

If you buy a condo in Bangkok and pay much more than ten million for it, you have to be prepared to own it for the rest of your (or its) life. To expect to resell it at all, let alone at a profit, is inconsistent with reality here.

[kmart]

The Thai Minister who related the "only cockroaches and farangs live in condos" quote could do with a makeover by Richard Ellis.

[Maizefarmer]

Lets not forget how Richard Ellis makes it's money - dealing in property (commercial & residential).

Phuket? - overpopulated and spoilt (and it's just getting worse and worse).

Bangkok? - will always be a good option (as are capital cities in most countries)

MF

[sukanyacondo]

There is no 'investment' at all in so-called high end units here, at least not in the usual sense of the word, because there is absolutely no resale market for expensive codos. None. Nada. Zilch.

You can probably count on two hands the number of Bangkok condos priced above twenty million that have been resold at any price over the past five years in the way usual in the UK or the US -- i.e. from one owner occupant to a new owner occupant. I can't tell you how many large, expensive, empty, and abandoned apartments I know of here.

If you buy a condo in Bangkok and pay much more than ten million for it, you have to be prepared to own it for the rest of your (or its) life. To expect to resell it at all, let alone at a profit, is inconsistent with reality here.

Anyone any idea then what the resale possibilities are for condos in the 1-2 million price bracket would be like??

[midas]

There is no 'investment' at all in so-called high end units here, at least not in the usual sense of the word, because there is absolutely no resale market for expensive codos. None. Nada. Zilch.

You can probably count on two hands the number of Bangkok condos priced above twenty million that have been resold at any price over the past five years in the way usual in the UK or the US -- i.e. from one owner occupant to a new owner occupant. I can't tell you how many large, expensive, empty, and abandoned apartments I know of here.

If you buy a condo in Bangkok and pay much more than ten million for it, you have to be prepared to own it for the rest of your (or its) life. To expect to resell it at all, let alone at a profit, is inconsistent with reality here.

Jackson -some good points ! And how many of these " condos priced above twenty million " can be readily

rented out if you wanted to ?? I suggest not that many - in mind that also makes it a less attractive

investment proposition.....?

[torito]

There is no 'investment' at all in so-called high end units here, at least not in the usual sense of the word, because there is absolutely no resale market for expensive codos. None. Nada. Zilch.

You can probably count on two hands the number of Bangkok condos priced above twenty million that have been resold at any price over the past five years in the way usual in the UK or the US -- i.e. from one owner occupant to a new owner occupant. I can't tell you how many large, expensive, empty, and abandoned apartments I know of here.

If you buy a condo in Bangkok and pay much more than ten million for it, you have to be prepared to own it for the rest of your (or its) life. To expect to resell it at all, let alone at a profit, is inconsistent with reality here.

Speculation is so common that people reselling receive serious offerts for 40% of the asked price....

Edited May 4, 2007 by torito

[bangsue]

this was in the nation a month or so ago

http://www.nationmultimedia.com/2007/03/28...ss_30030439.php

there are a huge amount of new condos going up also. 2 very large units at ratchatewi, 2 more at pratunam, all over phaya thai and ari any spare land is having smaller condo blocks built on it. more going up on suk and silom. i can only see a huge oversupply in the next year or two.

[torito]

i can only see a huge oversupply in the next year or two.

I am not an expert in this area, but given the figures I have seen it appears to me that 'bangsue' is correct with this statement.

[Clipped]

inner city condos are selling quite well, especially those on sukhumvit or anything on the bts line....but then again any condo on the bts line would negate the need for it to be inner city.

my condo which is by the airport has doubled in price within the past 3 years...

you get a bad location you get a bad price....

[think_too_mut]

inner city condos are selling quite well, especially those on sukhumvit or anything on the bts line....but then again any condo on the bts line would negate the need for it to be inner city.

my condo which is by the airport has doubled in price within the past 3 years...

you get a bad location you get a bad price....

I can only imagine what killing you have made in places like Sydney, Manhattan New York, London City.

And, you are right, the location is important...unless it is - Bangkok.

[JR Texas]

inner city condos are selling quite well, especially those on sukhumvit or anything on the bts line....but then again any condo on the bts line would negate the need for it to be inner city.

my condo which is by the airport has doubled in price within the past 3 years...

you get a bad location you get a bad price....

I can only imagine what killing you have made in places like Sydney, Manhattan New York, London City.

And, you are right, the location is important...unless it is - Bangkok.

JR Texas: The original story is generated out of fear.......the real estate market is in the first phase of a major collapse. They are trying hard to keep the "myth" going so that the suckers/buyers will continue to invest in a grossly overpriced market.

[JacksonGlurk]

There is no 'investment' at all in so-called high end units here, at least not in the usual sense of the word, because there is absolutely no resale market for expensive codos. None. Nada. Zilch.

You can probably count on two hands the number of Bangkok condos priced above twenty million that have been resold at any price over the past five years in the way usual in the UK or the US -- i.e. from one owner occupant to a new owner occupant. I can't tell you how many large, expensive, empty, and abandoned apartments I know of here.

If you buy a condo in Bangkok and pay much more than ten million for it, you have to be prepared to own it for the rest of your (or its) life. To expect to resell it at all, let alone at a profit, is inconsistent with reality here.

Jackson -some good points ! And how many of these " condos priced above twenty million " can be readily

rented out if you wanted to ?? I suggest not that many - in mind that also makes it a less attractive

investment proposition.....?

This is (more or less) an actual conversation with a wealthy and respected Thai who has hundreds of millionss invested in property in Bangkok:

Thai: We never sell property. We buy codos and rent to farangs. Have five renting for over B300,000 per month.

Me: Wow, that's great. They're all rented now, huh?

Thai: No. All vacant.

Me: But you had them rented before?

Thai: No. Never rented. All new.

Me: How long have you had them?

Thai (thinking): A few years.

Me: And you've never had any tenants in them at all.

Thai (shrugging): Not important. The point is that we own nine codos that rent for more than B300,000.

See how this works?

[Clipped]

the condo market and the residential housing market are two different things...

i know people working at PLUS property who emphasize sukhumvit condos as well as a a major builder who is my close friend, in the surrounding suvarnabhumi areas, not in suvarabhumi but the surrounding areas with major traffic thoroughfares...they are doing quite well.

with the baht strengthening, foreign investors will get a better rate when they send their profits out of the country. too many people think of the 'weak' baht and purchasing power, but forget to think about what happens when they send money outwards...

think to mutt-you ae absolutely incorrect in saying that location is unimportant in bangkok, quite an ignorant statement really...as i am sure when you make a purchase yourself, you will take into considertion the location...

[cclub75]

According to a study by CB Richard Ellis (CBRE), while the stock of existing condominiums in Bangkok has increased, the luxury-end of the market has declined, which means supply is now limited.

This has prompted CBRE to recommend that investors take action now and enquire about a high-end condo before they all disappear.

Once again, the little propaganda staffel buro of CBRE has spoken.

With a rather strange logic, as far as economy is concerned.

-less stock in luxury condos, because developpers don't launch new projects, because less demand

-so hurry up to buy ! because soon, no stock at all

It's not Economy 101. It's "Cinderella Running Naked after Her Pumpkin". Or a deep, deep version of the contrarian theory.

Pathetic.