COVID slams Phuket property market, highest unsold units in Southern Thailand

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COVID slams Phuket property market, highest unsold units in Southern Thailand

By The Phuket News

 

Image: REIC

 

PHUKET: The top five areas in Southern Thailand with the most unsold property units are all located in Phuket, the national Real Estate Information Center (REIC) has revealed.

 

REIC Acting Director Wichai Wiratkaphan revealed in report released yesterday (Nov 16) that in the first half of 2020, Phuket had the highest number of unsold accommodation units in the South with 8,984 units, while the total number of unsold units throughout Southern Thailand was 17,087.

 

The combined area of Bang Tao and Surin, on Phuket’s central west coast, has the highest number of unsold properties in all 14 provinces in the South with 1,886 unsold units.

 

Full story: https://www.thephuketnews.com/covid-slams-phuket-property-market-highest-unsold-units-in-southern-thailand-78008.php

 

-- © Copyright Phuket News 2020-11-17

 

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[nobodysfriend]

If they give permanent residence when somebody buys a condo , that situation would certainly improve ...

[ThailandRyan]

Still way overpriced, market correction in the future is a big possibility, but then the Thai Elite Hi-So Amarts will not like that one bit, and will be sure to sell off before the market collapses as they will have the inside knowledge of when or where, more insider trading and sell offs...only the rich can get richer while the poor who used all of their savings to buy will get burned again...that also goes for the foreigners who invested all of their retirement funds on an over priced unit.  Recently I have been getting real estate e-mails indicating if I make an offer on a property I can also get 25% off from that figure as well.

[Nurseynutcase]

There is still many many buildings going up just to add to those that haven't yet been completed or left partially built.

[ThailandRyan]

2 minutes ago, Nurseynutcase said:

There is still many many buildings going up just to add to those that haven't yet been completed or left partially built.

It is called insanity.  Insanity: When one continues to do the same thing and yet expects a different outcome.

[ChipButty]

It's going to come crashing down even more soon in Phuket the amount of units going up just in my area is unbelievable the construction is still ongoing as the clock is ticking I saw one condo for sale the other day 2 million baht less than they paid for it 2 years ago, I know the project well so I know what they paid for it.

[KhunKenAP]

You mean Prayut and his gang did not solve all the problems last week?????????????????

[bloodyholly]

2 hours ago, ThailandRyan said:

Still way overpriced, market correction in the future is a big possibility, but then the Thai Elite Hi-So Amarts will not like that one bit, and will be sure to sell off before the market collapses as they will have the inside knowledge of when or where, more insider trading and sell offs...only the rich can get richer while the poor who used all of their savings to buy will get burned again...that also goes for the foreigners who invested all of their retirement funds on an over priced unit.  Recently I have been getting real estate e-mails indicating if I make an offer on a property I can also get 25% off from that figure as well.

Saw this one in Sept. 50% off. 

[Jen65]

3 hours ago, Nurseynutcase said:

There is still many many buildings going up just to add to those that haven't yet been completed or left partially built.

Yes, in Pattaya and Jomtien also. Number of reasons : a) the introduction of land tax on undeveloped land promted land owners to develop or sell b) many projects were already agreed before this Pandemic and downturn - the bank loans, necessary EEA approval etc and (possible investor deposits) so the developers have not much choice except to build.

Only problem is that now, foreigners are discouraged from buying or investing in homes/condos here because of many reasons(government red tape to live and enter Thailand, job losses worldwide, Covid restricting travel, peoples spending habits, overpriced property here, political unrest etc etc) 

Many "investor" developments already completed that promised eye water g returns, now find they can't pay that return (if it looks too good to believe, it probably is!) 

There are already Condo buildings around Jomtien so just who is going to buy in this market. The "theme park" developments already have so many resale units on their books from people who bought hoping to make a fast buck after completion. Most face selling at a loss IF they can find a buyer. They are only boxes for holidays and so many studio/1 bed units on the market. I would never touch one as totally unsuitable for "living" in. 

An adjustment or crash is on the way. 

 

[Inepto Cracy]

43 minutes ago, bloodyholly said:

Saw this one in Sept. 50% off. 

I wonder if this is the place that does not have mains water for 7 months of the year, they can only get water trucks in? Only asking before anybody jumps on my comment.

[xylophone]

The folks who bought apartments and condos as a means of investment, and getting a return on that investment by renting them out, must be struggling, or shall I say are struggling because I do know a few.

 

However, a couple of weeks ago I was just perusing the property market here in the possibility of finding a slightly larger condominium that I could rent, but rental prices do not seem to have moved from their heyday??

 

There is absolutely no "meeting of the market" (which the real estate sellers lay on you when you are trying to sell something and the agent wants to knock the price down) so there should be many empty rental and many empty unsold apartments and condos out there......but are they meeting the market? It does cut both ways!

[ThailandRyan]

Yet, in the north the feeling is the opposite:

 

Data from the Real Estate Information Center (REIC) found that 11 condo projects with 2,140 units hit the Isan property market in the first six months of this year with an estimated 70 percent of this total sold.

A pair of developers building condominiums in Khon Kaen haven’t recorded any noticeable declines in 2020 even with real estate sales and launches falling elsewhere in Thailand. Both Ocean Property and Sriroong Land & House reported minimal impact from the ongoing COVID-19 pandemic.  

 

https://www.thailand-property.com/blog/isan-property-market-solid-2020-likely-improve?utm_source=ActiveCampaign&utm_medium=email&utm_content=Weekly+News%3A+Isan+property+market+solid+in+2020%2C+likely+to+improve+in+2021+|+In+search+of+the+ultimate+luxury+residence+Part+6+|+What+is+a+qualified+property+sales+lead%3F&utm_campaign=TP+Newsletter+18+November+2020&vgo_ee=cxMPZucfdnjLvgiZhdEf%2FNSYFmrMikCwlKFARSZoYAo%3D

[Elkski]

What will happen?   China South?  Many  Chinese would probably like living in small studios. 

[Stargeezr]

If the high season is a total bust and barely anyone does travel to Thailand, I would bet that by this

time next year the market will not be the same. Considering that the whole world is 

suffering from this virus, and many people are still out of work in Canada, the USA

and likely Australia and Europe, I have my doubts that there will be many travellers even

in the Winter of 2021.  We will all have to see how the vaccines are working and how many

people are still dying from this virus.

Geezer

[xylophone]

On 11/18/2020 at 12:48 PM, xylophone said:

However, a couple of weeks ago I was just perusing the property market here in the possibility of finding a slightly larger condominium that I could rent, but rental prices do not seem to have moved from their heyday??

Just as a rider to my previous comment and hopefully it won't be removed because it's not 100% in keeping with the heading, but I did find a superb apartment, which was owned by a guy here and had been rented out for quite a few years, but the renter had moved, so it was back on the market.

 

An 87 m² two-bedroom, two bathroom apartment in a very good block, and the owner had decided to meet the market and it was available for 12,000 baht per month (paid upfront for one year), with the renter paying electricity, water and Wi-Fi.

 

It was superb and I was all for it until I remembered one of the reasons I stayed in this little place I have, and it's to do with a medical event, so I turned down the offer, but I'm sure that at this price and location, it will be snapped up fairly quickly.