Buyers Market?

[wwest5829]

18 hours ago, onebir said:

Sounds like they're keeping them on the books without provisions/writedowns. If they sell them they need to take the loss. Which hits their capital (& capital adequacy ratios). If this is widespread Thai banks could be considerably less solvent than they look.

I am thinking just as important in Thailand is, if the bank reduces the loan value then someone made a bad loan.No one would want to lose face in having made a bad or non profitable loan ... Much the same with all the cars on the lots.

[onebir]

26 minutes ago, wwest5829 said:

I am thinking just as important in Thailand is, if the bank reduces the loan value then someone made a bad loan.No one would want to lose face in having made a bad or non profitable loan ... Much the same with all the cars on the lots.

Possibly in the case of individual loans and/at the beginning of a property market downturn... But if the whole market is getting marked down, would it make sense that loan officers, bank managers & whoever was involved in lending decisions ALL lose face??

[OneMoreFarang]

44 minutes ago, newnative said:

      Some of the new Bangkok condo projects in prime locations are going for around 200,000 baht a sqm or over--in some cases, well over.  Ashton Asoke Rama 9, for example, runs around 249,000 baht a sqm.  Laviq Condo, 262,000.  Beatniq Condo, 308,000.  Noble Ploenchit, 288,000.   As my father used to say, too rich for my blood.  

Maybe at some stage they will make a big sale promotion. 20% off! Now only 246,400 instead of 308,000. I am sure some people will buy it with those special prices.

I wonder how much of those buildings the developers have to sell to break even. Maybe if 30% of the building is sold they have their money back. From then on it's pure profit.

[Lacessit]

1 hour ago, wwest5829 said:

Just in time subject. We (Thai partner - we have been together 4 1/2 years and plan to marry in 2021). Currently renting at 15,000 per month, but wish to buy. House in her name ... with usufruct for me, not an issue. Found a house here in Chiang Mai (I have lived here for over 9 years). Fair price. The issue is financing ... I have resources but ... majority monthly income of the required 65,000 baht. So, I can handle a down payment and then need financing of about 1.5 million for remaining debt (cost about 2.2 million baht). Any latest possibilities for getting mortgage? She, currently has no income, in part due to Covid.

I'd say doing the rounds of the banks, and negotiating. I should imagine someone with a stable income of 65,000 baht/month would have them falling over themselves to sign you up, but I could be wrong. After all, this is Thailand.

[Airalee]

2 hours ago, newnative said:

      I haven't seen much in the way of price drops yet--at least on anything I'd consider buying.  You still have developers playing ridiculous games.  One project had a special sale for 11/11.  I inquired a few days after 11/11 and was told, "Oh, that was just for 11/11."  Huh?  So, you can sell a condo for a certain price on 11/11 but not on 11/14--or whenever I show up with money in hand?  You just lost my business--why would I buy a condo for more when I know it was lower a few days ago?  Goodbye.

     My partner and I spent some days in Bangkok a couple weeks ago looking at condos for sale at some new projects.  The discounts weren't much and the prices still seemed very high; and the quality in most cases very low--cheap kitchen cabinets, cheap laminate wood floors, cheap counters, cheap wardrobes, cheap bathroom vanities.  7MB for 35sqm--you would hope to at least have everything very high quality at that price point.  

I have actually seen price raises as of late.  When I first went to the sales office of the not fully completed buildIng I was interested in (hoping to get a better deal than what I saw listed online) I was actually quoted a million baht higher for a unit 4 floors below mine.  Recently, I saw the price list and the same unit has now been marked up an additional ฿1,170,000 and was told that they would discount it ฿100,000.   Makes no sense at all.   The ฿300,000psm (and even over ฿400,000 such as Khun by Yoo) make even less sense to me.  $1300 per square foot would get me a prime condo in cities like LA, San Diego or even San Francisco.  If they can get those prices...more power to them.  I just don’t see it happening.  
 

And as you say...even at these prices, you still get a two burner cooktop, a microwave and a tiny sink (with little counter space) and you don’t even get an oven or dishwasher.  Nothing like a real kitchen as you’d get in any run of the mill condo in the US.
 

Sure....I get it...people eat out more here in Bangkok, but it’s not like they don’t eat out in Los Angeles.  

 

If I was in the position to pay over $1000 psf (which I am certainly not), I would expect solid wood flooring, a full sized kitchen with Wolf/Subzero appliances, 1 1/2” thick stone countertops (not the 1/2” thin ones you see here) and quality cabinetry (not the foil wrapped melamine board). A proper laundry closet (not a washer in the kitchen and a drying rack on the balcony).  I wonder if you even get hot water in the kitchens in the high end condos here.

[CharlieH]

Reported off topic post removed.

[olfu]

My guess is all talking about property refer to people who already in Thailand.

As I am stuck in US probably for another year and getting older rent is best option.

In any case losing 1000$ a month for rent better than investing in Thailand with very unclear future.

[onthedarkside]

Several trolling posts have been removed.

 

[scubascuba3]

4 hours ago, olfu said:

My guess is all talking about property refer to people who already in Thailand.

As I am stuck in US probably for another year and getting older rent is best option.

In any case losing 1000$ a month for rent better than investing in Thailand with very unclear future.

I agree, over a certain age it's best to rent, having said that a guy I know wants to get on the housing ladder in the UK he's 82, but losing the plot

[BritManToo]

On 12/31/2020 at 12:39 AM, onebir said:

Sounds like they're keeping them on the books without provisions/writedowns. If they sell them they need to take the loss. Which hits their capital (& capital adequacy ratios). If this is widespread Thai banks could be considerably less solvent than they look.

I believe Thai banks are legally prohibited from selling repossessions at below the amount of the outstanding loan.

A move made by the government to stop banks giving out unrealistic loans.

 

20% of my village of 250x 3 bedroom houses in Chiang Mai now appear to be repossessed and vacant.

Hardly any are ever resold, all will have 90-95% outstanding, loans of around 1M9Bht each, 7 years old.

No price reductions, ever, that I have seen.

Edited January 1, 2021 by BritManToo

[Destiny1990]

Bargains more likely obtained from distressed resellers.. Owners with empty units will be eager to sell. There are no tenants and no buyers so where u think the market prices are going.

[madmen]

It's fascinating, the rent boys have praying for  a real estate market crash and a total collapse of the baht for decades and it NEVER happenes even through regular coups and a tsunami but this time it's different right ????

 

In fact Bangkok property especially lower Sukhumvit have gone up in multiples. The pandemic has little effect on property prices world wide including Thailand HOWEVER I have noticed the rental market especially in Pattaya which is heavily depended on air bnb has softened. 

[OneMoreFarang]

34 minutes ago, madmen said:

this time it's different right

My girl is different - same principle. ???? 

[BritManToo]

1 hour ago, Destiny1990 said:

Bargains more likely obtained from distressed resellers.. Owners with empty units will be eager to sell. There are no tenants and no buyers so where u think the market prices are going.

Most Thais I know would rather their home was repossessed by the bank than sell for less than they paid for it.

From this information I can predict market prices for property will either remain static or increase.

(My prediction doesn't include rental prices)

Edited January 1, 2021 by BritManToo

[govoner]

it seems to me that all around the western world real estate prices have hiked during the pandemic ,mainly due to the ultra low interest rates and the copious printing of money. Money in the bank has no return so its either the sharemarket or housing. In NZ where i live houses have gone up 15-20% in the last year and they were already crazy high before that. Is Thailand same same but different?

[Pravda]

On 12/30/2020 at 9:30 PM, digibum said:

We’re looking to buy but I can assure you I won’t be looking on any of the major property sites.  

 

Why not? Unless you are buying <deleted> properties. 

 

There are few developers offering discounts, but I found on the major sites you are avoiding that there are always 1 or 2 desparate to get rid of property. Right now I'm looking at a condo being sold by developer for 3.8 mil after all the discounts and another one resale fully furnished for 3 mil higher floor and much better view. 

 

 

[Destiny1990]

6 hours ago, BritManToo said:

Most Thais I know would rather their home was repossessed by the bank than sell for less than they paid for it.

From this information I can predict market prices for property will either remain static or increase.

(My prediction doesn't include rental prices)

So if banks will repossess properties and sell them on a auctions without much buyers then why will market prices remain static or even increase? Obviously atm its a buyers and rental market  just only need to select  desperate owners that have empty units that are a burden. They will give lower rents and sales prices than before this corona.

[olfu]

My impression is Thailand real estate market is different from other countries. Main point you dont pay real estate taxes every year which gives you time to drag troubles to future. But in case of condos you have to pay monthly maintenance anyway plus like anything property depreciate with time. 

[onebir]

12 hours ago, BritManToo said:

Most Thais I know would rather their home was repossessed by the bank than sell for less than they paid for it.

Doesn't getting repo'd seriously mess up their credit?

[bwpage3]

Make sure you buy in Bangkok.

 

In a couple of years with the worsening air pollution won't even see your neighbors!

[Ron jeremy]

3 minutes ago, bwpage3 said:

Make sure you buy in Bangkok.

 

In a couple of years with the worsening air pollution won't even see your neighbors!

It’s like that now. Can’t imagine a few years from now 

[chrisandsu]

The banks have no urgency as they don’t have to pay property taxes like they do in the west . If they were paying $700 a month just in taxes you would see the banks selling quick time . 

[OneMoreFarang]

7 hours ago, bwpage3 said:

Make sure you buy in Bangkok.

 

In a couple of years with the worsening air pollution won't even see your neighbors!

Decades ago the air pollution was worse - especially all those small green busses.

[bwpage3]

1 hour ago, OneMoreFarang said:

Decades ago the air pollution was worse - especially all those small green busses.

I certainly dont remember it being bad in the 80's or 90's?

[mrfaroukh]

If you are going to live in Thailand and in same city for at least 10 years and you can't earn money from the cash in hand then you buy else no

[Seeall]

18 hours ago, bwpage3 said:

Make sure you buy in Bangkok.

 

In a couple of years with the worsening air pollution won't even see your neighbors!

Bad in BKK too and getting worse...

[Pilotman]

On 12/30/2020 at 6:05 PM, Thomas J said:

I agree with worgeordie,  there are a glut of properties but there seems to be a strong resistance to fire sale pricing.  Rental prices have definitely fallen, I guess some feel if they can stem the bleeding cash flow a bit, they are going to hang on.  Also, very peculiar here in Thailand that foreclosed properties don't' get auctioned off at good pricing.  In my village there are two properties that were foreclosed several years ago.  As a former banker in the USA I know it was a practice to liquidate non earning assets as quickly as possible to turn them into earning assets and to stem the costs of holding them.  Here, these banks have held on for years and of course the properties without maintenance are in disrepair but the pricing remains the same.  I suspect at some point with the number of Thai's hurt from the lack of income from Covid that it will result in even more foreclosures unless the government imposes a moratorium.  While good for the homeowner it will hurt the banks. 

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

[BritManToo]

13 hours ago, OneMoreFarang said:

Decades ago the air pollution was worse - especially all those small green busses.

Not true, in 2009 pollution lasted a week maybe two ...... now it's 3 months.

[Seeall]

4 hours ago, Pilotman said:

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

 

4 hours ago, Pilotman said:

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

seems nuts they act in that way .. must be a special finance school they went to ...

[Yellowtail]

14 hours ago, bwpage3 said:

I certainly dont remember it being bad in the 80's or 90's?

 

I got here in '98 and it seemed worse to me back then. Seems like it got much better when so many of the busses went from diesel to LPG/CNG.