6,800 UNSOLD condo units in Hua Hin/Cha-Am, says Knight Frank

[webfact]

6,800 UNSOLD condo units in Hua Hin/Cha-Am, says Knight Frank

 

 

Hua Hin

 

Thai business media quoting a senior executive from property consultants Knight Frank Thailand who revealed that there is a huge glut of unsold condos in Hua Hin, Cha-Am and Khao Tao. 

 

Second half figures from last year reveal the extent of the glut - 6,800 units. 

 

It is thought that it will take FIVE years to shift that lot. 

 

Nattha Khanapana said that the market at the moment was just Thai people and even those were reticent to buy.

 

These were mostly Bangkok investors seeking second homes in the Hua Hin area.

 

The market had been greatly affected by the pandemic and anti-government protests. 

 

And of course the lack of foreign investors has played a big part in the glut with developers keen to see measures to get this revived quickly, reported the media. 

 

Some developers were cutting prices but others were trying to ride out the bad times by offering just incentives to buy.

 

New projects were not being started as oversupply was the main concern for now. 

 

Source: Thansettakij

 

*The main image on the  post has been updated.

 

 

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[Whale]

Will prices be reduced? Nah.

[Bangyai]

Best build some more then.  Thai ways.

[soi3eddie]

14 minutes ago, webfact said:

It is thought that it will take FIVE years to shift that lot. 

 

It won't stop developers continuing to build ever more condo units (and other housing). Sales prices don't seem to have been discounted by much though. Property can be so cheap to rent in that area these days. A friend of mine rents a brand new 2 bedroom house in a moo baan between Cha-Am and Hua Hin just 5 minutes ride/drive to the beach. He pays 42,000 Baht. PER YEAR!

 

[ThailandRyan]

27 minutes ago, webfact said:

It is thought that it will take FIVE years to shift that lot. 

Fire sale, Get yours now for a reduced increased price of, can't loose money now.  

 

But a better Idea is this: Stop building new ones as the glut will just get larger and larger.

[gunderhill]

I was  round  Khao Tao recently, already  over developed.

[Happyman108]

Usually price not reduce but instead add on some free furniture or maybe small discount on promotion day etc.....developer rather bankrupt then reduce price to spoil market, and house owner rather empty it and not selling at lost.......This is Thailand.

[4MyEgo]

23 minutes ago, soi3eddie said:

A friend of mine rents a brand new 2 bedroom house in a moo baan between Cha-Am and Hua Hin just 5 minutes ride/drive to the beach. He pays 42,000 Baht. PER YEAR!

 

Awesome....compared to that amount getting you 2 weeks rent in a suburb probably 15-30 minutes out of Sydney and nowhere near a beach.

 

 

[AlfHuy]

37 minutes ago, Whale said:

Will prices be reduced? Nah.

Increased.

[NCC1701A]

nice photo of Cha Am/Hua Hin. Not. 

[4MyEgo]

1 minute ago, NCC1701A said:

nice photo of Cha Am/Hua Hin. Not. 

 

Pattaya or Hong Kong ?

[AlfHuy]

Just now, 4MyEgo said:

 

Pattaya or Hing Kong ?

Hing Kong????

You mean King Kong

[NCC1701A]

7 minutes ago, 4MyEgo said:

 

Pattaya or Hong Kong ?

they changed the photo! they do read my comments. i'm not alone! someone is listening to me. hello? can you hear me? 

[soi3eddie]

1 minute ago, NCC1701A said:

they changed the photo! they do read my comments. i'm not alone! someone is listening to me. hello? can you hear me? 

 

They must be short of stock photos. Neither so far show H-H as the wonderful place it is.

[4MyEgo]

7 minutes ago, NCC1701A said:

they changed the photo! they do read my comments. i'm not alone! someone is listening to me. hello? can you hear me? 

 

I just saw that, but at the time of you posting your comment it looked like Pattaya or Hong Kong and that is why I asked with a question mark. 

 

I read your comments very clearly, perhaps you would like to revisit them, "no mention of they changed the photo" in your comments.

 

That time of the month is it or you weren't referring to me ?

[Ireland32]

I would like to see Pattaya Numbers, lots of empty buildings around also unfinished buildings, must be astronomical  

[JeffersLos]

1 hour ago, webfact said:

6,800 UNSOLD condo units

 

How many condo units are there in total? 

 

Wouldn't have even guessed 10,000

[Airalee]

About a year ago, (March/April) at the beginning of the COVID debacle....before the extent of it was known... I was in negotiations for a condo in Huahin.  I made what I considered a fair offer.  The asking price was 4.5 and I offered in a range of 3.6 to 3.75 with 3.75 being the highest I would go.

 

The owner (via their agent) went down to 4.25 and was firm because they had “remodeled” the unit.  I informed the agent that I didn’t care about their remodel as my plan was to gut it and remodel it to my tastes.  
 

I backed out of the deal and wished them good luck.

 

A few weeks passed, the agent called and informed me the owner would come down to 4.  I stuck to my 3.75 original offer even though as the COVID crisis was worsening, I felt that even the 3.75 might be too high.  I was told that the owner wouldn’t come any lower than 4.

 

No thanks.

 

Now, the condo has sat empty for almost year (no renters), COVID has become even more of a deterrent, the Baht has strengthened almost 10% against the USD since my original offer and I found a better deal in Bangkok.

 

Taking the above factors into consideration (COVID/strengthening Baht), if I were to go into negotiations for the same unit now, the most I would offer/pay would be 3.

 

So...what’s the moral of the story?

 

The first offer you get is usually the best.

 

Now, developers will rule the market as they can build nicer condos, lower their prices considerably (while still making a profit) and bury the resellers.

 

P.S.

 

I don’t want your incentives.  2 baht of gold, a cheesy furniture package or a motorbike isn’t gonna convince me to buy.  It’s all about the price.  Nothing else.

 

Supply...meet demand.

[Pottinger]

Lavish some Thainess thinking on the problem - jack up the prices!

[a10ams]

ENERGY must account for a huge percentage of the 6800.

[Mops59]

And then the easily forget to mention the second hand / resale market. But I do wonder. How is it possible that these co.dominiums were built when almost nothing was sold? Is the developer the owner of part of the building? How big % needs to be sold to get start building? Does the rules need mending?

[Airalee]

15 minutes ago, Mops59 said:

And then the easily forget to mention the second hand / resale market. But I do wonder. How is it possible that these co.dominiums were built when almost nothing was sold? Is the developer the owner of part of the building? How big % needs to be sold to get start building? Does the rules need mending?

From what I have heard, the developer can get financing when about 30% of the units have been reserved.  With the cost of materials and labor being so low, the profit margins here in Thailand are huge.  The problem comes when the people who have reserved a unit don’t close, but depending on the deposit amount (I have heard 10% for Thais and 30% for foreigners), there is some cushion for the developer which is why they are able to sit on the unsold units for years and years and years even while moving on to their next newer and better project.

 

Lather, rinse, repeat.

[kingstonkid]

Imagine if Property developers were on the hook for annual property taxes bet they would sell them quick.

[Airalee]

9 minutes ago, kingstonkid said:

Imagine if Property developers were on the hook for annual property taxes bet they would sell them quick.

Developers are on the hook for annual property taxes (see link below for rates).  They are low enough to where they really have no problem sitting on vacant units or even renting them out while waiting for the market to come back (no guarantee of that however).  Generally, developers...at least the major ones...are quite wealthy so they can shoulder those tax burdens.

 

If the government were to impose much higher tax rates, the developers would step back and not start new projects.  This would lead to even more unemployment than we are currently seeing which would have a further ripple effect throughout the economy.

 

Property tax rates...

 

[Ventenio]

I'm sharing a small room in Bangkok with three backpackers.   Going on year 6.

 

monthly cost....  1200 baht

 

why would anyone buy property in Thailand?????  have you not looked at the houses, googled back home at houses and then said, "OMG, these are not same same!!!!!!"  

 

house is used loosely here for "sell to farang and then farang his problem"

 

if you do buy......buy in a place where the pollution won't make it impossible to sell after humans wake up and realize 100 million people died from pollution in the last 50 years.

 

 

[Surelynot]

They will have to bump up the selling price to make up for lack of sales.

[PatOngo]

2 hours ago, ThailandRyan said:

Fire sale, Get yours now for a reduced increased price of, can't loose money now.  

 

But a better Idea is this: Stop building new ones as the glut will just get larger and larger.

Gotta launder the money somewhere!

[Surelynot]

13 minutes ago, Ventenio said:

why would anyone buy property in Thailand?

They get sucked into the dream....nice house, swimming pool....by the sea.......easy done....then boom....noisy neighbours, loud music, caged dogs, polluted air and you are in a version of hell and unable to sell.....

[GeorgeCross]

1 hour ago, JeffersLos said:

 

How many condo units are there in total? 

 

Wouldn't have even guessed 10,000

 

17000 at the last count, probably 27000 now, sigh

 

 

[Surelynot]

1 hour ago, JeffersLos said:

 

How many condo units are there in total? 

 

Wouldn't have even guessed 10,000

TAT....five.