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


webfact

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1 hour ago, Airalee said:

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.

 

we had something similar happen with our house..

 

fly boy turned up wanting us to knock 25% off

 

we offered him a fair 10% off

 

no he said, won't go no higher..

 

okay..

 

next guy come along and bought it at cost :cheesy:

 

true story.

 

demand meet supply.

 

 

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8 minutes ago, GeorgeCross said:

 

we had something similar happen with our house..

 

fly boy turned up wanting us to knock 25% off

 

we offered him a fair 10% off

 

no he said, won't go no higher..

 

okay..

 

next guy come along and bought it at cost :cheesy:

 

true story.

 

demand meet supply.

 

 

A house isn’t quite the same as a condo when there are thousands (or even tens and hundreds of thousands) of (mostly homogeneous) units to choose from.  
 

Completely different market.  

 

Congratulations on your sale.

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11 minutes ago, Airalee said:

A house isn’t quite the same as a condo when there are thousands (or even tens and hundreds of thousands) of (mostly homogeneous) units to choose from.  
 

Completely different market.  

 

Congratulations on your sale.

 

that is a fair point - just saying sometimes selling low is not the right strategy especially as buyer 2 loved my remodelling 😉

 

 

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9 minutes ago, GeorgeCross said:

 

that is a fair point - just saying sometimes selling low is not the right strategy especially as buyer 2 loved my remodelling 😉

 

 

You got lucky.  One persons remodeling choice is another persons nightmare.
 

 In my case, slapping in the ubiquitous glossy white tiles that can be seen in every 500 baht per night guest house, throwing a bog standard oven in (while keeping the chintzy 2 burner cooktop) and a 10,000 baht fridge in a kitchen that really isn’t much better than any developer would offer (I ripped out a brand new kitchen myself) wasn’t gonna sway me and hasn’t swayed anybody since.  The only thing that will help that condo is either huge inflation (which puts the money recieved in real terms lower than my original offer)....or....suck it up and lower the price.

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3 hours ago, webfact said:

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

In other words by the time they come to sell the last ones they'll be full of concrete cracks, loose tiles, leaky pipes and wonky doors

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2 hours ago, Ireland32 said:

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

This is from a 2019 article:

New condo supply in Pattaya being launched this year should not exceed 5,000 units as more than 12,000 units remain unsold, the highest since 2015, according to a property consultant.

 

There are also several online articles that Bangkok has over 100,000.

And, a reported 450,000 in the country.

 

Still prices seem way to high based on the depressed market.  Resellers seem to be willing to negotiate.  New projects mostly stand their ground.

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1 hour ago, bkk6060 said:

This is from a 2019 article:

New condo supply in Pattaya being launched this year should not exceed 5,000 units as more than 12,000 units remain unsold, the highest since 2015, according to a property consultant.

 

There are also several online articles that Bangkok has over 100,000.

And, a reported 450,000 in the country.

 

Still prices seem way to high based on the depressed market.  Resellers seem to be willing to negotiate.  New projects mostly stand their ground.

Do you know if that’s only developers supply of new units or if it includes resales?  I have never been able to parse that information from the articles.  If it doesn’t include resellers, then I suspect that the true numbers are far uglier.

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I'm one of the 6800.

But what do you expect when no falang can visit LOS.

 

And "Whale" is talking about "Will prices be reduced? Nah."

But when you lower the price already for 20% what can you do more?

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4 hours ago, Airalee said:

So...what’s the moral of the story?

 

The first offer you get is usually the best.

So what did you think of the salesman, assuming that is his normal job, did he pressure the owner as you were a genuine buyer or is that forbidden. Up here we only get the 3%ers who think they can sell anything (not just real estate either) but have absolutely no idea of the buyer's thinking. After being involved for 25 years at home I do wonder how any of them make a sale.

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6 hours ago, 4MyEgo said:

 

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 ?

Oh I was not actually responding to you. I can see now this does not work work in this context.  Sorry if I was misunderstood.  

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2 hours ago, GreasyFingers said:

So what did you think of the salesman, assuming that is his normal job, did he pressure the owner as you were a genuine buyer or is that forbidden. Up here we only get the 3%ers who think they can sell anything (not just real estate either) but have absolutely no idea of the buyer's thinking. After being involved for 25 years at home I do wonder how any of them make a sale.

I never really think too much about salesmen...any salesmen.  I know what I’m willing to pay for something and if the price isn’t right...no deal.  On the flipside, here in Thailand, many people think that everything is open for negotiation and will try to negotiate the smallest purchases.  Like a t-shirt from a market.  I remember my first time here, my brother was aghast at the fact that I paid asking price for a t-shirt from a stall.  Told me I could have probably gotten it for ฿100 less.  For ฿100, the whole concept of negotiating a price doesn’t even cross my mind.  I wanted the T-shirt...the price was fair (IMO) so I bought it.  No fuss no muss.  
 

Most real estate here is grossly overpriced and that is shown by the P/E (price to rent) ratio.  I offer what I think is fair and won’t even consider dealing with someone who has a pie in the sky price.

 

Like you, I wonder how the estate agents make sales here too.

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4 minutes ago, Airalee said:

On the flipside, here in Thailand, many people think that everything is open for negotiation and will try to negotiate the smallest purchases.  Like a t-shirt from a market.  I remember my first time here, my brother was aghast at the fact that I paid asking price for a t-shirt from a stall.  Told me I could have probably gotten it for ฿100 less.  For ฿100, the whole concept of negotiating a price doesn’t even cross my mind.  I wanted the T-shirt...the price was fair (IMO) so I bought it.  No fuss no muss.  

 

No problem with anyone willing to pay asking price.    I often do the same.  Get to my price and I'm finished negotiating, even if that's the asking price.

 

But no sympathy for those who pay the asking price then claim they were scammed by dual pricing.  There's usually 2 prices...  One for those who know how to negotiate.  The other for those who can't or won't.

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7 hours ago, Surelynot said:

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.....

Then try to convince everyone that you are living the dream, made the right choice, just wear a mask and lock yourself indoors! The pollution is not that bad, it’s only 6 months a year!

And for the poster who’s friend is paying $42 k a year for a house between hau hin and cha am, not exactly prime real estate, it looks like a Chinese apartment complexes, empty buildings, kind of eerie, if he is happy? Have at er!

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it's funny when things change FAST...

 

was in a hotel.  one week later, i think some guy started some chicken farm

another hotel...across the street, they just started building

another place...i could hear someone sneeze with the windows closed

another place....guy next door burned everything, every day.  actually, this was every place

 

i would buy next to a lake, since low odds of them building on a lake.  

in 6 years.....covid was super, super quiet.   before covid, every neighbor wanted to be a karaoke shop while the neighborhood raced on motorbikes

 

finally i stopped caring, but i don't own.  hotels aren't the cheapest, but it's relative 

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9 hours ago, Ron jeremy said:

And for the poster who’s friend is paying $42 k a year for a house between hau hin and cha am, not exactly prime real estate, it looks like a Chinese apartment complexes, empty buildings, kind of eerie, if he is happy? Have at er!

 

No, it's a brand new two bedroom village home and not near one of those horrible monstrous condo units (that appear abandoned). He pays $1,400 USD per year for his living accomodation and he's super happy there.

 

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21 hours ago, soi3eddie said:

 

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!

 

Yikes. At that price even I could afford to keep a second place!

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12 hours ago, Airalee said:

I never really think too much about salesmen...any salesmen.  I know what I’m willing to pay for something and if the price isn’t right...no deal.  On the flipside, here in Thailand, many people think that everything is open for negotiation and will try to negotiate the smallest purchases.  Like a t-shirt from a market.  I remember my first time here, my brother was aghast at the fact that I paid asking price for a t-shirt from a stall.  Told me I could have probably gotten it for ฿100 less.  For ฿100, the whole concept of negotiating a price doesn’t even cross my mind.  I wanted the T-shirt...the price was fair (IMO) so I bought it.  No fuss no muss.  
 

Most real estate here is grossly overpriced and that is shown by the P/E (price to rent) ratio.  I offer what I think is fair and won’t even consider dealing with someone who has a pie in the sky price.

 

Like you, I wonder how the estate agents make sales here too.

I'd gladly pay for your knowledge and opinions on these sorts of things. I'm totally rubbish at it.

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40 minutes ago, wwest5829 said:

Yikes. At that price even I could afford to keep a second place!

 

Electric and water at supplier cost (no inflated bills from greedy landlords). He did have to furnish it (he already had everything from his previous house) and install his own new aircons - which he can take with him if he moves elsewhere - but as he's been in the area for a few years knows he likes it there with no desire to move away. I think he signed a two year lease too.

 

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16 hours ago, NCC1701A said:

Oh I was not actually responding to you. I can see now this does not work work in this context.  Sorry if I was misunderstood.  

 

I thought that was out of sink for you, one of the more humorous ones on TVF.

 

As you know things can be read differently, and after I originally fired off with my ending comment being "That time of the month is it, I then re-read your comment and sort of presumed your comment may have been directed to TVF regarding the change in the photo, not me, and I then edited my comment to add "or you weren't referring to me". 

 

Thanks for clarifying that, it's all and good, glad the shot missed (trigger happy)🙂

 

Now to reply to my wife's message, no darling, I didn't expect you to understand it that way, I mean just because we have been having sex for all of those years we've been married doesn't mean I love you, hmmm, on second thoughts, I think I won't respond to her message, let her believe what she wants 😉

 

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On 2/2/2021 at 9:14 PM, Bangyai said:

Best build some more then.  Thai ways.

of course, mine wil be newer and so the first to be sold.  As others do not reduce their price, mine at the same price will be the best, no need to clean the dust of five years.

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