webfact Posted February 18, 2021 Share Posted February 18, 2021 Condo purchases: Foreigners buy 35% LESS - Elite card scheme won't change things A leading real estate expert has said that far less foreigners are buying real estate - mostly condos - in Thailand contributing to a turndown in the sector. And plans to use the Elite Card scheme to promote investment are little more than a drop in the ocean. Wichai Wiratkaphan told Thansettakij that in 2020 around 10% less property changed hands overall - 358,490 sales were recorded in total. But condos bought by foreigners were 35.3% down compared to 2019. They bought 8,258 condo units in 2020. The share of that market dropped from 10% of the total to just 6.8% year on year. Foreign investment in condos in the last three years were led by the Chinese with 58%. In second place were Russians (the media suggested 51% but Thaivisa suggests this is an error) with French people in third at 3%, British in fourth at also 3% and Japanese at 2%. Tellingly Wichai suggested that the much vaunted "Condo purchase for an Elite Card and long term residency" plan would not have much effect on the downturn. Source: Thansettakij -- © Copyright Thai Visa News 2021-02-18 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 1 Link to comment Share on other sites More sharing options...
Dagfinnur Traustason Posted February 18, 2021 Share Posted February 18, 2021 4 minutes ago, webfact said: And plans to use the Elite Card scheme to promote investment are little more than a drop in the ocean. Calling Dr. Watson! 1 Link to comment Share on other sites More sharing options...
Popular Post Susco Posted February 18, 2021 Popular Post Share Posted February 18, 2021 6 minutes ago, webfact said: But condos bought by foreigners were 35.3% down compared to 2019. Now let me make a wild guess why that is. Could it be because there are not much foreigners left, and even less can enter Thailand? 7 Link to comment Share on other sites More sharing options...
RotBenz8888 Posted February 18, 2021 Share Posted February 18, 2021 10 minutes ago, webfact said: And plans to use the Elite Card scheme to promote investment are little more than a drop in the ocean Who would've thought... 1 1 Link to comment Share on other sites More sharing options...
timendres Posted February 18, 2021 Share Posted February 18, 2021 11 minutes ago, webfact said: Foreign investment in condos in the last three years were led by the Chinese with 58%. In second place were Russians (the media suggested 51% but Thaivisa suggests this is an error) with French people in third at 3%, British in fourth at also 3% and Japanese at 2%. Do the Europeans and Japanese know something the Chinese do not? 1 Link to comment Share on other sites More sharing options...
GeorgeCross Posted February 18, 2021 Share Posted February 18, 2021 17 minutes ago, webfact said: a drop in the ocean Thailand's speciality! Link to comment Share on other sites More sharing options...
dcnx Posted February 18, 2021 Share Posted February 18, 2021 15 minutes ago, Susco said: Now let me make a wild guess why that is. Could it be because there are not much foreigners left, and even less can enter Thailand? Even the Chinese are selling their condos in bulk now. 2 Link to comment Share on other sites More sharing options...
Popular Post dcnx Posted February 18, 2021 Popular Post Share Posted February 18, 2021 11 minutes ago, timendres said: Do the Europeans and Japanese know something the Chinese do not? They were just moving their money out of China and putting it into whatever countries they could at the time. 7 1 Link to comment Share on other sites More sharing options...
Pedrogaz Posted February 18, 2021 Share Posted February 18, 2021 hahahahaha....cut your prices bozos......ever heard of supply and demand? 2 Link to comment Share on other sites More sharing options...
Brickbat Posted February 18, 2021 Share Posted February 18, 2021 1 hour ago, andy said: Curious why every time you see one of these articles, they never mention 2 important points: the strong baht, and the asking prices which seem to have no bearing in reality given the oversupply. It's almost as if the Thai press will not allow discussion of this... There is a condo building in Bangkok I check listings for from time to time, as I like the location and used to live in the general area. This place is not a new build (around 10 years old I think), and is not in an area frequented by tourists, but is near the MRT. You would think prices would not be too crazy anymore, especially now. Just checked it again, there are 75 units up for sale in the building ????...despite this, 1 bedroom units that are not shoebox sized are listed for between 6-9 MB ????. It’s called” saving face”. Go bankrupt rather than meet the market 1 Link to comment Share on other sites More sharing options...
morrobay Posted February 18, 2021 Share Posted February 18, 2021 3 hours ago, dcnx said: Even the Chinese are selling their condos in bulk now. Have a source for this? 1 Link to comment Share on other sites More sharing options...
Popular Post 3STTW Posted February 18, 2021 Popular Post Share Posted February 18, 2021 I’m surprised the drop is only -35%, if someone had asked me to guess I would have said -80%. I was talking to an agent a while back and she reckoned there definitely were bargains to be had, many of which were from executors liquidating property of COVID victims - mostly from Europe - and they were accepting almost any offer. Chilling really. Otherwise, the ridiculously high market prices have nothing to do with... 2 hours ago, Brickbat said: It’s called” saving face”. Go bankrupt rather than meet the market The Thai banks allow Thais to hock themselves up to the eyeballs, nobody wants to lose money on a property sale so they have a break-even price which is always unrealistic; unless they sell at that price they go bankrupt either way. The oversupply means they almost always lose - and the banks inevitably win. 2 1 Link to comment Share on other sites More sharing options...
shortstop Posted February 18, 2021 Share Posted February 18, 2021 5 hours ago, andy said: the asking prices which seem to have no bearing in reality given the oversupply. It seems rental prices in the Pattaya area are adjusting but sales prices haven't adjusted yet. I'll buy at the right price but my guess is that the market hasn't come close to bottoming yet. Link to comment Share on other sites More sharing options...
newnative Posted February 18, 2021 Share Posted February 18, 2021 Time to suspend the foreign quota for a couple of years. 2 Link to comment Share on other sites More sharing options...
tingtong Posted February 18, 2021 Share Posted February 18, 2021 5 hours ago, shortstop said: It seems rental prices in the Pattaya area are adjusting but sales prices haven't adjusted yet. I'll buy at the right price but my guess is that the market hasn't come close to bottoming yet. Frankly, in Pattaya the rental prices were more unrealistic pre-covid, often ppl looking for 7-10% like returns on long term 12- months contract. The 4-6% is more than enough premium over a 0-1% bank deposit interest environment. I am more surprised that government/land office still insist that condo prices are rising, and tax on their fictional values not actual contract prices. 1 Link to comment Share on other sites More sharing options...
wolf81 Posted February 18, 2021 Share Posted February 18, 2021 11 hours ago, Pedrogaz said: hahahahaha....cut your prices bozos......ever heard of supply and demand? Even if people cut prices ... most property won't sell I think. There's just too few buyers. So perhaps it only makes sense to sell for a low price right now if you really need the money or you have no faith in the long term prospect of property in Thailand. 2 Link to comment Share on other sites More sharing options...
onebir Posted February 18, 2021 Share Posted February 18, 2021 15 hours ago, timendres said: Do the Europeans and Japanese know something the Chinese do not? That Thailand is quite a bit farther away from them than it is from China, for one thing... Link to comment Share on other sites More sharing options...
onebir Posted February 18, 2021 Share Posted February 18, 2021 2 hours ago, tingtong said: I am more surprised that government/land office still insist that condo prices are rising, and tax on their fictional values not actual contract prices. Given the bold bit, why are you surprised? Link to comment Share on other sites More sharing options...
metisdead Posted February 18, 2021 Share Posted February 18, 2021 An off topic post and a reply about Modified Quarantines has been removed, Some troll posts have been removed. Link to comment Share on other sites More sharing options...
bangon04 Posted February 18, 2021 Share Posted February 18, 2021 17 hours ago, timendres said: Do the Europeans and Japanese know something the Chinese do not? do the Chinese know something that others do not? Link to comment Share on other sites More sharing options...
varun Posted February 19, 2021 Share Posted February 19, 2021 Most Bangkok condos are overvalued by at least 25%, based on my anecdotal experience. Some places could be over-valued by as much as 40-45%. 1 Link to comment Share on other sites More sharing options...
varun Posted February 19, 2021 Share Posted February 19, 2021 Just now, varun said: Most Bangkok condos are overvalued by at least 25%, based on my anecdotal experience. Some places could are likely over-valued by as much as 40-45%. Link to comment Share on other sites More sharing options...
shortstop Posted February 19, 2021 Share Posted February 19, 2021 10 hours ago, tingtong said: 7-10% like returns It seems real estate agents like to tout gross ROI but net ROI which subtracts CAM charges and other expenses seems to me like a more realistic way to calculate ROI. Link to comment Share on other sites More sharing options...
shortstop Posted February 19, 2021 Share Posted February 19, 2021 9 hours ago, wolf81 said: Even if people cut prices ... most property won't sell I think. There's just too few buyers. Agreed. Since i am happy with my rental I will only buy in my preferred location in a building I like for around 25K per sqm. Sellers are cutting prices but only to a level that would have been a good deal a year ago. Link to comment Share on other sites More sharing options...
thaibook Posted February 20, 2021 Share Posted February 20, 2021 I wrote to Elite to find out more and four weeks later am still waiting for a reply. Perhaps they need to hire a few foreign teachers to teach them to read and write English. Link to comment Share on other sites More sharing options...
Iron Tongue Posted February 20, 2021 Share Posted February 20, 2021 On 2/17/2021 at 9:59 PM, dcnx said: Even the Chinese are selling their condos in bulk now. I would like to know your source as I don't believe a word of it. Chinese investors are buying property worldwide by borrowing cheap cash generated from their overvalued properties inside China. So far, China has been propping-up the lender banks and have shown no real signs of wanting this US$52 trillion market to fail. Until China's property bubble burts, Chinese will keep buying overseas. Link to comment Share on other sites More sharing options...
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