FIle photo

 

Wichai Wiratkaphan, a real estate analyst with the Government Housing Bank, told Daily News that the price of new condominiums in Bangkok and the surrounding areas continues to fall.

 

Wichai said that a data index showed that compared to the first quarter last year prices had fallen 0.8%.

 

In the city area it was down 0.9% but only 0.2% in the suburbs. 

 

GRaphic: Daily News

 

There was encouraging news nationwide in one area of condo purchase, however, the under 3 million baht market.

 

The data showed that government stimulus measures were effective in keeping the reduction of purchases is this sector to 1.5%.

 

Taken as a whole the purchase of all new condos nationwide was down 8.5%. 

 

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.8% ?

 

Fantasy numbers. Some ads show "prices slashed 50%" from a major condo developer, and despite that, transactions are few.

Reality (things are not getting or going to get better in the near term) is finally starting to set in. I'm going to consider buying since the prices are only going to continue to fall. I am thinking around the first quarter of the end of the next high season. 

Prices are "slashed 50%" only on the least desirable units. The small ones, those near the road or the garbage dumpsters. Everything else is pretty much full price. And as for used condos, Thais don't seem to want to lower their prices thinking that 'someday' someone is going to come along and pay their massively inflated price. Or they might advertise a slightly lower price and when a farang comes along it magically goes up because we all know that farangs are rich and can afford to pay more.

1 hour ago, webfact said:

Wichai said that a data index showed that compared to the first quarter last year prices had fallen 0.8%.

 

What "data index"? Unless it's interpreted data from Thai Land Department of actual sales and title transfers of Bangkok condos then how can it be accurate? Do they even announce official sales figures? Never trust any "bank" as they will always try to paint an optimistic picture. Declining asset prices does not favour them. I doubt the above figures, as real life sales are the only true measure. Some developers were offering 50% discounts on certain units. Still seemed like a bad deal to me. When liquidity and transaction levels are so low it is difficult to determine accurate valuations. We all know how Thais (and most Asians) will use property as a store of value and simply leave their unit empty. The level of unused property all over Thailand shocks me and yet they still keep building more. Whether it's condos, moo baans, shop houses, hotel or office towers. Maybe a few bargains to be had but my experience is that Thai developers and owners of used property will rarely reduce prices to good or fair value.

 

Can farang get mortgages?

Weird when these developers are trying to sell their condos near that River the water is always looking sparkling blue in their brochures.

Strange; normally when things don't sell they put their prices up !

52 minutes ago, SeaMike01 said:

Prices are "slashed 50%" only on the least desirable units. The small ones, those near the road or the garbage dumpsters. Everything else is pretty much full price. And as for used condos, Thais don't seem to want to lower their prices thinking that 'someday' someone is going to come along and pay their massively inflated price. Or they might advertise a slightly lower price and when a farang comes along it magically goes up because we all know that farangs are rich and can afford to pay more.

Thanks good to know. I have not done my due diligence yet. Makes sense though... all those cheap units that cannot be unloaded now. The more "desirable" units are owned by those that can afford to just hold onto them, rent them out for cheap until we get back to "normal"? As I said in my original post, reality is starting to set in, give it about one more year and the more desirable units will start to down as well... Or not, because all of our lives are back to normal?

2 hours ago, SeaMike01 said:

Prices are "slashed 50%" only on the least desirable units. The small ones, those near the road or the garbage dumpsters. Everything else is pretty much full price. And as for used condos, Thais don't seem to want to lower their prices thinking that 'someday' someone is going to come along and pay their massively inflated price. Or they might advertise a slightly lower price and when a farang comes along it magically goes up because we all know that farangs are rich and can afford to pay more.

A fair assessment.  This reflects my experience when dealing with Thai’s on real estate.  Getting to a price is like putting your finger on mercury ... unless they are in deep doo doo then things progress quite smoothly.

5 hours ago, webfact said:

Wichai said that a data index showed that compared to the first quarter last year prices had fallen 0.8%.

Should be 80% to reflect the real value.

2 minutes ago, hotchilli said:

Should be 80% to reflect the real value.

Yep that's true and now just waiting for the so called investment experts on here to plug into this thread stating they have sold  25 condos since 2018 for a profit, sold another 20 in 2020 and expect their remaining 50 to bring them further wealth beyond their widest dreams as the market is not dropped of a cliff at all , just fake news. ????

Nice brown water in the Chao Praya river...is this used for showers, to keep your skin beautiful in color?

It all seems like a worthless overpriced investment.

In reality, the 10 million b places should be 3 mil.

Thousands of empty units but greed and arrogance will not allow a lower price.

Good luck. So glad I rent. 

7 hours ago, webfact said:

Taken as a whole the purchase of all new condos nationwide was down 8.5%.

So I guess Thais are mostly buying 91.5%?

I would say it is down 80%.

No one is buying much of anything in this inflated, false, over priced non transparent real estate market.

Fools gold probably better to invest in Bitcoin..

The article mentions condos, but will house prices follow?

In the Condo I live in, one on the 10th floor for sale 31m, one on the 17th Floor exactly the same...was up for 22.5m sold for 19m....that's the reality! a 30-40% haircut!

 

RAZZ

Finance writers talk about "greater fool theory"; there's always a "greater fool" just around the corner. I think that's how a lot of Thais think when setting asking prices-and they should know.