Foreigners bought 660 condos in Bangkok area this year: Average price 5M baht, Thais 3.8 M baht

[webfact]

File photo: REUTERS

 

Dr Sophon Pornchokchai of the Agency of Real Estate Affairs Co. Ltd (AREA) told the Thai media the data for condo purchases in Bangkok and surrounding provinces in the first half of 2021.

 

Despite the challenges of the pandemic foreigners had still bought 660 units spending 3.314 billion baht.

 

This represented 6.1% of the total expenditure on condos in the real estate market. 

 

14,066 condos were bought in total.

 

The average price paid for a condo by foreigners was 5.018 million baht. For Thais it was 3.81 million.  

 

He noted a salient fact that in Malaysia foreigners were restricted to buying condos valued at 7.5 to 15 million baht (1-2 million Ringgit).

 

The breakdown of the value of condos purchased by foreigners was:

 

1-2 M baht - 141

2-3 M baht - 208

3-5 M baht - 120

5-10 M baht - 133

 

Most popular areas were Pathumwan, Phayathai, Bang Rak, Yannawa, Wattana and Klong Toey.

 

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[Scrotobike]

Spin it again sam

 

I think the 2nd/3rd quarters may be more interesting....

[Shuya]

33 minutes ago, webfact said:

in Malaysia foreigners were restricted to buying condos valued at 7.5 to 15 million baht

... and get an unconditional residence permit with it. Surprisingly he forgot to mention that fact. 

[OneMoreFarang]

It would be interesting to see the breakdown of price per sqm and new and "used" condominiums.

 

[Exploring Thailand]

I'd be interested to know where this data came from. As I understand it, there is no publicly available register of sale prices. It looks like this report is from a private company, so they should (theoretically) have no access to the data.

[Boomer6969]

1 hour ago, Shuya said:

... and get an unconditional residence permit with it. Surprisingly he forgot to mention that fact. 

I used to keep looking at Malaysia's M2H program. But after last week's announcement of new requirements my monthly pension of about USD 8000 falls 2000 short. They also apply this retroactively, so there will be a few unhappy retired foreigners  there. Wonder who will buy their properties as the new retirees will be rich Chinese or Arabs who won't even look at such "cheap" places.

[tomazbodner]

5 hours ago, Exploring Thailand said:

I'd be interested to know where this data came from. As I understand it, there is no publicly available register of sale prices. It looks like this report is from a private company, so they should (theoretically) have no access to the data.

Land department, most likely. When you make a transfer, price must be shown in the paperwork, and tax paid on it.

[Emdog]

Any figures from 2019 on foreign bought condos?

[Xonax]

So only 999,340 units to go, before they reach the goal of 1 Million Condo´s sold to foreigners.

[Xonax]

17 hours ago, tomazbodner said:

Land department, most likely. When you make a transfer, price must be shown in the paperwork, and tax paid on it.

Most resale prices registred with the Land department are lower than the actual selling prices, in order for the seller to be taxed more lightly.

[tomazbodner]

2 minutes ago, Xonax said:

Most resale prices registred with the Land department are lower than the actual selling prices, in order for the seller to be taxed more lightly.

Probably true for foreigners. Thais generally buy with bank loan and banks surely would not want to have lower prices registered at land department.

 

If a foreigner buys from a Thai, and it is recent built, most likely part of the amount, if not most of it, will go to the bank that gave the loan to seller.

 

As this is for condos, there is also an appraisal site, which tells the per m2 appraised value per floor of each building. Those taking loan from bank would only get it to set percentage of appraised value, not the actual purchase price. I would guess foreigners would not be paying stupid prices for condos and check their actual appraised value first?

[mvdf]

On 8/21/2021 at 1:23 PM, webfact said:

The average price paid for a condo by foreigners was 5.018 million baht. For Thais it was 3.81 million.  

 

 

But same product. Same exact condo. Just two different payment lanes. 

[IamNoone88]

This is another useless economic indicator that demonstrates just how depressed the market is. It would be better to say nothing than publish these dismal numbers.

[OneMoreFarang]

15 minutes ago, tomazbodner said:

As this is for condos, there is also an appraisal site, which tells the per m2 appraised value per floor of each building.

Is that available for the public? Where? Thanks.

[IamNoone88]

The Malaysian property restriction quoted above is incorrect. Foreigners can by property in Malaysia without price restriction except for;

 

Properties valued less than RM1 million

Low and medium cost residential units as defined by state authority

Properties standing on Malay Reserve land

Properties allocated to Bumiputera group in any property development project as determined by state authority

 

You can also apply for residency and own a landed property in Malaysia, unlike Thailand.

 

I would expect more accurate reporting for AREA if using Malaysia as a comparison.

[redwood1]

I don't believe this for one second......100% no on this one..... 66 condos or 33 condos I might believe........With all the travel restrictions... Not many buy condos without looking at them....

[OneMoreFarang]

6 minutes ago, IamNoone88 said:

This is another useless economic indicator that demonstrates just how depressed the market is. It would be better to say nothing than publish these dismal numbers.

Why? Do you think only good looking numbers should be published?

[OneMoreFarang]

Just now, redwood1 said:

I don't believe this for one second......100% no on this one..... 66 condos or 33 condos I might believe........Not many buy condos without looking at them....

Many people buy condos even before they are built. 

[SymS]

On 8/21/2021 at 11:28 AM, Shuya said:

... and get an unconditional residence permit with it. Surprisingly he forgot to mention that fact. 

and If I remember correctly it's also possible to buy a land and house.

[In Full Agreement]

18 hours ago, tomazbodner said:

Land department, most likely. When you make a transfer, price must be shown in the paperwork, and tax paid on it.

 

But is that information available to the public?

 

[ukrules]

23 hours ago, Boomer6969 said:

I used to keep looking at Malaysia's M2H program. But after last week's announcement of new requirements my monthly pension of about USD 8000 falls 2000 short. They also apply this retroactively, so there will be a few unhappy retired foreigners  there. Wonder who will buy their properties as the new retirees will be rich Chinese or Arabs who won't even look at such "cheap" places.

Yes, sounds like they've got what they wanted in Malaysia - selling the apartments, now they're going to start revoking visas.

 

Malaysia permanently added to my list.

[ukrules]

13 minutes ago, redwood1 said:

I don't believe this for one second......100% no on this one..... 66 condos or 33 condos I might believe........With all the travel restrictions... Not many buy condos without looking at them....

Well it's not that many really. I wonder how many purchase in a normal year, I would think many more than this.

[Percy P]

49 minutes ago, Xonax said:

So only 999,340 units to go, before they reach the goal of 1 Million Condo´s sold to foreigners.

Crafty way of getting foreign currency into the country as there is no tourists money

[StayinThailand2much]

(...) From 2010 to 2018, an average of 105,000 new units debuted in Bangkok yearly, according to Bank of Ayudhya's research house Krungsri Research. But sales totaled only about 96,000 units per year, which lifted housing inventory.

 

As the pandemic hurts the country's economy, Thai developers are adopting various tactics including 50% discounts to entice buyers.

 

The condo trend "is likely to slow both in terms of supply and demand," said Risinee Sarikaputra, director of research and consultancy at Knight Frank Thailand. She said it is expected to take "another two years for the condominium market to improve."

 

Around 100,000 units remained for sale in Bangkok as of May, she said.

 

AP (Thailand), which builds the Aspire condo brand, reported a drop of over 40% in first-quarter net profit from a year ago to 618 million baht. Revenue dipped 31% to 5.4 billion baht (...)

 

https://asia.nikkei.com/Economy/Thailand-s-condo-market-sinks-as-Chinese-investment-ebbs

 

[DUNROAMIN]

Wow, that only leaves 19,999 left, I better buy one before the're all snapped up.

[Dialemco]

Estate agents that I have see interviewed about  property market have all been bullish and stated how well the market is performing some saying prices are actually going up in tourist areas. If this is the case the market should be booming! Is it?

[StevieAus]

1 hour ago, In Full Agreement said:

 

But is that information available to the public?

 

I don’t know about condos but the land department will tell you the “official” value of a block of land, that doesn’t necessarily reflect the market value

[NemoH]

This is fake news…

I have so many Thai property agent friends who have all resigned or been made redundant n now all jobless because new as well as old units all cannot be sold. Many units are also in default of payments n some projects are either abandoned or delayed I definitely.

 

 

[billd766]

On 8/21/2021 at 11:28 AM, Shuya said:

... and get an unconditional residence permit with it. Surprisingly he forgot to mention that fact. 

Malaysia has changed its visa rules recently.

 

https://pickvisa.com/blog/retirement-visa-requirements-for-malaysia

 

Bank deposit of 150,000 MMR is 1,180,354 thb. The minimum monthly income is 10,000 MMR = 78,690 thb and gaining a 10 year visa is getting harder all the time.

[ronster]

So none of the 30-40 million bht bracket they were looking at offering free visas too then ! Surprise surprise ! ????