Residential market slows, new stimulus packages awaited

[KhunLA]

19 minutes ago, Tidal wave said:

She probably wasn't listening to your self proclaimed investment advice but fast asleep like me ..

She always consults with me before investing any money.   Wants me to teach her the markets; stocks, options, commodities, currency trading.  She could use my USA brokerage accounts, but doesn't have the liquidity yet.

[Celsius]

1 hour ago, newnative said:

      If the first condo was an investment property she might have held on to it while continuing to rent it rather than sell at a loss.  We never sell anything unless we make a profit and, instead, just continue to live in it rent free or rent it out.   I'm not understanding why you think her Breeze condo has lost 20 to 25% of its value.  Hipflat has the price per sqm going steadily up since it opened, with a current price per sqm of 136,754 baht per sqm.  Price per sqm up 8.89% from last year and rents up 10.92%.  See chart below which did not cut and paste very well but has the stats.  You say it is 'quite well managed' so that shouldn't be a factor, as it apparently might have been with the other condo.

 

Market Stats for The Breeze Narathiwas

• Current asking price per sqm.
  ฿136,754
• Asking price change from last quarter
   

   

  0

   

  %
• Asking price change from last year
   

   

  8.89

   

  %
• Achievable gross rental yield
  5.08

   

  %
• Rent price change from last year
   

   

  10.92

   

  %

Historical Asking Price per ㎡ (THB)

 

20122013201420152016201720182019202020212022฿80,000฿100,000฿120,000฿140,000

 

These inflated charts from hipflat are never accurate. These are the prices people want, but not what the condos sold for..... which is under 100,000 per square meter. This one we actually have data from her realtor friend.

 

As for the sold condo, we might be moving to canada, so she would rather use that money there. I think 12 years was a pretty long term for that condo and maitrnance fees are already high and will go higher. Then no one will want to buy it.

Edited May 31, 2023 by Celsius

[Celsius]

Double post

Edited May 31, 2023 by Celsius

[newnative]

10 hours ago, Celsius said:

These inflated charts from hipflat are never accurate. These are the prices people want, but not what the condos sold for..... which is under 100,000 per square meter. This one we actually have data from her realtor friend.

 

As for the sold condo, we might be moving to canada, so she would rather use that money there. I think 12 years was a pretty long term for that condo and maitrnance fees are already high and will go higher. Then no one will want to buy it.

       I haven't found that to be the case with Hipflat.   With nothing accurate available from the government, it's one of the few sites I know of that provides pricing information on a wide variety of condos in Bangkok and Pattaya.   No site is going to be precisely spot on but I find Hipflat to mostly be in the ballpark with their price per square meter figures.  I've never come across a huge discrepancy.   In the ballpark is really all you can reasonably expect.

      Obviously, for Hipflat to work best, it needs to be used correctly.  You need to be comparing apples to apples and not apples to oranges.  If you have a low floor condo in poor condition with no view in project X, don't expect to get the same price per square meter that a higher floor condo in excellent condition with a killer view is commanding.   Even comparing apples to apples, there are lots of variables that can result in one condo selling for more, or for less, than another next door in the same project.  Hipflat gives an average price for the entire project.  That never means that a particular condo in the project will be able to sell for that average price per sqm.

     We've seen this personally three times with projects where we have owned 2 units, 1 bedrooms and 2 bedrooms.  In each case, the condos sold for different prices per sqm.  One example, Centric Sea in Pattaya.  We owned a 2 bedroom on floor 29 and a 1 bedroom on floor 14.  The 2 bedroom was renovated and improved to the max, including an all-new custom kitchen--we were living there.  The 1 bedroom was improved a little--it was a rental.   The 2 bedroom had a killer seaview and was one of only a few units in the project that had a cantilevered bathtub with windows on 3 sides.   The 1 bedroom had a seaview, but not as good with the lower floor.  

    Hipflat has Centric Sea at 97,000 baht a sqm.  We sold the 2 bedroom for 154,000 baht a sqm and the 1 bedroom for 101,000 baht/sqm.   The 2 bedroom went for far more than the average price because it had far more than the average condo there.  The 1 bedroom sold for slightly above average because it did have a seaview and the units at the back of the building and in the low-rise 3rd building do not. 

    Hipflat has high floor 2 bedrooms with seaview ranging from around 140,000 to around 162,000 baht a sqm.  So, we were about in the middle of the range with that sale.  Centric 1 bedrooms on Hipflat run from around 70,000 to 115,000 baht a sqm, so we in the upper end of the range with our 1 bedroom sale.   In any case, Hipflat was right in the ballpark with both our sales--and with all the other sales we have done--and, as I said, that's really all you can reasonably expect.