Bangkok housing/condo sales worst in 20 years

[ronnie50]

A spokesman for Supulai, one of Thailand's biggest residential housing developers, says Bangkok home sales are down to a 20 year low. And it could take 5 years to clear the backlog of homes presently on the market (more than 270,000). New unit builds down by a third and five consecutive quarters retracting, also prices also down by more than 25% in some cases. No one bidding on vacant land primed for development, the spokesman said.

 

https://www.bangkokpost.com/property/3077392/bangkok-residential-market-slumps-to-a-20-year-nadir 

[Gaccha]

Hardly surprising given the terrible combination of the response to the pandemic, poor GDP growth fuelled by political instability, and an economically illiterate millitary government running the country for around a decade.

 

Thailand had the opportunity to attract the huge amount Western industry moving from China but instead it relocated to Vietnam and India.

 

Thailand's ability to grasp defeat from the jaws of victory is always quite something.

[spidermike007]

Apparently housing and condo sales have been slipping in Bangkok for a few years now. I think it's just now really catching up with the developers. 

 

Usually around the world there are economic factors that are taken into account such as supply and demand, we can't always assume that that's going to happen here in Thailand because so much of what we see here defies logic, but one would wonder is this eventually going to mean a significant drop in the prices of homes and condos in Bangkok and elsewhere? 

[ronnie50]

2 hours ago, Gaccha said:

Hardly surprising given the terrible combination of the response to the pandemic, poor GDP growth fuelled by political instability, and an economically illiterate millitary government running the country for around a decade.

Let's hope we don't return to that within this year. Call an election!

[ronnie50]

2 hours ago, spidermike007 said:

one would wonder is this eventually going to mean a significant drop in the prices of homes and condos in Bangkok and elsewhere? 

It depends on 'what kind' of money was used to build/develop all of this in the first place. If it was bonafde developers like the one in the article, then maybe prices will fall further (the article said prices already down 25% on new builds). But if it was 'grey' or blackmarket local or international money used to develop (read money laundering), then these no-name places - largely 80% empty - could stay that way for years, as the whole idea was just to park the loot somewhere else.

[ChipButty]

It doesnt seem to be slowing down in Phuket, blocks of condo's going up all over the place, infact behind Central it's like condo city more going up, 

[msbkk]

The issue is that planning of new condo buildings takes years in advance. You have to find the land and get necessary permits and negotiate with banks. Therefore developers cannot react or stop planned buildings so fast to adjust to declining demand. This is the reason why from time to time there is a glut.