Will House Prices Drop ?

[mark100]

With the goverment clamping down on foreigners owning houses via the ' Thai Company' route could we expect to see a drop in house prices over the coming months ??

[typist]

With the goverment clamping down on foreigners owning houses via the ' Thai Company' route could we expect to see a drop in house prices over the coming months ??

I doubt you will see a price drop across the market. Maybe some buyers will be lucky and get a good

 deal on a particular unit, but not many owners are willing to sell high quality at rock bottom prices. I see few desperate sellers who are in a crunch - imho most investors in Thailand can afford to wait if the market isn't right at a particular time.

Edited September 11, 2007 by typist

[lordofdelusion]

It's more than the Thai company/land ownership bit though that is certainly part of it. The weak dollar is keeping yanks home and allowing the Europeans to buy all those forclosed properties in Florida at a great price. Infrastructure is better in Florida, internet etc; Global economics and the Thai government also figure in.

It's been my recent experience in shopping for houses, particularly in new developments, that discounts are available. One place offered a quick million baht off, from 8 to 7 million. Other places are throwing in pools, furniture, low interest mortgages or such things. I think it is a buyers market more and more.

Time will tell.

[Naam]

With the goverment clamping down on foreigners owning houses via the ' Thai Company' route could we expect to see a drop in house prices over the coming months ??

have you seen or heard that anybody was "clamped"? don't believe everything what the happy renters and the less happy have-nots are trying to tell you

[mark100]

It's more than the Thai company/land ownership bit though that is certainly part of it. The weak dollar is keeping yanks home and allowing the Europeans to buy all those forclosed properties in Florida at a great price. Infrastructure is better in Florida, internet etc; Global economics and the Thai government also figure in.

It's been my recent experience in shopping for houses, particularly in new developments, that discounts are available. One place offered a quick million baht off, from 8 to 7 million. Other places are throwing in pools, furniture, low interest mortgages or such things. I think it is a buyers market more and more.

Time will tell.

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

[Irene]

That depends on the location. Pataya, Phuket or Samui may be affected but negligibly in Bangkok.

[typist]

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

the instability of a military junta in charge

Withing a really short-term perspective, I see your point, but imho it's really the other way around: look at longer-term Thai history and you'll see that the only stable, predictable pattern is that there will be another coup. 

Just like Italy: in a short-term perspective the ever-changing coalitions and resulting Governments can seem like an unstable pattern. That's not how I see it - I think it's a predictable system, and imho a stable form of Government.

It's just a different system, resulting in a different type of stability.

Edited September 11, 2007 by typist

[typist]

That depends on the location. Pataya, Phuket or Samui may be affected but negligibly in Bangkok.

Even if some areas are affected, people have a very short memory. Just like with the Tsunami; it doesn't take long until people forget their previously oh so scary fears. Yesterdays news won't scare anyone.

[esbobes]

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

the instability of a military junta in charge

Withing a really short-term perspective, I see your point, but imho it's really the other way around: look at longer-term Thai history and you'll see that the only stable, predictable pattern is that there will be another coup.

Just like Italy: in a short-term perspective the ever-changing coalitions and resulting Governments can seem like an unstable pattern. That's not how I see it - I think it's a predictable system, and imho a stable form of Government.

It's just a different system, resulting in a different type of stability.

Housing prices shall raise 15 per cent as the Thai are getting richer.

We all known how EU and US going down hill

Soon Thai shall replaced them as Number 1 Buy down and be super rich.

[Manchester]

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

the instability of a military junta in charge

Withing a really short-term perspective, I see your point, but imho it's really the other way around: look at longer-term Thai history and you'll see that the only stable, predictable pattern is that there will be another coup.

Just like Italy: in a short-term perspective the ever-changing coalitions and resulting Governments can seem like an unstable pattern. That's not how I see it - I think it's a predictable system, and imho a stable form of Government.

It's just a different system, resulting in a different type of stability.

Housing prices shall raise 15 per cent as the Thai are getting richer.

We all known how EU and US going down hill

Soon Thai shall replaced them as Number 1 Buy down and be super rich.

[teejay]

quick answer, no.

sticky prices! don't believe the doomsayers..... (agree with Dr. Naam above)...

[lazeeboy]

It's more than the Thai company/land ownership bit though that is certainly part of it. The weak dollar is keeping yanks home and allowing the Europeans to buy all those forclosed properties in Florida at a great price. Infrastructure is better in Florida, internet etc; Global economics and the Thai government also figure in.

It's been my recent experience in shopping for houses, particularly in new developments, that discounts are available. One place offered a quick million baht off, from 8 to 7 million. Other places are throwing in pools, furniture, low interest mortgages or such things. I think it is a buyers market more and more.

Time will tell.

only the cowboys will panic ,the smarter richer owners will ride it out and sell for even more in the near future...

[Heng]

Which particular home or neighborhood do you have in mind? If you're looking at something in Nichada Thani or even one of the dozens of Land and House projects, you won't be seeing prices heading south anytime soon. But if we're talking about cash strapped Somchai Ville type developers... maybe.

[Lucifer]

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

the instability of a military junta in charge

Withing a really short-term perspective, I see your point, but imho it's really the other way around: look at longer-term Thai history and you'll see that the only stable, predictable pattern is that there will be another coup.

Just like Italy: in a short-term perspective the ever-changing coalitions and resulting Governments can seem like an unstable pattern. That's not how I see it - I think it's a predictable system, and imho a stable form of Government.

It's just a different system, resulting in a different type of stability.

Housing prices shall raise 15 per cent as the Thai are getting richer.

We all known how EU and US going down hill

Soon Thai shall replaced them as Number 1 Buy down and be super rich.

Prices went up 1% per month on average in the UK. Higher in London.

The average price in the UK is about £200K. So thats an increase of about £24k. Not bad for a country thats 'going down hill'

Don't compare the UK property market with other parts of the EU.

[SiriusBlack1]

Just bought a property in Japan. It went like this:

I arrived in Japan on a tourist visa. I presented my passport and money. The real estate agent took care of the paperwork. I now own a modest plot of land in suburban Tokyo. In my own name. And that's it.

I'll still carry through with buying land for my wife but basically I've gone real sour on "investing" in Thailand. I'm sure the big guys can do well but little guys like me take a big risk for little foreseeable gain.

[mark100]

Just bought a property in Japan. It went like this:

I arrived in Japan on a tourist visa. I presented my passport and money. The real estate agent took care of the paperwork. I now own a modest plot of land in suburban Tokyo. In my own name. And that's it.

I'll still carry through with buying land for my wife but basically I've gone real sour on "investing" in Thailand. I'm sure the big guys can do well but little guys like me take a big risk for little foreseeable gain.

Was your land very expensive??

[Heng]

Yeah, buying real estate in the US is pretty simple as well.

I can therefore conclude that the property laws in various countries are different.

[Prakanong]

You know my friends and l were having this discussion the other day about the political situation, the instability of a miltary junta in charge must have an effect on the housing surely ?? l for one would not buy another house or invest money here until the next democratically appointed goverment is in place, but my friends disagree.

the instability of a military junta in charge

Withing a really short-term perspective, I see your point, but imho it's really the other way around: look at longer-term Thai history and you'll see that the only stable, predictable pattern is that there will be another coup.

Just like Italy: in a short-term perspective the ever-changing coalitions and resulting Governments can seem like an unstable pattern. That's not how I see it - I think it's a predictable system, and imho a stable form of Government.

It's just a different system, resulting in a different type of stability.

Housing prices shall raise 15 per cent as the Thai are getting richer.

We all known how EU and US going down hill

Soon Thai shall replaced them as Number 1 Buy down and be super rich.

And pigs might fly.

I would not be looking over my shoulder at the USa and EU if I was you - I would worry about my own back yard and your competitors here - you might just be on the way to being the poor realtions in Se Asia as others catch and pass you and others leave you in their wake that are already far ahead of you.

[quiksilva]

Yeah, buying real estate in the US is pretty simple as well.

I can therefore conclude that the property laws in various countries are different.

:D :D hehe, good one, so rare to get a giggle in the real estate forum!

[Heng]

tanx. I'll be here all week.

[cclub75]

For once, you should believe what the thai newspapers are writing.

Bangkok Post august : "Property market slowing sharply"

And some stuff about datas of the BOT (Bank Of Thailand) : here

[highdiver]

yep looks like it going down....

Coming soon: $10 million for a flat in Bangkok?

By Simon Osborne | 13 September 2007

Read this article online at:

http://www.asianinvestor.net/article.aspx?CIID=92084

The soon-to-be-launched Sukhothai Residences will be Bangkok's most expensive condominium development.

If you're a hedge fund manager or an investment banker whose chances of getting a fat annual bonus outweigh the chances of getting a credit crunch retrenchment, you might like to consider splashing out on a flat in the Sukhothai Residences, due for completion in 2010.

The development is about to be launched in the Sathorn road area of Bangkok, adjacent to the Sukhothai Hotel, a swanky five-star hotel whose suites are beloved of visiting investment bankers.

Staying at the Sukhothai hotel has long been regarded as a sybaritic experience by bankers, and worth making an excuse to go on a not-entirely-necessary business trip to Bangkok. It prompted one head of global credit at an investment bank visiting from New York to enthuse, "Just on the basis of having stayed at the Sukhothai, I wouldn't be averse to our buying a few hotels here."

Although she left the firm shortly after, that same Wall Street company did amass a portfolio of Bangkok hotels, though less fancy ones in which their bankers would probably be loathe to stay, largely located in the naughty nightlife district of Sukhumvit Road and far from the imperial serenity of the Sukhothai's Khmer bas-reliefs.

The selling agents for the Sukhothai Residences have not formally revealed themselves yet, but an employee at Bangkok's leading property agency said that the flats would start at around 120 square metres in size and go up to 1000 square metres for the penthouse.

It is understood though that the prices for this 40 floor honeytrap will start at $6,000 per square metre. "That's ridiculous, it's at Hong Kong prices," says one member of Hong Kong's alternative investment community who has a hankering to spend his twilight, incontinent years in Bangkok.

The rumour mill in Bangkok is in full swing. Benjaporn Chatkaew, director of sales and marketing at rival high-rise Le Raffine, says, "I understand prices start at Bt200,000 there, but go up as high as Bt400,000 ($12,000)". Le Raffine is a recently completed development into which Hong Kong's hedgies are known to have bought million dollar palatial duplexes. Prices in top condo developments in Bangkok cap out at about Bt150,000 per square metre at present, so the Sukhothai will set a new upper benchmark.

[SiriusBlack1]

Was your land very expensive??

Mark, no it wasn't. Prices in the Tokyo area collapsed about 10 years ago and are at about 20% of their highs of 1991.

As somebody so informatively put it, different countries have different laws. In Thailand, the laws manage to suck and, paradoxically, blow at the same time.