Asian Developers Delay Projects In Downturn

[bingobongo]

who were the "gurus" who said that asia was immune? oh yes, i remember, i ignored them.........

so many lost deposits......oh well, i guess that is how homedebtors learn

Asian developers delay projects in downturn

Pairote Sukjan, president of Buathong Property in Bangkok, told AFP the crisis prompted Thai banks to cut back on lending to both condominium developers and buyers.

"Several condominium projects were delayed or cancelled because developers could not get loans from banks easily," Pairote said.

http://www.google.com/hostednews/afp/artic...7bu6pcBcXx_MspA

Edited February 23, 2009 by bingobongo

[Gravelrash]

This looked like an interesting topic until I saw who the OP was.

[quiksilva]

Our latest research shows that the amount of new supply coming onto the market each year has in fact been slowing since 2006.

So its good to see developers listening and catering to market demand... they didn't last time and got caught out and caused an almighty mess. Even when everybody saw over supply on the horizon they kept on building, at the same rate. That lesson appears to have been learned.

[midas]

Our latest research shows that the amount of new supply coming onto the market each year has in fact been slowing since 2006.

So its good to see developers listening and catering to market demand... they didn't last time and got caught out and caused an almighty mess. Even when everybody saw over supply on the horizon they kept on building, at the same rate. That lesson appears to have been learned.

quicksilva - oh really !! You make it sound like all of a sudden developers have discovered altruistism

How do you know it wasn't their financiers that made this decision not the developers ? They still probably

would have tried to make a buck if they could get away with it . I would suggest it's the financial institutions

that have adopted a more cautious attitude not the real estate entrepreneurs

[quiksilva]

!!!Oh really!!! tsk tsk come now, no need for dramatics. (ps I think the word you were looking for is altruism)

Look semantics aside you wont get any argument from me that financiers in Thailand have become a lot more responsible, compared with their previous lending practices.

However, whilst they had an important role to play it was certainly not just the banks.

Developers have been undertaking (and commissioning) market research, and changing direction based on the results. They did this to make a buck.

Scaling back developments, flat out shelving them, or repositioning to meet higher/lower standards (cheaper units when prime market became saturated etc) as the prevailing conditions required. So I think its fair to say it was a bit of both.

That's not to say that every developer takes this approach. Far from it. There are still developers who will forge on ahead with their plans, complete with stupid designs and crazy pricing, and launch when the market is flat, despite what anyone tells them...

[hhgz]

"You make it sound like all of a sudden developers have discovered altruistism"

What does altruism have to do with anything, except your inability to spel gud.

[pkrv]

"You make it sound like all of a sudden developers have discovered altruistism"

What does altruism have to do with anything, except your inability to spel gud.

Perhaps they have discovered the concept of 'Money', instead?