3 Years For Some Property To Clear

[bingobongo]

i wonder how the real estate shills/homedebtors will spin this one........

so lets see, rates are at rock bottom levels and nothing is moving and they think things will improve in "as soon as three months hence"? genius i tell you, pure genius

Preuksa Real Estate recorded the highest growth of residences "in stock", with its inventory rising by 55.55 per cent year on year to a value of Bt12.6 billion at the end of 2008. Next came Supalai and Quality Houses, whose inventories grew 34.1 per cent and 33.1 per cent respectively, to finish 2008 with values of Bt11.4 billion and Bt19.3 billion

http://www.nationmultimedia.com/2009/03/11...ss_30097587.php

[trogers]

What is the meaning of "Pre-Sold"? It is a marketing term like "Whiter than white, Brighter than bright".

When a developer says 'pre-sold' he actually means booked. And a unit booked does not mean a unit sold, until the property is completed and land title transferred upon receipt of all monies.

Rising inventories is an indication that many 'pre-sold' units could not be transferred.

They said that it will take up to 3 years to clear the rising inventory. This will only be for projects in choice locations. Those in less then desired ones will take more then 10 years to clear, provided prices are slashed at the same time. There are over 10% of units from the Tom Yum Kung crisis still looking for buyers at this time in some locations.

Edited March 11, 2009 by trogers

[mommysboy]

i wonder how the real estate shills/homedebtors will spin this one........

so lets see, rates are at rock bottom levels and nothing is moving and they think things will improve in "as soon as three months hence"? genius i tell you, pure genius

Preuksa Real Estate recorded the highest growth of residences "in stock", with its inventory rising by 55.55 per cent year on year to a value of Bt12.6 billion at the end of 2008. Next came Supalai and Quality Houses, whose inventories grew 34.1 per cent and 33.1 per cent respectively, to finish 2008 with values of Bt11.4 billion and Bt19.3 billion

http://www.nationmultimedia.com/2009/03/11...ss_30097587.php

Good posting.

In the end it comes down to affordability, and the availability of funds. A drop in one or the other and there is a problem. A drop in both, well ask people from the UK or USA what happens, or rather what is continuing to happen despite substantial falls already.

Regarding Thailand ! I really don't know the market, but those who think prices will not waver must be kidding! and yes, 50% drops can and do happen in property markets (observation not prediction).

[quiksilva]

Its all relative.

Price drops happen all the time when people must sell, especially in difficult economic climates. However if they don't really need to sell, the vendor can ask for whatever they want, because they don't care if it sells or not.

Oh sure the value of their unit as determined by recent comparable sales, can fall regardless, because the comparable evidence of actual transactions are from those who have to sell in these climes, and thus at lower prices, but that loss is only crystalised when its actually sold.

So if you want to buy a unit, but there is no urgency to sell on the vendor's part, (say they were cash buyers, or they are living there), don't be surprised if the price they ask is above what can be considered as market value.

There were a lot of cash buyers in this market.

(Deliberate use of the past tense)

Edited March 12, 2009 by quiksilva

[think_too_mut]

What is the meaning of "Pre-Sold"? It is a marketing term like "Whiter than white, Brighter than bright".

When a developer says 'pre-sold' he actually means booked. And a unit booked does not mean a unit sold, until the property is completed and land title transferred upon receipt of all monies.

Rising inventories is an indication that many 'pre-sold' units could not be transferred.

They said that it will take up to 3 years to clear the rising inventory. This will only be for projects in choice locations. Those in less then desired ones will take more then 10 years to clear, provided prices are slashed at the same time. There are over 10% of units from the Tom Yum Kung crisis still looking for buyers at this time in some locations.

Hahahaha, some will never fathom that simple and clear fact.

Look at Proof that Thai property market is booming.

A notorious lie by the developer, magnified and hung over half the building fooled some (curiosly, in English, not meant for Thais who would know in an instant it's all bullshit).

[Aahchoo]

Its all relative.

Price drops happen all the time when people must sell, especially in difficult economic climates. However if they don't really need to sell, the vendor can ask for whatever they want, because they don't care if it sells or not.

Oh sure the value of their unit as determined by recent comparable sales, can fall regardless, because the comparable evidence of actual transactions are from those who have to sell in these climes, and thus at lower prices, but that loss is only crystalised when its actually sold.

So if you want to buy a unit, but there is no urgency to sell on the vendor's part, (say they were cash buyers, or they are living there), don't be surprised if the price they ask is above what can be considered as market value.

There were a lot of cash buyers in this market.

(Deliberate use of the past tense)

There were a lot of cash buyers in this market.

A lot? Please advise as to what percentage of property in Thailand was sold for cash (with no associated debt), if you happen to have those figures. Thank you.

[bingobongo]

let me try and understand something, Preuksa Real Estate recorded the highest growth of residences "in stock", with its inventory rising by 55.55 per cent year on year per the original post, and now these "visionaries" want to build more? so in one article they have massive inventory, but in another they say, "He said the company was confident of the housing demand of its target group"

nothing like talking out both sides of one's own arse i guess, the spin machine is in full throttle

oh i smell some very large bank defaults coming to thai bank very soon, it will soon be time to go short again

Preuksa plans Yaowarat condo

http://www.bangkokpost.com/business/econom...-yaowarat-condo

Edited March 12, 2009 by bingobongo

[donx]

let me try and understand something, Preuksa Real Estate recorded the highest growth of residences "in stock", with its inventory rising by 55.55 per cent year on year per the original post, and now these "visionaries" want to build more? so in one article they have massive inventory, but in another they say, "He said the company was confident of the housing demand of its target group"

nothing like talking out both sides of one's own arse i guess, the spin machine is in full throttle

oh i smell some very large bank defaults coming to thai bank very soon, it will soon be time to go short again

Preuksa plans Yaowarat condo

http://www.bangkokpost.com/business/econom...-yaowarat-condo

This is an interesting project in that Preuksa is targeting a very small group of potential customers - ethnic Chinese gold dealers with shops in Chinatown. They are only building 69 units. The question is whether there are enough of these types of customers willing to purchase in this type of development. Ethnic Chinese typically prefer to live in shop houses directly above their own business.

I have no idea if Preuksa will be successful in this project or not. You are predicting that this project will be a bust and that this will cause (or help cause) some very large bank defaults coming to Thai banks. I look forward to seeing what happens.

[trogers]

The high selling price of these 69 units must be due to the very expensive security system in the project. The building probably will be locked down tighter than Fort Knox. Imagine the monthly maintenance fees involved.

[quiksilva]

Its all relative.

Price drops happen all the time when people must sell, especially in difficult economic climates. However if they don't really need to sell, the vendor can ask for whatever they want, because they don't care if it sells or not.

Oh sure the value of their unit as determined by recent comparable sales, can fall regardless, because the comparable evidence of actual transactions are from those who have to sell in these climes, and thus at lower prices, but that loss is only crystalised when its actually sold.

So if you want to buy a unit, but there is no urgency to sell on the vendor's part, (say they were cash buyers, or they are living there), don't be surprised if the price they ask is above what can be considered as market value.

There were a lot of cash buyers in this market.

(Deliberate use of the past tense)

There were a lot of cash buyers in this market.

A lot? Please advise as to what percentage of property in Thailand was sold for cash (with no associated debt), if you happen to have those figures. Thank you.

I dont happen to have those numbers and neither does anyone else, as you obviously know or you would not have asked that question. Obvious troll is obvious.

Consider that in order for a foreigner to purchase a condo in Thailand they must bring in cash from abroad. Oh there was some financing from some overseas financial institutions, but were they in the majority?

This is already quite a lot per se, but add the well healed Thai Chinese cash purchasers to this mix and I'm completely comfortable with standing by my statement that were a lot of cash buyers, of course if you have evidence to the contrary, please share.

Edited March 13, 2009 by quiksilva

[bingobongo]

and some donald trump wannabes will actually think this is a good deal.........

does being stupid make you poor, or does being poor make you stupid?

so much for a "booming" real estate market

Siam Real Estate Introduces Easy Buy Terms for Property

In these difficult economic times during which foreign buyers have less equity and financing is problematic, a deferred payment arrangement can ease the sale.

http://www.pr.com/press-release/138880

Edited March 15, 2009 by bingobongo

[trogers]

Siam Real Estate Introduces Easy Buy Terms for Property

In these difficult economic times during which foreign buyers have less equity and financing is problematic, a deferred payment arrangement can ease the sale.

http://www.pr.com/press-release/138880

Looks like Phuket is building its own sub-prime mess...

[splitlid]

Siam Real Estate Introduces Easy Buy Terms for Property

In these difficult economic times during which foreign buyers have less equity and financing is problematic, a deferred payment arrangement can ease the sale.

http://www.pr.com/press-release/138880

Looks like Phuket is building its own sub-prime mess...

exactly mate, it amazes me that agents are promoting this type of activity, even here in hua hin developers are offering this fantastic once in a lifetime deal,

really, be prepared for large amounts of legal activity in the future, maybe a good time to open a law orrafice, bloody nuts.

or maybe its just me thats nuts for not offering the same deals.

[stgrhe]

One of the terms reads: "Lawyer safeguards and retains title deed until paid in full".

That may be o.k. for a condo but what about houses? Since most foreigners, at least in the tourist areas, are leasing their land, it doesn't make sense for the seller's lawyer to keep a title as it will never be transferred to the "buyer" anyway. Further, not all land that is meant for leasing, has been sub-divided and the intention is likely to keep it that way.

[bingobongo]

wow, quality being called into question? shocking i tell you, shocking

maybe once the unicorn that craps rainbows is found, things will get better

Complaints about real estate companies are increasing in Thailand where delays in construction, misleading advertising and low quality workmanship are the most common source of conflict

http://www.themovechannel.com/news/5f7627f1-8098/

[ernest1966]

rising inventories means rising debt

who pays for the securitity ? who pays for the inspections ? who pays for the electric so that the buildings can be shown off ? if a unit has grounds who pays for the maintenance ? the money for the unit is either up front from the potential buyer if they can get some part of it, or borrowed. so what interest rates are down... but its gonna come to a halt sooner or later

the thai property market's going crash, any fool can see that and those in denial will always be in denial.

those who bought inexpensive places to rent out at reasonable prices will the lucky ones

Ernest