Who Is Ready To Buy?

[trogers]

Loose monetary policies tend to reflate asset prices, and when its the Fed, it blows asset bubbles round the world. We see that easy money flowing into the equity markets right now. Under Greenspan's loose polices, property prices began climbing in major Asian cities like HK and Singapore starting in late 2004/2005. Later, that easy money flowed to second tier asian cities like Bangkok and K.L. I remember property players touting BKK properties as laggard and undervalued compared to Singapore and HK then. Of course, as history showed, BKK prices played catch up very quickly The same thing may happen now, with SG and HK leading the way.

But am I betting on that? On the one hand, we've seen unprecedented global wealth destruction with the financial crisis. On the other hand, we've unprecedented public policy responses, with lots of money (ie tax-payer $$ ) thrown at the problem. How will all this end? Like I said, things should be clearer in 1-3 years time Right now, my baht stays with me. That view may change if there's no significant pullback in equity markets by early next year

There was no global wealth destruction! It is just a wealth transfer. Was there a physical tearing apart of housing? Or are they still standing on planet earth, waiting for new owners at deflated prices? So the question is - will you be one of the new owners?

[kaxper]

I chuckle at earlier posters who say that just because " capital markets (stocks, bonds) have risen "

it justifies coming up with the statement " buying now is probably not a bad idea. " Bangkok property market has "stagnated"

Investment in Bangkok's property market remains low, despite an increase in the number of properties available in the Thailand capital, a new study has concluded. Research by real estate services firm Jones Lang LaSalle revealed that there is still disparity between the price expectations of buyers and sellers. Managing director of the firm's Thailand branch Suphin Mechuchep stated that while interest in the market is still strong, actual investment activity in recent months has "stagnated". "Investors are mostly looking for distressed assets offered at deeply discounted prices. At the same time, sellers refuse to dispose of their property assets at a loss," he explained. And Jones Lang LaSalle's director of investments Umpon Thepnumsommanus noted that while the firm has received a number of enquiries regarding real estate, the vast majority are buyers looking for distressed assets.

my point exactly .. investment activity has stagnated means developers stopped launching new projects and means that there is less supply coming on line which is healthy as existing inventory needs to clear. the speculator who bought condos off plan are now feeling bit more confident now that his portfolio has risen (i am one of them!), which means that he has more options and less likely to dump his 30% deposit. if you are a buyer and still waiting for prices to crash, that likelihood is less likely. but who knows, we can have another airport closure and everything can still go to the dogs.

Ohhh you mean the law of supply and demand...

you should know by now that bangkok property market is not driven by supply and demand but by stupidity and holding power ! it never fails to amaze me how many (thais) people i know who can afford to buy a condo and leave it empty for years.

[LennyW]

you should know by now that bangkok property market is not driven by supply and demand but by stupidity and holding power ! it never fails to amaze me how many (thais) people i know who can afford to buy a condo and leave it empty for years.

Thais seem to have a thing about "finance", as soon as they own a peice of property, they go and get a loan against it - relatively easily too. This is one of the reasons you see so many unnocupied shophouses - financed to the hilt, and still they build more!

It also applys to cars here in Thailand, so many people go and buy a car and then go and get a loan against it - anyone who has ever looked at purchasing a second hand vehicle here will understand that is why they are so expensive!

Crazy!!!

[trogers]

I chuckle at earlier posters who say that just because " capital markets (stocks, bonds) have risen "

it justifies coming up with the statement " buying now is probably not a bad idea. " Bangkok property market has "stagnated"

Investment in Bangkok's property market remains low, despite an increase in the number of properties available in the Thailand capital, a new study has concluded. Research by real estate services firm Jones Lang LaSalle revealed that there is still disparity between the price expectations of buyers and sellers. Managing director of the firm's Thailand branch Suphin Mechuchep stated that while interest in the market is still strong, actual investment activity in recent months has "stagnated". "Investors are mostly looking for distressed assets offered at deeply discounted prices. At the same time, sellers refuse to dispose of their property assets at a loss," he explained. And Jones Lang LaSalle's director of investments Umpon Thepnumsommanus noted that while the firm has received a number of enquiries regarding real estate, the vast majority are buyers looking for distressed assets.

my point exactly .. investment activity has stagnated means developers stopped launching new projects and means that there is less supply coming on line which is healthy as existing inventory needs to clear. the speculator who bought condos off plan are now feeling bit more confident now that his portfolio has risen (i am one of them!), which means that he has more options and less likely to dump his 30% deposit. if you are a buyer and still waiting for prices to crash, that likelihood is less likely. but who knows, we can have another airport closure and everything can still go to the dogs.

Ohhh you mean the law of supply and demand...

you should know by now that bangkok property market is not driven by supply and demand but by stupidity and holding power ! it never fails to amaze me how many (thais) people i know who can afford to buy a condo and leave it empty for years.

May not be as stupid as you think if you consider how money can be laundered...

[midas]

On the other hand, if you expect prices to go down more than they have already, then this is not a good time to buy.

So the question I have for you is do you expect prices to go down or to remain unchanged?

Well if this is the trend for LAND which is a far more prized asset for Thai's than condo's .............i think the

it speaks for itself ..............

Green Shoots versus hard data : Amata land sales collapse by 74%

Published 18 July 2009 Economy 21 Comments

Land sales of Amata Corporation Plc, the country’s biggest industrial estate developer, dropped almost 74% year-on-year [during the first semester] to about 50 rai in the first half, says director Viboon Kromadit. (Bangkok Post)

Why Amata is important ? Because this large company is located at the beginning of the “added value chain”.

The sales of industrial land of yesterday are the growth, the investments and the jobs of tomorrow.

For that matter, it’s a leading indicator.

The Japanese are the biggest investors in Amata’s industrial estates. [...]

The company currently more than 10,000 rai of land for sale in Thailand.

“Before the economic crisis, our intention was to sell 2,000 rai per year so the amount should be sold in four to five years. It should have been sold out by 2011,” said Mr Viboon.

Only five to six factories were built on its land this year, compared to 102 in 2004, a rate of almost two factories per week. [...]

http://thaicrisis.wordpress.com/2009/07/

Edited August 13, 2009 by midas

[trogers]

On the other hand, if you expect prices to go down more than they have already, then this is not a good time to buy.

So the question I have for you is do you expect prices to go down or to remain unchanged?

Well if this is the trend for LAND which is a far more prized asset for Thai's than condo's .............i think the

it speaks for itself ..............

Green Shoots versus hard data : Amata land sales collapse by 74%

Published 18 July 2009 Economy 21 Comments

Land sales of Amata Corporation Plc, the country's biggest industrial estate developer, dropped almost 74% year-on-year [during the first semester] to about 50 rai in the first half, says director Viboon Kromadit. (Bangkok Post)

Why Amata is important ? Because this large company is located at the beginning of the "added value chain".

The sales of industrial land of yesterday are the growth, the investments and the jobs of tomorrow.

For that matter, it's a leading indicator.

The Japanese are the biggest investors in Amata's industrial estates. [...]

The company currently more than 10,000 rai of land for sale in Thailand.

"Before the economic crisis, our intention was to sell 2,000 rai per year so the amount should be sold in four to five years. It should have been sold out by 2011," said Mr Viboon.

Only five to six factories were built on its land this year, compared to 102 in 2004, a rate of almost two factories per week. [...]

http://thaicrisis.wordpress.com/2009/07/

Not surprise. A bursting of the consumerism bubble that was fueled by loans and credit means there is excess production capacity. So why would investment be made to increase this capacity?

[midas]

Not surprise. A bursting of the consumerism bubble that was fueled by loans and credit means there is excess production capacity. So why would investment be made to increase this capacity?

And there is the rub !

Why should anyone jump into the condo market now on cries of " hurry, hurry last chance to buy"

when we are in such uncharted waters?

In fact some indicators are compelling reasons NOT to buy yet ?

Green Shoots Soup: number of bankruptcies explodes in may (+113 %)

10 251 companies disappeared from the radar screens in may versus 4 811 the previous year (and 3 125 in may 2007).

It’s unprecedented…

[trogers]

Not surprise. A bursting of the consumerism bubble that was fueled by loans and credit means there is excess production capacity. So why would investment be made to increase this capacity?

And there is the rub !

Why should anyone jump into the condo market now on cries of " hurry, hurry last chance to buy"

when we are in such uncharted waters?

In fact some indicators are compelling reasons NOT to buy yet ?

Green Shoots Soup: number of bankruptcies explodes in may (+113 %)

10 251 companies disappeared from the radar screens in may versus 4 811 the previous year (and 3 125 in may 2007).

It's unprecedented…

The condo market is unlike industrial land which is just a factor of production. Such land has a lease value but low capital appreciation. Check and see if there was much price increase over the last 6 years.

The condo market is large and locations scattered across the city (not counting resort locations). The question is, will prices bottom out in the next few months and see a gentle upswing next year? Is it time to start looking for a unit that you think has the best returns in terms of rental yield and capital appreciation, knowing that it will take a few months to search for the One?

Or will you wait for a quarter after the market has bottomed out to start looking?

[midas]

The condo market is unlike industrial land which is just a factor of production. Such land has a lease value but low capital appreciation. Check and see if there was much price increase over the last 6 years.

The condo market is large and locations scattered across the city (not counting resort locations). The question is, will prices bottom out in the next few months and see a gentle upswing next year? Is it time to start looking for a unit that you think has the best returns in terms of rental yield and capital appreciation, knowing that it will take a few months to search for the One?

Or will you wait for a quarter after the market has bottomed out to start looking?

Ah well I think only an investor / speculator/ estate agent or whatever you are

would be thinking that way ……………………….

I think for a potential buyer looking for an opinion taking into account ongoing Thai and Global trends – they can comfortably wait – unless of course YOU will guarantee any losses they might incur from listening to you ?

[trogers]

The condo market is unlike industrial land which is just a factor of production. Such land has a lease value but low capital appreciation. Check and see if there was much price increase over the last 6 years.

The condo market is large and locations scattered across the city (not counting resort locations). The question is, will prices bottom out in the next few months and see a gentle upswing next year? Is it time to start looking for a unit that you think has the best returns in terms of rental yield and capital appreciation, knowing that it will take a few months to search for the One?

Or will you wait for a quarter after the market has bottomed out to start looking?

Ah well I think only an investor / speculator/ estate agent or whatever you are

would be thinking that way ……………………….

I think for a potential buyer looking for an opinion taking into account ongoing Thai and Global trends – they can comfortably wait – unless of course YOU will guarantee any losses they might incur from listening to you ?

I buggered out of the stock market Mar 2008, before the great crash. Holding cash with almost zero returns, I prefer less risky investments and started acquiring condo units Aug last year. The rental income will support my retirement. If I am able to accumulate surplus funds from the rental income over the next few years, I may dabble in stocks again. But not for the moment.

[midas]

I have been cruising around here in Phuket lately. There are some projects that are being built, but I am surprised at how many are just sitting. No work being done. Even saw one yesterday that says under new management and doing a relaunch. Obviously, something went wrong...

Anyone know about that HUGE one at the northern end of Bang Tao beach that is just sitting? It looks like it was going to be giant.

craigt3365 may help explain your comments .........................

Real estate in Phuket : the market in disarray… wants to believe

Published 19 June 2009 Economy , Real Estate 13 Comments

This article is not really interesting, even quite boring. Because it’s repetitive, it tells us something we already know, since a long time (game over for the real estate market, vanished the famous “foreign buyers”, vaporized the financings, in the toilets the so called “luxury” market in dumps like Pattaya, Phuket, blablabla.).

No… instead what I found fascinating is the pure and perfect human psyche at work.

First, the depressing reality, difficult to handle on a day to day basis :

More than 10 residential projects with a combined market value of nearly Bt10 billion remain “on hold” in Phuket, because demand from both domestic and foreign buyers – especially for luxury homes – has fallen to less than half of last year’s level. [...]

“Some Thai investors are interested in buying our residential projects, but the banks reject their loan applications. This is the main problem for local investors,” he said. (Nation)

http://thaicrisis.wordpress.com/category/e...estate-economy/

[trogers]

More than 10 residential projects with a combined market value of nearly Bt10 billion remain "on hold" in Phuket, because demand from both domestic and foreign buyers – especially for luxury homes – has fallen to less than half of last year's level. [...]

"Some Thai investors are interested in buying our residential projects, but the banks reject their loan applications. This is the main problem for local investors," he said. (Nation)

http://thaicrisis.wordpress.com/category/e...estate-economy/

This shows the real meaning of "Effective Demand" compared with "Demand". Having the desired to buy, but not the means, is just pure Demand.

[donx]

On the other hand, if you expect prices to go down more than they have already, then this is not a good time to buy.

So the question I have for you is do you expect prices to go down or to remain unchanged?

Well if this is the trend for LAND which is a far more prized asset for Thai's than condo's .............i think the

it speaks for itself ..............

Green Shoots versus hard data : Amata land sales collapse by 74%

Published 18 July 2009 Economy 21 Comments

Land sales of Amata Corporation Plc, the country’s biggest industrial estate developer, dropped almost 74% year-on-year [during the first semester] to about 50 rai in the first half, says director Viboon Kromadit. (Bangkok Post)

Why Amata is important ? Because this large company is located at the beginning of the “added value chain”.

The sales of industrial land of yesterday are the growth, the investments and the jobs of tomorrow.

For that matter, it’s a leading indicator.

The Japanese are the biggest investors in Amata’s industrial estates. [...]

The company currently more than 10,000 rai of land for sale in Thailand.

“Before the economic crisis, our intention was to sell 2,000 rai per year so the amount should be sold in four to five years. It should have been sold out by 2011,” said Mr Viboon.

Only five to six factories were built on its land this year, compared to 102 in 2004, a rate of almost two factories per week. [...]

http://thaicrisis.wordpress.com/2009/07/

I take it from your indirect response that you expect prices on condos to go down. Am I correct?

[kaxper]

Ohhh you mean the law of supply and demand...

you should know by now that bangkok property market is not driven by supply and demand but by stupidity and holding power ! it never fails to amaze me how many (thais) people i know who can afford to buy a condo and leave it empty for years.

May not be as stupid as you think if you consider how money can be laundered...

good point ... h o l d i n g p o w e r ... that's why those looking for a collapse in pricing just wont find it ... amazing thailand !

[craigt3365]

That big project here in Phuket on Bang Tao is the Shangri La. On hold for now. I went to the Laguna Phuket Properties and looked at some "luxury" digs. Not selling at all. They have some townhomes that are about 1 year old and still sitting vacant...priced at 14M to 22M Baht. Now a 10% discount for cash.

I asked about the returns if put in the rental pool...now this is interesting...because I was told the TRUTH! In the past year, the returns were negative. Just what I would have expected. Not the 8% GUARANTEED by many developers. Occupancy and rates are down.

I do believe it is a good time to buy....if you plan to live in it and hold it. If you are an investor, not sure. Especially since many places here are up for rent or sale. A huge inventory...and I am amazed at the low rental prices. Almost worth renting for now...especially considering the build quality here! I have been amazed at the low quality of construction...and the incredibly high prices they are asking. Ridiculous.

[stgrhe]

I have been amazed at the low quality of construction...and the incredibly high prices they are asking. Ridiculous.

That is also my opinion as there seems to be no ratio between price and quality. Having said that, there are also good quality houses being built but they are regrettably far in between.

[midas]

I take it from your indirect response that you expect prices on condos to go down. Am I correct?

donx like I said earlier in this thread I am prepared to give the real estate " bulls "

the benefit of the doubt by saying my opinion is that things will stagnate just as Jones Lang Lasalle

said they have. There are still some worrying economic trends in Thailand -

for example a big spike the bankruptcies and another thread a person

describes how there has been a huge jump in the number of people in financial difficulty

up in Udon Thani where he is.

So bottom-line why make a commitment during such very uncertain times?

Reminds me of Robert De Niro's famous line in " Heat " when he said

" never let yourself get attached to anything you can't "walk out on in 30 seconds

if you see trouble .

[Livinginexile]

if you look at the bigger developers, there does not seem to be any crisis - either of confidence or pricing. asian properties ("life" condos) continue to see their finished condo units being transferred (i.e. buyers either got a mortgage or paid in cash), while likes of LPN and Supalai are also seeing healthy transfers. they just reported their 2q09 results, and, short of cooking their books, things are actually moving along nicely with 2h09 confidence rising (ie new project launch pipeline is increased). banks seems to be happy to lend mortgage to a real local buyer.

where there do seem to be a crisis of confidence (and probably you can get great deals) are smaller developers (clover on thonglo, charisma ekkamai) who are either being sued, or have completed projects that are way off spec. there are many many one off developers - just go around the ratchada area or further down in sukhumvit (after on-nut), all touting near BTS or MRTA that are seeing delays or units completed unsatisfactory.

within the high-end segment i think are also good deals ... projects pitched to foreigners (met, emporio, empire, aguston, wilshire, jambudiva, etc) who may not have as deep pockets as they did three years ago. transfer is imminent and i am sure they will be happy to walk away at cost (prices very sticky to original cost).

whether the bkk condo market turns around end this year or not i guess no one knows. but the fact that the capital markets (stocks, bonds) have risen as much as 40-100% from the bottom (hong kong is near 90% up from bottom) means that everyone is feeling less poorer than in oct08 or mar09. this means increased confidence and more holding power and probably less likely for a seller to panic and dump. buying now is probably not a bad idea.

True.

There are a lot of high end developments kicking off in Bangkok and selling well.

The River project at Sathon is only just out of the ground and is allready 45% sold!

High end prices havn't moved much in the past year and indeed this segment seems to be picking up steam.

[tangoll]

If one is interested in the well located projects that the local Thai's are interested in, prices have not dropped at all, and are now moving upward, and there is a lot of resale and new sales activity going on in that segment of the market. Most of these projects have only a 10% farang ownership portion because most farangs think the prices are ridiculous, and won't buy there. Well, up to you.

Where are these projects;

1. In the Ratchethewi area, by the universities -- Address@Siam, Baan Klang Krung Siam Pathumwan, Villa Ratchethewi, Address Pathuwan. This area is nearby many universities, main one being Chulalongkorn, and Thai families, especially those from out of Bangkok, buy units here for their children to stay in while at univ. Those who buy for investment here whether for rental or resale reason that there is a whole new crop of students coming into this area every year, and thus there are new buyers/renters every year. Prices at Address@Siam are now at 100,000 baht per sqm vs. 75,000 at launch 2.5 years ago.

2. In the Thonglor area, projects near BTS station, being Noble Remix and Siri@Sukhumvit, activity in these two projects are very active now, Siri@Sukhumvit more so than NR, because Sansiri is a much better, more progressive, and successful developer. Both projects are 100 - 200 meters from the station, though on the less preferred side of Sukhumvit.

3. On Thonglor soi 4 is Quattro -- Sansiri's premier development. Two towers, about 450 units in total. 90% of the one bedroom units have been booked/sold, and resales are starting to come onto the market. Price is from 130,000 baht per sqm and up. Quality of materials to be used in the construction are said to be top of the class. Thonglor is a very popular area for residents and renters because of the many boutiques/restaurants/small malls in the area.

4. New projects coming up - AP's soi 28 development, with prices said to start at 150,000 baht per sqm. Noble also has a new project on soi 26 of Sukhumvit, with pricing to start from 100,000 baht per sqm.

These are the popular projects amongst the Thai's. All the comments made above about the difficulties of the world economy, and the Bangkok property market in general, just don't apply when talking about the better located, higher end projects like I've listed above. The Thais that I know and deal with rarely bring up arguments or reasoning as presented here.

So, in answer to the question, Is now the time to buy? -- the answer is, it depends. If you wish to buy into the segment of the market like those listed above, then the answer is: hunt around, do your research, be fully aware of what transactions are being made and what the real prices are, prepare your cash, and act quickly when a decent opportunity appears. I do not want to deal in the middle tier of Bangkok condos, so I cannot offer any opinion as to the answer for that slice of the market.

If you wish to sell, work up a realistic price considering the project, room size, floor, view, perspective, and how much you are willing to deal with agents, and put the offer out. A realistic price will find a buyer, usually a local Thai, and surprisingly now, a younger Thai in early/mid 30's looking to build up his asset base for a steady rental income stream in the future.

Edited August 14, 2009 by tangoll

[tangoll]

I just re-read the OP's question which is "Who is ready to buy", and wanted to edit my post, but couldn't. But to answer the OP's question, I'm ready to buy when the right opportunity comes along, and I'm also ready to sell any of the units I'm holding, at a decent price.

And for those posting, remember the original question, Who is ready to buy? Your post should conclude with the response to this question.

[trogers]

I just re-read the OP's question which is "Who is ready to buy", and wanted to edit my post, but couldn't. But to answer the OP's question, I'm ready to buy when the right opportunity comes along, and I'm also ready to sell any of the units I'm holding, at a decent price.

And for those posting, remember the original question, Who is ready to buy? Your post should conclude with the response to this question.

I bought, and am still looking to buy more. Not selling in the foreseeable future.

[PattayaParent]

I just re-read the OP's question which is "Who is ready to buy", and wanted to edit my post, but couldn't. But to answer the OP's question, I'm ready to buy when the right opportunity comes along, and I'm also ready to sell any of the units I'm holding, at a decent price.

And for those posting, remember the original question, Who is ready to buy? Your post should conclude with the response to this question.

I'm ready to buy but there's still silly asking prices for most decent places in the Pattaya area.

[trogers]

I just re-read the OP's question which is "Who is ready to buy", and wanted to edit my post, but couldn't. But to answer the OP's question, I'm ready to buy when the right opportunity comes along, and I'm also ready to sell any of the units I'm holding, at a decent price.

And for those posting, remember the original question, Who is ready to buy? Your post should conclude with the response to this question.

I'm ready to buy but there's still silly asking prices for most decent places in the Pattaya area.

Try older condos in good locations, and include an amount for renovation.

[craigt3365]

As I mentioned, I have been poking around here in Phuket. Most properties are being discounted. Not sure if that means they are a good deal or not, but prices have been reduced on most. We are also seeing lots of inventory. Already built properties that are unoccupied and sitting unsold. A big change from 2-3 years ago!

[HDRIDER]

Hi

Just bought a house here on phuket, i got them down 4 mill Baht from the price they wanted for a pool house 3 years old Southern Phuket

[thailandlover]

I just re-read the OP's question which is "Who is ready to buy", and wanted to edit my post, but couldn't. But to answer the OP's question, I'm ready to buy when the right opportunity comes along, and I'm also ready to sell any of the units I'm holding, at a decent price.

And for those posting, remember the original question, Who is ready to buy? Your post should conclude with the response to this question.

Your post, while not exactly on topic, was extremely informative, thank you for taking the time make such a comprehensive post.

No, I am not looking at it for an investment but a place to live. However, I am not in Thailand all the time, so renting isn't maybe the best answer either.

[zorro1]

I have been cruising around here in Phuket lately. There are some projects that are being built, but I am surprised at how many are just sitting. No work being done. Even saw one yesterday that says under new management and doing a relaunch. Obviously, something went wrong...

Anyone know about that HUGE one at the northern end of Bang Tao beach that is just sitting? It looks like it was going to be giant.

craigt3365 may help explain your comments .........................

Real estate in Phuket : the market in disarray… wants to believe

Published 19 June 2009 Economy , Real Estate 13 Comments

This article is not really interesting, even quite boring. Because it's repetitive, it tells us something we already know, since a long time (game over for the real estate market, vanished the famous "foreign buyers", vaporized the financings, in the toilets the so called "luxury" market in dumps like Pattaya, Phuket, blablabla.).

No… instead what I found fascinating is the pure and perfect human psyche at work.

First, the depressing reality, difficult to handle on a day to day basis :

More than 10 residential projects with a combined market value of nearly Bt10 billion remain "on hold" in Phuket, because demand from both domestic and foreign buyers – especially for luxury homes – has fallen to less than half of last year's level. [...]

"Some Thai investors are interested in buying our residential projects, but the banks reject their loan applications. This is the main problem for local investors," he said. (Nation)

http://thaicrisis.wordpress.com/category/e...estate-economy/

My friend Midas, master of the cut n paste The banks reject and have done so correctly so as to avoid another sub prime crisis. You want to buy? then you got have a good down payment and A1 rating for now. I agree Midas this may cause a stagnation in property demand for the short term however 1-2years out landlords will be smiling. Just curious and you don't have to answer, but do you rent, or own? condo or house and what area? , I'm assuming you live here right?

[craigt3365]

Just another quick note...we are looking at a property tomorrow that was listed at 13M and is not 11M. Has had 2 reservation deposits placed and both were lost as they buyers could not get loans. Same thing I heard from the rep at Laguna Properties...guess that is why they are offering a 10% discount for cash?

I am also amazed at the number of new developments. Quite a few were shown to us yesterday....I am guessing not as many as a few years ago, but still quite a large number. Lots of inventory out there, and most being discounted heavily...and still not selling...

[robert10]

I am also amazed at the number of new developments. Quite a few were shown to us yesterday....I am guessing not as many as a few years ago, but still quite a large number. Lots of inventory out there, and most being discounted heavily...and still not selling...

What sort of % discount are we talking about here (in Phuket?) and for what type of properties (condo/house?) ? Are they off plan or completed?

Edited August 16, 2009 by robert10

[SNGLIFE]

Just another quick note...we are looking at a property tomorrow that was listed at 13M and is not 11M. Has had 2 reservation deposits placed and both were lost as they buyers could not get loans. Same thing I heard from the rep at Laguna Properties...guess that is why they are offering a 10% discount for cash?

I am also amazed at the number of new developments. Quite a few were shown to us yesterday....I am guessing not as many as a few years ago, but still quite a large number. Lots of inventory out there, and most being discounted heavily...and still not selling...

Not flaming, but a "discount" from (example) 13 to 11 in a market where it would have to be 7 to move it is not a discount. It's a reduction of an already inflated price. Sorry, but I have seen plenty of nice places in LOS and none of them are worth the LA, Atlanta, and Chicago prices some fools pay. More dollars than sense as the saying goes...just IMHO.

For the OP: Yes, I am looking and hoping to buy land (will belong to the Mrs., of course, with a usufruct to me in case something happens) for building a nice 240 sqm home with a nice sized yard, grass, and trees within the next 6 months. If it takes a bit longer for more owners to be affected by hard times to realize the good times and inflated prices are over, I can wait it out.