Yields Are Dropping Substantially, So Why Not Prices ?

[maurits2000]

A few points about the original post and various other posts:

* there is another factor not mentioned: uncertainty. The more people become uncertain, the more they will invest in stones (or gold) in stead of other options. The political unrest of the past years is a solid basis under real estate prices in my view. And since you can not live in more than 1 house, you rent out the others. But as rents fall, you still do not have a good investment alternative, so you stay put.

* the investment alternatives are not so good. After the financial crisis still many thais do not trust the stock market and banks. So... stones. See also next point.

* most thai, even the higher social classes, are much less "investment mobile" ON AVERAGE than the average westerner. Because their culture is much more closed and focused on their own country than that of westerners. The average thai, even when he has the means, will not invest abroad as fast as a westerner will. Which does not mean there are no thais investing abroad. I just say the %% is low.

* some of the yield calculations in posts are unrealistic. If occupancy rates are between 70-95% depending on what/where, than you have to adjust your sums for 5-30% availability.

* the "yield guarantees" on many projects are weak as butter. If I can get a really HARD guaranteed net return on my money of 7,8,9 % I will bring my money tomorrow.

* all over the world, the reports of big realtors are always biased. Maybe not in the hard figures but for sure in the outlook and opinions. Because they all have the commercial interest to make investors feel comfortable. How can you expect them to write themselves into their graves? During the economic crisis in E Europe (when prices tumbled in many countries) the market/price "would recover soon".