Emporio Place Suk 24

[Lazy Sod]

I'm seeing a resale advertised for Bt. 79k/m2. This seems amazing for a quality new condo on Suk 24 with a reputable developer (TCC). Anyone know why they are so cheap when 500 meters away Siri Residence is selling for Bt. 150K?

[Chunky1]

the unit for sale might be undesirable for a variety of reasons. the listed price might be a come on, they tell you to meet them at starbucks. you arrive, they tell you that unit is sold come see the other units that are real. could be a desperate owner about to go bankrupt or have the property taken by the bank. many possibilities my friend.

[trogers]

Why is that development still shroud in darkness comes nightfall?

[Lazy Sod]

Take a look here, there are lots of urgent sellers; http://www.prakard.com/default.aspx?g=topics&f=420

[basjke]

I think many investors want to sell quickly these days trying to recover whole or part of their down payment they made some time ago with the intention that they gonna make a huge profit on their investment.

Also many investors and condo owners are currently leaving Thailand in a hurry,especially those located in Bangkok,due to the current political troubles and economical situation worldwide.

Worldwide there is a real estate crash only Thailand seems to have been spared of it.

I read many times that this is because Thailand attracts the kind of investors who buy real estate with their spare money so they're never short of it.But even the Dubai market crashed and that are investors who play with money Thailand investors even can't dream about.Still they keep building overhere as if there is no problem.

They haven't yet fully recovered from the 1997 crash,just take a look around,but this time it gonne be much worse.Just waiting for the implosion to happen.

[donx]

Take a look here, there are lots of urgent sellers; http://www.prakard.com/default.aspx?g=topics&f=420

I don't see the add you are talking about unless you mean This One at Soho Tower which appears to be incorrectly in the Emporio Place forum. Is Soho Tower part of Emporio Place?

Checking the other adds, most of them are selling for around 120,000 Baht/m2.

[witold]

Worldwide there is a real estate crash only Thailand seems to have been spared of it.

I read many times that this is because Thailand attracts the kind of investors who buy real estate with their spare money so they're never short of it.But even the Dubai market crashed and that are investors who play with money Thailand investors even can't dream about.Still they keep building overhere as if there is no problem.

Real estate crash occurred only in places where there was first a real estate boom. The reason is that the real estate boom was created on very easy credit where a lot of not credit worthy people were able to get loans for too much money (banks were very optimistic). In most places, prices 'crashed' to levels that are simply normal expected prices had there never been a fake boom market.

Is this the case in LOS? As far as I know, it is not. If LOS prices fall, it will be a supply/demand issue catching up. However, because holding costs are so much lower in terms of taxes, prices will not fall that much. It will be a very slow and gradual fall as people realize they can't ever recoup their investment. In other countries, people get desperate. In Washington, DC, there is a 10% vacant property tax on assessed value in Washington, DC EVERY YEAR. (So if you have a house assessed at $500K - even though you can only reasonably sell it for $350K - you are still facing $50K tax bill every year if property is not being used/occupied.) In LOS, most owners have no pressure to sell as they are not tied to variable rate loans, huge carrying costs, etc.

[basjke]

Worldwide there is a real estate crash only Thailand seems to have been spared of it.

I read many times that this is because Thailand attracts the kind of investors who buy real estate with their spare money so they're never short of it.But even the Dubai market crashed and that are investors who play with money Thailand investors even can't dream about.Still they keep building overhere as if there is no problem.

Real estate crash occurred only in places where there was first a real estate boom. The reason is that the real estate boom was created on very easy credit where a lot of not credit worthy people were able to get loans for too much money (banks were very optimistic). In most places, prices 'crashed' to levels that are simply normal expected prices had there never been a fake boom market.

Is this the case in LOS? As far as I know, it is not. If LOS prices fall, it will be a supply/demand issue catching up. However, because holding costs are so much lower in terms of taxes, prices will not fall that much. It will be a very slow and gradual fall as people realize they can't ever recoup their investment. In other countries, people get desperate. In Washington, DC, there is a 10% vacant property tax on assessed value in Washington, DC EVERY YEAR. (So if you have a house assessed at $500K - even though you can only reasonably sell it for $350K - you are still facing $50K tax bill every year if property is not being used/occupied.) In LOS, most owners have no pressure to sell as they are not tied to variable rate loans, huge carrying costs, etc.

When a thai can get a finance without any proven income,only the property as collateral,then I think this apply to Thailand.

[wordchild]

I just dont believe there are many secondary transactions taking place at + 100k psqm in bangkok now.The market has been hyped up over the last couple of years and at the top end there are a number of new projects coming up to transfer or recently transfered ,for these its a buyers market. A friend of mine recently bought a new (200 +sqm) unit in the ATHENEE, arguably one of the best new condos in BKK and TCC,s flagship developement ( imho way better than Emporio) for 107k psqm . This was a deal done with the developer after someone had had problems over the transfer. 150 psqm from Siri is a joke!

Edited May 26, 2010 by wordchild

[ESB7]

You must realise Thailand isnt dependant on foreign purchases. Khoa Takiab, 3 km South of Hua Hin has many completed Condos all sold out to the Thai market but they dont stay there often or rent them either. Its a crash pad at the beach if they need it.

[Lazy Sod]

Take a look here, there are lots of urgent sellers; http://www.prakard.com/default.aspx?g=topics&f=420

I don't see the add you are talking about unless you mean This One at Soho Tower which appears to be incorrectly in the Emporio Place forum. Is Soho Tower part of Emporio Place?

Yes, Soho is one of 3 towers at Emporio.

[Lazy Sod]

I just dont believe there are many secondary transactions taking place at + 100k psqm in bangkok now.The market has been hyped up over the last couple of years and at the top end there are a number of new projects coming up to transfer or recently transfered ,for these its a buyers market. A friend of mine recently bought a new (200 +sqm) unit in the ATHENEE, arguably one of the best new condos in BKK and TCC,s flagship developement ( imho way better than Emporio) for 107k psqm . This was a deal done with the developer after someone had had problems over the transfer. 150 psqm from Siri is a joke!

I tend to agree, Siri 24 and Siri Residence (also on 24) aren't particularly high specification for the price, very average kitchens for example.

Athenee seems to be better value, especially at 107k psqm.

[witold]

When a thai can get a finance without any proven income,only the property as collateral,then I think this apply to Thailand.

Is this true? No income/employment verification? No guarantee via another individual?

Are there different penalties from walking away if property depreciates?

[wordchild]

I just dont believe there are many secondary transactions taking place at + 100k psqm in bangkok now.The market has been hyped up over the last couple of years and at the top end there are a number of new projects coming up to transfer or recently transfered ,for these its a buyers market. A friend of mine recently bought a new (200 +sqm) unit in the ATHENEE, arguably one of the best new condos in BKK and TCC,s flagship developement ( imho way better than Emporio) for 107k psqm . This was a deal done with the developer after someone had had problems over the transfer. 150 psqm from Siri is a joke!

I tend to agree, Siri 24 and Siri Residence (also on 24) aren't particularly high specification for the price, very average kitchens for example.

Athenee seems to be better value, especially at 107k psqm.

Siri have a reputation for very aggressive (ie high) headline pricing on their projects. Their quality however, as you note, is more mid-market than top-end.