Hong Kong, Singaporean Investors Snap 20 Percent Of Thai Condo Sales

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Hong Kong, Singaporean investors snap 20% of Thai condo sales

BANGKOK, 27 October 2010 (NNT) - A real estate agent has reported that Hong Kong and Singaporean investors have snapped up 20 percent of the overall Thai condominiums sales in the last quarter.

Plus Property said that the increase in the number of foreign buyers was very obvious in the past two months given Bangkok’s quality condominiums, which were of higher standard compared to others in Southeast Asia, were priced very low.

The real estate agent said Hong Kong and Singaporean investors considered Bangkok a new destination for property market because real estate in their countries were way overpriced; they were also worried about possible governments’ intervention in the escalating real estate prices.

In Hong Kong, property prices have reportedly gone up by 30 percent since last year, forcing its government to control property-speculation loans regulations, increasing the down payment for investment in the second and third homes.

The Singaporean property market has also faced price hikes; its government has, therefore, ordered real that estate developers require payment in phases in accordance with the construction progress to prevent the condominiums from being sold before or during the construction period.

Condominiums in those two countries are priced around 400,000 baht per square meter; whereas high-end ones in Bangkok, such as the most expensive ones in Pleonchit, only cost around 200,000 baht per square meter.

The agency also added that low interest rates, high cash circulation compared to other regions, great location, and high returns at low risk, were the key factors attracting foreign investors to condominiums in Bangkok.

-- NNT 2010-10-27

[rogerman]

Only good on the outside and finished surfaces.......I'd hate to be in ANY building in Thailand if a decent earthquake struck....... Just wait a couple years and see what these "high quality" buildings look like in a couple years

[GreenSnapper]

Earthquakes are not a major problem here.

But the building quality is actually quite low. Thin walls, weak insulation, bad architecture (rooms without any windows, who wants that?)

Then often bad maintenance, and the overpriced 'luxury' condo will be a dump 10 years later.

[trogers]

Earthquakes are not a major problem here.

But the building quality is actually quite low. Thin walls, weak insulation, bad architecture (rooms without any windows, who wants that?)

Then often bad maintenance, and the overpriced 'luxury' condo will be a dump 10 years later.

A room without any window in HK and Singapore has to be named as 'Store Room' . But in Thailand, BMA allows such rooms to be called bedrooms...

[SantiSuk]

And what property speculator is going to worry about any of that!

Not great news for 99.999% of Thais when foreigners (falang or otherwise) make a serious move on their domestic market. Property is one area where I guess I agree with restrictive regulations on foreigners even though I would dearly love to be able to invest on my own account myself.

[trogers]

And what property speculator is going to worry about any of that!

Here lies the difference between a speculator and an investor.

[PattayaParent]

I read the exact same report 5 years ago, it's not a new phenomenon that condo prices in HK and S'pore are high and investors are looking at other countries.

Sounds like a rehash to do some self promotion and maybe 'scare' some foreigners into buying quickly.

[pkrv]

And what property speculator is going to worry about any of that!

Not great news for 99.999% of Thais when foreigners (falang or otherwise) make a serious move on their domestic market. Property is one area where I guess I agree with restrictive regulations on foreigners even though I would dearly love to be able to invest on my own account myself.

It would appear that only 50,000 Farang/Foreign units are owned in Bangkok

http://www.siam-lega...in-Thailand.php

Hardly an invasion in a city of around 10m (depending on how you view it)

Edited October 29, 2010 by pkrv

[trogers]

It would appear that only 50,000 Farang/Foreign units are owned in Bangkok

http://www.siam-lega...in-Thailand.php

Hardly an invasion in a city of around 10m (depending on how you view it)

Can be seen as invasive when you consider most of these 50,000 units are in the hot spots...

[pkrv]

It would appear that only 50,000 Farang/Foreign units are owned in Bangkok

http://www.siam-lega...in-Thailand.php

Hardly an invasion in a city of around 10m (depending on how you view it)

Can be seen as invasive when you consider most of these 50,000 units are in the hot spots...

I sort of came to a similar conclusion - Only to the Thai elite - the remaing 10m ish would not even notice :jap:

[HC82]

How does one find these deep pocketed HK/SG investors?

[trogers]

How does one find these deep pocketed HK/SG investors?

I suspect most sales are through local agencies in HK/SG, who already have their own list of investor clients.