Condo Speculators In Sukhumvit Area

[jolo]

condo speculators beginning to feel the pinch

"Condo speculation, however, makes up a modest 10% of total demand, compared with real demand of 70% to 80%. As a result, the overall property market may show no signs of a bubble..."

What do you think about the speculators in Sukhumvit area? I have a feeling that their share of the overall demand is much more than 10%. I can see some trouble ahead for them because the supply is growing rapidly while there is a lack of real demand. Same time the monetary policy is tightening, not only in Thailand but all over the world. What do you think?

I have been looking for ~60sqm high-rise condos around 100,000 baht/sqm (or less) from the Sukhumvit area between Asoke and Onnut. There are two very interesting developments very close to Onnut BTS, Diamond Sukhumvit (90k/sqm) and Ideo Verve (100k/sqm). I like the area also very much because of the market and Tesco.

I have also been looking the second-hand market closer to Asoke. I'm not familiar with that market but I have to admit that the location closer to MRT is very tempting.

Anyway I think it's a buyers market soon (if it isn't yet) for the condos around Sukhumvit.

Edited April 10, 2011 by jolo

[Baaadmutha]

This may not be a welcome post to many TV members who already have ownership in BKK condos, but the truth often hurts.

I agree with you fully. There appears to be a huge supply of empty completed units currently available.

Developers also appear to be getting desparate to sell unsold inventory and are advertising their "discounted" prices and a number of silly promotions to get buyers in the door.

Prices appear to have already moderated, if not begun to fall singinifcantly. I suspect it is a buyers market now, and now(or over the next few months) will be a great time to pickup some distressed deals. Owners and developers wont accept reality easily, so the key is for buyers to make "low-ball" offers. These will serve as a wakeup call for the dillisuional owners or developers who may mistakenly beleive they should hold and wait for "better times", as it will probably be many years before actual demand meets current supply. Low balling is actually an unfortunate choice of words as it suggest bidding below the true worth of a unit...however, with prices well over their fundamental value, a low ball offer is probably most appropriate.

Real BKK growth is anemic at best. Compared to other SE Asian cities, there is hardly any growth to be seen in BKK city. Condo construction has undoubtedly overshot economic growth and demand by a big margin over the last couple of years. Its typical of a euphoric bubble situation where building activity and prices go well beyond fundamentals.

Place LOW BALL bids on anything you are interested in. Find a hungry real esate agent that is willing to fish around for desparate sellers, and If the owners regect, move on to your next target. You will eventually find a desparate punter willing to cut his losses and sell at a fundamentally reasonable price.

Edited April 10, 2011 by Baaadmutha

[Darrel]

"60sqm high-rise condos around 100,000 baht/sqm"

Wow. And here I am thinking that 40kBaht/m² in Pattaya is a bit high.

[trogers]

"60sqm high-rise condos around 100,000 baht/sqm"

Wow. And here I am thinking that 40kBaht/m² in Pattaya is a bit high.

And the added irony is that quite a few of these empty Bt100k/sqm units are asking Bt25k/mth rentals. And the owners are scratching their heads as to why no one is turning up to view their units...