Bangkok Condo Value Trend

[HC82]

I bought my condo about a year ago and have been out of Thailand for awhile and haven't kept up on the market at all. Other than a nice strengthening of the Baht, I have no idea how my investment has fared so far. Anybody have any idea what the condo market has done over the last year?

The development is 'The Trendy' on Sukhumvit Soi 13, a pretty new development not at the upper end of new developments but In the 70-80th percentile probably.

[trogers]

Probably 5-6% appreciation in selling price but rents have fallen by 10%.

[nycboy57]

Probably 5-6% appreciation in selling price but rents have fallen by 10%.

I usually do not answer these anymore, too many one upmanship, locker room bullies

responding. However since I know this place well, I would be willing as an owner who has

been living here since it opened it's doors, for you to contact me privately for a conversation

concerning your investment.

It has been an uphill battle to get anyone stand up and get this place to be all it can be, since

none of the committee actually lives here and they did not want me on it.

[bbradsby]

Per the Property Report, "Condos in the city center remain the most valuable per square meter (around THB95,000 or US$3,209 per sq m), but have experienced a drop in value of 13% as compared to selling price in 2010, explained largely by the proliferation of less prestigious (italics mine) developments." Even as there are always individual property values that break from the trend, I believe this quote is very telling, and reflects an ad listing trend I've seen, with sellers attempting to get the discounted, off-plan price they paid a year or two ago in a now-completed & occupied building. The sales price will often be a bit less due to negotiation, and would necessarily not be above the listing price since this is not an over-heated market. It appears that we're in a correction period.

The term 'less prestigious" in regard to developments would appear to be a bone thrown to the big players who may feel the pain in a correction. As in, "oh, its all the fault of those less prestigious developments not respecting our price per sq. m... If a development is taking sales away from a prestigious property, the market (the only opinion that actually counts) views it as a comparably prestigious or desirable development.

[trogers]

Per the Property Report, "Condos in the city center remain the most valuable per square meter (around THB95,000 or US$3,209 per sq m), but have experienced a drop in value of 13% as compared to selling price in 2010, explained largely by the proliferation of less prestigious (italics mine) developments." Even as there are always individual property values that break from the trend, I believe this quote is very telling, and reflects an ad listing trend I've seen, with sellers attempting to get the discounted, off-plan price they paid a year or two ago in a now-completed & occupied building. The sales price will often be a bit less due to negotiation, and would necessarily not be above the listing price since this is not an over-heated market. It appears that we're in a correction period.

The term 'less prestigious" in regard to developments would appear to be a bone thrown to the big players who may feel the pain in a correction. As in, "oh, its all the fault of those less prestigious developments not respecting our price per sq. m... If a development is taking sales away from a prestigious property, the market (the only opinion that actually counts) views it as a comparably prestigious or desirable development.

You are referring to recently completed projects that were sold off plan 2-3 years ago.

OP is asking about Trendy in Sukhumvit 13, a project that was completed almost 3 years ago, with selling price in the Bt68k/sqm region.

Edited May 1, 2011 by trogers

[HC82]

I think that 'less prestigious' thing means that the overall price per sqm is coming down because there are cheaper places on the market. It doesn't mean the 'more prestigious' places are selling for less than they were a year ago.

For example, in a very simple hypothetical market:

Year 1:

4 Condo A sold at $100

3 Condo B sold at $50

3 Condo C sold at $25

Total sales, 10 units for $625, avg of $62.50

Year 2:

4 Condo A sold at $110

5 Condo B sold at $60

10 Condo C sold at $30

Total sales, $900, avg of $54.73

The average price came down by 12.4% in Year 2, but all condo types appreciated in value.

[HC82]

OP is asking about Trendy in Sukhumvit 13, a project that was completed almost 3 years ago, with selling price in the Bt68k/sqm region.

68k was the price from the developer or the price they are selling at now?

[trogers]

OP is asking about Trendy in Sukhumvit 13, a project that was completed almost 3 years ago, with selling price in the Bt68k/sqm region.

68k was the price from the developer or the price they are selling at now?

Present selling price would be around Bt73-78k/sqm.

[HC82]

Any change to the market now, 5 months later? Rental or resale prices gone up or down at all?

[zorro1]

A lot will depend on the completion of the 5 star regent hotel across the road. The soi itself is pretty crapy ATM but again it will be a different place with the Regent coming on line in approx 2 years (work has begun)

Interesting to note the new condo being built next door to trendy is double the price per sqm according to their current price list.

If i was selling I would wait for both those projects to complete first.

[pkrv]

A lot will depend on the completion of the 5 star regent hotel across the road. The soi itself is pretty crapy ATM but again it will be a different place with the Regent coming on line in approx 2 years (work has begun)

Interesting to note the new condo being built next door to trendy is double the price per sqm according to their current price list.

If i was selling I would wait for both those projects to complete first.

Ahh… I believe the word is, tactics.

[HC82]

A lot will depend on the completion of the 5 star regent hotel across the road. The soi itself is pretty crapy ATM but again it will be a different place with the Regent coming on line in approx 2 years (work has begun)

Interesting to note the new condo being built next door to trendy is double the price per sqm according to their current price list.

If i was selling I would wait for both those projects to complete first.

hey hey some good news, thanks

Did not know work hard re-started on the Regent or what they were even building next door.