Stunning Singapore Sales For The Crest Sukhumvit 34

[andy1308]

http://www.ddproperty.com/en/property-news/2012/7/1403/stunning-singapore-sales-for-the-crest

The Crest, Sukhumvit 34, a SC Asset development, sold 52 units during its global launch event in Singapore last weekend, underlining the popularity of Thailand property for Singaporean property buyers and investors.

[PattayaPhom]

But most people on this forum are stuck in the last millenium thinking Thailand is a third world country so expect the ususal doom and gloom replies comparing the housing market to Spain etc.

[aussiebebe]

How unique that the developer offered units for sale in Singapore first; a very smart strategy.

[andy1308]

This is the first time I've seen this strategy (developer having a global launch in Singapore) for a Thailand property. It happens fairly often for London developments and I've also seen it for Sydney and Melbourne projects in the last six months too. This was also the first time that SC Asset has taken any of its projects overseas - so they must be extremely happy.

The fact is that Singaporeans' interest in Thailand property is growing. Knight Frank Thailand noted it was already happening in Phuket and we're seeing it now in Bangkok. There's hardly a weekend that goes by without a Thailand developer exhibiting in Singapore. Normally it's Phuket or Pattaya, and occasionally Bangkok. Amazon Residences (Pattaya), The Charm (Phuket) and Circle (Bangkok) have been to Singapore in the last few months - and Mahanakorn and Raimon Land are fairly regular exhibitors too.

[w11guy]

But most people on this forum are stuck in the last millenium thinking Thailand is a third world country so expect the ususal doom and gloom replies comparing the housing market to Spain etc.

I don't think it's doom and gloom, but reality. Some condos will sell well, but the fact is that the property market in Bangkok is massively over-supplied. You can't argue with the fact that there are tens of thousands of empty (either unsold or unrentable) condos on the market. They may get sold over the coming years and the value of them may increase of next 10-20 year or more. I don't think that people who say now is not a good time to buy here are all doom and gloom. I wouldn't buy here now, but I'm certainly not all doom and gloom. I just think there are much better opportunities elsewhere.

If the market is so great here then why do most condo building have so many unsold units? That is no a sign of a strong property market.

Just because people from Singapore bought doesn't mean they'll make any money on their purchases. It doesn't prove anything one way or another. But it does make you wonder why they have to sell abroad? If the market's so great then why aren't people from Thailand snapping up these properties?

Condos in London sometimes get advertised abroad, and they are usually properties in not so good locations that the locals don't want to buy or that are overpriced. Those types are easier to sell to people who don't really understand local market conditions.

So who will these buyers from Singapore rent the condos to? Some will end up being very disappointed.

[think_too_mut]

This is the first time I've seen this strategy (developer having a global launch in Singapore) for a Thailand property. It happens fairly often for London developments and I've also seen it for Sydney and Melbourne projects in the last six months too. This was also the first time that SC Asset has taken any of its projects overseas - so they must be extremely happy.

The fact is that Singaporeans' interest in Thailand property is growing. Knight Frank Thailand noted it was already happening in Phuket and we're seeing it now in Bangkok. There's hardly a weekend that goes by without a Thailand developer exhibiting in Singapore. Normally it's Phuket or Pattaya, and occasionally Bangkok. Amazon Residences (Pattaya), The Charm (Phuket) and Circle (Bangkok) have been to Singapore in the last few months - and Mahanakorn and Raimon Land are fairly regular exhibitors too.

Just read again:

The 28-storey freehold condominium, which will feature 265 units, is expected to be completed by the end of 2015. It will comprise 183 one-bedroom units (from 35 sqm to 53 sqm), 39 two-bedroom units (from 66 sqm to 77 sqm), 33 duplex apartments (from 82 sqm to 110 sqm) and 10 penthouses (from 86 sqm to 100 sqm).

Prices for sales achieved in Singapore were between THB 174,650 and THB 188,000 per sqm for units on the 16th floors and above, according to the SQFT Global Properties, the Singapore real estate agent responsible for the launch event.

That says, 20% of the units were booked with whatever booking fee may be, could be as low as 20,000B. Nothing had been, nor could be, sold, completion is in 2015. Even if all the interested walk away from their deposits, the advertisment like article quoted here will have done more than a much more expensive campaign.

When I bought my unit, a smallish development at the former open air bbq restaurant, corner Sukhumvit and if I recall correctly very Soi 34, units were going (completed, ready to move in) for 60K baht per sqm. This one is 3+ times that. Right, not same level of luxury but still. At that, oil and steel are at half or third the price they were in mid 2008 when I bought.

You really need to drop a bombshell like Singapore "sale" to launch bombastically with those who don't know the place and are unaware of the oversupply around.

One more thing, foreigners buying in Thai would not be eble to get a loan in Thai easily. When they buy in Singapore, they can, its Singapore rule of law.

To me, looks more like a PR exercise than real business.

Edited July 11, 2012 by think_too_mut

[andy1308]

I've been a journalist for many years and I'm fully aware of what constitutes PR hype. The units that were sold in Singapore were the subject of legally-binding contracts for which the deposit amount was substantially larger than THB 20,000. Obviously buyers need to conduct due dilligence to ensure they are entirely happy with all aspects of their purchase - but this story is just one of many that have been published this year which indicates that Thailand property is becoming increasingly popular with overseas investors. That's a fact.

[think_too_mut]

I've been a journalist for many years and I'm fully aware of what constitutes PR hype. The units that were sold in Singapore were the subject of legally-binding contracts for which the deposit amount was substantially larger than THB 20,000. Obviously buyers need to conduct due dilligence to ensure they are entirely happy with all aspects of their purchase - but this story is just one of many that have been published this year which indicates that Thailand property is becoming increasingly popular with overseas investors. That's a fact.

It's going to take years or forever before "popularity of Thailand property" returns to 30% of the level it had been until mid 2008.

The fact is, the source of money for "popular Thailand property" has gone bust. Then you get desperate attempts like one above that tells quite a different "fact". For Mickey Mouse deposit money they declare properties (to be build in 3 years) "sold". Even with alchemy like that , not more than 20%.

[andy1308]

I agree that it will take a while for those levels to return, but the traditional sources - such as Northern Europe - have been replaced already by Middle Easterners, Indians, and those from elsewhere in Southeast Asia.

What you probably don't know is that every weekend there are at least six, and often as many as 15, overseas property exhibitions in Singapore. That's on top of the 40+ pages of property ads in The Straits Times newspaper. Singaporeans are nuts about property and what's attractive about Thailand for them is that it's cheap. For the price of a top-end development in Bangkok you can barely buy a mass-market HDB flat in Singapore. Singaporeans will increase their buying activities in Thailand over the coming months and years because it's still largely off-the-radar at the moment.

[think_too_mut]

I agree that it will take a while for those levels to return, but the traditional sources - such as Northern Europe - have been replaced already by Middle Easterners, Indians, and those from elsewhere in Southeast Asia.

What you probably don't know is that every weekend there are at least six, and often as many as 15, overseas property exhibitions in Singapore. That's on top of the 40+ pages of property ads in The Straits Times newspaper. Singaporeans are nuts about property and what's attractive about Thailand for them is that it's cheap. For the price of a top-end development in Bangkok you can barely buy a mass-market HDB flat in Singapore. Singaporeans will increase their buying activities in Thailand over the coming months and years because it's still largely off-the-radar at the moment.

That difference in price was even starker 5-6 years ago and hardly anyone had noticed anything significant coming from Singapore.

What is happening now is rather that there are only Singaporeans left in the game so it's hard not to notice them when there is nobody else. Americans, EUR zone...all with their own woes.

Then take (add up) formerly marginal markets of Russia, Middle East and India and you get some activity...but that's a far cry from 2002-2008.

In good days, buyers are flocking into Bankok, not sellers going to their place and claim a trimphant sale when in fact only 20% of the merchandise is just "deposited" and has not left the ground yet.

[andy1308]

The most recent research data I've seen noted that foreign buyers in the Bangkok condo market accounted for around 3% of all transactions. Just three years ago it was 8%. All reports that I am getting indicate that more foreigners are buying in Thailand - not only Bangkok but also specifically Pattaya and Phuket. Yes - we're a long way from where we were a few years ago but the tide is changing.

There are two more Thailand developments exhibiting in Singapore this weekend and it will be interesting to see whether these levels of buying interest are maintained.

[bkkjames]

Lots of thai things being sold to singaporeans these days it seems lol

I suggest Moscow for the next presale.

Nice writing andy btw. hardly news but nice all the same jk

[Naam]

one of the potential success reasons is that Singapore banks are since several years financing property in Bangkok and Phuket at rock bottom mortgage rates. add to that the fact that for the average Singaporean a price of THB 166,000 (SGD 6,500) per m² sounds like a dream. new construction freehold condos in SIN sell for a multiple!

[think_too_mut]

The most recent research data I've seen noted that foreign buyers in the Bangkok condo market accounted for around 3% of all transactions. Just three years ago it was 8%. All reports that I am getting indicate that more foreigners are buying in Thailand - not only Bangkok but also specifically Pattaya and Phuket. Yes - we're a long way from where we were a few years ago but the tide is changing.

When I said that current market is 30% of what it was in 2008. it was a good guess, for an amaterur.

Your data almost confirms that.

[cockerdoodledo]

Hope they have their wellies on today,flooded, better with a boat I guess in a few years time, How are they "buying"?

Edited July 12, 2012 by cockerdoodledo

[RAZZELL]

Maybe some of these people should have a look on Prakard and see all the unsold condos

RAZZ

[andy1308]

http://www.ddproperty.com/en/property-news/2012/7/1449/thai-buyers-snap-up-units-at-the-crest

After selling 52 units in Singapore, The Crest sold another 60 units to Thai buyers during presales last weekend.