Pattaya Condo's May Not Be Built

[BlackJack]

the building going on is unprecedented

I would say a boom

but whos buying?

EU and USA on the verge of collapse - shades of the 80's and 90's

Edited September 6, 2012 by Rimmer
Link to Bangkok Post emoved

[bobobo]

i have often said to myself when I see all the new projects going on, who's buying? Some say they the thai middle-class is growing, russians etc In Phuket many people from Singapore buy, and they think it's cheap ! What I would never do is buying a condo that I can't see and check out...Pay up front for a prospectus that's too much for my nerves...

[I Like Thai]

Russians in the main i would say. BKK Thais also are buying Condos since the floods in recent years, This had large number of Thais having to evacuate some parts of Bangkok

[Swiss1960]

another one about bubbles and boom and bursting... been discussed at least 5 times here in the short time I am on TV.... btw I will be one of those buyers soon...

[manxninja]

one born every minute they say

[sotsira]

OP, you stated that the Euro & US is in decline, so who's buying?

Just about anybody else that isn't tied in to the Euro & the dollor.

So that's a lot of people out there.

[PattayaPhom]

Indians, Iranians, Koreans, Malays, Singaporeans,Thais, Australians, Russians, and many baby boomer Brits. The problem will be with the shoebox 24sqm units that are being bought for rental.

[submaniac]

I don't know necesarily if it is Thais to be honest. Yes, they are buying condos to have a safety net outside of Bangkok (and these are my relatives). But they are looking the other direction towards Hua Hin, rather than Pattaya.

[simple1]

Russians in the main i would say. BKK Thais also are buying Condos since the floods in recent years, This had large number of Thais having to evacuate some parts of Bangkok

A recent report stated Russians are the primary buyers for condo's costing more than 10m baht in the Pattaya area. Also forecast a significant over supply for projects due for completion in the coming few years for condo's up to 3m baht, again in the Pattaya area

[londoedan]

Russians in the main i would say. BKK Thais also are buying Condos since the floods in recent years, This had large number of Thais having to evacuate some parts of Bangkok

A recent report stated Russians are the primary buyers for condo's costing more than 10m baht in the Pattaya area. Also forecast a significant over supply for projects due for completion in the coming few years for condo's up to 3m baht, again in the Pattaya area

Hooray ! sounds like a good time to be buying a 1 bedroom condo then. I've been renting for 3 years now and I'd like some permanence.

[lovetotravel]

I disagree the USA is on the verge of collapse (look at REITs there, doing quite well). Europe has some issues, but doubt it will collapse. Just my humble opinion.

The article you tried to link to is actually available here:

http://www.raimonlan...asp?id=13&xml=0

Download the PDF and you'll see what they are saying:

Tourists are continuing to flock to Pattaya, with the popular

Eastern Seaboard resort destination set to accommodate over

8 million hotel guests in 2012. If this figure is achieved, it will be

the highest ever for any Thai resort destination. The boom in

tourism is partly driven by a rediscovery of Pattaya by Thai

nationals, especially the quick-growing ranks of Thailand’s middle

class, as well as a continuing influx of tourists from Russia, China,

and India, plus big improvements in transport infrastructure and

accessibility.

.......

The dip in completions for this year means a high number of

completions are expected in the next 12 months. A year from

now, we could be looking at the completion of about 10,000

condos. In the next three years, we could be looking at 28,000

newly completed units in Pattaya. With this scale of inventory

coming online, take up rates should be monitored to enable a

smooth development process.

They are forecasting over 3,000 units to not be completed, out of 28,000 in the construction queue.

[simple1]

Russians in the main i would say. BKK Thais also are buying Condos since the floods in recent years, This had large number of Thais having to evacuate some parts of Bangkok

A recent report stated Russians are the primary buyers for condo's costing more than 10m baht in the Pattaya area. Also forecast a significant over supply for projects due for completion in the coming few years for condo's up to 3m baht, again in the Pattaya area

Hooray ! sounds like a good time to be buying a 1 bedroom condo then. I've been renting for 3 years now and I'd like some permanence.

Not suggesting you would, but report also stated don't buy from developers who are using deposits to fund construction, as forecast many projects will be put on hold due to forecast over supply

[lovetotravel]

Russians in the main i would say. BKK Thais also are buying Condos since the floods in recent years, This had large number of Thais having to evacuate some parts of Bangkok

A recent report stated Russians are the primary buyers for condo's costing more than 10m baht in the Pattaya area. Also forecast a significant over supply for projects due for completion in the coming few years for condo's up to 3m baht, again in the Pattaya area

Hooray ! sounds like a good time to be buying a 1 bedroom condo then. I've been renting for 3 years now and I'd like some permanence.

Not suggesting you would, but report also stated don't buy from developers who are using deposits to fund construction, as forecast many projects will be put on hold due to forecast over supply

The report also said to only buy from established companies with good track records. There are quite a few out there that meet this criteria.

[simple1]

@lovetotravel - agree with your post #13, but nothing stopping a developer with good track record to halt a project until market conditions improve.

[lovetotravel]

@lovetotravel - agree with your post #13, but nothing stopping a developer with good track record to halt a project until market conditions improve.

Exactly. But what I think will happen is they will just be delayed. Developers with no track record are at a higher risk of complete cancellation, right?

I think delays are going to be the norm with all projects for the next few years.

[londoedan]

@lovetotravel - agree with your post #13, but nothing stopping a developer with good track record to halt a project until market conditions improve.

Exactly. But what I think will happen is they will just be delayed. Developers with no track record are at a higher risk of complete cancellation, right?

I think delays are going to be the norm with all projects for the next few years.

A delay wouldn't be a problem for someone like me, and perhaps a number of other expats, since I'd be converting from rental to owning a condo.

[chris2004]

I don't understand why thais would buy condos (not condo's). Surely they can buy houses for the same money.

[LennyW]

I don't understand why thais would buy condos (not condo's). Surely they can buy houses for the same money.

Most already have houses in other places, they just buy condos for weekend/holiday retreats, some buy to rent out.

[JSixpack]

Here we go again, the CONDO GLUT thread.

Been done to death, use search & read.

[Gone]

I don't understand why thais would buy condos (not condo's). Surely they can buy houses for the same money.

Same reason as any non-Thai would buy: Resort city, Swimming pool, security, holiday get-away, rental etc.

Lock it up when you leave and when you go back everything is there as apposed to a house.

PS: If there wasn't a delay in building here in Thailand is when I WOULD be worried.

[jbrain]

The report also said to only buy from established companies with good track records. There are quite a few out there that meet this criteria.

I could name a few with good track records.How about TAG group or Heights Holdings,not to forget Siam Best Enterprises of course.

Edited September 7, 2012 by jbrain

[lovetotravel]

The report also said to only buy from established companies with good track records. There are quite a few out there that meet this criteria.

I could name a few with good track records.How about TAG group or Heights Holdings,not to forget Siam Best Enterprises of course.

I think a good way to validate a developer is to review that report, see what's recently been finished, and then see when the original delivery date was suppose to be. With that being said, few large construction projects anywhere ever get built 100% on time.

[Asiantravel]

The report also said to only buy from established companies with good track records. There are quite a few out there that meet this criteria.

I could name a few with good track records.How about TAG group or Heights Holdings,not to forget Siam Best Enterprises of course.

I think a good way to validate a developer is to review that report, see what's recently been finished, and then see when the original delivery date was suppose to be. With that being said, few large construction projects anywhere ever get built 100% on time.

any company can fail at any time?Who would have thought Leeman Bros would go under?

There is only one way to safeguard one's hard earned money when buying an off the plan

condo in Thailand and that is only to deal with developers who are prepared to

accept payments under the 2008 Escrow Act . no matter what their excuse

any developer that doesn't agree is just using your money to gamble with.

http://www.samuiforsale.com/real-estate/paying-for-an-off-plan-condo-in-thailand.html

[TwoDogz]

@lovetotravel - agree with your post #13, but nothing stopping a developer with good track record to halt a project until market conditions improve.

If it is built already, that will be an issue for them.

[Exsexyman]

In Pattaya real estate circles, heresy is defined as follows:

Easy to buy,difficult to find good long term tenants, and very hard to sell.

I was also told that if you look up the definition of the word 'Deposit' in a Thai dictionary it says 'Thank You'1

[lovetotravel]

@lovetotravel - agree with your post #13, but nothing stopping a developer with good track record to halt a project until market conditions improve.

If it is built already, that will be an issue for them.

Actually, quite a few projects have started, stopped, then started again. One I know of took some 5 years to finish.

[meatballs]

Who's buying? Russians, Asians, Aussies probably. Basically anybody connected to the commodities bubble. Most of the rest of us have been decimated by currency devaluation.

[lovetotravel]

Who's buying? Russians, Asians, Aussies probably. Basically anybody connected to the commodities bubble. Most of the rest of us have been decimated by currency devaluation.

And those economies are now starting to stutter....

[PattayaPhom]

The report also said to only buy from established companies with good track records. There are quite a few out there that meet this criteria.

I could name a few with good track records.How about TAG group or Heights Holdings,not to forget Siam Best Enterprises of course.

I think a good way to validate a developer is to review that report, see what's recently been finished, and then see when the original delivery date was suppose to be. With that being said, few large construction projects anywhere ever get built 100% on time.

any company can fail at any time?Who would have thought Leeman Bros would go under?

There is only one way to safeguard one's hard earned money when buying an off the plan

condo in Thailand and that is only to deal with developers who are prepared to

accept payments under the 2008 Escrow Act . no matter what their excuse

any developer that doesn't agree is just using your money to gamble with.

http://www.samuifors...n-thailand.html

ed

Dosnt that act state they are NOT required to offer Escrow

[Asiantravel]

I could name a few with good track records.How about TAG group or Heights Holdings,not to forget Siam Best Enterprises of course.

I think a good way to validate a developer is to review that report, see what's recently been finished, and then see when the original delivery date was suppose to be. With that being said, few large construction projects anywhere ever get built 100% on time.

any company can fail at any time?Who would have thought Leeman Bros would go under?

There is only one way to safeguard one's hard earned money when buying an off the plan

condo in Thailand and that is only to deal with developers who are prepared to

accept payments under the 2008 Escrow Act . no matter what their excuse

any developer that doesn't agree is just using your money to gamble with.

http://www.samuifors...n-thailand.html

ed

Dosnt that act state they are NOT required to offer Escrow

well that is the point I'm making.

if they don't offer Escrow in this day and age

with so many disaster stories from the past and with the

global economy in such a precipitous position

why deal with developers who are simply using your money

to gamble with?

Edited September 7, 2012 by Asiantravel