How do I sell my condominium in Bangkok?

[kuma]

There are a few misunderstandings in this thread. Buyers make logical decisions, just because you cannot see the logic, doesn''t mean there isn't a logic here.

Why do MANY Thais like purchasing smaller size condos new rather than 2nd hand?

1. They don't need to pay up all the cash upfront so they have the ability to save during the construction period, often there are favourable promotions etc

2. They have access to borrowing at often a higher LTV (loan to value) percentage than 2nd hand; Thai banks will often not provide as favourable mortgages to a 2nd hand property

3. Because of the way developers price (cheapest price off the plan, increased price during construction, maximum price at completion) buyers are totally aware that to purchase new off the plan is cheaper per sqm 'on average' than purchasing when completed. This also applies even when there is substantial inflation (as we have seen in the last 5 years) in pricing

4. Purchasing a building which has poor reviews on places like prakard.com is a known problem for the buyer; purchasing off the plan from the same developer, it is not known yet whether the same problems will occur

5. The fees for transfer etc are often covered by the developer along with promotional offers...which don't exist 2nd hand

6. For the investment market side (people buying to flick or people buying to rent out) all these factors push the off the plan market ahead of buying 2nd hand

7. Once selling 2nd hand, 2 years old is the same as 10 years old, so you are 'stuck in the middle' where you didn't pay prices like those of us who bought 10 years ago (e.g. I paid 29,000b per sqm) and so you are squeezed with all the drawbacks of 2nd hand without the super duper prices of anything purchased pre 2006

8. So a purchaser of 2nd hand is also aware that they will be buying and selling on the 2nd hand rather than the new market; buying off plan means you can sell roughly when the building is completed and pre transfer - once transferred that window is gone

Having said all of this, the market is changing rapidly, and GOOD buildings have no issues selling 2nd hand. I do not know this specific project, but would guess it might or might not be 'good' however there is a lot of construction in the area, so there is a lot of 2nd hand units to choose from. At a price of around 80,000b+ per sqm, that's the same price or higher as buildings like The Issara, Ideo, LPN Soi Sena (from memory), UDelight, The Room Lard Prao etc. So..my guess is you may be at the upper end of the curve and thus pricing yourself out of the market if you want a quick sale. Also, FYI the rental market for 2 bedrooms (this is actually really more like a 1 bedroom + study size right?) is not as strong as for 1 bedrooms, plus most investors will not really look at this to purchase, when they can get the upside of buying off plan as per points above, and running 3X leverage compared to your purchase where they have to pay 100%.

Foreigners often don't look at the same things Thais would. In the ad if the unit is south or north facing, that's a major plus. Yet most foreigners would buy west facing (for the nice sunset view) which is the least popular for a Thai person (or an experienced expat) who is well aware that it is way too hot. Ceiling height. etc etc.

I would strongly recommend the best places to sell are www.prakard.com www.ddproperty.com and sites that specialise in this type of the market. The ad must be in Thai or you cut off 95% of the market in this sort of area; farang centric websites are a total waste of time for this type of area, as not many developments sell to foreigners except perhaps 'brand name' developments like Supalai 10 years ago, Major Wind, etc (maybe Supalai has the most foreigners, but that's more the farang guy/Thai wife expat workers here type market with kids as the facilities are pretty good and loads of stuff for all the little look kreung brats to do like peeing in the pool and playing cricket* etc - note Supalai is also 2nd hand and around 50,000+b per sqm so more like 3m probably for a unit your size). Agents at this end of the market, also 'not so useful' - 3% is however quite standard as a rate.

Any chance you can send a link to me via PM of the ad? I might personally be interested....at the right price. To rent out.

*Thai look kreung bratty kid version of cricket = get two crickets and make them fight on the grass. Somewhat different to 'ashes' version of cricket.

Stevero

Great posts you have here, I have to say your sense of the market is closer to my feeling than any other post I have seen to date.

So almost one year later,see if a) you are still tracking this and if you have an opinion on this.

Lower sukhumvit low rise, off plan...very reputable thai builder and financed by trillion out of Singapore. Dead end soi, literally five min walk to bts ...blah blah. 168k sq m....

Crazy, or new normal?

Thanks in advance to any replies

[TallGuyJohninBKK]

Suk Soi 8???

[Senechal]

Re-selling a condo? Sorry to be blunt but: That doesn't happen easily in Thailand.

For one -- all those new condos sell to investors who are really just looking for places to park cash. Loads of them sit empty for years.

Second -- There's a monster housing bubble here in Thailand and it's driven by FINANCING. You're trying to sell for cash? Not likely going to happen.

Third -- Your condo is small for the asking price. I know that's what you paid, and I know that's what it cost: But (sorry to be blunt) you paid 'peak prices' and you're trying to re-sell a now 'used condo' at peak prices. Thai people with 5 mil in cash to spend are not going to 'invest' in a used condo. People with 5 mil in cash are mostly looking for large townhomes. And your condo's location is not sought after or particularly convenient.

Fourth -- Thai people do not like used condos. Period. This may seem extremely strange for Westerners from aging cities, but Thai people don't like living in old buildings or pre-lived-in spaces. It's partially a 'ghost' thing, but it's also partially just a belief that 'old' equals 'used' and cheap. (See next point)

Fifth -- Condos in Thailand VERY RARELY increase with age. Construction standards are quite low, even in luxury buildings, and most condos lose value rapidly with age and use. Add to that the dislike of used condos, and you have to significantly reduce the price from the price you paid to arrive at a realistic selling price.

My advice: Reduce your asking price to 3 million. There's a chance (and not a particularly good one) that you may be able to sell at that price, and in that location for 3 million. But again, it's a very small, cramped condo. (2br / 2ba in 50 sqm is not comfortable for most people).

Good luck.

Edited February 1, 2014 by Senechal

[persiananueva]

the bubble is now in Thailand....

[hhgz]

"Fourth -- Thai people do not like used condos.

Fifth -- Condos in Thailand VERY RARELY increase with age."

Excellent points, really. I sold my well-used condo to a Thai family for 80% more than I paid for it.

[casualbiker]

DDproperty.Com

[Gordons]

We're looking to sell our Condo on Srinakarin Rd. Close to Secon Sq. 35m2 750,000 baht. All furniture and aircon included. Seems cheap compared to other areas.