Prolonged protest takes toll on real estate sector in Thailand

[webfact]

Prolonged protest takes toll on real estate sector



BANGKOK: -- The private sector now is raising concern of the prolonged political situation which could affect the domestic real estate market demand.

President of Thailand Home Builder Association Athip Pichanon stated yesterday that the current political climate in the country would dampen demand and interest for home buyers.

He said that he has now reduced the overall growth for the market this year from 10% to just 5%.

However, he stated with some degree of optimism that forecast for next year should improve even though retail home prices have been flat with expected growth to be at 5% next year and 10% for the condominium market.

He explained that cost of construction materials and labor cost was the primary reason for the slower growth on the supply side.

Meanwhile President of Thailand Condominium Association Mr Thamrong Panyasakulwong also voiced concern that politics does affect the condominium market especially for the year end sales.

He stated that the lack of consumer confidence does affect the demand in the market. Even so, he said that the healthy growth for condominiums so far this year has supplied 705,000 new units into the market, the highest record ever in the industry’s history.

However Deputy Prime Minister and Minister of Commerce Kittirat Na Ranong expressed optimism that the real estate market is steadily growing and raises no concerns for the Government to intervene to provide incentives for buyers. As for the political climate, he commented that it has not yet affected the consumer confidence and the market and sees a compromise solution in the near future.

Source: http://englishnews.thaipbs.or.th/prolonged-protest-takes-toll-real-estate-sector/

-- Thai PBS 2013-11-15

[GAS]

Has nothing to do with massive over-supply.....

[ratcatcher]

Has nothing to do with massive over-supply.....

Or the fact that many Thais are already up to their eyes in debt.

[ratcatcher]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

[edwinchester]

Why do people keep building only to have units remain empty for years?

[i claudius]

Near us they just keep on building ,but most of the finished houses are still empty years later ,so why build? at least cut the prices to tempt people to buy.

[GAS]

I truly believe this is from massive US QE money flowing into places like Thailand...it shows up in the SET and in RE.

[catmac]

Near us they just keep on building ,but most of the finished houses are still empty years later ,so why build? at least cut the prices to tempt people to buy.

Now, now Claudius! You should know that the Thai answer to poor sales is to INCREASE the price!

[pisico]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

No reasonable reason. Just wait until sales of "new homes" stagnate.

Thais learned to do it that way 100 years ago and still do it because is part of their mentality.

The appearance that Thailand is a country on its way to develop is mainly superficial.

My Thai friends revolt when they see me changing a Thai dish substituting ingredients or order of processing. I reply by telling them that the same way Thai culture is stuck in their feudal past and has produced nothing new in art, literature, dance, music, dance, or contributions to science and technology: so is their cuisine. There will never be new Thais dishes. There never will be contemporary Thai music. There never will be contributions to science or technology. Thais are copiers, reactive followers. They can only see their immediate reality. The fact that running high tension cables in front of newly built homes reduces the curb appeal will only sink into their minds once prices plummet and sales come to a stand still. Hanging wires like lethal black Mambas (some grazing the pavement) means nothing until a multitude of people die electrocuted and they are forced to correct the hazards. Then again, there is "tea money" to fall back to their Thai ways.

Thais are reactive, never proactive.

[monkey4u]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

It is easier to tap into free electricty when the cables are on poles.

It saves having to dig a hole

[waza]

"He stated that the lack of consumer confidence does affect the demand in the market. Even so, he said that the healthy growth for condominiums so far this year has supplied 705,000 new units into the market, the highest record ever in the industry’s history."

Yes consumer confidence affects market demand, but its not the peaceful protestors that are creating the lack of confidence by consumers. "Consumer confidence is an indicator designed to measure the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people are about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy." http://www.tradingeconomics.com/thailand/consumer-confidence

The consumer confidence has been on a downwards spiral ever since this administration began to govern. But at least the real-estate bubble is still inflating.

[ramrod711]

Meanwhile President of Thailand Condominium Association Mr Thamrong Panyasakulwong also voiced concern that politics does affect the condominium market especially for the year end sales.

However Deputy Prime Minister and Minister of Commerce Kittirat Na Ranong expressed optimism that the real estate market is steadily growing and raises no concerns for the Government to intervene to provide incentives for buyers.

Which of these two men has a record of telling white lies?

[peterbkk9]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

completely spoiling the appearance... they could not care less.

Also Silom Road is to my knowledge the only road in Bangkok with underground cables.

[gemini81]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

Some high end villages have it underground (example: Baan Klang Krung, soi Thong Lor). I am told it costs more to put it underground (or the contractors want more, dunno). The wires do look unattractive, I agree.

[h90]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

yes there is a good reason to have them overhead, you can see where there is a loose connection where they twisted the wire and insulated it with some tape

Also you can easily add more wires, when they installed only the capacity they need just now, not considering that they may need more in 2 years.

And last but not least where would they install the meter without the concrete poles. This way is very efficient to prevent Somchai to connect before the meter.

Beside that jokes, I can understand that they don't want to open the ground and put in the existing mess. But I do not understand why they don't put new installations in new villages underground.

[Thai at Heart]

This is worse than leaves on the track.

[Showbags]

more to do with this....

http://www.forbes.com/sites/jessecolombo/2013/11/04/thailands-bubble-economy-is-heading-for-a-1997-style-crash/

than the current excuse of choice..

[winstonc]

inflated..its the biggest bubble ive seen since demis rousos......forever and ever...get it...haaaaa cab for winston...

[FiftyTwo]

Near us they just keep on building ,but most of the finished houses are still empty years later ,so why build? at least cut the prices to tempt people to buy.

It's cos the building project is financed by a bank, that gives them structured payments.

If they stop the build, no more loan money.

All the empty houses are the banks loss, not the developers.

Edited November 15, 2013 by FiftyTwo

[gabruce]

It's a shame that in the second decade of the 21st century that electrical wiring is still supported on ugly concrete poles, completely spoiling the appearance of those rather bland looking structures.

They were running electrical cables underground 100 years ago in the UK I believe.

Is there a good reason for overhead wires? Floods?

underground cables are much more expensive to install. More costly to maintain I would think too. Anyway, it's mostly the upfront cost that is the major factor.