Condo-Prices.

[craigt3365]

I've got a friend in one of the more popular buildings in town. He's been playing around with selling for a few years. He figures the price has dropped some 15% over the past 2-3 years. Too much competition from the newer buildings. And too many units on the market. If he does sell, it will be below what he paid for it 6-7 years ago.

Has the baht strengthened compared to his home currency in the 6-7 years? Just wondering.

I'm sure it has! Making things even worse. But he's calculating only using Baht. It's a very large development, so the prices are pretty well set...and competitive.

[JSixpack]

I've got a friend in one of the more popular buildings in town. He's been playing around with selling for a few years. He figures the price has dropped some 15% over the past 2-3 years. Too much competition from the newer buildings. And too many units on the market. If he does sell, it will be below what he paid for it 6-7 years ago.

Has the baht strengthened compared to his home currency in the 6-7 years? Just wondering.

I'm sure it has! Making things even worse. But he's calculating only using Baht. It's a very large development, so the prices are pretty well set...and competitive.

But he had to transfer the funds in from his home country. So therefore if he sold and repatriated, he might even have made a profit.

Not sure how that's bad. You also haven't taken into account that he hasn't paid rent for 6-7 years. So the rent he would have paid, but didn't, must be added into the balance. Hence I don't see you've made much of a case for worry yet.

[PattayaPhom]

Any global drop in prices would also make a difference to those who have merely bought a condo to live in themselves, without any attempt to invest or speculate.

Why that?

If they bought to live in, they don't intendend to sell

and don't care too much about their condo price.

It wont make an immediate difference in their wallet, true.

But many may intend to sell one day before going home, even if it's not planned for the near future. Or they may be thinking of some inheritance value they may be passing on one day. That loss may not be felt physically but it is still there.

Everyone knows that if you buy a car or a TV etc it will lose nearly all its value in 10 years or so, but few people like to find out that a property asset they have bought has dropped significantly in value as that generally just means they would have been a lot better off renting for x years and buying later, if at all.

As many found out in the US Europe and OZ, values still a percentage of what they were 5 years ago....

[mogy]

Could anyone give an idea what is the average monthly %age return on condo rentals in Pattaya now ? say for a well furnished 3 mill baht condo, would you expect to get 20-25k a month ? can be anywhere in town - North, South or East

[Tolley]

Could anyone give an idea what is the average monthly %age return on condo rentals in Pattaya now ? say for a well furnished 3 mill baht condo, would you expect to get 20-25k a month ? can be anywhere in town - North, South or East

That sounds about right.

I know a few people who own condos behind the avenue who rent out for 20k a month and they paid a bit of 3 million for them.

[Pattaya46]

I've got a friend in one of the more popular buildings in town. He's been playing around with selling for a few years. He figures the price has dropped some 15% over the past 2-3 years. Too much competition from the newer buildings. And too many units on the market. If he does sell, it will be below what he paid for it 6-7 years ago.

I would be curious to know which is this very popular building... because from what I see older condos still sell at very good (and increasing) price because of their lower price/sqm. It may be a problem if your condo is a shoebox, but not for any decent one (let's say 50 or 60 sqm minimum). I recently got an offer for mine at 30% over what I paid in 2008. I refused of course ;-)

[craigt3365]

I've been looking to invest in a condo for a few years now. The prices I was quoted 3 years ago are the same prices now. Seems there are more special deals now. Competition is tough. Some 40,000+ new condos on the market in the next few years. That's got to have an impact on the local market.

But as they say, location, location, location. Condos in the better buildings will always do well.

[KittenKong]

Everyone knows that if you buy a car or a TV etc it will lose nearly all its value in 10 years or so, but few people like to find out that a property asset they have bought has dropped significantly in value as that generally just means they would have been a lot better off renting for x years and buying later, if at all.

As many found out in the US Europe and OZ, values still a percentage of what they were 5 years ago....

Only if they bought at absurdly high prices, such as those current here at the moment. So the same applies.

[KittenKong]

I know a few people who own condos behind the avenue who rent out for 20k a month and they paid a bit of 3 million for them.

There is a fair amount of demand for that area and supply is only so much. But what will happen there when those 4 or 5 new buildings are finished? This could more than double the available supply in that area and I'm not sure that the demand will double to match.

[PattayaPhom]

If its one of these then yes there is a problem......almost exactly the same you could play spot the difference

[PattayaPhom]

Hard to spot any differences on thsi one...except the prison is a lot bigger than the condo

[guzzi850m2]

Ha-ha, well said PattayaPhom and you are right.

The units are getting smaller and smaller and are now even smaller than many hotel rooms.

I can't live in such a small place, I just can't man. I guess many of those small units are owned by locals and perhaps Russians.

The Russians have a relatively shots flight to Thailand compared to most and they have a place to hang their hats and they can tell their friends back home they have a condo in Pattaya.

[craigt3365]

If you are a short term repeat tourist, what's wrong with basically buying a hotel room so you can leave your stuff in it. If you've got the money, and plan to come back often, it's not such a bad idea. I've got a friend who lives near Bangkok who bought a very small 2 bedroom unit in one of the developments here with a big pool so he's got a place to take his kids on the weekends. Great idea.

[Banzai99]

I have a place in Wong Amat, many units are empty most of the time, Farangs use them for their holidays, and the Thais come down from Bangkok at the weekends.

The condo developers who are throwing Billions of Baht in The Wong Amat area must know something.

I have been hearing from the doom mongers since 1990 that Pattaya is finished, to think they didn't even have Foodland then, lol.

[PattayaPhom]

I have a place in Wong Amat, many units are empty most of the time, Farangs use them for their holidays, and the Thais come down from Bangkok at the weekends.

The condo developers who are throwing Billions of Baht in The Wong Amat area must know something.

I have been hearing from the doom mongers since 1990 that Pattaya is finished, to think they didn't even have Foodland then, lol.

The condo market is still very strong and Wong Amat has boomed the last few years. Where the problems will be in the not too distant future is with the small sized units that investors, flippers or those have have bought for rental. I refuse to touch anything sub 30 sqm, try renting one its an uphill struggle no matter of location or how nice it is and the fact is that most are built and furnished on a budget just adds to the problem. Yes they may suit some that want a crashpad at the seaside rather than a hotel but apart from that they are not appealing to anyone....even the Russians from the Gulags want more than 25sqm.

[Banzai99]

Look what coming to Wong Amat, starting at 170,000 Baht sqm.

http://www.kingdomproperty.com/blog/2014-welcome-to-mustique-pattaya/