Property developers in Pattaya now feel impact from dropping Russian currency

[webfact]

Property developers now feel impact from dropping Russian currency



PATTAYA: -- The declining value of the Russian currency has now forced many Russian buyers of property in Pattaya to stop payment of their monthly instalments.

Sinchai Watanasatsatorn, president of the Pattaya Business and Tourism Association, said Pattaya is the place where a large number of Russian tourists and investors coming to visit and purchase in the property sector, particularly condominium rooms.

But since the Ruble has gradually depreciated against the US dollar, tourism and property sectors in Pattaya now began to feel the impact from the decline in the Russian currency.

He said now many Russian customers have stopped their monthly instalments which has consequently affected the project developers, and have to prepare for the worst to come.

He said the declining value of ruble was expected to see a drop by 50% in Russian tourists to Pattaya and in personal expense of 3,000-4,000 baht a day to affect major hotels.

He said beach hotels and shopping complexes, and local tour operators now have to reorganise tour programmes for their Russian tourists to travel to nearer tourist destinations in and out of the country to save expenses for their Russian customers and to attract them back again.

Source: http://englishnews.thaipbs.or.th/property-developers-now-feel-impact-dropping-russian-currency


-- Thai PBS 2014-12-23

[ColdSingha]

must be bad if they are actually reporting this

[rasmus5150]

How about trying to lure the Europeans back to Thailand with some nice discounts, and forget about the Russian and Chinese market.

[Jessi]

He said now many Russian customers have stopped their monthly instalments which has consequently affected the project developers, and have to prepare for the worst to come.

Its going to get bad very bad. IMO.

BUT.....................

The Government will just say its all normal.

[Jessi]

How about trying to lure the Europeans back to Thailand with some nice discounts, and forget about the Russian and Chinese market.

Yes give them some fried rice on arrival.

[loppylugs1]

Was going to start a thread on the massive Centric Sea,seems work is progressively getting slower and slower,that crane up on high tells all.

Everything and everything getting hit,house sales nothing moving ,condos few ,but very few moving. Building boom start-ups still going on,but just when will they finish. watching Pattaya Posh,seems slowing there too.Estate agents living next door,pity help them,those flash cars,house has to be paid for

Would not want to put my shirt on anything here now,not just a passing phase but here to stay

[Anthony5]

Was going to start a thread on the massive Centric Sea,seems work is progressively getting slower and slower,that crane up on high tells all.

Everything and everything getting hit,house sales nothing moving ,condos few ,but very few moving. Building boom start-ups still going on,but just when will they finish. watching Pattaya Posh,seems slowing there too.Estate agents living next door,pity help them,those flash cars,house has to be paid for

Would not want to put my shirt on anything here now,not just a passing phase but here to stay

Didn't Pattaya posh take 5 years to start in the first place? Always had a bad feeling about that project.

[DaffyDuck]

Less Russians? Great.

[santa1000]

Does this mean we can buy a condo next year and pay 30-40% less than this year?

[Asiantravel]

Does this mean we can buy a condo next year and pay 30-40% less than this year?

That never happened in Bangkok following the 1997 crisis. developers simply mothballed them to wait for better times ahead. Then, around 2003 you could wander around Bangkok and find empty shell condominiums all over the place covered in dust and cobwebs that had been simply locked up and left vacant for years. Some foreign entrepreneurs even made money by buying them from the developers, fitting them out and then flicking them on.

But something tells me that this kind of scenario is not going to happen this time because so many other economies are in such dire straits at the same time.

This is a much wider and deeper economic malaise affecting so many more global economies because

they are drowning in debt.

Edited December 23, 2014 by Asiantravel

[kotsak]

Dedicated to the property developers..

Edited December 23, 2014 by kotsak

[sfokevin]

In other news...

The Government has announce a gift of reduced traffic on Thappraya Road

[OnMyWay2]

Someone should make a list of buildings where construction has stopped. I see buildings half way constructed and you don't think anything of it then one day you realize that there haven't been any workers there in weeks.

[mickyboy]

the only down side is that people lost there job and you have ugly empty half built building as for those russians on here and the street not many people have any good words for them as they thought they ruled the world with there attitude and rude behaviour

[KittenKong]

Didn't Pattaya posh take 5 years to start in the first place? Always had a bad feeling about that project.

But how could anything called "posh" be bad?

[ezzra]

Maybe Thailand should change the law and allow the Russian buyers to pay in Roubles no?

Edited December 23, 2014 by ezzra

[konying]

Sad to see so many gloating without even realizing the big picture.

And the big picture is, first prices will go up on everything from condo's to food and goods, because as usual businesses in Thailand will raise the prices to cover the losses from Russian buyers.

Followed by closure of many businesses, ie less choices, ie higher prices again.

Yes realestate market might crash but how many people buy property and how often as oppose to every day living.

[Jingthing]

Just go after some OTHER nationalities!

Move on.

A resort completely dominated by one nationality, Russkies, was devaluing the destination for everyone else.

Don't put all your eggs in the one Russkie basket ... it's a big world.

[Jingthing]

Sad to see so many gloating without even realizing the big picture.

And the big picture is, first prices will go up on everything from condo's to food and goods, because as usual businesses in Thailand will raise the prices to cover the losses from Russian buyers.

Followed by closure of many businesses, ie less choices, ie higher prices again.

Yes realestate market might crash but how many people buy property and how often as oppose to every day living.

Sorry, it's worth some temporary pain to move on from the absurd and very unpleasant TOTAL DOMINATION by that one demographic. It was ruining Pattaya ... yes the money seemed easy, but in the long run it was a mistake to depend too much on one demographic. A similar mistake Putin made by not bothering to diversify from energy.

Edited December 23, 2014 by Jingthing

[konying]

Sad to see so many gloating without even realizing the big picture.

And the big picture is, first prices will go up on everything from condo's to food and goods, because as usual businesses in Thailand will raise the prices to cover the losses from Russian buyers.

Followed by closure of many businesses, ie less choices, ie higher prices again.

Yes realestate market might crash but how many people buy property and how often as oppose to every day living.

Sorry, it's worth some temporary pain to move on from the absurd and very unpleasant TOTAL DOMINATION by that one demographic. It was ruining Pattaya ... yes the money seemed easy, but in the long run it was a mistake to depend too much on one demographic. A similar mistake Putin made by not bothering to diversify from energy.

Jing, your obsession with Putin is getting tedious, you can not stop mentioning him.

If you were a business owner or developer, i doubt you would be making this statements.

There were and are NOT any other demographics who came with such numbers, lets see what you will say in a few months when some places will be deserted and closed.

And by the way be prepared to be charged more for the baht bus and assaulted more frequently as lack of money usually results in aggressive behaviour

[Jingthing]

Sad to see so many gloating without even realizing the big picture.

And the big picture is, first prices will go up on everything from condo's to food and goods, because as usual businesses in Thailand will raise the prices to cover the losses from Russian buyers.

Followed by closure of many businesses, ie less choices, ie higher prices again.

Yes realestate market might crash but how many people buy property and how often as oppose to every day living.

Sorry, it's worth some temporary pain to move on from the absurd and very unpleasant TOTAL DOMINATION by that one demographic. It was ruining Pattaya ... yes the money seemed easy, but in the long run it was a mistake to depend too much on one demographic. A similar mistake Putin made by not bothering to diversify from energy.

Jing, your obsession with Putin is getting tedious, you can not stop mentioning him.

If you were a business owner or developer, i doubt you would be making this statements.

There were and are NOT any other demographics who came with such numbers, lets see what you will say in a few months when some places will be deserted and closed.

And by the way be prepared to be charged more for the baht bus and assaulted more frequently as lack of money usually results in aggressive behaviour

I will pay the correct baht bus fare, whatever it is. Now it's 10 baht. Later, whatever it is.

It was short sighted of the local developers to invest so much in a sinking ship -- RUSSIA.

They must move on.

That's life.

Saying goodbye to DAVAI.

[konying]

Just go after some OTHER nationalities!

Move on.

A resort completely dominated by one nationality, Russkies, was devaluing the destination for everyone else.

Don't put all your eggs in the one Russkie basket ... it's a big world.

Do you mean Tony's approach?

First scam and rip off all the westerners, once its no longer possible, change over to middle eastern, when that dries up, turn to Indians followed by the Russians and i guess now only Chinese and African left

[konying]

Sad to see so many gloating without even realizing the big picture.

And the big picture is, first prices will go up on everything from condo's to food and goods, because as usual businesses in Thailand will raise the prices to cover the losses from Russian buyers.

Followed by closure of many businesses, ie less choices, ie higher prices again.

Yes realestate market might crash but how many people buy property and how often as oppose to every day living.

Sorry, it's worth some temporary pain to move on from the absurd and very unpleasant TOTAL DOMINATION by that one demographic. It was ruining Pattaya ... yes the money seemed easy, but in the long run it was a mistake to depend too much on one demographic. A similar mistake Putin made by not bothering to diversify from energy.

Jing, your obsession with Putin is getting tedious, you can not stop mentioning him.

If you were a business owner or developer, i doubt you would be making this statements.

There were and are NOT any other demographics who came with such numbers, lets see what you will say in a few months when some places will be deserted and closed.

And by the way be prepared to be charged more for the baht bus and assaulted more frequently as lack of money usually results in aggressive behaviour

I will pay the correct baht bus fare, whatever it is. Now it's 10 baht. Later, whatever it is.

It was short sighted of the local developers to invest so much in a sinking ship -- RUSSIA.

They must move on.

That's life.

Saying goodbye to DAVAI.

Glad to hear your confidence, if only it was in your control what you will pay

[Konini]

I don't know if I'm just being unduly pessimistic, I've always been a little so in my own affairs -which usually leads to being happy when things turn out better - but never to the point of worrying about anything. I'm still not worried on a personal level, we have good sound blue chip share and property investments which are very wisely spread, and are both not so long turned 50 and young enough to go back to work should we need to (although things would have to get a very lot worse than they are now). I've never bought into those sky falling in things, when everything's down in Europe they're going OK in Asia or America and vice verca. This time feels a little different though. Is it just an inevitable effect of getting older?

The UK is totally screwed - we got out of there almost 30 years ago thinking that it was screwed then, and it was the best move we ever made. There is no way that I can see it turning around in my lifetime at least - there are people I went to school with (I'm 51) who have never done a day's work in their lives. There are girls I went to school with who are great grandmothers. None of their offspring have ever worked either, and following by example they aren't likely to be inclined to do so. Not my concern, I haven't paid tax in UK for a long time, but there are now 3 generations of people happy to be on benefits, with the rest of the country paying for them. NB: I don't want this to fall into a debate of shouty thing about lazy people in England. My sister and her husband both work, have a tiny mortgage and 2 primary school kids and couldn't survive without tax credits and the like, so it's not just the lazy - wages paid to blue collar workers very low. Wd we spoke recently to a fitter who is earning LESS than my husband was in 1986 - he's a toolmaker, not a bank manager. Earning less than 29 years ago. Not relatively less, not inflation adjusted less. Actually less pounds coming home at the end of the week less. I really can't see how it can possibly be turned around in my lifetime. But that's England, now even our adopted home of Australia isn't looking too clever at the moment. Nothing like as bad of course, but it looks as though it's going to be a long haul to the end of it as it was in the 1990's. Other European countries are either critical or seeing their surpluses bailing the bad ones out to prop up the Euro, US hasn't looked good for a long time, but it's getting worse (big picture sense) and Asia, more particularly China, looks like it's running on empty. I'm not sure that I've seen it this bad, for so many countries at the same time. On top of all that of course is personal levels of debt. People I know in UK and Australia are now doing grocery shopping on their credit cards or line of credit from house equity accounts, at least anyone who bought in Australia 10 plus years ago is sitting on a lot more money than their mortgages are for, unless they've upped their line of credit. I'm assuming it's a similar story elsewhere.

So, is it just me thinking that the glass is half empty, or is it really half empty this time?

[OMGImInPattaya]

How about trying to lure the Europeans back to Thailand with some nice discounts, and forget about the Russian and Chinese market.

What's the point in that...the goal is to attract tourists without offering discounts. If it's discounts you want to offer, why not just offer 50% discounts to the Ruskies to make up for the drop in their currency.

[Jingthing]

In the long run, and that's what I'm talking about, the resort has MORE VALUE if it is not dominated by the Russian demographic. They did push the resort forward ... but in the long run if there were 90 percent Russians here which is where it was heading ... nobody else would want to come here, including Thais, and a crash in Russia was going to happen sometime. It always does. I get the short term pain ... but there is an opportunity in the crisis to in the long run make this place better for everyone. Not only Russkies.

[Suffinator]

How about trying to lure the Europeans back to Thailand with some nice discounts, and forget about the Russian and Chinese market.

Yes give them some fried rice on arrival.

Make that Thai fried rice ... after all there's plenty of it

[circusman]

Was going to start a thread on the massive Centric Sea,seems work is progressively getting slower and slower,that crane up on high tells all.

Everything and everything getting hit,house sales nothing moving ,condos few ,but very few moving. Building boom start-ups still going on,but just when will they finish. watching Pattaya Posh,seems slowing there too.Estate agents living next door,pity help them,those flash cars,house has to be paid for

Would not want to put my shirt on anything here now,not just a passing phase but here to stay

sorry but if your going to say these things you must back them up. Anybody can say anything but have no facts.

[Thai at Heart]

How wonderful that thailand courted the Russians and Chinese so fiercely only to have them leave en masse while making it continually harder for their traditional holiday makers and long stayers to remain.

If this wasn't going to hurt Thailand, one would only laugh at this tragic comedy.

[Thai at Heart]

I don't know if I'm just being unduly pessimistic, I've always been a little so in my own affairs -which usually leads to being happy when things turn out better - but never to the point of worrying about anything. I'm still not worried on a personal level, we have good sound blue chip share and property investments which are very wisely spread, and are both not so long turned 50 and young enough to go back to work should we need to (although things would have to get a very lot worse than they are now). I've never bought into those sky falling in things, when everything's down in Europe they're going OK in Asia or America and vice verca. This time feels a little different though. Is it just an inevitable effect of getting older?

The UK is totally screwed - we got out of there almost 30 years ago thinking that it was screwed then, and it was the best move we ever made. There is no way that I can see it turning around in my lifetime at least - there are people I went to school with (I'm 51) who have never done a day's work in their lives. There are girls I went to school with who are great grandmothers. None of their offspring have ever worked either, and following by example they aren't likely to be inclined to do so. Not my concern, I haven't paid tax in UK for a long time, but there are now 3 generations of people happy to be on benefits, with the rest of the country paying for them. NB: I don't want this to fall into a debate of shouty thing about lazy people in England. My sister and her husband both work, have a tiny mortgage and 2 primary school kids and couldn't survive without tax credits and the like, so it's not just the lazy - wages paid to blue collar workers very low. Wd we spoke recently to a fitter who is earning LESS than my husband was in 1986 - he's a toolmaker, not a bank manager. Earning less than 29 years ago. Not relatively less, not inflation adjusted less. Actually less pounds coming home at the end of the week less. I really can't see how it can possibly be turned around in my lifetime. But that's England, now even our adopted home of Australia isn't looking too clever at the moment. Nothing like as bad of course, but it looks as though it's going to be a long haul to the end of it as it was in the 1990's. Other European countries are either critical or seeing their surpluses bailing the bad ones out to prop up the Euro, US hasn't looked good for a long time, but it's getting worse (big picture sense) and Asia, more particularly China, looks like it's running on empty. I'm not sure that I've seen it this bad, for so many countries at the same time. On top of all that of course is personal levels of debt. People I know in UK and Australia are now doing grocery shopping on their credit cards or line of credit from house equity accounts, at least anyone who bought in Australia 10 plus years ago is sitting on a lot more money than their mortgages are for, unless they've upped their line of credit. I'm assuming it's a similar story elsewhere.

So, is it just me thinking that the glass is half empty, or is it really half empty this time?

Interesting.

I returned to the uk last year a little filled with doom like yourself.

Kids have settled well into their brand new school and are flying along. World class facility.

I have found excellent well paid work and am moving along nicely. 1.9mn unemployed and falling. It ain't great but the roads are ok, the NHS is a god, schools are good and I don't have to worry about the mum in law half as much.

18 years in Thailand still with a house to sell.