Property developers in Pattaya now feel impact from dropping Russian currency

[Suffinator]

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?

You're not being pessimistic but you need to look a little more closely at the economies of the US, UK and the EU. You're right society is now living on debt and in doing so accumulates more debt, unfortunately without people spending (generally on non-essential items) the economies would stall.

US now nearly 18 trillion in debt, UK 1.4 trillion ... the EU ... well let's just say that the only countries propping that up are the British, Germans and French ... it's why there's so much hostility when Britain talks about an EU referendum; the fear is of course that once it all does belly up they'll be war again in Europe.

Take a look at this ...

it could well change the way you think about economies. The underlying issue is that Governments have become far too big and now populations rely on their governments far too much ... there simply isn't any will remaining to make individual changes.

[KittenKong]

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.

Apart from in the big supermarkets like BigC and Tesco I rarely see Russians in the businesses that I frequent, so if all the Russians left I dont think it would affect me very much in that respect.

And if all the luggage and latex shops closed down due to the lack of Russian clients I dont think it would affect me much either.

[umbanda]

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.

In the other hand...Chinesses are buying North Thailand....

[rayongchelsea]

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.

My friends are over from the uk think it's a great country ( except for the weather ) of course there are negatives which people on here wish to emphasize for there own reasons..at the end of the day the uk offers you opportunities, most of my friend early 50's have done massively well both in their careers and in property over the last 30 years..they also wouldn't consider retiring here.

Will agree that wages are being squeezed for some.

[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.

Apart from in the big supermarkets like BigC and Tesco I rarely see Russians in the businesses that I frequent, so if all the Russians left I dont think it would affect me very much in that respect.

And if all the luggage and latex shops closed down due to the lack of Russian clients I dont think it would affect me much either.

Since universe rovolves around only you and hencr you rarely see a Russian where you shop, then I guess there is nothing to worry about.

PS. Have you considered the fact that businesses open at least 6 days per week and at least 9 hours per day, so the possibility of having other customers other than you is very high?

[crickets]

Went walking in jomtien on the weekend. Hardly any russians for this time of year and the ones that were there looked unhappy.

[The manic]

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

x

Well they did rule a substantial part of it.

[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

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

"facts" now the fact is I already do eavesdrop on developers/realtors conversations (yes even next door type) nothing ,but nothing in houses and virtually nothing in condo sales. Love to buy where I rent,dozens for sale,not one bit of interest,even at discounted prices

On the other hand did not the powers that be state that house purchase here in Thailand was being investigated by DSI, condo sales too for the 49% ,would be a blithering idiot to purchase with those warnings

Also the auction sales,now without stating a name that was a big realtor that went through the auctions recently,as others have pointed out no money left in the western world to mass purchase anything in Thailand any more

Being a bit more factual,what is the headline to this thread?

Edited December 23, 2014 by loppylugs1

[The manic]

I find it incredible that anybody is buying any property in Thailand these days. Just read the latest report from Forbes today on Yahoo news. It' time to rent not buy and be ready to leave at any time on short notice.

[retarius]

There's usually an upside for bright people in shat seem like dire situations. If this is widespread then there may well be some property to be offloaded cheap.

[alocacoc]

I find it incredible that anybody is buying any property in Thailand these days. Just read the latest report from Forbes today on Yahoo news. It' time to rent not buy and be ready to leave at any time on short notice.

Why not provide us with a link?

[gandalf12]

I notice no one ever asks where these Russians get their money from. I have a few years working in Russia and the average salary does not allow for family holidays to Thailand. Even the owner of the apartment block I lived in was well connected with the Mafia.

If Thailand checked I am sure most of these "investors" would have underground connections.

They should be a little more selective as to who they sell to

[vision2014]

I invest in "off plan" condos in Pattaya and track the market closely. I can confirm that Developers are having difficulty collecting payments (not only from Russians). When a person buys off plan he normally makes two to four installment payments based on construction progress and a final payment of between 25% and 50% of the total value when the building is completed and the Chanote/property title is transferred. Last year at this time the Ruble was trading at the 32 to one dollar and as of today the rate is 55 to one dollar meaning that the the final installment payment has increased by approximately 80%. The problem is worse if the Russian borrows money from a Russian bank as Putin just increased the interest rate from 10.5% to 17%. Developers may threaten to cancel the contract and confiscate the condominium unit if the buyer does not pay on a timely basis but the Thailand Condominium Act gives the buyer the right to appeal to the Arbitration Board if a mutual agreement is not reached (lengthy process). The bottom line is a lot of the units in newly finished buildings have units where the Developers are sitting on partially unpaid condos. This also causes a problem for the buyers who have paid in full for their condo because the Developer will also not have collected the annual Common Fees ( money to maintain the building) from the individuals that have not paid for their Chanote/property title.

Another consequence of buyers having less money is Developers are slowing down the speed of construction. It has been common practice for Developers to miss their "commitment" on when condo buildings construction would be completed (frequently a year or more late) but I fear this will get even worse in the short to medium term. Many foreign Developers are "self funded" meaning they use private financing AS WELL AS the deposits and installment payments Buyers pay to fund the construction. Many will experience a cash flow problem and will continue to aggressively advertise hoping to sell more units and use the funds to pay for the construction. I would love to mention names and projects but I do not think this is appropriate on Thai Visa. I would like to add that this does not apply to major Developers including the Thai Developers that are publicly listed on the Thai Stock Exchange and some reputable foreign Developers such as Kingdom Properties and The Tulip Group.

The third factor compounding the problem is that during 2011-2013, Developers announced new projects that would 80,000 units to the Pattaya market if all the projects were completed. To put this in perspective, the total number of finished condos people were living in Pattaya was 54,000. Accordingly, Developers were hoping there would be sufficient demand to grow the market by 150% !

In closing, I think there will be great bargain opportunities for people wanting to buy in 2015 and 2016. I would also strongly recommend you DO NOT buy off plan unless you have the time to research the specific project very carefully.

[Jessi]

I find it incredible that anybody is buying any property in Thailand these days. Just read the latest report from Forbes today on Yahoo news. It' time to rent not buy and be ready to leave at any time on short notice.

What he said.

[OMGImInPattaya]

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.

Well that's what a 40-45% income tax rate, 20-30% cap gains rate, and a 20% VAT buys you. If your old, infirm, or have kids, maybe it's a good deal. If your none of the aforementioned, then you're paying for everyone else who is.

[bangon04]

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

aren't most of the construction workers Burmese or Cambodians? So no worries for Thailand....

[Konini]

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.

I'm glad it's working out for you, seriously. Are you in the south by any chance? It seems that most of the young people we know (mostly relatives and their friends) are unable to get full time work, it's all just contract work - they are willingly doing it but can't have a hope of ever getting a mortgage. Those old enough to have grown up or almost grown up kids were despairing - they didn't know what they could do to change anything or make anything better for their kids. And tradesmen, even electricians, earning laughable wages and scared to complain. I thought this couldn't be right, but I've seen my brother-in-law's wage slips. He's an electrician and earns GPB7.90 a hour, and I know he has been looking for work elsewhere for years but hasn't been able to find any. More money down south, but more expensive housing which they really couldn't afford even with extra money; they'd never be able to have a house anything like the one they've almost paid off even if they both earned double their current wages. The only bright side I saw with them is that the kid's school is very good.

The NHS is good, but it's so badly funded it looks as if it's going to fall in a heap soon - although I suppose they've been saying that for years. My almost 80 year old mother, who takes a fistfull of tablets several times a day - all necessary, she has a fair bit wrong with her - wanted to go to the doctor for something while we were there, and it was 13 days for an appointment. I couldn't believe it. It was just before we left, I made her promise me she would go to A&E if she got any worse before seeing him. She promised she would, but she wouldn't have. Can't afford to upset the doctor when there are only 2 in a hefty sized village. She's terrified he will drop her from his list if it looks like she's complaining.

Driving around Teeside and South Yorkshire was just depressing for me. There were pockets that were nice where people were obviously doing well, but the towns we come from are not really like that - the parts where people are doing well are very small. A few of our friends are doing fairly well, but every single one of them will be working until they are 65 (or a year or so longer, I think it's gone up for people our age). They're all at the point of being a year or so away from having the mortgage paid off, but most who haven't already re-mortgaged for whatever reason are doing so now to pay for weddings for their kids or to make help out with grandkids. A couple are doing it just to survive.

As I said before, I've never been a glass half empty type of person, but what I saw scared me, whereas in the past it had just annoyed me. That's why I asked if it were because I hit 50 last year and just an inevitable part of getting old. I hope so. The poor economy hasn't stopped our nieces and nephews having huge broods.

I really am glad you're getting on well. Must be strange to go back after so long. It's odd for us and we know it's only for a month at a time!

[Konini]

You're not being pessimistic but you need to look a little more closely at the economies of the US, UK and the EU. You're right society is now living on debt and in doing so accumulates more debt, unfortunately without people spending (generally on non-essential items) the economies would stall.

US now nearly 18 trillion in debt, UK 1.4 trillion ... the EU ... well let's just say that the only countries propping that up are the British, Germans and French ... it's why there's so much hostility when Britain talks about an EU referendum; the fear is of course that once it all does belly up they'll be war again in Europe.

Take a look at this ...

it could well change the way you think about economies. The underlying issue is that Governments have become far too big and now populations rely on their governments far too much ... there simply isn't any will remaining to make individual changes.

Thank you for that, I've downloaded it and will watch it later - tucked up all in bed as it's unbelievably cold here in Chiang Mai.

What you say ties in with something I was reading last week which was also talking about it being a historically long time since there was war in Europe - not world wars, obviously, but all of those little spats between two random countries that seem to have been going on constantly since the dark ages. Personally, I think that if the Tories are going into the election promising a referendum, they may be doing so thinking that there's no way they'll get in, because they wouldn't want to pull out any more than Labour or anyone with even a modicum of economics theory behind them. For my sins, I was very active in the Labour party as a teenager and looked on in shock when it became apparent what the SDP, as they were then. did to the labour vote; they ensured that the Tories had a long and almost unchallenged run in office. I think that UKIP are going to do the same thing to the Tories, splitting their vote, which is probably not a good thing because Labour are not looking very strong as a party and I don't know how long they could govern for; certainly not as long as the Thatcher/Major government did.

In a lot of ways I'm glad to be out of it, but I fear for our nephews and nieces who have a lot of young children between them. And that is the big difference for me this time. I've never been fearful before, always confident that everything will bounce back, because the underlying economies were good enough to ensure it. And partly because it always does. I really hope I'm just turning into a grumpy old woman with a half empty rather than half full glass.

[Asiantravel]

I find it incredible that anybody is buying any property in Thailand these days. Just read the latest report from Forbes today on Yahoo news. It' time to rent not buy and be ready to leave at any time on short notice.

I just typed in Forbes report into the Yahoo News search but nothing comes up which is even remotely linked to the topic? Could you possibly provide a link to what you are referring to please?

[Asiantravel]

I find it incredible that anybody is buying any property in Thailand these days. Just read the latest report from Forbes today on Yahoo news. It' time to rent not buy and be ready to leave at any time on short notice.

I just typed in Forbes report into the Yahoo News search but nothing comes up which is even remotely linked to the topic? Could you possibly provide a link to what you are referring to please?

Are you talking about this Forbes report by any chance which specifically mentions the condominium market?

Boonchai Bencharongkul, one of the three aforementioned tycoons, said “I think the current situation is worrisome. As one of those who had such an experience, I can smell it now. People are rushing and competing to buy condos while more and more people are driving Ferraris. These are the same things we saw before the 1997 crisis occurred.”

Thai property apologists defend the country’s rapid property price increases by claiming that the boom is justified by red-hot economic growth, but there is a very significant flaw in their logic because Thailand’s economic growth is currently experiencing a bubble itself.

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

Edited December 23, 2014 by Asiantravel

[Asiantravel]

You're not being pessimistic but you need to look a little more closely at the economies of the US, UK and the EU. You're right society is now living on debt and in doing so accumulates more debt, unfortunately without people spending (generally on non-essential items) the economies would stall.

US now nearly 18 trillion in debt, UK 1.4 trillion ... the EU ... well let's just say that the only countries propping that up are the British, Germans and French ... it's why there's so much hostility when Britain talks about an EU referendum; the fear is of course that once it all does belly up they'll be war again in Europe.

Take a look at this ...

it could well change the way you think about economies. The underlying issue is that Governments have become far too big and now populations rely on their governments far too much ... there simply isn't any will remaining to make individual changes.

Thank you for that, I've downloaded it and will watch it later - tucked up all in bed as it's unbelievably cold here in Chiang Mai.

What you say ties in with something I was reading last week which was also talking about it being a historically long time since there was war in Europe - not world wars, obviously, but all of those little spats between two random countries that seem to have been going on constantly since the dark ages. Personally, I think that if the Tories are going into the election promising a referendum, they may be doing so thinking that there's no way they'll get in, because they wouldn't want to pull out any more than Labour or anyone with even a modicum of economics theory behind them. For my sins, I was very active in the Labour party as a teenager and looked on in shock when it became apparent what the SDP, as they were then. did to the labour vote; they ensured that the Tories had a long and almost unchallenged run in office. I think that UKIP are going to do the same thing to the Tories, splitting their vote, which is probably not a good thing because Labour are not looking very strong as a party and I don't know how long they could govern for; certainly not as long as the Thatcher/Major government did.

In a lot of ways I'm glad to be out of it, but I fear for our nephews and nieces who have a lot of young children between them. And that is the big difference for me this time. I've never been fearful before, always confident that everything will bounce back, because the underlying economies were good enough to ensure it. And partly because it always does. I really hope I'm just turning into a grumpy old woman with a half empty rather than half full glass.

“I've never been fearful before, always confident that everything will bounce back, because the underlying economies were good enough to ensure it “

What gives you such confidence when no one has come up with any where near a solution to paying off the world global debt problem? The following shows the size of the global debt in TRILLIONS

http://www.economist.com/content/global_debt_clock

[bitcoinbob]

Pattaya is starting to look like Miami 2009 from 2008 to 2003 they sold 35000 condos avg price 350000 in 2008 at the height just before the crash they completed 36000 in one years a five year supply . Miami recovered but took time 6 years. at the bottom looked bad. but miami is an international city , capital of south america. Pattaya does not come close so may take a lot longer ????

[balo]

Unfortunately I am one of those unlucky condo owners that try to sell , already reduced the price under the market price but impossible to sell in Jomtien. I have offered rewards and still do if anyone has a potential buyer.

[loppylugs1]

Oh dear! just when the Thai govt is introducing another car purchase incentive scheme,should spread it to cheaper mortgages too

[OMGImInPattaya]

Unfortunately I am one of those unlucky condo owners that try to sell , already reduced the price under the market price but impossible to sell in Jomtien. I have offered rewards and still do if anyone has a potential buyer.

Impossible to reduce the price to "under the market price" as by definition, since it's unsold, it's listed above market price.

[Suradit69]

must be bad if they are actually reporting this

In Russia people are buying "things" as fast as they can as a hedge against the plummeting currency.

The FT reports, Russians are hurriedly turning their depreciating Rubles into jewelry, furniture, cars, and apartments as the currency's collapse prompts a shopping spree that will likely lead to a surge in GDP. As one anxious shopper noted,"none of us know what’s happening. We’re all worried that the currency will keep falling," and so "it’s time to buy furniture!" And sure enough, shopping centers are currently experiencing a spectacular rush.

[Suradit69]

Unfortunately I am one of those unlucky condo owners that try to sell , already reduced the price under the market price but impossible to sell in Jomtien. I have offered rewards and still do if anyone has a potential buyer.

Impossible to reduce the price to "under the market price" as by definition, since it's unsold, it's listed above market price.

So if you see things on display in a supermarket or in a shop in a mall, since they have not (yet) been sold, they must be priced above the going market price??

That works for highly liquid items like stocks & shares on a high volume exchange where the market price is set when the bid & ask meet, but not in relatively illiquid markets, like real estate or high-end consumer discretionary items where waiting for the right customer make take some time.

Edited December 23, 2014 by Suradit69

[Konini]

“I've never been fearful before, always confident that everything will bounce back, because the underlying economies were good enough to ensure it “

What gives you such confidence when no one has come up with any where near a solution to paying off the world global debt problem? The following shows the size of the global debt in TRILLIONS

http://www.economist.com/content/global_debt_clock

Never fearful before, but this time I am. Something just feels different about it.

[OMGImInPattaya]

Unfortunately I am one of those unlucky condo owners that try to sell , already reduced the price under the market price but impossible to sell in Jomtien. I have offered rewards and still do if anyone has a potential buyer.

Impossible to reduce the price to "under the market price" as by definition, since it's unsold, it's listed above market price.

So if you see things on display in a supermarket or in a shop in a mall, since they have not (yet) been sold, they must be priced above the going market price??

That's an interesting question...to answer I'd have to research how the economic theory of market clearing prices and market equilibrium deals with the buying and selling of relatively low value perishable commodity like food items in a retail setting. However, I would suspect that pricing in these situations has more to do with marketing and profit goals of the retailer and not the larger wholesale markets for the items sold in supermarkets. Economic theory posits that there is a price at which all goods clear the market (are sold) and that is the market price. In the case of real property sales, it's generally considered the most recent sale of a similar or comparable property is the "market price." However, in property sales, it's notoriously hard to find real comparable properties to compare (though somewhat easier in a condo) and of course, in a falling market the last sale may be of little relevance.

As Balo is bemoaning the lack of the sale of his condo, it appears to be priced above the market price, and not under, as he apparently thinks.

[Anthony5]

Unfortunately I am one of those unlucky condo owners that try to sell , already reduced the price under the market price but impossible to sell in Jomtien. I have offered rewards and still do if anyone has a potential buyer.

Impossible to reduce the price to "under the market price" as by definition, since it's unsold, it's listed above market price.

So if you see things on display in a supermarket or in a shop in a mall, since they have not (yet) been sold, they must be priced above the going market price??

That works for highly liquid items like stocks & shares on a high volume exchange where the market price is set when the bid & ask meet, but not in relatively illiquid markets, like real estate or high-end consumer discretionary items where waiting for the right customer make take some time.

There is a difference between properies that are on display, so apparently not sold yet, and properties that are on display for ages already.