Thai property sector to rebound 10% this year

[webfact]

Property sector to rebound 10% this year
By Digital Content

BANGKOK, Jan 26 -- Thailand’s property sector which experienced a bleak performance last year due to domestic political turbulence is expected to rebound and grow approximately 10 per cent this year, according toThongma Vijitpongpun, CEO of Pruksa Real Estate.

The property business in Bangkok and surrounding areas is projected to recover this year with a total value of Bt322.8 billion, up some 10 per cent from last year.

Positive factors projected to help boost property sector this year are the increasing confidence of the public in the current caretaker government, especially on extension of electric mass transit rail service throughout the metropolitan Bangkok, a plan to construct a dual-track rail line with China with another agreement to be made soon with Japan, a development plan to establish special economic border areas and implementing the ASEAN Community, scheduled at year-end, which could help boost the homebuyers market.

Lersak Chuladesa, Pruksa vice chairman and executive director, said that the property sector business should grow well this year with the improvement of the country's general economy.

Ongoing low-interest rates would help persuade people to buy homes although their prices are expected to rise 2-5 per cent, said Mr Lersak. (MCOT online news)


-- TNA 2015-01-26

[trogers]

First try hard to clear your stocks of unsold units, quite a few being converted into short term rentals.

[FangFerang]

All this rebounding in tourism, real estate, the economy -- plus all the reconciled happiness is wonderful! Thais don't ever need elections now...

O o p s.

[losworld]

Nothing like asking a realtor about real estate roflmao. Has anyone every heard anything different from a realtor. Unfortunately a more sincere forecast would be "due to the insane number of units being built and the current worldwide economic problems coupled with the current state in Thailand sales will be bleak in 2015".

[craigt3365]

Don't think there will be a rebound here in Pattaya!

[BoonToong]

Of course it is!

[shirtless]

As usual only a total optimist would make a prediction like this , watch the figures drop as reality sets in later this year, Only in Thailand is foot in mouth disease so prevalent.

[55Jay]

Due to the underlying land price maybe?

[wowfactor10]

Yes Real estate its booming in Thailand

[Jimbo2014]

Now I know where all those confiscated drugs end up. In the Ministry of Finance! - 10% - snort.

[ColdSingha]

in other news banker predicts GDP to resume upward trend and crude to rebound sharply..

[bongoz]

...

[konying]

Tourism is rebounding , exports are rebounding , car sales are rebounding now real estate is rebounding!

Amazing thailand.

I guess this brainiac missed some recent events such as dropping eu, dropping au, flop of rub

He also missed the fact that the there is / was no high season , car sales and exports dropping and more uncertainty looming.

May be all the thai who got rich from the high season will be rushing over to buy new condo's at over priced prices

[Suffinator]

Before I left Thailand a good friend of mine who worked in real estate industry for over 20 years told me that only an idiot would buy property in Thailand. The resale market is depressed to a point where sales are almost non-existent, new developments keep popping up with outrageous offers of ROI on rentals which is unlikely to materialize.

The worst thing is ownership as that's not really possible ... even setting up a company with a few nominees is effectively illegal.

Her advice ... if you intend to live in Thailand then rent. Once you decide you want to move you just pack your bags and go.

It's exactly what I did but a few of my friends weren't that lucky and lost over 50% of what they paid; that's how bad the investment is.

[djlest]

hmmm not always true!

I have friends that have gained 50% buying property in BKK 10 years ago and its now worth a lot more.,
Depends if they got ripped off and paid over the normal price i guess,

[bangkokfrog]

hmmm not always true!

I have friends that have gained 50% buying property in BKK 10 years ago and its now worth a lot more.,

Depends if they got ripped off and paid over the normal price i guess,

I understand your point, but comparing land bought many years ago to its value today is not the point here. Could someone buying property today be able to actually sell it in a year's time for 10% more? (As opposed to having it valued at 10% more using the then quoted artificially inflated property values.) I think not. From what I can see, the banks learned enough from the 1997 melt-down to make sure that the property market today is all smoke and mirrors. There appears to be massive unreported oversupply. I feel sad for the young Thai families that are being lured into borrowing to buy a box-sized room that they will probably never be able to sell for what they paid.

[trogers]

hmmm not always true!

I have friends that have gained 50% buying property in BKK 10 years ago and its now worth a lot more.,

Depends if they got ripped off and paid over the normal price i guess,

I understand your point, but comparing land bought many years ago to its value today is not the point here. Could someone buying property today be able to actually sell it in a year's time for 10% more? (As opposed to having it valued at 10% more using the then quoted artificially inflated property values.) I think not. From what I can see, the banks learned enough from the 1997 melt-down to make sure that the property market today is all smoke and mirrors. There appears to be massive unreported oversupply. I feel sad for the young Thai families that are being lured into borrowing to buy a box-sized room that they will probably never be able to sell for what they paid.

Not only not able to sell, but in debt to the banks for 30 or more years. Slavery through debts.

[konying]

Before I left Thailand a good friend of mine who worked in real estate industry for over 20 years told me that only an idiot would buy property in Thailand. The resale market is depressed to a point where sales are almost non-existent, new developments keep popping up with outrageous offers of ROI on rentals which is unlikely to materialize.

The worst thing is ownership as that's not really possible ... even setting up a company with a few nominees is effectively illegal.

Her advice ... if you intend to live in Thailand then rent. Once you decide you want to move you just pack your bags and go.

It's exactly what I did but a few of my friends weren't that lucky and lost over 50% of what they paid; that's how bad the investment is.

Would appear your friend does not have a single clue and by the sound of it you have even less.

There is absolutely no problem in owning a condo and abosulutely no need to set up a company to own a condo

May be she along with you, should first either visit Thailand or read Thai Visa

[elgordo38]

First try hard to clear your stocks of unsold units, quite a few being converted into short term rentals.

Must be eating Fruit Loops again

[rickirs]

The Junta adopted a much maligned Home Buyer program initiated during Yingluck's administration. That should help spur the real estate market.

BANGKOK, 2 January 2015 (NNT) – The Government Housing Bank (GHBank) is allocating five billion baht towards providing low-interest loans for home buyers, in an initiative the bank has branded as a New Year's gift to the public.

Angkana Chaimanat, president of GH Bank, said the allotted money will fund low-interest loans for low- to middle-income home buyers to enable them to buy their own homes. The loans may be taken out for home purchase as well as for home construction, expansion and repairs. The borrower will only be charged 0.87% interest for the first year. The interest will rise 4.85% on the second year, after which the rate will be MRR plus 0.5% for the average loan taker. The adjustable-rate loan amount will be capped at 2.5 million baht per borrower.

[rubl]

The Junta adopted a much maligned Home Buyer program initiated during Yingluck's administration. That should help spur the real estate market.

BANGKOK, 2 January 2015 (NNT) – The Government Housing Bank (GHBank) is allocating five billion baht towards providing low-interest loans for home buyers, in an initiative the bank has branded as a New Year's gift to the public.

Angkana Chaimanat, president of GH Bank, said the allotted money will fund low-interest loans for low- to middle-income home buyers to enable them to buy their own homes. The loans may be taken out for home purchase as well as for home construction, expansion and repairs. The borrower will only be charged 0.87% interest for the first year. The interest will rise 4.85% on the second year, after which the rate will be MRR plus 0.5% for the average loan taker. The adjustable-rate loan amount will be capped at 2.5 million baht per borrower.

The junta did no such thing.

The Yingluck government first spoke about a 0% mortgage rate for houses worth less than 3 million Baht.

A scheme was accepted in cabinet on the 20th of September 2011 to give first-time home buyers a taxbreak of 10% of the home value with a maximum of 5 million Baht (home value). Was supposed to last till end of 2012. See more details here"

http://msna.biz/tax-allowance-for-first-time-home-buyers-in-thailand

The scheme didn't really help low-income first-time home buyers and attracted limited attention.

The GHB scheme is (State) bank initiated and different.

Edited January 28, 2015 by rubl

[ggold]

hmmm not always true!

I have friends that have gained 50% buying property in BKK 10 years ago and its now worth a lot more.,

Depends if they got ripped off and paid over the normal price i guess,

what it is worth and what he could sell it for may be two different figures. the asking prices for second hand properties is way off considering you can buy new for less, even if you buy the land and build on it.

[inzman]

Whoever wrote this article apparently hasn't noticed the Russians losing half their wealth because of the drop in the ruble. Russians were the main purchasers of property in Pattaya and Phuket. Doesn't look to good for the property market, not to mention the countries finances are in a poor state. I don't see how there is any good news for the Thai property market, just dreaming if you ask me. Why is everything always recovering when things are getting worse?

[trogers]

Pattaya and Phuket do not make up Thailand.

This developer is eyeing the market for Thais, along the new mass transit lines being built in Bangkok.