Real Estate Sector Confident Bangkok Market to Grow

[webfact]

Real Estate Sector Confident Bangkok Market to Grow

BANGKOK: -- Members of the real estate sector have predicted that the market for Bangkok and its vicinity will grow this year by 5-10 percent with supporting factors such as public infrastructure development and stimulus measures.

Chief Executive Officer and President of Pruksa Real Estate Public Company Limited Thongma Vijitpongpun has disclosed his view that as many as 4.7 million people have yet to acquire their desired real estate from 2015, which would result in as many as 2.1 million units being sold. He predicts that the real estate sector in Bangkok and its vicinity will grow by 5-10 percent, or by 370-390 billion baht.

Thongma said that supporting factors include public spending on basic infrastructure, which could be as high as 1.8 trillion baht, as well as state stimulus measures such as the reduction of rights transfer fees and mortgage rates, which are continuing until April.

He also cited continued demand for low rise structures such as town houses and single homes.


-- NNT 2016-01-19

[trogers]

Nothing will grow unless more debts can be churned out.

A rosy forecast amids the coming turmoil in the world's financial markets...

[Bluespunk]

"Chief Executive Officer and President of Pruksa Real Estate Public Company Limited Thongma Vijitpongpun has disclosed his view that as many as 4.7 million people have yet to acquire their desired real estate from 2015, which would result in as many as 2.1 million units being sold. He predicts that the real estate sector in Bangkok and its vicinity will grow by 5-10 percent, or by 370-390 billion baht.'

Yeah, right...

[i claudius]

And everybody will have cake for tea everyday and be happy

[ramrod711]

Real Estate Sector Confident Bangkok Market to Grow

No reason to believe that there isn't a huge demand for real estate that will soon be under water. I would think that sharp operators would search for property on hills, could be a possibility of having a private island.

[realenglish1]

I predict the opposite I am using the same formula they are. Its called a Crystal Ball

[thesetat2013]

They must have seen that ghost movie Field of Dreams! If you build it, they will come! Heheee

[Cashboy]

I have been looking at the property market in Bangkok and the Thai economy

I have noticed the following:

There will be no growth in Thailand in 2016 because Thailand is dependent on exports and I see a world recession driven by the lack of credit.

ASEAN is no operating and there is cheap labour coming in from Cambodia, Mymar etc.

Thais do not seem to want to do the dirty jobs and are losing those jobs to the ASEAN foreigners.

Rent appears to be going down as opposed to rising and there is plenty of empty places for rent.

Too many people in the real estate business. This reminds me of Spain and Cyprus in the late 90's early 2000's.that subsequently crashed.

In fact I was surprised to go into an office perporting to selling a development that was currently in the process of being constructed and they were reselling property from offplan buyers of only a year before.

Bangkok real estate is dependent on foreign investment and I believe foreigners cannot investment in this economic climate.

Considering the banks seem to be loaning monies to Thais quite easily (advised by goverment to do) even giving 100% mortgages meaning there should be more demand, I don't see the demand to buy rising. I would also expect a lot of defaults with a slight change in financial circumstances as like the west, thais are living on a day to day bases.

Edited January 19, 2016 by Cashboy

[trogers]

I have been looking at the property market in Bangkok and the Thai economy

I have noticed the following:

There will be no growth in Thailand in 2016 because Thailand is dependent on exports and I see a world recession driven by the lack of credit.

ASEAN is no operating and there is cheap labour coming in from Cambodia, Mymar etc.

Thais do not seem to want to do the dirty jobs and are losing those jobs to the ASEAN foreigners.

Rent appears to be going down as opposed to rising and there is plenty of empty places for rent.

Too many people in the real estate business. This reminds me of Spain and Cyprus in the late 90's early 2000's.that subsequently crashed.

In fact I was surprised to go into an office perporting to selling a development that was currently in the process of being constructed and they were reselling property from offplan buyers of only a year before.

Bangkok real estate is dependent on foreign investment and I believe foreigners cannot investment in this economic climate.

Considering the banks seem to be loaning monies to Thais quite easily (advised by goverment to do) even giving 100% mortgages meaning there should be more demand, I don't see the demand to buy rising. I would also expect a lot of defaults with a slight change in financial circumstances as like the west, thais are living on a day to day bases.

Reselling... from off plan buyers...

Bookings by flippers are not units sold, only booked.

The flippers are being burnt and no longer paying out the full deposit, and would not be paying the balance for ownership papers.

This is the hidden explosive issue. Developers and their financing banks used to measure the health of the project by the speed bookings come in. They ignored the volume of flipping.

[coulson]

Funniest read for the day.

[Strangebrew]

What the hell are they smoking? Just across the road on suknspit The ROOM a new just finished condo high rise sold maybe one unit if that while next door they are barely 20% sold Guess there hoping on those quality Chinese coming in and buying unsold units

[Oziex1]

I have been looking at the property market in Bangkok and the Thai economy

I have noticed the following:

There will be no growth in Thailand in 2016 because Thailand is dependent on exports and I see a world recession driven by the lack of credit.

ASEAN is no operating and there is cheap labour coming in from Cambodia, Mymar etc.

Thais do not seem to want to do the dirty jobs and are losing those jobs to the ASEAN foreigners.

Rent appears to be going down as opposed to rising and there is plenty of empty places for rent.

Too many people in the real estate business. This reminds me of Spain and Cyprus in the late 90's early 2000's.that subsequently crashed.

In fact I was surprised to go into an office perporting to selling a development that was currently in the process of being constructed and they were reselling property from offplan buyers of only a year before.

Bangkok real estate is dependent on foreign investment and I believe foreigners cannot investment in this economic climate.

Considering the banks seem to be loaning monies to Thais quite easily (advised by goverment to do) even giving 100% mortgages meaning there should be more demand, I don't see the demand to buy rising. I would also expect a lot of defaults with a slight change in financial circumstances as like the west, thais are living on a day to day bases.

So if Thais are getting easy mortgages, are they heading for a sub prime mortgage crash as experienced in the USA a few years back.

Maybe this is different not sure how it all works and even less sure how it works in Thailand.

[Thian]

Many many new houses are sold just as investment. We have empty streets here but they are sold.

Guess you guys out there in the sticks all have a crystal ball right?

And along the new bts lines they are building loads of highrise buildings, far too many. I wonder if the drainsystem can stand that. Next will be highrise along the river, must be great to hear longtails and jetski's every night/morning while one enjoys his view from the balcony.

[trogers]

Many many new houses are sold just as investment. We have empty streets here but they are sold.

Guess you guys out there in the sticks all have a crystal ball right?

And along the new bts lines they are building loads of highrise buildings, far too many. I wonder if the drainsystem can stand that. Next will be highrise along the river, must be great to hear longtails and jetski's every night/morning while one enjoys his view from the balcony.

In all these glorious madness, there is a shortage of accommodation for foreigners. And there lies the opportunities for shrewd investors...

[elgordo38]

Nothing will grow unless more debts can be churned out.

A rosy forecast amids the coming turmoil in the world's financial markets...

Hurry up and build more and all the faster she will sink into the ground/ocean. Yea old good ship Bangkok. Hurry matey get aboard.

[elgordo38]

"Chief Executive Officer and President of Pruksa Real Estate Public Company Limited Thongma Vijitpongpun has disclosed his view that as many as 4.7 million people have yet to acquire their desired real estate from 2015, which would result in as many as 2.1 million units being sold. He predicts that the real estate sector in Bangkok and its vicinity will grow by 5-10 percent, or by 370-390 billion baht.'

Yeah, right...

Rubber numbers bouncing all over the place duck here come another one.

[Thian]

Many many new houses are sold just as investment. We have empty streets here but they are sold.

Guess you guys out there in the sticks all have a crystal ball right?

And along the new bts lines they are building loads of highrise buildings, far too many. I wonder if the drainsystem can stand that. Next will be highrise along the river, must be great to hear longtails and jetski's every night/morning while one enjoys his view from the balcony.

In all these glorious madness, there is a shortage of accommodation for foreigners. And there lies the opportunities for shrewd investors...

Why is there a shortage for foreigners? They all go to Hua Hin, not to BKK.

Along all the main roads you can see empty condo's above the shops, they will be demolished one day since nobody wants to live there. They want to live in new condo's along the bts.

Foreigners can buy condo's in Pattaya, dirt cheap. 12.000 euro in the fly condominium i just learned. A car costs more.

[trogers]

Many many new houses are sold just as investment. We have empty streets here but they are sold.

Guess you guys out there in the sticks all have a crystal ball right?

And along the new bts lines they are building loads of highrise buildings, far too many. I wonder if the drainsystem can stand that. Next will be highrise along the river, must be great to hear longtails and jetski's every night/morning while one enjoys his view from the balcony.

In all these glorious madness, there is a shortage of accommodation for foreigners. And there lies the opportunities for shrewd investors...

Why is there a shortage for foreigners? They all go to Hua Hin, not to BKK.

Along all the main roads you can see empty condo's above the shops, they will be demolished one day since nobody wants to live there. They want to live in new condo's along the bts.

Foreigners can buy condo's in Pattaya, dirt cheap. 12.000 euro in the fly condominium i just learned. A car costs more.

I said shrewd investors... ?

[Thian]

Many many new houses are sold just as investment. We have empty streets here but they are sold.

Guess you guys out there in the sticks all have a crystal ball right?

And along the new bts lines they are building loads of highrise buildings, far too many. I wonder if the drainsystem can stand that. Next will be highrise along the river, must be great to hear longtails and jetski's every night/morning while one enjoys his view from the balcony.

In all these glorious madness, there is a shortage of accommodation for foreigners. And there lies the opportunities for shrewd investors...

Why is there a shortage for foreigners? They all go to Hua Hin, not to BKK.

Along all the main roads you can see empty condo's above the shops, they will be demolished one day since nobody wants to live there. They want to live in new condo's along the bts.

Foreigners can buy condo's in Pattaya, dirt cheap. 12.000 euro in the fly condominium i just learned. A car costs more.

I said shrewd investors... ?

My neighbour just sold his condo he had as investment. Bought it for 1 million and after 2 years sold for 1.5.

That's what they all want to do with their houses as well. They have to stash their money somewhere. There are plenty rich thai around in BKK, just look at the cars and you know enough. Or look at Fuji restaurant, there's always a qeueu.

Upcountry it's another story but Petchabun to name something is also loaded with farangs and Chiang mai is the new hype now.

[DogNo1]

Right! Foreigners all want to live in Chiang Mai because it's so easy to do their extensions of stay there.

[roamer]

I often think that if the lights were turned on at just roughly the same time in just 50% of the condos sold in Bangkok in the last 5 years the city would be plunged into darkness by power failure. If you extended that to the unsold units and turned on the air con the grid would melt.

If 50% of the condos were occupied by people who needed a poo in the morning then the journey to work would be an interesting one as the sewers backed up.

Still might buy a new condo next year, it's as close to living on the edge as I get at my age

Edited January 19, 2016 by roamer

[NCC1701A]

Farangs are always underestimating how rich Thais are.

The Thai people who own the house I am renting in Hua Hin look like they work in a laundry.

you would never know they have millions of dollars worth of real estate.

and good luck with investments in 2016. you will need it.

[trogers]

Farangs are always underestimating how rich Thais are.

The Thai people who own the house I am renting in Hua Hin look like they work in a laundry.

you would never know they have millions of dollars worth of real estate.

and good luck with investments in 2016. you will need it.

This is the trick. Some are rich in assets. And some are rich in debts. You just need to know how to differentiate...

[connda]

Until it doesn't. The first impression I had of BKK was the unfinished Sky-train to Rangsit and a lot of unfinished high-rises.

[tomacht8]

A 28sqm – 32sqm new shoebox with built in formica furniture nearby at the end of the BTS routes for 2,4 - 3,2 million baht.
No Thank you.
If you calculate the financing interest and the monthly Condo management fees together, then rent is often cheaper, and it is more flexible.

I do not see such a market growth.

[EricBerg]

There's growth in some parts of the market. High end condo's in flashy highrises do well. Nowadays the best apartments are offered (and sold) to the elite almost from the drawing table. Sukhumvit and Chao Praya and most of the BTS stations are the hot spots. End this year the Marque Sukhumvit 39 will be finished. 2 and 3 bedroom condo's all cost over 1 million usd. Sales are doing great. Some of the filthy rich buy several condo's just as investment. The rich from HongKong and Singapore find real estate in European cities are getting way too expensive now. So their interest in the city of angels is being renewed. new luxury highrises are being planned all over the place.

Condo's in old, once popular highrises are offered for mild prices (The Watermark). Those that live there want to move to the new luxury places. They are smart enough not to take too much risk with financing the move. Many older midrange buildings and projects have families that want to move too. That part of the realty market is risky business, so there are not too many new projects there. Only the forementioned locations keep doing absolutely great.

Fact is that BKK prices per square meter for luxury condo's are way lower than in many other great cities across the globe. And BKK still is very attractive as shoppers paradise. The Thai capital still is buzzing with energy and possibilities for people of all likings.

[trogers]

There's growth in some parts of the market. High end condo's in flashy highrises do well. Nowadays the best apartments are offered (and sold) to the elite almost from the drawing table. Sukhumvit and Chao Praya and most of the BTS stations are the hot spots. End this year the Marque Sukhumvit 39 will be finished. 2 and 3 bedroom condo's all cost over 1 million usd. Sales are doing great. Some of the filthy rich buy several condo's just as investment. The rich from HongKong and Singapore find real estate in European cities are getting way too expensive now. So their interest in the city of angels is being renewed. new luxury highrises are being planned all over the place.

Condo's in old, once popular highrises are offered for mild prices (The Watermark). Those that live there want to move to the new luxury places. They are smart enough not to take too much risk with financing the move. Many older midrange buildings and projects have families that want to move too. That part of the realty market is risky business, so there are not too many new projects there. Only the forementioned locations keep doing absolutely great.

Fact is that BKK prices per square meter for luxury condo's are way lower than in many other great cities across the globe. And BKK still is very attractive as shoppers paradise. The Thai capital still is buzzing with energy and possibilities for people of all likings.

Wait till the foreigners buying into Marque understand its meaning in Thai...?