Condo asking prices vs. actual sale price

[HauptmannUK]

My wife and I already have a property in Thailand but we are thinking of buying a small condo (1~1.5M THB) for short breaks in the Pattaya/Jomtien area.

Right now there seems to be huge oversupply of these cheaper condo's - many appear to have been on the market for more than 6 months - and so I'm wondering if anyone has any experience of if, and by how much, asking prices are being discounted to achieve a sale .

Also, any opinions on Novana condos near 3rd rd. ?

Edited December 29, 2016 by HauptmannUK

[bkk6060]

It seems to be a total buyers market but an agent may tell you different because they want to maximize their clients sale.  You have cash?   If 1.5 million, I would offer 1 million with a short closing time.  But any place you look at make sure you check it out day time and night time.  I have a friend who bought a place off second road.  He never checked it out at night and now he is dealing with music from nearby bars until 2 or 3 am.  He hates it.  So investigate thoroughly.

[yaagjon]

I would find two or three condos you like, start low, probably 50% of the asking price and work up from there. Play one off against each other.

 

I would also suggest you have a look what you could get in View Talay one or two in Jomtien before you make an offer at Novana. Condos in Novana seem awfully small.

[KittenKong]

Yes, start at 50% and work up. There is massive oversupply and massive overpricing of asking prices.

 

Many owners are quite prepared to have places empty and unsold for years if they think it will get them an extra few hundred thousand Baht and, in my view, they are not serious vendors. Agents also mark up prices hugely, in the hope of getting a high offer.

 

Scams, lies, smoke and mirrors.

[kharmabum]

a million baht is less than $30,000.  and people say you should offer half?  what kind of condo can you get for 15 grand?  are these the same places that rent for like 4500 baht per month?

[tazly]

3 hours ago, kharmabum said:

a million baht is less than $30,000.  and people say you should offer half?  what kind of condo can you get for 15 grand?  are these the same places that rent for like 4500 baht per month?

any of the View Talays.....

[guzzi850m2]

3 hours ago, kharmabum said:

a million baht is less than $30,000.  and people say you should offer half?  what kind of condo can you get for 15 grand?  are these the same places that rent for like 4500 baht per month?

You can get a <30M2 shoe box or perhaps more space in a real old building.

 

If you can find one that is real desperate to sell urgent, you might get a killer deal. 

 

Good advises in above posts, find the right condo in the right location is the first thing to do.

 

Some Thais are not willing to go much down in price, the well off can wait for 10 years if they have to, but I will assume some expat guys in oil off-shore are pretty desperate by now.

[JB300]

These guys occasionally offer "Firewall" condos http://www.rightmovepattaya.com/

Though I think hipflat.co.th is better for seeing what's available

[wpcoe]

1 hour ago, tazly said:

any of the View Talays.....

 

Please show me a View Talay condo for B500,000 and I might buy a couple.

[moonseeker]

I have been actively looking for a 150sqm + condo in good location for a good price, meaning a "reduced, below market price". 6 months and all but 1 offer with about 20% of "regular price from a Russian developer in a building with very few occupied units and admin. situation being very unclear. On the hill in medium location. I think all these super-deals are more or less a phantasy of the people who probably don't have much of an idea and are probably renting, because they could never buy a real condo themselves. I am paying around 2 Mio. for rental units near the beach with around 30sqm and still need to redo them. And, yes I did my home-work and know the market quite well after 15 years of being actively involved. So, please any super-deals, send me a message. 150sqm+, in good location, preferably shell or unit that needs total remodel. Regards and My Best Wishes for 2017.  MS>

[dotpoom]

12 hours ago, yaagjon said:

I would find two or three condos you like, start low, probably 50% of the asking price and work up from there. Play one off against each other.

 

I would also suggest you have a look what you could get in View Talay one or two in Jomtien before you make an offer at Novana. Condos in Novana seem awfully small.

I was offered 1MB for a condo I am selling for 1.5....I told him to bugger off (phrased it more nicely than that) I would rather burn it down (or at least wait for the market to pick up again). I myself have a little bit of decency and diginity and will always offer a fair price for a fair property. I have been buying and selling most of my life and have always closed a deal where both the buyer and seller are contented with the result. This principle has always stood me well. Any old fool can try to take advantage of people but honor to me is more importand than money and "sticking" it to a person.

[KittenKong]

4 minutes ago, dotpoom said:

I myself have a little bit of decency and diginity and will always offer a fair price for a fair property. I have been buying and selling most of my life and have always closed a deal where both the buyer and seller are contented with the result. This principle has always stood me well. Any old fool can try to take advantage of people but honor to me is more importand than money and "sticking" it to a person.

 

I also would always offer a fair price if the asking price itself is fair. In most countries the asking price will indeed be at level around which there should be some interest and a sale should happen within a few weeks. However it is very common here for places to be on sale for many years with no viewings and no interest at all. To my mind that simply indicates that they are hugely overpriced.

 

Of course the cheaper the property the less likely there is to be much room for manoeuvre, so you probably wont get a 1MB studio for 500kB, but I have seen places in View Talay 5 that sold for 1.8MB compared to a common asking price of 3MB, and in nearby Platinum Suites that sold for 1MB compared to a common asking price of 2.5MB.

 

Nearly all vendors and agents here are trying to "stick it" to the buyer (taking advantage of other people is, after all, a national pastime), and as such I see no reason why the buyer should cheerfully provide the lubricating fluid.

[ExpatOilWorker]

Here is what you need to do.

You narrow your search down to a couple of building that you like, then write a short but price letter, along the lines, "Dear owner, Please contact me if your are interested in selling your condo. Fair price offered for the right unit, cash payment."

Your include your E-mail, LINE id, phone number.

Print 100+ letters and drop them in ever single mailbox.

 

All you have do do now is sit back and wait.....and wait....and wait, but sooner or later somebody will contact you.

 

This way you will not only bypass often useless agents, but you might also reach out to somebody who have long moved away and simply given up on his unit and only use it for a couple of month ever winter.

 

NB: I did this myself in Bangkok and still got replies 6 months after they letters was sent.

 

Happy hunting.

 

Just wanted to add, you can still use agents in parallel to visit and get a feel for asking prices. That will give you the upper hand when you give different owners your cash offer.

Edited December 30, 2016 by ExpatOilWorker

[jacko45k]

12 hours ago, kharmabum said:

a million baht is less than $30,000.  and people say you should offer half?  what kind of condo can you get for 15 grand?  are these the same places that rent for like 4500 baht per month?

Is that US$ you are talking of.. and how is that currency relevant to the Thai property market?

Some people are leaving Thailand/the area and not returning.... they will be happy to offload their condo.

[JerryinTH]

5 minutes ago, jacko45k said:

Is that US$ you are talking of.. and how is that currency relevant to the Thai property market?

Some people are leaving Thailand/the area and not returning.... they will be happy to offload their condo.

 

Still, some people aren't that desperate and 15k really doesn't buy you anything to write home about.

 

[ThaiTrav]

12 hours ago, kharmabum said:

a million baht is less than $30,000.  and people say you should offer half?  what kind of condo can you get for 15 grand?  are these the same places that rent for like 4500 baht per month?

At present there are a lot of garages on the market in nearly all areas of Pattaya around your price . I would take your time because there is oversupply and it really is a buyers market .When you find your suitable garage I agree offer 50% and negotiate . Of course any bigger than a 2 car size will demand a bit more than your budget.

[HauptmannUK]

52 minutes ago, dotpoom said:

I was offered 1MB for a condo I am selling for 1.5....I told him to bugger off (phrased it more nicely than that) I would rather burn it down (or at least wait for the market to pick up again). I myself have a little bit of decency and diginity and will always offer a fair price for a fair property. I have been buying and selling most of my life and have always closed a deal where both the buyer and seller are contented with the result. This principle has always stood me well. Any old fool can try to take advantage of people but honor to me is more importand than money and "sticking" it to a person.

If you are content to hold onto a property long-term if/until prices rise then fair enough. I am not particularly interested in whether the seller is 'content' with the price or not. I want to buy at the real market price, I am not trying to make a new best friend. The glut of unsold properties indicates to me that, in general, prices must be too high for the prevailing market demand. There is one studio apartment in VT1 that has been on the market for TWO YEARS . I know of at least four big condo projects that are due for completion in the next six months, so the situation won't be changing anytime soon.

Edited December 30, 2016 by HauptmannUK

[jacko45k]

1 minute ago, JerryinTH said:

 

Still, some people aren't that desperate and 15k really doesn't buy you anything to write home about.

 

Yes of course... I have a friend with 3 condos that he wants to sell and they have been on the market a long time. He doesn't seem to mind leaving them empty and is sticking to his asking price. That said, he can get a very good rental for them this time of year. I guess the expenses involved are small, just the management fee.

I feel there will be a market for cheap 'nothing to write home about' places from our quality tourists in the area!

 

[robertthebruce]

There seems to be a glut of property's all over Thailand ....

 

nothing seems to sell....

 

i do,think there is less Foreigners Investing here......, there is DEFINETLY less Foreigners on the Streets....on Vacation....

 

just my take...

[Suitcase]

 I would think getting a nice hotel would make more sense than tying yourself

down to a condo.  Especially seeing that you don't want to stay there much.

With a condo you are tied down to one location, have money tied up, yearly condo fees, water, elec, cable, and then try to sell it when you are tired of it.

  My 2 cents worth

[AlQaholic]

Don't buy a condo in Pattaya or Jomtien, horrible places and huge oversupply.I agree with suitcase, rent! it is very cheap.

[i claudius]

Dont listen to all the doom and gloom merchant about how agents put massive amounts on the price to get more money , its bull--it , they want to sell and get their commision , if a property is vastly overpriced it will never sell , many people who own condos will not cut the price ,if it is right , if they vastly overprice it ,they also will not sell , yes there is a vast oversupply of "some" condo blocks ,but the good ones that everyone wants sell as soon as they hit the market , the wife has been selling for many many years ,if its vastly overpriced , she just does'nt bother to offer it .

most agents here who have been around for years are good and honest , that's why they are still in business , the idiots and crooks don't last .

[SaintLouisBlues]

These guys occasionally offer "Firewall" condos http://www.rightmovepattaya.com/

What's a "firewall" condo? I'm assuming you mean "fire sale"???

[Henryford]

1 hour ago, dotpoom said:

I was offered 1MB for a condo I am selling for 1.5....I told him to bugger off (phrased it more nicely than that) I would rather burn it down (or at least wait for the market to pick up again). I myself have a little bit of decency and diginity and will always offer a fair price for a fair property. I have been buying and selling most of my life and have always closed a deal where both the buyer and seller are contented with the result. This principle has always stood me well. Any old fool can try to take advantage of people but honor to me is more importand than money and "sticking" it to a person.

 

Agreed. Anything i sell is in good condition and at a fair price. I am insulted by these cheap charlie jokers who waste my time time then offer silly figures.  If they are that hard up they can rent in Nirun.

[SaintLouisBlues]

I have been buying and selling most of my life ...

In Thailand??

[HauptmannUK]

33 minutes ago, Suitcase said:

 I would think getting a nice hotel would make more sense than tying yourself

down to a condo.  Especially seeing that you don't want to stay there much.

With a condo you are tied down to one location, have money tied up, yearly condo fees, water, elec, cable, and then try to sell it when you are tired of it.

  My 2 cents worth

That's a very fair point and I tend to agree. I guess by buying a condo at a realistic price I would hope to sell it after, say, 10 years, and get back close to what I had paid (allowing for inflation). Thus I would have lived in it for 10 years at very modest cost.

[SaintLouisBlues]

That's a very fair point and I tend to agree. I guess by buying a condo at a realistic price I would hope to sell it after, say, 10 years, and get back close to what I had paid (allowing for inflation). Thus I would have lived in it for 10 years at very modest cost.

What about the "opportunity cost" of the purchase price? Might you not have got a superior return by investing that lump sum and paying rent?

[HauptmannUK]

3 minutes ago, Henryford said:

 

Agreed. Anything i sell is in good condition and at a fair price. I am insulted by these cheap charlie jokers who waste my time time then offer silly figures.  If they are that hard up they can rent in Nirun.

The nub of the matter is what is a 'fair price'. Buyer and seller might differ on this. When I see condos in 'good' buildings (e.g. VT1, 2) unsold after more than a year then I conclude that the asking price is not 'fair'.

Its not a question of being a 'Cheap Charlie', its not being a mug and paying over the market price. The market price would be one that achieves a sale within a reasonable time frame.

[JB300]

What's a "firewall" condo? I'm assuming you mean "fire sale"???

I did indeed (Damn you autocorrect)

[HauptmannUK]

9 minutes ago, SaintLouisBlues said:

What about the "opportunity cost" of the purchase price? Might you not have got a superior return by investing that lump sum and paying rent?

Yes, a very fair point. I think it would be difficult to get a 'superior' return though. I think I'd need to hit a return of 7%+ to be at an advantage by renting - all in all its quite marginal though. Really all depends on how the area develops over the coming years. If Utapao is expanded and tourism booms then buying will have been a good idea, on the other hand....