Hong Kong investors keen on Thai condos after healthy returns

[rooster59]

Hong Kong investors keen on Thai condos after healthy returns

By SOMLUCK SRIMALEE
THE NATION
HONG KONG

 

HONG KONG investors have been sinking more money into Thailand’s condominium market after enjoying returns on investment of more than 5 per cent a year, Theerapan Nunthapolpat, general manager of Siam Commercial Bank’s Hong Kong branch, said in an interview with The Nation recently.

 

“Condominium units priced between Bt5 million and Bt10 million are popular with Hong Kong investors in Thailand’s property market,” he said.

 

He added that the popular locations included Bangkok’s Sukhumvit area and tourist destinations such as Pattaya and Phuket.

 

Full story: http://www.nationmultimedia.com/news/business/property/30307894

 

 

-- © Copyright The Nation 2017-03-04

[taichiplanet]

How many HK investors have invested? " He said SCB had received a number of queries from its customers in Hong Kong about how to invest ..." That reads to me 'none at all'.

[Get Real]

It´s great to hear that there are some that get´s 5% ROI on property per year. That I can believe.
What I don´t believe is the lies from all advertisers on Internet, that guarantee 7, 10 and 13% ROI a year. Just pure scum bags.

[NCC1701A]

just curious, these are investors who have actually SOLD their condos and the return is based on the final sale price, not what you think your condo might be worth.

[Mises]

4 hours ago, NCC1701A said:

just curious, these are investors who have actually SOLD their condos and the return is based on the final sale price, not what you think your condo might be worth.

I think they mean rental income so after about 5 years or so if they sell they might just break even.

[little mary sunshine]

So all those thousands of empty Pattaya Condos

are really sold and appreciating 5% each year....Please

tell the owner of my rented condo...She has reduced the

price and has had it on the market for three years...No

takers.....

[foxboy]

Who gets excited about a 'potential' 5% yield with no/little hope of capital growth? Not me that's for sure! 

[newnative]

2 hours ago, little mary sunshine said:

So all those thousands of empty Pattaya Condos

are really sold and appreciating 5% each year....Please

tell the owner of my rented condo...She has reduced the

price and has had it on the market for three years...No

takers.....

There aren't thousands of unsold desirable condos, and those are the only type you should probably buy.

[elgordo38]

50 minutes ago, foxboy said:

Who gets excited about a 'potential' 5% yield with no/little hope of capital growth? Not me that's for sure! 

Pssst Any tips??

[elgordo38]

They better make sure that the condo comes with a good water supply for years down the road. The same with sewage and garbage. Thailand is not well known for keeping services up to date. Take a garbage tour to the southern part of the country. 

[Allstars]

12 minutes ago, newnative said:

There aren't thousands of unsold desirable condos, and those are the only type you should probably buy.

you're right about that, it's pretty difficult to find a desirable condo in Thailand

[yellowboat]

9 hours ago, taichiplanet said:

How many HK investors have invested? " He said SCB had received a number of queries from its customers in Hong Kong about how to invest ..." That reads to me 'none at all'.

Oh no, most have lost out by investing in Thailand as opposed to Hong Kong, since the early 2000's. HK property has gone through the roof.  Thailand has not gone nowhere really.  

[trogers]

Those were purchased made 3-4 years ago. Prices of new launches have gone up, and rents have come down.

 

Gross rental yield has fallen to 3-4% range...good enough to cover the forex risk...?

[Asiantravel]

I can't see this latest news helping " investor sentiment "

 

Hundreds Wanting Money Back as Huge Jomtien Project goes Bust

 

http://pattayaone.news/en/jomtien-project-goes-bust/

 

[trogers]

1 hour ago, Asiantravel said:

I can't see this latest news helping " investor sentiment "

 

Hundreds Wanting Money Back as Huge Jomtien Project goes Bust

 

http://pattayaone.news/en/jomtien-project-goes-bust/

 

Probably a 5-6 year wait for the cycle to bottom out...

[Ulic]

Sounds like an article trying to stimulate sales more than a report if investors

being happy on getting a 5% ROI. They should continue to market to the Chinese

mainlanders who are looking to diverse their investments to outside of China.

A hedge against both the Yuan and China "ghost city" second banking economy

collapse. The Greek numbers produced to join the EU were bogus and all figures

coming from the Chinese government are also extremely suspect. Anyone

in China with money is looking to park money outside China.

[jacko45k]

So this will not include the project in Jomtiem  that recently announced it had gone bankrupt?

 

[trogers]

26 minutes ago, jacko45k said:

So this will not include the project in Jomtiem  that recently announced it had gone bankrupt?

 

Only a fool would touch off the plans when thousands of completed units are seeking buyers.

[KittenKong]

21 hours ago, rooster59 said:

Hong Kong investors keen on Thai condos .....

 

Well, I'm very keen on Bollinger 1976 at GBP800 at bottle but that doesnt mean that I own any or am ever likely to.

[Asiantravel]

9 hours ago, trogers said:

Probably a 5-6 year wait for the cycle to bottom out...

and what will contribute to world economic conditions being any better in 5 to 6 years  (so that the cycle can bottom out as you say)?

Will productivity be any better, will the global debt be any less, will personal debt be any less, will there be any less jobs lost to robotics and technology, will the already 17,000 vacant units already for sale in Pattaya have been sold by then?

Edited March 5, 2017 by Asiantravel

[trogers]

18 minutes ago, Asiantravel said:

and what will contribute to world economic conditions being any better in 5 to 6 years  (so that the cycle can bottom out as you say)?

Will productivity be any better, will the global debt be any less, will personal debt be any less, will there be any less jobs lost to robotics and technology, will the already 17,000 vacant units already for sale in Pattaya have been sold by then?

Economy theory did not postulate that when supply exceed demand by a large margin, a point would be reached that owners will pay you money to take ownership of their properties...

 

I said bottoming out, but I did not predict a steep climb thereafter...

[Asiantravel]

14 minutes ago, trogers said:

Economy theory did not postulate that when supply exceed demand by a large margin, a point would be reached that owners will pay you money to take ownership of their properties...

 

I said bottoming out, but I did not predict a steep climb thereafter...

 

what if there is no climb at all ?  the Japanese real estate market has been in a bear market for more than 20 years

[Peterw42]

14 hours ago, foxboy said:

Who gets excited about a 'potential' 5% yield with no/little hope of capital growth? Not me that's for sure! 

It beats money in the bank and most share yields.

[trogers]

11 minutes ago, Asiantravel said:

 

what if there is no climb at all ?  the Japanese real estate market has been in a bear market for more than 20 years

Landed properties in suburbia have been in a bear market. Apartments and highrise in the cities recovered following fundamentals of yields.

 

The former is primarily due to negative population growth, while the latter is supported by rental demand from locals and foreigners.

[trogers]

46 minutes ago, Peterw42 said:

It beats money in the bank and most share yields.

Most people don't buy shares for their dividends, but to speculate on the knockings at the door of the greater fool...

[foxboy]

16 hours ago, elgordo38 said:

Pssst Any tips??

lower end condos give a much better return (7 - 9%)

you also have the benefit of attracting Thais as well as foreign renters

 

[foxboy]

3 hours ago, Peterw42 said:

It beats money in the bank and most share yields.

money in the bank is liquid... you try selling a condo quickly in Thailand.. you'd be very lucky to even get your money back

if I'm tying money up I definitely want more than a 'potential' (and not guaranteed) 5%

[newnative]

15 hours ago, Ulic said:

Sounds like an article trying to stimulate sales more than a report if investors

being happy on getting a 5% ROI. They should continue to market to the Chinese

mainlanders who are looking to diverse their investments to outside of China.

A hedge against both the Yuan and China "ghost city" second banking economy

collapse. The Greek numbers produced to join the EU were bogus and all figures

coming from the Chinese government are also extremely suspect. Anyone

in China with money is looking to park money outside China.

Quite a few are parking some of their money in Pattaya condos.

[newnative]

5 hours ago, foxboy said:

money in the bank is liquid... you try selling a condo quickly in Thailand.. you'd be very lucky to even get your money back

if I'm tying money up I definitely want more than a 'potential' (and not guaranteed) 5%

Yes, money in the bank is liquid and I do have some money in the bank but it only earns me a few dollars a month in interest.  Some people can play the stock market and do well but not me.  I've done better with real estate in the States and here--and, for me, looking for a good condo to buy is a lot more fun than trying to pick a good stock.  But maybe not for everyone.

[JDMCanuck]

Sorry not getting it, Return or Return on Investment (R or ROI) is only going to be healthy (apparently 5%) if:

1. Your Gross income minus Expenses (Management, Condo Fees, Taxes, Cash calls for emergencies and Maintenance Issues) = Net Income  is 5% of your Total Investment. (Even before the current crackdown on short term rentals, 5% would be impossible)

OR:

2. You sell:  and after Total Investment - Total Expenses (thats everything including your taxes in your home country, (EVERYTHING) you have a 5% return , (Inflation , I always love it when people take credit for inflation) but this can only be determined after you sell and compute ALL your expenses. The current crop of western reality TV shows always neglects to include ALL expense, but who knows, maybe this Author did. (Highly unlikely but possible) so each individual sale would have to be analyzed.