It's official - Thai real estate bubble pops.

[funandsuninbangkok]

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

 

 

[blackcab]

One project failing does not mean real estate prices are going to crash and burn.

 

This isn't the first project that has collapsed, and it won't be the last.

 

Many members of this forum have said time and time again - don't buy off plan.

[funandsuninbangkok]

Sixth element project by fragrant - jomtien- canceled

 

thats 2 projects 

 

not just 1

[bangkokorbust]

Yawn
Zzzzzzzz

[trogers]

The bubble had burst in Pattaya and Phuket since a few years ago. What is reported now is that final wave of development.

 

The coming real estate show would be the final wave for Bangkok...

[bangkokorbust]

Hong Kong investors keen on Thai condos after healthy returns

When Hong Kong real estate investors invest heavily in Thailand, TV posters should take note they do no a bit about real estate [emoji16]

It's an international article, not local

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

[trogers]

16 minutes ago, bangkokorbust said:

Hong Kong investors keen on Thai condos after healthy returns

When Hong Kong real estate investors invest heavily in Thailand, TV posters should take note they do no a bit about real estate

It's an international article, not local

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


 

Such news would be seen in the 'end of days' like Armageddon...

[bangkokorbust]

Such news would be seen in the 'end of days' like Armageddon...

Don't be silly. Hong Kong investors are choosing thailand as its an emerging market.
They saw how quickly there own grew. OUTSTANDING article. It's no wonder new condo prices especially along lower Sukhumvit have exploded in the last 5 years

Farang have shot themselves in the foot..missed it altogether [emoji46]

[trogers]

 

39 minutes ago, bangkokorbust said:

Don't be silly. Hong Kong investors are choosing thailand as its an emerging market.
They saw how quickly there own grew. OUTSTANDING article. It's no wonder new condo prices especially along lower Sukhumvit have exploded in the last 5 years

Farang have shot themselves in the foot..missed it altogether

I am not debating on investing in an emerging market. I, myself, have acquired 5 condo units in Bangkok.

 

The debate is on the timing.

 

A recent ad on the street of two of my largest units made me smile:

 

Selling price - Bt6.8m

Asking rent - Bt35,000

Studio - 26 sqm

 

Rental yield calculations of investment analysis must be based on realistic rents. The 5-yo project across the road are offering 40+ sqm 1-bedroom at Bt35,000 and duplex at Bt40,000.

 

Edited March 6, 2017 by trogers

[funandsuninbangkok]

CBRE Q4 2016 Bangkok report. Rents at 2007 levels. 

 

Hard to justify price increase if rents at 10 year ago levels

 

same report - Q House Sukhumvit Soi 6 just 20% sole after two years of marketing 

 

same source 85% of buyers are Thai looking to rent.  Now stuck with empty apartments. 0% yield 

 

prices exploded?  Maybe in your face

Edited March 6, 2017 by funandsuninbangkok

[trogers]

1 hour ago, funandsuninbangkok said:

CBRE Q4 2016 Bangkok report. Rents at 2007 levels. 

 

Hard to justify price increase if rents at 10 year ago levels

 

same report - Q House Sukhumvit Soi 6 just 20% sole after two years of marketing 

 

same source 85% of buyers are Thai looking to rent.  Now stuck with empty apartments. 0% yield 

 

prices exploded?  Maybe in your face

While rents are at 10 years ago, prices at Bt/sqm has double to triple in this same period. Thus, rental yield has fallen by more than half...

[bangkokorbust]

Rents in our complex lower Sukhumvit have been steadily climbing just as they should be.
Those Hong Kong investors are no fools.. It's practically a hot tip! And then we have errrm the TV bar stool real estate evaluators. Who to go with? Lol

[trogers]

Must be the only complex in a 5 km radius with no other competitors...?

 

What I do see is that overpriced units do get tenants, but they move out after the first year because they would no longer be green to the market. Owners of such units would face void periods of a few months and broker fee again.

 

No building is an island. You can double your asking rent and sit and wait.

[bangkokorbust]

Must be the only complex in a 5 km radius with no other competitors...[emoji38]

 

What I do see is that overpriced units do get tenants, but they move out after the first year because they would no longer be green to the market. Owners of such units would face void periods of a few months and broker fee again.

 

No building is an island. You can double your asking rent and sit and wait.

There you are jumping on every thread talking it all down whilst pretending to own 5 bangkok condos.. What's up with that? Lol

An international publication acknowledged heavy investment from Hong Kong investors today.. These got it right big time once already.. Like myself they are ecstatic with rent returns. Hong Kong investors are no fools so dude sit up and listen, or better still go out and buy something small for your first project, near a Bts if you have the cash

If you are sure that rent hasn't gone up since 2007 then it's at bottom of the curve.. Only way is up.. You should be buying with ears pinned

Seriously you won't burst the bubble on your own. But hey knock yourself out

[trogers]

29 minutes ago, bangkokorbust said:

There you are jumping on every thread talking it all down whilst pretending to own 5 bangkok condos.. What's up with that? Lol

An international publication acknowledged heavy investment from Hong Kong investors today.. These got it right big time once already.. Like myself they are ecstatic with rent returns. Hong Kong investors are no fools so dude sit up and listen, or better still go out and buy something small for your first project, near a Bts if you have the cash

If you are sure that rent hasn't gone up since 2007 then it's at bottom of the curve.. Only way is up.. You should be buying with ears pinned

Seriously you won't burst the bubble on your own. But hey knock yourself out

So says the agent looking for that 3% commission...

[funandsuninbangkok]

11 hours ago, trogers said:

Such news would be seen in the 'end of days' like Armageddon...

 

11 hours ago, bangkokorbust said:

Hong Kong investors keen on Thai condos after healthy returns

When Hong Kong real estate investors invest heavily in Thailand, TV posters should take note they do no a bit about real estate

It's an international article, not local

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


 

Article is from the Nation not an international article. More PR for Thai development companies. 

 

Every corner on Sukhumvit has projects or ads for projects. All offering discounts, free funiture, saw one offering a car. 

 

If you can't trust your own eyes, just keep em closed and get a long white stick and a kareoke machine. 

[trogers]

2 hours ago, bangkokorbust said:

There you are jumping on every thread talking it all down whilst pretending to own 5 bangkok condos.. What's up with that? Lol

An international publication acknowledged heavy investment from Hong Kong investors today.. These got it right big time once already.. Like myself they are ecstatic with rent returns. Hong Kong investors are no fools so dude sit up and listen, or better still go out and buy something small for your first project, near a Bts if you have the cash

If you are sure that rent hasn't gone up since 2007 then it's at bottom of the curve.. Only way is up.. You should be buying with ears pinned

Seriously you won't burst the bubble on your own. But hey knock yourself out

Yes, I do own 5 condo units acquired in 2007-8. That was my foresight and comparing them to prices today, I got them at half the price and double the area...?

 

I look at the fundamentals of rental yield, and at today's prices, the yield is approaching those of HK and Singapore - 3%+, so why invest here at this time?

 

When rent has remained flat since 2007, it can go up or down, depending whether we are in a valley or a plateau of a peak. A valley would mean we are at the bottom of a property cycle? Are we, when we have been seeing vacant units all around, with more being added every quarter?

 

So, why am I talking the market down? First, I am not selling my units that are giving me 7-8% yield. My plan has always been to keep them through at least a cycle, and sell them at the next peak.

 

And second, prices have deviated from the fundamentals too much, and given the appearance of failing projects in Pattaya and Phuket, banks are pulling back credit lines in face of a rising risk.

 

I call it as I see it.

[theguyfromanotherforum]

6 hours ago, bangkokorbust said:

There you are jumping on every thread talking it all down whilst pretending to own 5 bangkok condos.. What's up with that? Lol

An international publication acknowledged heavy investment from Hong Kong investors today.. These got it right big time once already.. Like myself they are ecstatic with rent returns. Hong Kong investors are no fools so dude sit up and listen, or better still go out and buy something small for your first project, near a Bts if you have the cash

If you are sure that rent hasn't gone up since 2007 then it's at bottom of the curve.. Only way is up.. You should be buying with ears pinned

Seriously you won't burst the bubble on your own. But hey knock yourself out

 

 

I am sorry.... what international publication?

 

I have looked several times and everyone involved in this story is Thai or has relations with Thailand real estate.

 

Bangkok condos are certainly expensive. At some point the "Hong Kong" investor will realize that buying in a first world country makes more financial sense.

 

I highly doubt claims in the above article. 

 

Just my opinion.

 

 

 

 

[bangkokorbust]

 

 

I am sorry.... what international publication?

 

I have looked several times and everyone involved in this story is Thai or has relations with Thailand real estate.

 

Bangkok condos are certainly expensive. At some point the "Hong Kong" investor will realize that buying in a first world country makes more financial sense.

 

I highly doubt claims in the above article. 

 

Just my opinion.

 

 

 

 

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

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.

Thailand is attractive to these investors because condominium prices in the Kingdom are lower than in Hong Kong residential projects.

In Hong Kong, condominiums are priced between 10,000 and 40,000 Hong Kong dollars per square foot, which translates to about Bt450,000 to Bt1.8 million per square metre. But in Thailand, normally prices in the mid-to-upper-range segment are Bt150,000-Bt250,000 per square metre. The highest-priced luxury condominium in Thailand is now Bt550,000 per square metre, for the fully furnished 98 Wireless project. 

Theerapan said lower interest rates in Hong Kong had also encouraged many investors there to look for ways to generate higher returns. Investing in condominiums in Thailand is a good choice when the return on investment for a rental property averages 5-6 per cent a year, much better than interest rates of only 0.02 per cent in Hong Kong.

He said SCB had received a number of queries from its customers in Hong Kong about how to invest in condominiums in the Kingdom after Thai property firms had brought roadshows to the city.

Sansiri president Srettha Thavisin said the company had successfully sold its condominiums in Hong Kong, Taiwan, Singapore and mainland China after starting to market its |projects overseas three years |ago.

This year, Sansiri targets sales of its condominiums to foreign buyers to be worth Bt7.5 billion out of its total presale target of Bt36 billion for 2017.

“We see strong demand from Hong Kong investors interested in buying condominiums in [bangkok’s] central business district, especially Sukhumvit Road, focusing on condos priced at no more than Bt10 million. 

“All of them also buy our projects with cash. They also need a property-management service if they open their condos for rental, which generates a return on investment averaging 5-8 per cent a year,” he said.

According to research by property agency Knight Frank Thailand, Hong Kong investors are interested in buying luxury condominiums in Bangkok as a business opportunity to generate high returns for the long term.

Frank Khan, executive director and residential head of Knight Frank Thailand, said 2016 was another outstanding year for Bangkok’s prime and super-prime condo market, with strong demand and high price growth despite the spillover effect from the slowing economy.

On the supply side, developers with land banks in prime areas found the segment to be more suitable for development, which could generate higher-than-average returns on plots with higher land-acquisition costs.

On the demand side, buyers in this segment were mostly affluent individuals who do not rely on home loans. There is a lot of demand from Hong Kong buyers in this segment,

[http://lvs]

[theguyfromanotherforum]

Again....What international publication?

[bangkokorbust]

 

 

I am sorry.... what international publication?

 

I have looked several times and everyone involved in this story is Thai or has relations with Thailand real estate.

 

Bangkok condos are certainly expensive. At some point the "Hong Kong" investor will realize that buying in a first world country makes more financial sense.

 

I highly doubt claims in the above article. 

 

Just my opinion.

 

 

 

 

[bangkokorbust]

Meant international article

[trogers]

1 hour ago, bangkokorbust said:

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

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.

Thailand is attractive to these investors because condominium prices in the Kingdom are lower than in Hong Kong residential projects.

In Hong Kong, condominiums are priced between 10,000 and 40,000 Hong Kong dollars per square foot, which translates to about Bt450,000 to Bt1.8 million per square metre. But in Thailand, normally prices in the mid-to-upper-range segment are Bt150,000-Bt250,000 per square metre. The highest-priced luxury condominium in Thailand is now Bt550,000 per square metre, for the fully furnished 98 Wireless project. 

Theerapan said lower interest rates in Hong Kong had also encouraged many investors there to look for ways to generate higher returns. Investing in condominiums in Thailand is a good choice when the return on investment for a rental property averages 5-6 per cent a year, much better than interest rates of only 0.02 per cent in Hong Kong.

He said SCB had received a number of queries from its customers in Hong Kong about how to invest in condominiums in the Kingdom after Thai property firms had brought roadshows to the city.

Sansiri president Srettha Thavisin said the company had successfully sold its condominiums in Hong Kong, Taiwan, Singapore and mainland China after starting to market its |projects overseas three years |ago.

This year, Sansiri targets sales of its condominiums to foreign buyers to be worth Bt7.5 billion out of its total presale target of Bt36 billion for 2017.

“We see strong demand from Hong Kong investors interested in buying condominiums in [bangkok’s] central business district, especially Sukhumvit Road, focusing on condos priced at no more than Bt10 million. 

“All of them also buy our projects with cash. They also need a property-management service if they open their condos for rental, which generates a return on investment averaging 5-8 per cent a year,” he said.

According to research by property agency Knight Frank Thailand, Hong Kong investors are interested in buying luxury condominiums in Bangkok as a business opportunity to generate high returns for the long term.

Frank Khan, executive director and residential head of Knight Frank Thailand, said 2016 was another outstanding year for Bangkok’s prime and super-prime condo market, with strong demand and high price growth despite the spillover effect from the slowing economy.

On the supply side, developers with land banks in prime areas found the segment to be more suitable for development, which could generate higher-than-average returns on plots with higher land-acquisition costs.

On the demand side, buyers in this segment were mostly affluent individuals who do not rely on home loans. There is a lot of demand from Hong Kong buyers in this segment,

[http://lvs]

I like the claims...

 

This year...target sales of...

return of investment of 5, 6, 7 and 8%...?

 

While prices per sqm in HK is more expensive than Bangkok, their rental values are correspondingly higher too.

 

I paid Bt22.5m for a 40 sqm in Singapore 5 years ago and have been renting it out for Bt75,000 a month.

 

At this year's prices in Bangkok, I would have to pay half of that to collect Bt35,000 a month.

[funandsuninbangkok]

Market mort

 

http://campaigns.colliers.com.au/collect/click.aspx?u=/G1GTPto3VUlLccYk7E2sKUfM57pNy/osPFE4iN9n9+PbWInv2RVQkMDZ9e6L7xYRIxfYmr1GRJGiu5A4WmpQEP6VE1AXAZIQPniHD01e7nueatY+itW8HLeTV2j9snp&rh=ff00a53e27291a692d4c6bde4943ab9ce27eb413

 

[Gulfsailor]

As long as interest rates in developed countries stay very low, foreign money will continue to flow into the Thai property market. There is just too much money in the world, and the kinds of 'safe' investments with any meaningful return are very limited. But watch what will happen as soon as the interest rates in the 'West' go up to levels reaching rental returns in Thailand...

[theguyfromanotherforum]

4 hours ago, Gulfsailor said:

As long as interest rates in developed countries stay very low, foreign money will continue to flow into the Thai property market. There is just too much money in the world, and the kinds of 'safe' investments with any meaningful return are very limited. But watch what will happen as soon as the interest rates in the 'West' go up to levels reaching rental returns in Thailand...

 

Sorry, I lost you.

 

Why would low interest rates in developed countries have any effect on Thai real estate market?

 

Wouldn't low interest rates encourage local real estate investment instead of investing in a third world country?

 

I apologize if I come as bit arrogant.... I do think real estate investment is one of the best places you can put your money at this point in time. I just don't think Thailand and especially Bangkok is a good place to do so. 

 

I also still don't understand how is Nation article an international article. Haven't seen a single HK connection except some Thai bank manager/promoter located in HK. It is very unfair to compare HK market which is second most expensive in the world to Thai market and assume HK residents will somehow invest in Thailand when they can't even live here. There are countries like Canada that will accept them and their families with open arms and provide a free healthcare. Why would a massive HK population invest here? It doesn't make any sense.

 

BTW, I did buy a smallish condo in Toronto in 2010 and everyone called me an idiot, so I know how it feels. Meanwhile the prices in Toronto in the 6 months alone rose astounding 20%. It has come to a point that there is actual lack of inventory and everyone is blaming those pesky foreigners for being priced out forever.

 

So, I don't know. Maybe I am not seeing something here. Thailand certainly has the advantage of low carry costs and no tax on property, so.....

 

 

 

 

 

 

 

 

[funandsuninbangkok]

Pretty easy to find a 7+ % yield 

 

no transaction cost, minimal maintenance 

 

http://www.dividend.com/dividend-stocks/reits-dividend-stocks.php

 

why get stuck unplugging drains when you can have pros do it?

[Allstars]

2 minutes ago, funandsuninbangkok said:

Pretty easy to find a 7+ % yield 

 

no transaction cost, minimal maintenance 

 

http://www.dividend.com/dividend-stocks/reits-dividend-stocks.php

 

why get stuck unplugging drains when you can have pros do it?

Do they also guarantee that at the end of the year, or whenver you want to sell them, that you get the at least same price as you paid?

[trogers]

14 minutes ago, Allstars said:

Do they also guarantee that at the end of the year, or whenver you want to sell them, that you get the at least same price as you paid?

Probably cyclical like real properties...

 

Only difference is that you own a promise on a piece of paper, and hope the business don't go belly up.

[funandsuninbangkok]

16 minutes ago, Allstars said:

Do they also guarantee that at the end of the year, or whenver you want to sell them, that you get the at least same price as you paid?

Why would they do that ?