Foreign demand supporting Thai condo market, Plus Property says

[trogers]

14 minutes ago, realenglish1 said:

and that is why I would not buy in this market Too dangerous and there will be a correction  Tells you the builders do not know the market and a other reason for a correction

 

There are a lot of condos for sale from about 5 + million up to 7 million that are in that range 50 to 70 and they are not selling because they are too highly priced

Another reason for a correction To many flag polls in the market now Mark my words Its coming 

Problem is that those 50 to 70 sqm units are selling as two-bedroom units.

 

The latest wave of new launches are pushing 50-70 sqm one-bedroom units but priced at the high-end, above Bt350k per sqm.

 

I would like to see how well sales will turn out, and then the attempts to lease them out at Bt80k or higher per month...

Edited March 23, 2017 by trogers

[Thaidream]

They will not be able to lease them out at that price anywhere in Thailand.... way too much even in Bangkok.

[newnative]

23 hours ago, KittenKong said:

 

Quite a few new Pattaya/Jomtien developments are more than half sold to Thais, even the upmarket expensive places.

 

And of course in many buildings that are very popular with farangs the farangs will buy from the Thai quota via company purchases.

So true.  A popular building--and a well-designed and decorated condo within the building--is desirable for both Thai and non-Thai.  I've sold 3 condos to Thais and I don't agree with the belief that Thais will not buy a 'used' condo. 

[newnative]

19 hours ago, KittenKong said:

 

Lumpini beach and Baan Plai Haad are two examples of recently completed buildings that had no shortage of farang quota when I checked a few months ago.

Correct.  And, for NoBrainer and all the others who have stated that there are 'thousands' of unsold condos in Pattaya, I will reply that there are not thousands of unsold condos in well-located, well-developed  condos that offer seaviews.   Baan Plai Haad is nearly sold-out. Lumpini Park Beach has some units left but has been very successful, too, with many Thai buyers.  The Base has only a few units left.  Unixx, Zire, Cetus, and The Palm are all doing ok.  If a condo has many unsold units, it likely shouldn't have been built in the first place.  And, unsold units at undesirable Condo X doesn't mean that prices will fall at highly desirable Condo Y. 

[trogers]

23 minutes ago, newnative said:

Correct.  And, for NoBrainer and all the others who have stated that there are 'thousands' of unsold condos in Pattaya, I will reply that there are not thousands of unsold condos in well-located, well-developed  condos that offer seaviews.   Baan Plai Haad is nearly sold-out. Lumpini Park Beach has some units left but has been very successful, too, with many Thai buyers.  The Base has only a few units left.  Unixx, Zire, Cetus, and The Palm are all doing ok.  If a condo has many unsold units, it likely shouldn't have been built in the first place.  And, unsold units at undesirable Condo X doesn't mean that prices will fall at highly desirable Condo Y. 

Sold out or booked?

 

Tell us again when it is time to transfer the title deeds. Easy to get queues to book units with low down payments and lucky draws...

[KittenKong]

23 minutes ago, trogers said:

Sold out or booked?

 

Tell us again when it is time to transfer the title deeds. Easy to get queues to book units with low down payments and lucky draws...

 

Lumpini Beach, Baan Plai Haad and the Base are all built and finished.

 

Of course that isnt to say that there is no oversupply in the Pattaya area and that there arent many unsold or resale units in various buildings. But there really are some buildings here that are overwhelmingly popular with Thais.

 

Edited March 24, 2017 by KittenKong

[12DrinkMore]

19 hours ago, trogers said:

Why would he be giving it away free? Say he is getting Bt50,000 in rental income a year. The selling price would then be Bt800,000.

 

This is the investment method of valuation. The asset is only worth as much as the returns it can generate.

 

Averaged over the 12 years he has owned the place the amount of net income after costs has been around zero.

 

He is now bored with it and would be happy to get 70% of the new price. 

 

 

[newnative]

7 hours ago, trogers said:

Sold out or booked?

 

Tell us again when it is time to transfer the title deeds. Easy to get queues to book units with low down payments and lucky draws...

All the condos I mentioned I think are at least 80% sold, not booked.  Some are more than 90%. These are all relatively new condos so I would call that successful.   With Cetus, The Base, Lumpini Park Beach, Baan Plai Haad, and, another successful condo I didn't mention, Centric Sea, the time to transfer the title deeds has passed.  Unsold bookings were returned to the developer to be resold.  For example, The Base, which was 'sold out' during construction, opened around last March and buyers had to either buy or return their bookings. The Base ended up with I think around 300 units to resell.  Most of those have now been sold.  I think Unixx bookers are approaching their deadline.  I'm not sure about transfer dates for The Palm or Zire as I'm not that interested in that area but having been to their sales offices I think sales for both have been at least ok.   Whether a building is 'sold out' is not that important in determining whether a building is successful or popular.  View Talay 5 is both successful and popular but it still has units for sale.   It's important to remember that even though there may be 'thousands' of unsold condos, they are not all in one condo complex, and certainly not in any condo complex that I would consider desirable.  There are lots of condo complexes and most have some unsold units.  When you add them all up you may get to that 'thousands unsold' number--but it doesn't mean much when you are talking about a specific condo complex.  View Talay 5's unsold condos don't really effect the sale prices of the rest of the units.  What mostly effects the price there is view, position in the building, foreign name, and condition of the condo.  And, the unsold condos at that 'theme park' condo complex out in the boonies have no effect on the price for a high floor seaview condo in a desirable location. 

[hawker9000]

'One born every minute...

 

'Soon to swell the ranks of the over-invested apologist brigade hereabouts...

 

[funandsuninbangkok]

Fake property propaganda. Market is dead as a doorknob. Check real estate listings. Same properties listed. Prices going down. 

 

Thais were hoping for Chinese money but the Chinese government shut that door six months ago. 

 

Used to be able to count on Hong Kong, Sjng, or Russian money but they got burned and fled long ago to Aus, US and UK markets. 

 

Rent in Thailand and put your money somewhere else. 

[KittenKong]

On 24/03/2017 at 5:13 PM, newnative said:

With Cetus, The Base, Lumpini Park Beach, Baan Plai Haad, and, another successful condo I didn't mention, Centric Sea, the time to transfer the title deeds has passed.  Unsold bookings were returned to the developer to be resold.  For example, The Base, which was 'sold out' during construction, opened around

last March and buyers had to either buy or return their bookings. The Base ended up with I think around 300 units to resell.  Most of those have now been sold.

 

I had a look at the Base a week or two after the launch and was told then that it was sold out. I wondered at the time how many people would still be in after the time came to pay real money. I seem to remember that Thais only had to stump up 5,000B initially. Given the location it was obviously going to be in some demand, though the units certainly are not to my taste.

[newnative]

2 hours ago, funandsuninbangkok said:

Fake property propaganda. Market is dead as a doorknob. Check real estate listings. Same properties listed. Prices going down. 

 

Thais were hoping for Chinese money but the Chinese government shut that door six months ago. 

 

Used to be able to count on Hong Kong, Sjng, or Russian money but they got burned and fled long ago to Aus, US and UK markets. 

 

Rent in Thailand and put your money somewhere else. 

On the other hand, I sold a condo in October 2016 to a gentleman from Singapore so I guess they haven't all fled.  Sold a condo last month to a Thai gentleman so maybe Thai buyers shouldn't be overlooked.  But, by all means, do continue to rent--I have a condo I rent out and I am glad there are plenty of renters!

[funandsuninbangkok]

On 3/25/2017 at 7:33 AM, newnative said:

On the other hand, I sold a condo in October 2016 to a gentleman from Singapore so I guess they haven't all fled.  Sold a condo last month to a Thai gentleman so maybe Thai buyers shouldn't be overlooked.  But, by all means, do continue to rent--I have a condo I rent out and I am glad there are plenty of renters!

Yes,  you have 800 posted and all claim the real estate market is great and you are selling condos like crazy. 

 

Me think you protest too much. 

[newnative]

10 minutes ago, funandsuninbangkok said:

Yes,  you have 800 posted and all claim the real estate market is great and you are selling condos like crazy. 

 

Me think you protest too much. 

Well, a little more protest.  Obviously, you haven't read any of my posts except the one that responded to your post.  If you had read them, you would find that they aren't all about real estate.  You would find that I have said a number of times that renting is the better option for a lot of people--especially short-timers.  You would find that I have mentioned what I think are some of the advantages of owning rather than renting but I have never encouraged anyone to go out and buy a condo.  You would find that I have written more than once that if someone is thinking of buying a condo, it's very important to do the homework, to take time, and to try to buy wisely.  You would find that in some of my posts I have tried to relay mistakes that I have made with condo buys so someone else doesn't maybe make the same mistake.  For example, I posted a bad experience with a small, inexperienced  condo builder so now I try to buy from large, established developers with a good track record.  You would find that a lot of my posts--like my response to yours--are presenting another side to an issue--which all readers are welcome to take or leave.  You said all the buyers have fled and the market is 'dead as a doorknob'--but offered no real evidence.  I'm simply saying that is not my experience.  Seems like the whole point of this forum is to get different points of view, different experiences--and I think that's what makes it interesting. 

[funandsuninbangkok]

Ops Russians ripped off again. Guess they won't be buyin

 

 

 

 

 

[trogers]

Those projects hoping on swarms of Chinese buyers would have to wait quite a few more years...

 

http://m.scmp.com/news/china/policies-politics/article/2080433/how-chinas-overseas-property-dream-turned-nightmare

[funandsuninbangkok]

On 4/1/2017 at 2:15 AM, trogers said:

Those projects hoping on swarms of Chinese buyers would have to wait quite a few more years...

 

http://m.scmp.com/news/china/policies-politics/article/2080433/how-chinas-overseas-property-dream-turned-nightmare

At least they can report it. Hardly ever hear Thai press report fraud or crisis in Thai property market. Too dependent on ad money. For example this story

 

http://m.hindustantimes.com/world-news/bbc-journalist-faces-5-years-in-thailand-jail-for-reporting-phuket-property-scam/story-XncxoNYPjifMieCiNogu0N.html

 

 

[funandsuninbangkok]

Well this can't help the market

 

https://www.google.co.th/amp/s/www.policyforum.net/off-cliff-collapse-japanese-investment-thailand/amp/

 

 

[trogers]

2 hours ago, funandsuninbangkok said:

Well this can't help the market

 

https://www.google.co.th/amp/s/www.policyforum.net/off-cliff-collapse-japanese-investment-thailand/amp/

 

 

That's why they are desperate for foreign buyers...

[Ijustcashier]

On the other hand, I sold a condo in October 2016 to a gentleman from Singapore so I guess they haven't all fled.  Sold a condo last month to a Thai gentleman so maybe Thai buyers shouldn't be overlooked.  But, by all means, do continue to rent--I have a condo I rent out and I am glad there are plenty renters!

Have to agree. Farang love to rent. As long as you have a condo in a farang area eg Nana then you really are set.
Keep renting guys puleeez [emoji3]

[just.a.thought]

Very few projects have sold out in Pattaya when you consider the number of units that goes back to the developer when the buyer can't come up with the final payment. Over the years 2016 and 2017 almost 40.000 units will be transferred to the buyers a lot of these units were sold to Russians who's economy and currency has not had the best of days. Many units were bought for resale, this will be difficult,until the developers have unloaded their units close to pre-launch prices. A lot of the buyers,of investment units,planned on selling before the final payments were due. Now they dump the price or default on the payments.
Another sector is the rental guarantee, what will happen when the government begins to crack down on short term rental? Almost none of the projects have a hotel license! The increased number of private units that are coming on the market this year will have a huge impact on the rental market,there has already been a drop in rental prices and it will continue. It will be very difficult if not impossible to honor the rental guarantee, maybe that is why in many cases the rental guarantee is in a separate company name.
The real estate market in Pattaya has not yet hit the rock bottom but it won't be long, I know people have been saying this for many years so what is different now? The number of completed units available this year and next year.
The bright side, over the next couple of years there will be many great deals to be had for the cash strong.


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[Ijustcashier]

Very few projects have sold out in Pattaya when you consider the number of units that goes back to the developer when the buyer can't come up with the final payment. Over the years 2016 and 2017 almost 40.000 units will be transferred to the buyers a lot of these units were sold to Russians who's economy and currency has not had the best of days. Many units were bought for resale, this will be difficult,until the developers have unloaded their units close to pre-launch prices. A lot of the buyers,of investment units,planned on selling before the final payments were due. Now they dump the price or default on the payments.
Another sector is the rental guarantee, what will happen when the government begins to crack down on short term rental? Almost none of the projects have a hotel license! The increased number of private units that are coming on the market this year will have a huge impact on the rental market,there has already been a drop in rental prices and it will continue. It will be very difficult if not impossible to honor the rental guarantee, maybe that is why in many cases the rental guarantee is in a separate company name.
The real estate market in Pattaya has not yet hit the rock bottom but it won't be long, I know people have been saying this for many years so what is different now? The number of completed units available this year and next year.
The bright side, over the next couple of years there will be many great deals to be had for the cash strong.


Sent from my iPad using Thaivisa Connect

OMG how nieve can you be? The rental returns are "guaranteed" because they are factored into the price lol

Short term rental are considered less than thirty days and have always been illegal. Even if you your condo stayed empty it wouldn't matter because you already paid the rental in the purchase price

Think of it like buying a car at zero finance for first 12 months, who you think pays for that? The dealer, the bank.. Or... YOU!

[funandsuninbangkok]

7 hours ago, Ijustcashier said:

Have to agree. Farang love to rent. As long as you have a condo in a farang area eg Nana then you really are set.
Keep renting guys puleeez

Yes, you must be another Thai real estate magnate. Are some of your mansions listed amongst the 10,000 units for sale now in Nana? Yep, 10,000 listed on Ddproperty within half a klick to BTS. 

 

Shrewd. 

Edited April 11, 2017 by funandsuninbangkok

[just.a.thought]

OMG how nieve can you be? The rental returns are "guaranteed" because they are factored into the price lol

Short term rental are considered less than thirty days and have always been illegal. Even if you your condo stayed empty it wouldn't matter because you already paid the rental in the purchase price

Think of it like buying a car at zero finance for first 12 months, who you think pays for that? The dealer, the bank.. Or... YOU!

Even with a rental guarantee you still have to come up with the full price. There is no such thing as a rental guarantee per se the provider of the guarantee is often a separate company, why do you think that is? it's so that it can go bankrupt without affecting the developer. And no the rental guarantee is not automatically factored into the price and set aside to be paid later as a rental income to the buyer. Do your homework before you call anybody naïve....


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[funandsuninbangkok]

2 minutes ago, just.a.thought said:

Even with a rental guarantee you still have to come up with the full price. There is no such thing as a rental guarantee per se the provider of the guarantee is often a separate company, why do you think that is? it's so that it can go bankrupt without affecting the developer. And no the rental guarantee is not automatically factored into the price and set aside to be paid later as a rental income to the buyer. Do your homework before you call anybody naïve....


Sent from my iPad using Thailand Forum - Thaivisa mobile app

Yes, why would anyone have problems sleeping with a guarantee from a Thai developer(from Pattaya no less) under their pillow?

 

Good as gold. Sleep tight. 

[trogers]

4 hours ago, funandsuninbangkok said:

Yes, you must be another Thai real estate magnate. Are some of your mansions listed amongst the 10,000 units for sale now in Nana? Yep, 10,000 listed on Ddproperty within half a klick to BTS. 

 

Shrewd. 

Don't worry. There are still Arabs and Indians favouring Nana...

[funandsuninbangkok]

1 hour ago, trogers said:

Don't worry. There are still Arabs and Indians favouring Nana...

Alla Akbar!