Want a home in Thailand? You have 450,000 empty ones to choose from

[Nereus]

Want a home in Thailand? You have 450,000 empty ones to choose from

https://property.bangkokpost.com/news/1 ... recent_box

A glut of condominiums as Thailand’s economy wavers and stricter mortgage-lending rules kick in is creating a buyer’s market in Bangkok.

Some 65,000 new apartments were added to the city last year, an 11% increase over 2017 and the most since 2009. Demand, however, is tepid with developers reporting take-up rates of just 55% and average asking prices decreasing 6% year-on-year, a Knight Frank report shows.

It’s a chance to get into the market as home builders look to clear excess stock at lower prices, according to Aliwassa Pathnadabutr, a managing director of CBRE Group in Thailand.

“The overall condominium market will be slower this year but there are still opportunities in some locations with the right product at the right price,” she said. “We believe the market is entering an equilibrium stage where prices will be adjusted to a more realistic level.”

The Finance Ministry cut its economic growth forecast last month, predicting the slowest expansion in three years as the country grapples with moderating exports and heightened political risk after disputed elections. Revised mortgage-lending rules that came into effect in April may also limit the appeal of real estate because they restrict how much money some second-home buyers can borrow.

Bangkok is also being impacted by a drop in Chinese visitors. Chinese investors have historically made up the bulk of foreign property buyers in Thailand but their presence has waned as China’s economy slows and capital controls limit outflows.

CBRE said in a 2019 real estate market outlook report that it was concerned about Thailand’s high reliance on foreigners. “Most of the recent foreign buyers are investors and CBRE doubts they will live in the units they have bought. Foreign sales are highly sensitive to economic conditions of the buyer’s home country.”

And it isn’t just Bangkok that’s hurting. A total of 454,814 residential units across the country were left unsold last year, with a value of $41 billion, according to Sopon Pornchokchai, president of the Agency for Real Estate Affairs.

Still, Knight Frank at least believes the glut and falling prices may be short lived, citing Bangkok’s resilience and planned infrastructure projects that will renew the city.

“Ask anyone who’s been in property how many times they’ve heard the bubble will burst?,” the firm’s Bangkok-based head of residential, Frank Khan, said. “I’ve heard this more than 10 times, but in my last 15 years, it’s never burst.”

[brianks]

How do they come up with these numbers when there is no central agency or organization that tracks listings. Do they consult the voodo gods or just plain guess?

[buksida]

Prolly the same people that come out with TAT's tourist numbers.

There has to be at least 5,000 houses for sale in Hua Hin - I'd hate to have to shift one myself, go down any soi and count the signs.

[dundrillin]

If you count all the unsold condos in Cha Am/ HuaHin I think 90% would be in the monstrosity called energy.

My house was up for sale recently and I got 2 very good offers. My feeling is if you have a good house in a good area and it is presented well it will sell.

[VincentD]

A Singapore friend sent me this the article, think he was interested. I told him the definition of 'condo' in Thailand is very different to what it would be expected to be in Singapore.

[Stargeezer]

I still see houses being built around Hua Hin area, yet many other properties are only partial developed, or worse, built but never lived in. I guess that is Thai development logic.
My wife has warned me not to buy, before her family can check things out. It has been
great advice.
Geezer

[oakdale160]

Ever tried talking to even educated, middle class Thais about, Stocks, Bonds, GICs. Pension Plans etc etc--theirv eyes glaze over. Only property is recognised as a desired assett.

[dtaai-maai]

Ever tried talking to even educated, middle class Thais about, Stocks, Bonds, GICs. Pension Plans etc etc--their eyes glaze over.

Oh come off it, Thais aren't the only ones who'd think you were a boring old fart!

[handdrummer]

Ever tried talking to even educated, middle class Thais about, Stocks, Bonds, GICs. Pension Plans etc etc--theirv eyes glaze over. Only property is recognised as a desired assett.

Don't forget Gold.