Certain developers reach where they want to be after several successful projects and then diversify their business, by going into the rental business and obtaining the proceeds of that.
Many developers I know have the same game plan.
Believe me or not (I couldn't give a monkey's) but the period from January to now has never been busier in the past two and a half years that I have known it (I'm not speaking on behalf of all companies).
Those hoping for a 'crash' in the market and a drop in prices will be dissapointed.
IMHO the longer you hold out, the more you will pay for your house in the future.
Recently there has been maybe 3 or 4 major construction/development companies from Bangkok start 100 house projects. These are serious companies whose directors are well connected and will know people in government etc.
Do you really think they would come here and commence multi-billion Baht projects if it was all going to stop soon due to some new law change. Nah, don't think so.
*removes his rose tinted glasses*
Love Burger
Tales of Woe effecting the Economy, Where will it End????
According to the below report from The Nation, housing purchase has declined 10% for Q1 Year on Year. If the BOT go ahead with even a .5% rate reduction, I think the current drop can be considered a blip only.
Whilst the effect of Foreign purchasers of residential properties might be considered miniscule (but signficantly higher in HH), I think the annoucemnet of the relaxation of voting rights for foreign companies (also issued today) will help to resolve the nervous feeling of some potential foreign purchasers.
ECONOMY
Pressure mounts for large rates cut
Industry leaders warn confidence, spending badly need stimulating
The central bank is under pressure to slash its policy rate by as much as 100 basis points at tomorrow's Monetary Policy Committee meeting.
The private sector wants to see a swift revival in investor and consumer confidence after delays in spending decisions amid a murky economic and political climate.
The call came at a seminar yesterday, which heard speculation the Bank of Thailand committee will cut the rate by 50 basis points only.
Companies said a half-a-percentage-point cut had been discounted and would not be fully effective in encouraging investment and spending.
The current policy rate is 4.5 per cent.
Prateep Tangmatitham, president of property developer Supalai Plc, told a Money and Wealth magazine seminar consumer confidence would be restored quickly if the central bank cut its policy rate by a full percentage point.
He said every percentage-point cut boosted spending power by 11 per cent and would reduce business operating costs, too.
Prateep said housing demand dropped by about 10 per cent in the first quarter of this year compared with the same period in 2006.
The 2007 minimum lending rate has been an average 7.56 per cent, significantly more than the 5.93 per cent of 2006. In addition, lower demand was being exacerbated by stricter loan-approval criteria at commercial banks.
Several securities houses had anticipated a 50-basis-point cut.
Oishi Group managing director Tan Passakornnatee agreed with a 100-basis-point cut.
Investors base spending decisions on interest rates. If the market rate is cut insignificantly, businesses will not spend more, he said.
"If the central bank cuts rates it should do it a percentage point at a time. This will bring about a quicker reaction than 25-basis-point cuts," Tan said.
The Fiscal Policy Office macroeconomic division planning section chief Ekniti Nitithanprapas said the central bank should reduce rates by 75 basis points to 100 basis points.
The market expects a 50-basis-point cut, he said, adding it was insufficient to stimulate investment and consumption.
He suggested the BOT cut interest rates more than market expectations to signal the government's desire to stimulate the economy.
"If the government and the central bank don't implement strong and rapid measures consumer confidence won't be restored. I believe a clear-cut policy will help," Ekniti said.
He said private investment and consumption had declined significantly. The private sector is not spending on machinery and plant because it lacks confidence, in spite of being at full production capacity, he said. This spending represents as much as 65 per cent of total investment, he added.
While pressing for a steeper rate cut some companies have demanded the Finance Ministry introduce new tax incentives to boost the economy. Increasing government spending would prevent an economic hard landing, they said.
Deputy Finance Minister Sommai Phasee said low tax revenues prevented the government from initiating new tax breaks and blamed it for the current low level of state spending.
However, companies said the state should award concessions for large infrastructure spending so the private sector could shoulder the initial burden.
"If the government does not have enough money, why won't it grant concessions to private companies? Investment in mega projects will create real investment in the country," Hemaraj Land and Development chairman Sawasdi Horrungruang said at a separate seminar yesterday.
The ministry is under increasing pressure to introduce tax cuts to spur spending.
It resolved to delay to next September an increase in value-added tax from 7 per cent to 10 per cent because of worries a rise would further stunt spending.
Siriporn Chanjindamanee
The Nation
Whilst the effect of Foreign purchasers of residential properties might be considered miniscule (but signficantly higher in HH), I think the annoucemnet of the relaxation of voting rights for foreign companies (also issued today) will help to resolve the nervous feeling of some potential foreign purchasers.
ECONOMY
Pressure mounts for large rates cut
Industry leaders warn confidence, spending badly need stimulating
The central bank is under pressure to slash its policy rate by as much as 100 basis points at tomorrow's Monetary Policy Committee meeting.
The private sector wants to see a swift revival in investor and consumer confidence after delays in spending decisions amid a murky economic and political climate.
The call came at a seminar yesterday, which heard speculation the Bank of Thailand committee will cut the rate by 50 basis points only.
Companies said a half-a-percentage-point cut had been discounted and would not be fully effective in encouraging investment and spending.
The current policy rate is 4.5 per cent.
Prateep Tangmatitham, president of property developer Supalai Plc, told a Money and Wealth magazine seminar consumer confidence would be restored quickly if the central bank cut its policy rate by a full percentage point.
He said every percentage-point cut boosted spending power by 11 per cent and would reduce business operating costs, too.
Prateep said housing demand dropped by about 10 per cent in the first quarter of this year compared with the same period in 2006.
The 2007 minimum lending rate has been an average 7.56 per cent, significantly more than the 5.93 per cent of 2006. In addition, lower demand was being exacerbated by stricter loan-approval criteria at commercial banks.
Several securities houses had anticipated a 50-basis-point cut.
Oishi Group managing director Tan Passakornnatee agreed with a 100-basis-point cut.
Investors base spending decisions on interest rates. If the market rate is cut insignificantly, businesses will not spend more, he said.
"If the central bank cuts rates it should do it a percentage point at a time. This will bring about a quicker reaction than 25-basis-point cuts," Tan said.
The Fiscal Policy Office macroeconomic division planning section chief Ekniti Nitithanprapas said the central bank should reduce rates by 75 basis points to 100 basis points.
The market expects a 50-basis-point cut, he said, adding it was insufficient to stimulate investment and consumption.
He suggested the BOT cut interest rates more than market expectations to signal the government's desire to stimulate the economy.
"If the government and the central bank don't implement strong and rapid measures consumer confidence won't be restored. I believe a clear-cut policy will help," Ekniti said.
He said private investment and consumption had declined significantly. The private sector is not spending on machinery and plant because it lacks confidence, in spite of being at full production capacity, he said. This spending represents as much as 65 per cent of total investment, he added.
While pressing for a steeper rate cut some companies have demanded the Finance Ministry introduce new tax incentives to boost the economy. Increasing government spending would prevent an economic hard landing, they said.
Deputy Finance Minister Sommai Phasee said low tax revenues prevented the government from initiating new tax breaks and blamed it for the current low level of state spending.
However, companies said the state should award concessions for large infrastructure spending so the private sector could shoulder the initial burden.
"If the government does not have enough money, why won't it grant concessions to private companies? Investment in mega projects will create real investment in the country," Hemaraj Land and Development chairman Sawasdi Horrungruang said at a separate seminar yesterday.
The ministry is under increasing pressure to introduce tax cuts to spur spending.
It resolved to delay to next September an increase in value-added tax from 7 per cent to 10 per cent because of worries a rise would further stunt spending.
Siriporn Chanjindamanee
The Nation
Semper in excretia sumus solim profundum variat
It may be like asking a heroin addict to give up his fix. Perhaps much harder for the old boys to get their tea money if projects are in the hands and control of the private sector? PeteWinkie wrote: However, companies said the state should award concessions for large infrastructure spending so the private sector could shoulder the initial burden.
"If the government does not have enough money, why won't it grant concessions to private companies? Investment in mega projects will create real investment in the country," Hemaraj Land and Development chairman Sawasdi Horrungruang said at a separate seminar yesterday.
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The understudy
- Ace
- Posts: 1293
- Joined: Fri Jun 13, 2003 12:16 pm
- Location: Hua Hin, Bangkok, Berlin, L. A. rotating
Hi there everyon!
I can agree with Burgers statement that the longer you wait to buy a house or a Condo the more the price will rise. and to wait for the property market bubble to burst will be a waiting in vain.
My Parents have been loooking to for a Condo in Hua Hin area on the beach but central to town. We where looking @ one finished Condo project in between the Hua Hin Market Village, Salesian School, San Paolo Hospital and Hua Hin Grand Hotel.
Prices of that Condp had been risimg by 20 to 30% from original listing price last year when it was first openend.
The understudy
I can agree with Burgers statement that the longer you wait to buy a house or a Condo the more the price will rise. and to wait for the property market bubble to burst will be a waiting in vain.
My Parents have been loooking to for a Condo in Hua Hin area on the beach but central to town. We where looking @ one finished Condo project in between the Hua Hin Market Village, Salesian School, San Paolo Hospital and Hua Hin Grand Hotel.
Prices of that Condp had been risimg by 20 to 30% from original listing price last year when it was first openend.
The understudy
In Love with Hua Hin since 19naughty9 and it ain't fading!!!
(My fable for All Things Japanese knows no boundaries!) Proud Student of Stamford University Hua Hin Campus from 1999 to 2004 (5th Batch of Graduates.)
“Once you survive Stamford U Hua Hin Campus only you can survive anything!!!”
(My fable for All Things Japanese knows no boundaries!) Proud Student of Stamford University Hua Hin Campus from 1999 to 2004 (5th Batch of Graduates.)
“Once you survive Stamford U Hua Hin Campus only you can survive anything!!!”
Isn't much of the inflation in condo prices caused by the increased demand by farangs since all the new 'company laws' were issued, which affected how they felt about forming a company to buy a villa? I've read over and over again everywhere that condos are HOT and villas oh so cold. PeteThe understudy wrote:Hi there everyon!
I can agree with Burgers statement that the longer you wait to buy a house or a Condo the more the price will rise. and to wait for the property market bubble to burst will be a waiting in vain.
My Parents have been loooking to for a Condo in Hua Hin area on the beach but central to town. We where looking @ one finished Condo project in between the Hua Hin Market Village, Salesian School, San Paolo Hospital and Hua Hin Grand Hotel.
Prices of that Condp had been risimg by 20 to 30% from original listing price last year when it was first openend.
The understudy
prcscct wrote:
There is this ammendment to the FBA which is due out soon, but they have just exempted house buyers from that.
Believe me house prices are still rising in Hua Hin.
The 'bubble burst' theory will not happen in Hua Hin IMHO.
It may in Pattaya and Phuket.
Cheers,
Burger
Hi Pete, there has been no new laws issued to date that affect house sales.Isn't much of the inflation in condo prices caused by the increased demand by farangs since all the new 'company laws' were issued, which affected how they felt about forming a company to buy a villa?
There is this ammendment to the FBA which is due out soon, but they have just exempted house buyers from that.
Believe me house prices are still rising in Hua Hin.
The 'bubble burst' theory will not happen in Hua Hin IMHO.
It may in Pattaya and Phuket.
Cheers,
Burger
The bubble will not burst in Hua Hin, how nieve a statement can one make?
So Hua Hin will not be affected by World or National Event's, go fill your boots guy's, Burger has spoken.
How long is this statement VALID for? 1year 2 years or forever.
Look up and count the pig's doing loop the loop, will be a few estate agent's folding this year.
So Hua Hin will not be affected by World or National Event's, go fill your boots guy's, Burger has spoken.
How long is this statement VALID for? 1year 2 years or forever.
Look up and count the pig's doing loop the loop, will be a few estate agent's folding this year.