I was looking at a few condominiums recently in the Bangkok area and i was curious to know why the price of a condominium has gone up so much in such a short period of time. The price of a condominium in Bangkok has doubled in less than a year, and i think that's a bit ridiculous.
I also do not understand why a foreigner has to transfer the full purchase price amount from a bank outside of Thailand to the Bank of Thailand(BOT) in order to purchase a condominium in his/her own name when a Thai (citizen) can purchase a condominium in his/her own name without having to pay the full purchase price amount in one payment, i mean it's all the same money, right? I don't understand why the laws in Thailand make a condominium purchase significantly more difficult for a foreigner than a Thai.
Condominiums
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sandman67
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Thai law is extremely xenophobic, as are most Thais. Get used to that, or head South or East and buy land and property in any of the neighbouring states who DONT have the same daft laws.
Dont blame the Thais though....its really not their fault. Ignorance and bigotry are hammered into them from cradle to grave care of the government propoganda, myopic media and un-education system.
Live with it or move, they are never going to change.
Dont blame the Thais though....its really not their fault. Ignorance and bigotry are hammered into them from cradle to grave care of the government propoganda, myopic media and un-education system.
Live with it or move, they are never going to change.
"Science flew men to the moon. Religion flew men into buildings."
"To sin by silence makes cowards of men."
"To sin by silence makes cowards of men."
On the topic of Bangkok condo prices, there are some locations which are in demand, such as the Thonglor area where many new condo launches are more than 130,000 baht sq.m and can go for more than 150,000 baht sq.m for the higher floors. I think it's a combination of higher land prices in the area, "hot" trendy location, and higher construction costs compared to 2 years ago. Other hot locations are Rajdamri Road near the Four Seasons Hotel, and Ari on Phaholyothin Road.
However, 100,000 baht sq.m is my benchmark on resales for condos built within the past 5 years. I think if you pay more than that, then your upside capital gain is limited. I would invest in the area between Nana BTS and Thonglor BTS, within 10 min walk to the BTS station and nearby to shops, pubs, restaurants, schools, hospitals etc. The condo I live in was launched at about 87,000 baht sq.m 3.5 years ago and the resale prices moved up to around 110,000 in mid-2008. They have probably dropped back to just under 100,000 baht sq.m this year.
Condos which are 15 years old sell at around 70,000 to 80,000 baht per sq.m currently, and these are generally larger than the condos built within the last 5 years.
Regarding your comment on doubling of prices in the last year, I'm unaware of any property transactions like this. However, I would say that people who bought in 2004 would be up by about 50%.
On the condo ownership issue, for a foreigner to own the condo then 100% of the purchase monies must be transferred from overseas to a bank in Thailand. The Thai bank then issues a Foreign Exchange Transfer Certificate as evidence that the monies came from overseas for purchase of a condo by a foreigner. This certificate will need to be shown at the Land Title Office. The reason for this is, as Sandman mentioned, is due to xenophobic attitude towards aliens. I managed to buy my Bangkok condo with an offshore mortgage loan from Singapore, however, it's a cumbersome, costly & inefficient process for the borrower.
If the gov't were to exercise progressive laws on foreign ownership like Singapore, Malaysia, & HK, then the country would probably be better off as a whole. The developers would be doing better, and construction would be stimulated to some extent. However, the banking industry is still quite immature in Thailand regarding home loans. Even for locals, it is much more challenging to get home loans approved in Thailand when compared to counterparts in Singapore, Malaysia and HK.
However, 100,000 baht sq.m is my benchmark on resales for condos built within the past 5 years. I think if you pay more than that, then your upside capital gain is limited. I would invest in the area between Nana BTS and Thonglor BTS, within 10 min walk to the BTS station and nearby to shops, pubs, restaurants, schools, hospitals etc. The condo I live in was launched at about 87,000 baht sq.m 3.5 years ago and the resale prices moved up to around 110,000 in mid-2008. They have probably dropped back to just under 100,000 baht sq.m this year.
Condos which are 15 years old sell at around 70,000 to 80,000 baht per sq.m currently, and these are generally larger than the condos built within the last 5 years.
Regarding your comment on doubling of prices in the last year, I'm unaware of any property transactions like this. However, I would say that people who bought in 2004 would be up by about 50%.
On the condo ownership issue, for a foreigner to own the condo then 100% of the purchase monies must be transferred from overseas to a bank in Thailand. The Thai bank then issues a Foreign Exchange Transfer Certificate as evidence that the monies came from overseas for purchase of a condo by a foreigner. This certificate will need to be shown at the Land Title Office. The reason for this is, as Sandman mentioned, is due to xenophobic attitude towards aliens. I managed to buy my Bangkok condo with an offshore mortgage loan from Singapore, however, it's a cumbersome, costly & inefficient process for the borrower.
If the gov't were to exercise progressive laws on foreign ownership like Singapore, Malaysia, & HK, then the country would probably be better off as a whole. The developers would be doing better, and construction would be stimulated to some extent. However, the banking industry is still quite immature in Thailand regarding home loans. Even for locals, it is much more challenging to get home loans approved in Thailand when compared to counterparts in Singapore, Malaysia and HK.
Re: Condominiums
Does seem a bizarre one NT, as you have either bought the funds over at one stage a while back or have earned it here and paid taxes on it etc. It's presumably an investment ploy to bring foreign currency in. Either way I guess if you want to proceed you would have to transfer it out and back in again!!Name Taken wrote:I also do not understand why a foreigner has to transfer the full purchase price amount from a bank outside of Thailand to the Bank of Thailand(BOT) in order to purchase a condominium in his/her own name
Anyway, I'm guess you're aware there are procedures for sending over the funds to be used to by a condo here, ie: must be sent over in a foreign currency and not Thai Baht, transfers must be over a certain amount to obtain the bank certificate required (20k USD lumps?), must all have your name on and specify for condo purchase etc. I've got some links somewhere to the exact procedures if you need them.
Cheers,
SJ
Last edited by Super Joe on Thu Jun 18, 2009 8:23 pm, edited 1 time in total.
It's about money laundering.
To say condo prices have doubled is painting with a broad brush.
BKK is a very big city with thousands and thousands of condos. Increases no doubt, some of it I suspect is because many trust tangible assets rather than paper.
Why the purchase restrictions?
Because its their country and they want to maintain control of it.
To say condo prices have doubled is painting with a broad brush.
BKK is a very big city with thousands and thousands of condos. Increases no doubt, some of it I suspect is because many trust tangible assets rather than paper.
Why the purchase restrictions?
Because its their country and they want to maintain control of it.
Super Joe wrote:
Wow, I wasn't aware of that. So you're saying if I transferred large sums over years ago and used it to build a house and if I subsequently sell the house, that I can't use that same money (recovered from the home sale) to purchase a condo in my name?Anyway, I'm guess you're aware there are procedures for sending over the funds to be used to by a condo here, ie: must be sent over in a foreign currency and not Thai Baht, transfers must be over a certain amount to obtain the bank certificate required (20k USD lumps?), must all have your name on and specify for condo purchase etc. I've got some links somewhere to the exact procedures if you need them.
My brain is like an Internet browser; 12 tabs are open and 5 of them are not responding, there's a GIF playing in an endless loop,... and where is that annoying music coming from?
Not sure of the exact regulations HHF, never been involved in condos, but apparently the Land Office are very strict on the correct documentation otherwise they will not register. There are guidelines in one of the Condo Acts that includes things like, the funds must have come from overseas and in a foreign currency ie not Baht, you must have the Foreign Exchange Transfer Certificates (FETC) for each remittance (these are given on transfers of 20k USD or more), each transfer must have referenced on it the name of the person who is going to own the condo, each transfer must state 'for the purpose of buying a condo' etc etc. If you have PR you do not need to remit the funds over, conversely by all accounts if you've worked here and saved up the money you have to send it out then back in
Say someone had the transfer certificates for the value required for a condo but sent it over, say 5 years earlier, and obviously never put 'for condo purchase' at that time, by all accounts yo'd also have to send out and back in. But this is just what I've read and heard, they may be a bit more relaxed about it!?
SJ
Say someone had the transfer certificates for the value required for a condo but sent it over, say 5 years earlier, and obviously never put 'for condo purchase' at that time, by all accounts yo'd also have to send out and back in. But this is just what I've read and heard, they may be a bit more relaxed about it!?
SJ
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Name Taken
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Condominium prices are driven by location,fluidity of the market and to a certain extent branding .San siri hits the spot with Thai investors every time for example .
I went to a dinner party in a unit at La raffiene that went for 64m .Very nice unit as you would expect with pool on the terrace of each unit .64m ? could not get my head round why people would pay such high premiums to be 500m closer to the skytrain than a similar unit .Simple fact is,they do .Unit is a 350 sqm duplex .Nice finishings but not any more per sqm than many of the european style villas here .Just done well and in a highly desirable location .Give me a nice pool villa 5-10 mins from town over a condo anyday .I did not come here to live in a box .But each to their own and condos are about convenience living and I have seen some beautiful ones in the area .
Crazy 88
I went to a dinner party in a unit at La raffiene that went for 64m .Very nice unit as you would expect with pool on the terrace of each unit .64m ? could not get my head round why people would pay such high premiums to be 500m closer to the skytrain than a similar unit .Simple fact is,they do .Unit is a 350 sqm duplex .Nice finishings but not any more per sqm than many of the european style villas here .Just done well and in a highly desirable location .Give me a nice pool villa 5-10 mins from town over a condo anyday .I did not come here to live in a box .But each to their own and condos are about convenience living and I have seen some beautiful ones in the area .
Crazy 88
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Terry
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Another issue with Bangkok Condos is - how old are they.
For some reason the Thai folk only want NEW
As has been stated here, the newer ones are generally a lot smaller and not necessarily built better.
A friend of mine bought a 250 sqm 3 bedroom, 3 bathroom, 3 balcony, large living room, kitchen, maids room in Soi 11 Sukhumvit about 18 months ago for THB 8mil.
Try getting anything NEW for that size & price these days in that area.
It's amazing what a little bit of redecorating can do - you'll get a city centre palace for half the price.
For some reason the Thai folk only want NEW
As has been stated here, the newer ones are generally a lot smaller and not necessarily built better.
A friend of mine bought a 250 sqm 3 bedroom, 3 bathroom, 3 balcony, large living room, kitchen, maids room in Soi 11 Sukhumvit about 18 months ago for THB 8mil.
Try getting anything NEW for that size & price these days in that area.
It's amazing what a little bit of redecorating can do - you'll get a city centre palace for half the price.