News Forum - Thailand real estate market saturated with unsold properties, may breach 1 trillion baht

[Marc26]

13 minutes ago, TheDirtyDurian said:

As others have said, the Thai property market is a strange one. We used to live in Nonthaburi about ten years ago. Prices for second hand in the area we were have hardly moved in that time, but new build just goes up and up. 

Personally, I'd never buy new in Thailand. Wait five years to see the condition it's in then, have the walls started cracking and stuff like that. If the structure is okay after five years you're probably okay. 

Even better, buy a foreclosed property off the bank at discount. Banks are happy to get rid at below market rates because they've already made cash from the previous owner. 

Thanks, we have looked at Nonthaburi as well, cheaper than Samut Prakan

 

My wife is headed back on Friday and will snoop around

She has a good contact at Bangkok Bank that she bought PTT OR stock with, so maybe will have her go in and talk to them, get pointed in right direction

[Marc26]

16 minutes ago, TheDirtyDurian said:

As others have said, the Thai property market is a strange one. We used to live in Nonthaburi about ten years ago. Prices for second hand in the area we were have hardly moved in that time, but new build just goes up and up. 

Personally, I'd never buy new in Thailand. Wait five years to see the condition it's in then, have the walls started cracking and stuff like that. If the structure is okay after five years you're probably okay. 

Even better, buy a foreclosed property off the bank at discount. Banks are happy to get rid at below market rates because they've already made cash from the previous owner. 

very good advice on non new build

2 houses they have rented were massive flooding issues

[Thaidup]

30 minutes ago, TheDirtyDurian said:

As others have said, the Thai property market is a strange one. We used to live in Nonthaburi about ten years ago. Prices for second hand in the area we were have hardly moved in that time, but new build just goes up and up. 

Personally, I'd never buy new in Thailand. Wait five years to see the condition it's in then, have the walls started cracking and stuff like that. If the structure is okay after five years you're probably okay. 

Even better, buy a foreclosed property off the bank at discount. Banks are happy to get rid at below market rates because they've already made cash from the previous owner. 

The prices of steel and concrete are going up and up now, Those old 2nd hand houses may start to rise as people realize the cost of building a new home is getting a bit far from viable.

A great source for costs and variables is a simple youtube search, watch the progress and see the workmanship, most of them will give you a costing in Thai baht to help, https://www.youtube.com/results?search_query=thai+house+build

[TiT]

5 hours ago, Marc26 said:

And it 100% has to do with her wanting to show she has a house she owns, nothing to do with our actual living situation.

Bingo. 

Part of the 'Mia farang' benefits package in every village is having a home built by your foreign husband.

[Marc26]

1 minute ago, TiT said:

Bingo. 

Part of the 'Mia farang' benefits package in every village is having a home built by your foreign husband.

Well I am not denying she would be "showing off" a home we build in the village

It would be our home we live in

 

The place she wants to buy now isn't totally needed, yes it will be used

But it is solely so she can say she bought a house

 

But my share is only 1mil, so after 18 years............I don't really care

[Thaidup]

9 minutes ago, TiT said:

Bingo. 

Part of the 'Mia farang' benefits package in every village is having a home built by your foreign husband.

 

5 minutes ago, Marc26 said:

Well I am not denying she would be "showing off" a home we build in the village

It would be our home we live in

The place she wants to buy now isn't totally needed, yes it will be used

But it is solely so she can say she bought a house

But my share is only 1mil, so after 18 years............I don't really care

I seem to feel that Marc has the more positive attitude here. Hey, one simple rule that I live by when I first came here, and I would use for any country. Spend what I can afford to lose. I may go home with less money but in the end, a fight in the courts with a wife in my home country may leave me with less anyway.

[HiuMak]

The apartment I am eyeing with river view in Krung Thep is still listed after 2 years. Price has not dropped. Speaks for itself the real estate situation.

[Benroon]

On 3/29/2022 at 3:26 PM, butterfly said:

Thais have this idea that land prices will increase forever, since that's what happened over the last 40 years

they have no concept of economic cycle, it's always someone else fault, so they wait it out

since they don't have modern economic brains, the concept of time and the concept of value of money is completely "foreigner" to them

hence why they prefer to wait 25 years to sell at the same price, rather than take a small loss immediately and invest the money else where

40 years is a hell of a run and there's no sign of it stopping anytime soon. I don't see land purchases here, obviously not on a flood plain etc, being a poor investment.

In Prachuap Khiri Khan a rai of land just 15 years ago 100,000 baht - now 5m+ and it's getting bought up. Possibly with the bkk connections coming on stream but pick land wisely here, you'll do ok.

 

[Benroon]

On 3/30/2022 at 7:56 AM, HiuMak said:

The apartment I am eyeing with river view in Krung Thep is still listed after 2 years. Price has not dropped. Speaks for itself the real estate situation.

Have you made a lower offer ? The house I bought had a price which wasn't moving too, but a lot of people list it at a price hoping someone stupid  turns up. I asked for a 5% discount and a couple of other things and it was agreed in days.

If you don't ask, you don't get.

Edited March 31, 2022 by Smithydog
Removed reference to one ethnic group

[Soidog]

1 hour ago, Benroon said:

40 years is a hell of a run and there's no sign of it stopping anytime soon. I don't see land purchases here, obviously not on a flood plain etc, being a poor investment.

In Prachuap Khiri Khan a rai of land just 15 years ago 100,000 baht - now 5m+ and it's getting bought up. Possibly with the bkk connections coming on stream but pick land wisely here, you'll do ok.

I agree that there is money to be made if you have the right connections with a Thai citizen. Land is generally always a good long term investment.  As the saying goes: Buy land, they don’t make it anymore.

[butterfly]

5 hours ago, Benroon said:

I asked for a 5% discount and a couple of other things and it was agreed in days.

whaoo, what a bargain 

seriously, listed prices are usually over estimated by some 50%, so the minimum should be a 33% discount, but we all know they will never accept it

[Benroon]

7 hours ago, butterfly said:

whaoo, what a bargain 

seriously, listed prices are usually over estimated by some 50%, so the minimum should be a 33% discount, but we all know they will never accept it

Is there room on your planet for anyone else ?

[Thaidup]

On 3/30/2022 at 7:56 AM, HiuMak said:

The apartment I am eyeing with river view in Krung Thep is still listed after 2 years. Price has not dropped. Speaks for itself the real estate situation.

This is the dilemma for a buyer, Is it overpriced? is the owner just stubborn? Or am I going to miss out on it because I won't pay the asking price?.

Just try putting in a fair offer and see if you get a negotiation started. Ask for a viewing so you can at least appear to be a serious buyer to the seller.

[HiuMak]

21 hours ago, Benroon said:

Have you made a lower offer ? The house I bought had a price which wasn't moving too, but a lot of people list it at a price hoping someone stupid  turns up. I asked for a 5% discount and a couple of other things and it was agreed in days.

If you don't ask, you don't get.

I feel like asking for a 20% discount

[HiuMak]

8 hours ago, Thaidup said:

This is the dilemma for a buyer, Is it overpriced? is the owner just stubborn? Or am I going to miss out on it because I won't pay the asking price?.

Just try putting in a fair offer and see if you get a negotiation started. Ask for a viewing so you can at least appear to be a serious buyer to the seller.

Not many apartment in comparison for benchmarking in same location, facing and development. I am not sure if it is overpriced or it is priced reasonably. 

[HiuMak]

16 hours ago, butterfly said:

whaoo, what a bargain 

seriously, listed prices are usually over estimated by some 50%, so the minimum should be a 33% discount, but we all know they will never accept it

For real? Is there a website for valuation of property? Usually banks does it?

[Rainmaker]

On 3/29/2022 at 3:47 PM, Thaiger said:

Developers of residential properties in Thailand should exercise caution when announcing new properties this year, as their collective plans represent the largest amount of new properties in more than a decade, warns Asia Plus Securities. Meanwhile, unsold properties present a high level of risk and might exceed a total value of 1 trillion baht. The word of caution comes as developers are eager to finish projects that have been on hold since the pandemic, leading to a bottleneck in the market, followed by a subsequent outpouring of “new” projects this year. One such project is SC Asset’s The Villa — […]

The story Thailand real estate market saturated with unsold properties, may breach 1 trillion baht as seen on Thaiger News.

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Things are going to start changing and I don’t know how this new world will effect Thailand. I also am curious if Thailand and the Thai people are willing to give up their freedom to belong to a new world government on March 30. They held the World Government Summit. And Thailand was there. I am sorry to say this but I am from the USA and living on social security. China has a digital currency and has already signed a contract with Thailand. And president Biden has ordered the USA to start researching the digital dollar and if you please research this at this world summit that was the first thing they opened the conference about. So I am wondering how my money will be counted here in Thailand if Thailand uses China digital yuan. How about other expat’s from every other country.  If you eliminate cash and everyone has Digital money.  A lot of people are going to suffer. Homeless people and how about people who are addicted to drugs and when they need to get their drugs and they don’t have cash and they have to use their digital money and then the government will be able to go after the drug trade. Remember the recent story about how assets were seized in the drug bust.  Things are going to start changing and we’re losing are freedoms and are voice.  They have changed the name from the Great Reset and now they are calling it a New World Order.  Research World Economic Forum and the Great Reset. Also look at Black Rock Group and see how much power and financial control they have world wide.  And here’s my proof please read this story about the Dubai summit 

 

[Benroon]

11 hours ago, HiuMak said:

I feel like asking for a 20% discount

Then ask it, what's the worst that can happen ? If you can find the sellers circumstances then you hold all the cards but of course that's not easy. If they slam the phone down you know it was a No, but as it's someone you don't even know, who cares. However if they um and ah, you know you've got a bite. IMO there's no such thing as a stupid offer.

Though you have to be reasonable, every year for the last 15 years I've looked at buying a one bed place in bkk just to crash out overnight rather than stay in hotels. Then every year I've looked I've thought jesus that's expensive and thought I'll wait for the market to hopefully cool down. Guess what, if I had bought one 15 years ago I would have made an absolute killing and the year after that and the year after that - and I really can't see with all the chinese money sloshing around Bangkok it's going to change in our lifetimes. So if anyone finds anything they really like in bkk and can afford it, I would say buy it!

[Benroon]

11 hours ago, Rainmaker said:

Things are going to start changing and I don’t know how this new world will effect Thailand. I also am curious if Thailand and the Thai people are willing to give up their freedom to belong to a new world government on March 30. They held the World Government Summit. And Thailand was there. I am sorry to say this but I am from the USA and living on social security. China has a digital currency and has already signed a contract with Thailand. And president Biden has ordered the USA to start researching the digital dollar and if you please research this at this world summit that was the first thing they opened the conference about. So I am wondering how my money will be counted here in Thailand if Thailand uses China digital yuan. How about other expat’s from every other country.  If you eliminate cash and everyone has Digital money.  A lot of people are going to suffer. Homeless people and how about people who are addicted to drugs and when they need to get their drugs and they don’t have cash and they have to use their digital money and then the government will be able to go after the drug trade. Remember the recent story about how assets were seized in the drug bust.  Things are going to start changing and we’re losing are freedoms and are voice.  They have changed the name from the Great Reset and now they are calling it a New World Order.  Research World Economic Forum and the Great Reset. Also look at Black Rock Group and see how much power and financial control they have world wide.  And here’s my proof please read this story about the Dubai summit 

You've clearly got too much time on your hands - whilst there will possibly be a place for digital cash (until governments realise it cuts them out and regulate it out of existence) - do you seriously think your average joe is going to hand over their hard earnt physical notes for a digital wallet ? How are the 80%+ people in the world with no access to technology going to handle that ? 

[Stardust]

If I see this mass in new high rise condos and mostly empty nit rented out or sold then it reminds me on the chinese bubble that bursted. I was also wondering that they still hope on Chinese buyers after the crackdown from Xi for chinese people to bring their money out of China and as they done before when they bought a lot of real estate mostly in western cities or often in Canadas big cities where then the prices exploded because of that. Everybody realized all these crackdowns but we could still read in the Thainews that these developpers still were thinking the chinese will buy it. I guess after they freezed a lot or didn't finished they wake up now, or? 

[Marc26]

25 minutes ago, Stardust said:

If I see this mass in new high rise condos and mostly empty nit rented out or sold then it reminds me on the chinese bubble that bursted. I was also wondering that they still hope on Chinese buyers after the crackdown from Xi for chinese people to bring their money out of China and as they done before when they bought a lot of real estate mostly in western cities or often in Canadas big cities where then the prices exploded because of that. Everybody realized all these crackdowns but we could still read in the Thainews that these developpers still were thinking the chinese will buy it. I guess after they freezed a lot or didn't finished they wake up now, or? 

They are empty, that doesn't mean they aren't sold

 

You mention Canada, so many developments in Vancouver that aren't occupied but they are owned by the Chinese

They aren't interested in renting it, they just wanted to get their money out of China

 

Now, Thailand isn't the hot real estate market that Canada is, so I don't know if that would work in Thailand

[Stardust]

17 minutes ago, Marc26 said:

They are empty, that doesn't mean they aren't sold

You mention Canada, so many developments in Vancouver that aren't occupied but they are owned by the Chinese

They aren't interested in renting it, they just wanted to get their money out of China

Now, Thailand isn't the hot real estate market that Canada is, so I don't know if that would work in Thailand

I agree with you on the point with Canada but all that was before the crackdown on bringing out their money. My point was they were still thinking about that in Thailand after this crackdown. So as I sometimes check offers from agents in new condos I realized most are not saled and thats why could offer that amount of not saled units. A friend of mine bought a 2 bed room condo in a luxury cond before it was finished and had to move out of Thailand because of his company needed him oversee. Best location and had to sale it under the price he bought it. First he rented it out and gave it to some agencies to sell it. After 2 years they could sell it but under the price he bought it. He tried to sell it over a view agencies and all told him there too much offers on the market and all sellers had to go down with the prices already. 

So there is no doubt about the situation if you talk with the companies who are in this business about and that there are so much unsold units avaiable.

[Marc26]

29 minutes ago, Stardust said:

I agree with you on the point with Canada but all that was before the crackdown on bringing out their money. My point was they were still thinking about that in Thailand after this crackdown. So as I sometimes check offers from agents in new condos I realized most are not saled and thats why could offer that amount of not saled units. A friend of mine bought a 2 bed room condo in a luxury cond before it was finished and had to move out of Thailand because of his company needed him oversee. Best location and had to sale it under the price he bought it. First he rented it out and gave it to some agencies to sell it. After 2 years they could sell it but under the price he bought it. He tried to sell it over a view agencies and all told him there too much offers on the market and all sellers had to go down with the prices already. 

So there is no doubt about the situation if you talk with the companies who are in this business about and that there are so much unsold units avaiable.

As I have mentioned before, my wife wants to buy a house/townhouse

 

She's flying home today, I told her to look at Moo Bans, if they have an abundance of inventory not sold, she may be able to bargain

 

But it's Thailand, so who knows......

[Stardust]

23 minutes ago, Marc26 said:

As I have mentioned before, my wife wants to buy a house/townhouse

She's flying home today, I told her to look at Moo Bans, if they have an abundance of inventory not sold, she may be able to bargain

But it's Thailand, so who knows......

With houses I am not updated but I think the chances are high and in areas where they builded a lot of new housing projects good offers/bargains should be avaiable. Many things comes together they build too much, bad economy, covid crisis etc

[SkyDogJack]

On 3/29/2022 at 1:47 PM, Marc26 said:

I agree 1000%

You see these guys banging on about the West and people showing off

They then go build a house 4x the size of any other house in their village

Any "millions" I spend above more than the average home would be on comforts, fittings and not size

I grew up in the projects and lived in downtown apartments my whole life, I don't need a big home

But my wife's village is pretty affluent(she is not affluent family!)

So there are many nice local homes, so nothing we build would be out of place

Marc26,

Your comments really resonate with me.  I grew up low middle class.  We always had food, but there were those nights, as a boy, I felt I was going to bed hungry.  We lived in marginal neighborhoods (I ran with Mexican gang as the only white boy) and learned to fight.  My dad was a barber and cut hair 12 hour a day.  I am lucky my Thai wife is about saving and not about appearance.  I do help support her father and daughter back in Thailand (plan to bring her here) so we run a tight budget in an expensive country.

When my wife and I lived in Bangkok, it was a nice condo rental, about 45 square, high rise with a balcony overlooking the river and had a built in water filter and a washing machine.  We hung dry our clothes on the balcony. We were happy.  We didn't need much there, nor do we here. We live in a 1br/1bath apartment now.

Now days, in the middle of the American quest for bigger and better, we are looking a buying a 3br, 2bath, 2 car garage in a nice neighborhood that is 50 percent of what many Americans' will pay (leverage their life) to have something twice the size for show.  To be and the misses, a 120 sq meter home is a mansion.  

To many here in the USA, they would look down on me and call me poor.  For me?  I am rich in more ways than I could ever have hoped for.

My step daughter is in her first year at a university in Bangkok.  She is making straight 'A's".  I am very proud of her, and she is studying English.  My wife, her mom does Zoom lessons with her a few times a week to help with her English studies.  I have too much to be grateful for to complain. Anyway, just sharing.

PS: We are looking at this type of home.

https://gentil.theagencytexas.com/search/detail/142826371

Edited April 1, 2022 by SkyDogJack
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