News Forum - Thai real estate faces perfect storm next year

[Thaiger]

Thailand‘s pivotal real estate sector, a key economic force, anticipates a demanding 2024 due to substantial dependence on supply chains and various internal and external risks. Business entities foresee the need to adapt strategies, as the government prolongs the property transfer and mortgage registration fee reduction for an additional year to invigorate the market. Wongsakorn … …

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[soulrider808]

does this mean the condo prices are forecasted to increase in 2024-2025?

[js89]

Rather substance-less article that reads like an ad placement for Property Perfect Plc.

"property development is risky, easy money has dried up, but [implied] we have the cash flow available to us, so sell us your land so we can develop projects on it"

And no, condo prices are unlikely to increase. Way too much inventory and Thai's don't like to buy "second-hand" anything.

 

[Grumpish]

6 hours ago, soulrider808 said:

does this mean the condo prices are forecasted to increase in 2024-2025?

Depends whose eight ball you are using. Or who is reading the fortune telling cards.  It seems to 

[soulrider808]

Thanks JS89 I didn't know Thais only like new stuff. I guess that's why there's no Goodwill Stores or Savers in "the land of smiles" My cousins Thai wife also said that the condo prices will stay down next year because the Thai economy is slow and the big inventory of built condos. It's tempting to buy in Thailand because of the low prices compared to USA and other countries. It will take 15 years of paying $325 mo rent to break-even on a $58000 condo purchase though

[McTavish]

On 12/29/2023 at 6:35 AM, js89 said:

Rather substance-less article that reads like an ad placement for Property Perfect Plc.

"property development is risky, easy money has dried up, but [implied] we have the cash flow available to us, so sell us your land so we can develop projects on it"

And no, condo prices are unlikely to increase. Way too much inventory and Thai's don't like to buy "second-hand" anything.

It's a puff piece, full of air. 

Mid to high end property continues to sell in quality developments due to incrrasing demand.  If there's a downturn it will  be in the low end cookie cutter developments and cheaper condo units thru oversupply.

[Vigo]

2 hours ago, McTavish said:

It's a puff piece, full of air. 

Mid to high end property continues to sell in quality developments due to incrrasing demand.  If there's a downturn it will  be in the low end cookie cutter developments and cheaper condo units thru oversupply.

I would refine your comment to reflect regional  markets. Phuket is still ridiculously hot with the Russians looking to park money. Hua Hin and Cha Am have cooled. I see the same houses for sale and the same condo townhouse developments sparsely occupied. You are right about higher quality Bangkok units. Always a buyer.

And in respect to  person expressing surprise about cold used condo market, I offer that it is because of the quality of construction. Most of these units start disintegrating after 10 years.  My old condo in Patong  is plagued by absentee owners who have failed to pay condo fees. There is always deferred maintenance because condo owners are not properly assessed for maintenance.