Condo Market Over Built...Sales Slump

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Jun
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Re: Condo Market Over Built...Sales Slump

Post by Jun » Tue Jan 29, 2019 8:10 pm

Yes, buying an off plan condo in this region is a huge gamble.

Buying in an oversupplied market is not a good investment either. Sitting on Dongtan Beach, there are a few large towers nearby and further clusters in the distance down the beach. If the correct palms are greased, they could easily build on the whole stretch in between and make it look like Hong Kong. For practical purposes, there is no constraint on supply.

On a related matter, I am amazed at all the abandoned construction projects in Thailand, Laos and Cambodia. From monster tower blocks, to modest hotels and single family dwellings.

Where is it going wrong ?
1 Are people too thick to calculate the cost before starting ?
2 Does their source of income fail ?
3 Have they not got the correct authority before starting ?
4 Do officials demand ever larger bribes ?
5 Are the builders so unreliable that they run off to do another project ?

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Re: Condo Market Over Built...Sales Slump

Post by fountainhall » Tue Jan 29, 2019 8:26 pm

I reckon there is quite a long list of reasons. At the top is likely to be greed.

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Re: Condo Market Over Built...Sales Slump

Post by gerefan » Wed Jan 30, 2019 12:21 am

Gaybutton wrote:They've got your money. And the chances of you getting a single baht of it back are most likely in the range that falls between zero and none.
The word “refund” doesn’t exist in the Thai Dictionary and the sooner every Farang understands that the better.

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Re: Condo Market Over Built...Sales Slump

Post by rocket » Fri Feb 01, 2019 6:19 pm

I would never buy off plan now. Way too much over supply. Having said that I bought a UNIXX condo off plan five years ago.

I can resell for about 1.5 million baht profit and I’m renting for 7.5% return. The location is good, as well as The Base and Centic Sea condos. If you bought off plan on those you’d have a profit.

I rent my unit very easy as I furnished it nice, better than most other units for rent. But I would have made enough to buy another unit had I used the money in the stock market over the last five years. So it wasn’t worth the bother.

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Re: Condo Market Over Built...Sales Slump

Post by Undaunted » Fri Feb 01, 2019 7:55 pm

I bought a large 1 bedroom years ago when I thought I wanted to stay in Thailand, when the condo was full of renters not owners it went downhill, it took forever to sell and it was sheer luck finding the right buyer and making a good profit. I see no sense in buying however, if someone must look, look at older established condos they are less risky and are not the new tiny condos such as believe it or not 1 bedrooms 28-38 sq.mtrs.....My advice now is only RENT. If you want to buy a house this can also be somewhat of a nightmare when it comes to selling because it cannot be in your name but in a company name with a Thai in theory owning 51% of the company. A friend bought a house this way and lived their with his b/f unfortunately the b/f passed away and his family demanded payment for the boy’s 51%......I know another genius that brought a condo in his name and later added the condo next dooor bought in his b/f name as it was not available to foreigners to make one large unit, imagine if and when he tries to sell.
"In the land of the blind the one eyed man is king"

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Re: Condo Market Over Built...Sales Slump

Post by fountainhall » Fri Feb 01, 2019 9:25 pm

I have no idea what factors motivate the housing market. 5 years ago my neighbours, an elderly gay couple in a large well-furnished 3 bedroom/bathroom apartment, wanted to sell after living there for 12 years. The apartment went on the market at Bt. 13 million. It took 3 years to sell, they had only around a dozen people viewing it and they finally sold for around Bt. 9.5 million.I believe they realised a profit of little more than 30%

Recently the new owner also decided to sell and tried to get Bt. 16 million!! It took only 2 months and he settled for Bt. 15.5 million. The only improvement he had made over his 2 years living there was replacing a parquet floor in the huge living room with a slate one. He sold to an early-60s English couple. I find it hard to believe that supply and demand was the reason for the apartment increasing in value by over 60% in just 2 years.

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