thai housing market in decline

Jockey · Ace Joined: 27 Jan 2003 Posts: 1851

It's definitely a buyers market. The asking prices remain the same, but buyers should be haggling for a bargain under this property climate. My advice is to offer as much as 15% below the asking price (if you really want to buy it), and expect a compromise of about 10% reduction.

Mack111 · Posted: Mon Jun 18, 2007 7:22 am Post subject:

think you've got that wrong way round, Thai Baht has got stronger not dipped, if its now 63 Baht to the pound that means you will need a whole heap more money to buy just now from when it was 70...(thats if you deal in pounds of course) when i paid teh last installment on my house it was 75 Baht to the pound, its makes a lot of difference when you talking about a few million Baht for a house

JimmyGreaves · Guru Joined: 17 Oct 2005 Posts: 605

Not actually as low as 64 but going that way:

TT Figure today from SCB = BRITISH POUND STERLING 67.94875 and yes an extra baht makes alot of difference on a big ticket buy like a house or car.

There are pleny of Thais out there looking for land/house at the moment and still am hearing stories of high prices.

lockwood74 · Specialist Joined: 12 Dec 2004 Posts: 115 Location: LONDON

I have been watching the sales of houses in 2 projects near to Khoa Hin lek Fai in the last 6 months, sales at :

1. Hua Hin Horizon

2. Hua Hin Grand Hill

sales at these have been stagnant. Sales in the period from easter to christmas in 2006 were brisk.

john

buksida · Posted: Mon Jun 18, 2007 4:00 pm Post subject:

If the market is in decline why are the prices still so high? Shouldn't they start to fall to reflect market status?

If you're not bringing money from overseas it makes no odds what the exchange rate is.
_________________
I've got a bad feeling about this

Guess · Posted: Mon Jun 18, 2007 5:10 pm Post subject:

lockwood74 · Specialist Joined: 12 Dec 2004 Posts: 115 Location: LONDON

In the Uk we are bombarded with house price statistics and trends, do the Thai authorities have similar agencies that provide these stats.

If not how can we presume what is going on........ Does the land registry make their figures freely available

John

caller · Ace Joined: 04 Jun 2005 Posts: 1959 Location: Londonistan

John,

I don't think any stats are available and I'm not sure I'd trust them if they were!

Two (not new build) properties I looked at apprx. this time last year are both still on the market at the same price as when I looked.

I have read here that its not uncommon for places to be left unsold. That the owners would rather wait for the price they want, rather than do something to get a sell?
_________________
I know nothing

Big Boy · Legend Joined: 04 Nov 2005 Posts: 3241 Location: UK

caller wrote:

Guess · Posted: Tue Jun 19, 2007 5:56 am Post subject:

Mack111 · Posted: Tue Jun 19, 2007 7:15 am Post subject:

normally when stocks and shares are all over the place like they are just now people put money in property, if the stock market was rock solid for a decent period of time you might see a decrease in house prices but it takes time for the cycle to filter down to the normal people like us to see any upturn or down turn in housing markets.

I personally don't think you will see a big downturn in the housing market in Thailand, mainly due to the Asian region as a whole doing well just now. sure you might see a stagnant period like now in the housing market but I don't think you will see a crash, us Falangs who reside in HH (me only part time I must admit) are only the tip of the iceberg, what I've noticed lately is the big marketing campaigns in India / China / Korea for Thai property's

The only thing I think would crash the market in Thailand is if the government gets into a real problem which might happen but unless that happens I think you will just see a stagnant market for a while

lockwood74 · Specialist Joined: 12 Dec 2004 Posts: 115 Location: LONDON

Some interesting posts here.

I think the housing market at the top end 7 mill plus has definately seen a slowdown. This could be due to the fact that this market in holiday resort areas is predominantly driven by foreign investment.

In the coming years, when the Thai government stabilises, I believe that we will see future investment coming from other countries outside Europe.
If you look at the size of the market for countries like China and India, they make the European buyers appear small in number.

If I am correct, the size of this demand and change in the type of buyer will lift property prices much much higher. There are currently some very wealthy people emerging from the Asian countries and they will want a slice of the holiday homes market in the near futuere.

Places like Hua Hin will be an attractive destination for the buyer

john

caller · Ace Joined: 04 Jun 2005 Posts: 1959 Location: Londonistan

John

Open question - why do you perceive Hua Hin as attractive to buyers from other parts of Asia, compared to say other regions of Thailand or other countries?

I assume they would have all the same issues about ownsership and from what wed're hearing, other countries, such as Malaysia, already seem to be eyeing this market in a more attractive and tempting way?
_________________
I know nothing

lockwood74 · Specialist Joined: 12 Dec 2004 Posts: 115 Location: LONDON

Hi

The reason why Hua Hin or any other costal town will expand is because there is a limited supply of coast line in the world.

They are not making any more coast line , with the exception of Dubai.

Once the supply runs out prices will rise.

As far as other countries are concerned, I am sure that buyers will be flocking there as well.

Foreign buyers are attracted to the cost of living in tHailand as well

DaveT · Posted: Tue Jun 19, 2007 6:03 pm Post subject: Re: housing