thai housing market in decline

[The understudy]

As for THailand

Can we expand our coastline as well to counteract the shortages of coast that we have like Dubai? Would prices rise any further or stay the same.

Your's The understudy!
(As Sober as a Priest on Sundays!)
_________________
"I Feel Lonely You're the one and only that makes me feel so Blue,
I feel loney you're the one nad only that makes my dreams come true.
I'm having a dry spell (in Love) which til now lasted 7 years snd still ongoing.

[STEVE G]

Daily Mail style property article from the Bangkok Post:http://www.bangkokpost.com/Yourmoney/09Jul2007_money45.php

[The understudy]

Hi there Y'all

I think this Article by Bangkokpost is absolute right.
and read as follows.


PROPERTY HUA HIN

Developers may offer discounts to foreigners as sales slow down
KANANA KATHARANGSIPORN

Hua Hin _ Developers should offer promotions to boost demand as the stronger baht has slowed property sales in Hua Hin, says Duangjai Kraus, managing director of the Hua Hin branch of the German property brokerage Engel & Volkers (E&V).


''For foreign buyers, unit prices have been higher and the baht has been stronger. Now it is stronger by 15% [than a year ago],'' she said. ''Many foreign buyers tried to bargain prices with developers, and it depends on developers whether to discount or not.


''Margins will come down if prices are discounted. Developers should be flexible with the market situation if they want to boost sales. It's not necessary to discount the price, but they might offer special promotions such as free furniture as an extra offering.''


Foreign buyers have been flocking to the Hua Hin property market, she said, accounting for 40% of all sales. However, many have delayed decisions as the Foreign Business Act is in limbo and some are speculating that the government will extend leasehold periods.


''If the government wants to prevent [the use of Thai] nominees, they should have another option, such as an extension of the leasehold period to 60 years at least. Foreign buyers will have more confidence,'' she said.


Current leasehold terms are limited to 30 years with a 30-year extension possible at the discretion of the landowner.


Another change that would encourage foreign buyers would visa extensions to six months from 90 days now. Hua Hin is quite popular with affluent Scandinavians who spend up to six months a year there, said Mrs Duangjai.


''The government should establish investment confidence among foreigners. Otherwise, they may move to other countries such as Vietnam and Malaysia where overseas investors are now moving.''


Vietnam offers 50-year leases and Malaysia offers five-year visas. In the face of such competition, she said, the government should be concerned as property is a major generator of income for the country.


Ms Duangjai divides the Hua Hin market into three target customer groups: 10-15% locals, 60% Thai and expatriate buyers interested in second homes, and 25-30% foreign retirees.


Local people who either live or work in Hua Hin are interested in middle- to lower-end houses in town, priced between one million and two million baht a unit.


Most Thai and foreign residents in Bangkok are interested in beachfront villas or condominiums with prices ranging between four million and 10 million baht. Further inland, units should be on a golf course with prices between five million and 10 million baht for a condo and 20-25 million baht for a villa.


Meanwhile, foreign retirees, most of them from Scandinavian countries, are likely to buy a unit in Hua Hin for both an investment and as a second home. They typically spend between 20 and 30 million baht.


Since becoming the first international broker with its own shop in Hua Hin in April, E&V is now managing sales for five projects worth more than 30 billion baht _ well exceeding an initial target of 10 billion baht.


They include the 65 pool-villa Panorama project, the 55 pool-villa AKA Guti Resort, the 29-unit Black Mountain View Homes, the 78-condo Hua Hin Boulevard, the KM Beach condominiums with 48 units, and the 13-villa Hua Hin Seaview.


As of the end of June, E&V's Hua Hin branch had sales of 100 million baht. It expects another 200-300 million baht during the second half of the year.


''We're interested in having new branches in Bangkok due to a lot of inquiries from overseas people interested in condominiums for rent and sale in Bangkok. Thong Lo is the most attractive location for opening our branch,'' Mrs Duangjai said. Other areas would include Sathorn-Silom and Sukhumvit-Phloen Chit.

Will this next strategy work? Waht do you guys think?

Your's The understudy!!!
_________________
"I Feel Lonely You're the one and only that makes me feel so Blue,
I feel loney you're the one nad only that makes my dreams come true.
I'm having a dry spell (in Love) which til now lasted 7 years snd still ongoing.

[caller]

Another sales pitch - although you had to wade through the rest.

Can't agree with its sentiments. If it said squeeze out the cowboys to restore consumer trust/faith, I would have been with you.
_________________
I know nothing

[STEVE G]

[Norseman]

Good question Steve.
Personally I don't know any Scandinavians who have invested that much money in Hua Hin for a housing project.
The statement "they typically spend 20-30 millions" can not be true.
If you delete the 0 (zero) I find it closer to the truth.
_________________
I intend to live forever -- so far, so good.

[gooze]

That looks to me a lot like a paid for editorial by all accounts.

20/30 million sorry that is bo.....s.

Strange how they mention every project that they promote heavily. That is why I suggest it is an editorial and should not be beleived to much.

[gooze]

After the riots in Bangers at the weekend things for the property guys have just got a whole lot worse. This was the third story on CNN and BBC.

This was not a spat this was a proper scrap. I beleive this may be a sign of things to come over the next few months. As regards the property sector and forign buyers it aint good at all. That is the truth comming from an agent. Im sure some other agents will be infuriated by my comments although I dont give a dam its the truth at the moment. A few will do well the rest are in for a tough 12 months.