Unsold condo units total 5,037 in 2006

[William]

Unsold condo units total 5,037 in 2006


A total of 5,037 condominium units in Bangkok worth over Bt37 billion were left unsold at the end of last year, said a market research study by property developer Raimon Land, adding that some of the units were completed in 2003.

The survey showed that in 2006, 29 projects were launched offering 8,148 units, compared to 4,632 units in 2006. The average price also rose 4 per cent to Bt84,187 per square metre though the average unit price fell from Bt7.65 million to Bt5.5 million during the period.

From 2003, a total of 23,671 units were launched and 18,634 units have been sold. Most of the unsold 5,037 units are concentrated in the Sukhumvit area. Raimon Land also expected that most new projects will be launched in the suburban areas of Bangkok, while the inner areas will be reserved for high-end projects.

The Nation

[Butterfly]

that's good news

[watterinja]

Is the housing bubble growing, or shrinking?

[in4zip]

Is the housing bubble growing, or shrinking?

present stellar value of thai baht, uniformed people in charge(ish), foreign investors confidence heading south ... well , I reckon soon there will be even more unsold real estate ...

[keda]

Then they can blame the farang.

[Butterfly]

another report from the broker. All is well

Finance sector: Short-term bright, but long-term bleak

- Short-term benefits: Rate cuts and changes in accounting rules. Rate cuts will definitely benefit finance companies (Finco) as the duration of assets is longer than that of liabilities. Moreover, this year the new accounting rule on hire purchase (HP) commission expense will allow Fincos to amortize these expenses according to realized interest income instead of booking on a cash basis. As a result TCAP and TISCO should show a significant drop in HP commission expenses this year. However, the benefit will gradually decrease in the coming years and be wiped out by the third to fourth year. KK will not benefit as it already applied this rule.

- Fierce competition is still a big concern. While in the short-term there are some positive catalysts for Fincos, the intense competition from new entries is still the biggest concern as it will cap further loan growth for existing Fincos and likely start a price war. This should be especially troublesome for TCAP, which is susceptible to loan growth as its loan repayments have been huge at around Bt60bn annually. We believe Finco earnings will continue to contract going forward.

- Reiterate Underweight rating for the sector. With the negative outlook for the sector, we reiterate Underweight to the sector. Moreover, based on our new target prices for TCAP, TISCO and KK, there is no implied upside to the shares left. We therefore, rate Underperform on all finance company in our coverage.

[watterinja]

- Reiterate Underweight rating for the sector. With the negative outlook Underweight to the sector for the sector, we reiterate . Moreover, based on our new target prices for TCAP, TISCO and KK, there is no implied upside to the shares left. We therefore, rate Underperform on all finance company in our coverage.

This is good news? Gazooks!

[lom]

This is good news?

Yes, it is after all a broker report.
Basically they tell you to sell and most likely they have a buyer

[Gerbil]

another report from the broker. All is well

Brokers reports? Complete bollocks they are. They just want you to trade. They make nothing if you sit on your investments.

[Fabian]

5,000 does not sound much for such a big city.

[Butterfly]

it's not that big, at least for the district that matters

[Fabian]

Oh, I did not see it is just for sukhumvit area.