Thailands Property market slowing sharply

**dirtydog** · 14-08-2007, 02:06 PM

Property market slowing sharply

The property market slowed sharply in the second quarter, with new land registrations down more than 50% from the same period last year, said the latest data from the Bank of Thailand.

New housing starts and property transactions also slowed due to weak consumer confidence and uncertainties over mass-transit expansion plans. New property registrations in Greater Bangkok fell 30.9% year-on-year in May, with single-home registrations off 19.7% and condos and apartments down 52.2%.

New land development applications dropped 54.2% in the second quarter as developers awaited clearer signals on transit extensions.

Prices also fell slightly, with detached homes down 3.5% from the year before and townhouses down 0.7%. Land prices, however, rose slightly by 2.7%, lifting the overall price index 0.2%.

Commercial bank lending to developers as of March 31 was off 1.5% from the year before but home mortgage loans still rose 14% in the period.

Meanwhile, the Real Estate Information Center (REIC) says it expects about 70,000 units of new housing to be registered in greater Bangkok this year, about 10% lower than last year's total.

Samma Kietsin, the centre's director, said that registrations of new residential units in the first half of the year totalled 32,146, down 11.8% year-on-year from 36,458.

However, he said that registrations normally increased in the second half, so it was unlikely they would fall below 70,000 for the full year.

In the first half, 26,341 units, or 81.9%, were low-rise, while the other 5,805 units were high-rise condominiums.

Among the low-rise units, single houses took the highest share of 60.8%, or 19,529 units, while the rest were townhouses, commercial and semi-detached units.

The centre said housing registrations in the second quarter hit 16,515, down 20.9% year-on-year. About 63.6%, or 10,511 units, were single houses.

REIC said 228 new real estate projects with 27,290 housing units were approved in the first half of the year, an average of 120 units per project. Approvals were down from 253 projects with 29,834 units in the same period in 2006.

The number of approved projects dropped in all regions except the eastern part of the country.

Bangkok Post

**AntRobertson** · 14-08-2007, 02:09 PM

...Prices also fell slightly, with detached homes down 3.5% from the year before...

Bugger!

Still, I'd be interested to see what our house would be valued at after the renovations are complete. That's got to add value regardless of the market, surely.

**The Ghost Of The Moog** · 14-08-2007, 02:30 PM

Sellers still seem hellbent on not reducing asking prices though !

**IsaanAlex** · 14-08-2007, 03:46 PM

I quite recently sold my shack in Khon Kaen and it was brisk each time it was put on offer.

But two of the first sales fell through due to Thais and their stupidity; the first buyer had her brother as the co-signer to the bank loan and he 'forgot' to tell her he'd previously defaulted on a loan.

The second buyer got a bank loan but his employer refused to pay him a 'housing allowance'...without which he couldn't make mortgage payments...so he intentionally collapsed the sale.

The final buyer happened to work for the bank he was borrowing from so it went through; but I can't explain the bad business.

Needless to say, the real estate company we used made more and more money off collapsed sales; there was actually an incentive for them to not sell the house.

And one last point...as a warning to others.

I had my house in my name and leased the land from my wife for 30+ years, etc.

But my wife was able to transfer the house into her name and SELL IT without my ever stepping foot in a law office, the land office, a bank, etc.

She only presented them (all) with a copy of my passport...with my signature on it...and another piece of paper with my signature on it again.

And not a single signature matched (mine never do

)...and I was never consulted whether I really wanted the house changed out of my name (and of course subsequently sold).

Was it all above board between my wife and I; yes. It was the only way I could sell my house while in Korea.

But could my wife have just transferred the house in her name and sold it without my knowledge; YES.

And so can yours...(or whomever it may be).

Buyers in Thailand beware; it is a corrupt, unstable...shithole.

I'll certainly never buy there again.

IA
PS. I made quite a bit unexpectedly due to baht appreciation right at around the time it sold. But, all in all, it was a loss...as the same money I 'invested' in Thailand would have made a hell of alot more if I invested it in Canada. In fact, I probably could have made more investing it in term deposits.

**Marmite the Dog** · 14-08-2007, 03:54 PM

Originally Posted by IsaanAlex

And one last point...as a warning to others.

I had my house in my name and leased the land from my wife for 30+ years, etc.

But my wife was able to transfer the house into her name and SELL IT without my ever stepping foot in a law office, the land office, a bank, etc.

Even if she did sell it from under you, the new owners couldn't do anything with the house or land during the time of the lease.

**IsaanAlex** · 14-08-2007, 04:00 PM

^

The house was legally transferred into her name at the land office and the lease was quashed; basically it all went over to her.

Then she legally sold it and got the funds as she was the free and clear owner at the time of sale.

Now the new owner has the house and land in their name after putting X amount down to the bank and securing the rest with a mortgage.

They are now making payments on their house, without restrictions.

I really think I'd be well and truly fucked it it all went over without my knowing and I tried to know 'rectify' (hypothetically) the picture, Marmite.

But a big question for me is this; are these questions/scenrios worth facing and resolving for a chance to own a place in Thailand?

No way!

IA

**BKKBoet** · 14-08-2007, 04:13 PM

Originally Posted by Marmite the Dog

Originally Posted by IsaanAlex

And one last point...as a warning to others.

I had my house in my name and leased the land from my wife for 30+ years, etc.

But my wife was able to transfer the house into her name and SELL IT without my ever stepping foot in a law office, the land office, a bank, etc.

Even if she did sell it from under you, the new owners couldn't do anything with the house or land during the time of the lease.

....other than moving in and occupying it? Good luck trying to get them out!

**The Ghost Of The Moog** · 14-08-2007, 04:19 PM

Originally Posted by IsaanAlex

She only presented them (all) with a copy of my passport...with my signature on it...and another piece of paper with my signature on it again.

In Thailand, signing a xeroxed copy of something seems to imbue almost limitless authority.

However if a scribbled name is not on a photocopy, the entire system grinds to a halt.

**Butterfly** · 14-08-2007, 05:32 PM

Originally Posted by The_Ghost_Of_The_Moog

In Thailand, signing a xeroxed copy of something seems to imbue almost limitless authority.

However if a scribbled name is not on a photocopy, the entire system grinds to a halt.

unfortunately true, it's like a do-it yourself notorization, very convenient in some cases but highly dangerous

**Rigger** · 14-08-2007, 05:47 PM

Originally Posted by IsaanAlex

Buyers in Thailand beware; it is a corrupt, unstable...shithole.

I guess someone is a bit up tight

**AntRobertson** · 14-08-2007, 05:49 PM

Originally Posted by BKKBoet

..Sorry about the double post, still trying to get a hang of things here!

Hmmm, Sharks fan? Maybe, but most likely not

**IsaanAlex** · 14-08-2007, 05:58 PM

Rigger wrote:

I guess someone is a bit up tight

Pardon me if I get a bit wobbly over posibility of major assets being shifted out from under people and sold.

And that's aside from the other stuff about the place.

Good place to visit or retire with outside finds coming in but poor place to work and live for most farang, IMHO.

IA

**Ban Saray** · 14-08-2007, 07:23 PM

^^Very true for the majority who try IME

**dirtydog** · 14-08-2007, 07:31 PM

Got to admit Alex I am suprised you were able to sell it, I assume the new owner is either going to completely renovate it or only has black and white vision and cannot see the awfull color schemes you chose, or did stroller buy it?

**IsaanAlex** · 14-08-2007, 08:38 PM

^

You know this means that I have to start off with one of my favorite jokes; It goes something like this....

Two guys are out camping and come across a bear. Both start to run like motherfuckers and one suddenly stops, opens his backpack, and starts putting on running shoes.

The other guy starts screaming, "What the fuck are you thinking!" Don't you know you can't outrun a bear!"

To which the first guy replies..."I don't have to outrun the bear, I only have to...outrun YOU!"

LMFAO!

So what does it all mean.

Well, basically I just had to find someone dumber than me who wanted to live in an Isaan shack with awful color schemes.

Alex

**BKKBoet** · 15-08-2007, 10:05 AM

Originally Posted by AntRobertson

Originally Posted by BKKBoet

..Sorry about the double post, still trying to get a hang of things here!

Hmmm, Sharks fan? Maybe, but most likely not

Most Definately!

**oleboy** · 15-08-2007, 03:17 PM

Alex, I must agree with you about this as I have always said since I first went to Thailand in 1990. If your a foreigner in Thailand you have NO rights. The other thing is the Govt can change the rules at any time. The Thai Govt has just done this over the past year.

IMO this applies in most country's in Asia invest your money in your home country where you do have some rights.

Earlier this year in Jomtien a Brit that owned a nice Condo over looking the beach was charged with working without a permit and deported. "But I own a condo here in Thailand" he explained, Immigration officer replied "So What"

The work he did was repair someones TV in one of the condos and was reported by a Thai that worked there.

Do Not invest any money in Thailand unless you can afford to walk away from it.

Cheers oleboy

**peterpan** · 15-08-2007, 04:33 PM

Originally Posted by oleboy

Do Not invest any money in Thailand unless you can afford to walk away from it.

Is there a TV echo here ?

**IsaanAlex** · 15-08-2007, 09:04 PM

oleboy wrote:

Do Not invest any money in Thailand unless you can afford to walk away from it.

Full agreement...

IA

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