Category Archives for Property News

Real estate condo market of Bangkok in the aftermath of a red crisis

Bangkok has been recently in the limelight of the world though not for positive reasons. The political situation is still unstable and there is a long way to go before any sense of stability is felt. The Bangkok condo market is still holding up pretty well as developers has reduced the number of project launches and has been catering mainly to the local mass market. Demand for Bangkok condo among the thai affluent market is doing well.
The financial institutions are strong and were not affected by the sub-prime crisis or the problems in Europe more precisely in Greece. Hard lessons were learned during the 1997 financial crisis and financial reforms are bearing its fruits. Credit is thus readily available for prospective home owners to buy a Bangkok condo with loans up to 90% still possible.
The Thailand economy as a whole is doing well with exports sector growing by double digit figures.
Also, the government has announced on the 25th May the extension of reduced property transactional fees to end of June 2010. This applies to all property types such as condos, townhouses and single houses.Transfer fees will remain at 0.01% from its normal rate of 2% and mortgage registration fees will stay at 0.01% instead of the normal 1%.
These reduced fees will only benefit completed property transactions and will not have any effect on developers selling projects off-plan especially in the Bangkok condo market.
Overall, a crash in property crashes is not expected at all amidst recent events that have happened. Property prices have proven to be resilient over the years even during crises.
However, foreign demand for properties such Bangkok condo and resort properties in Thailand, has been dealt a blow. The political crisis has created a perception that the property investment environment in the land of smiles is far from safe. And they are quite right. Combined with the strong thai baht and the weakening of Euros and dollars, foreign buyers are not seen to be flocking to buy thai properties at least in the short term.
On the Bangkok condo launches, Sansiri is launching a luxury condo project called Keyne in prime area of Sukhumvit while AP is planning to launch 20 projects in the year 2010. All is not doom and gloom here in Bangkok, though all is not rosy either, but there is always a good investment out there as long as property buyers do their homework and due diligence.
As they say, when there is blood on the streets, buy real estate. This may sound crude and insensitive but there is much truth in it. While everybody is scared, the seasoned investors are happily looking and buying bargain properties. The Bangkok condo market is full of desperate sellers; the choice is yours to make.