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AREA punctures bubble scare

Legacy Phuket Gazette

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AREA punctures bubble scare | The Thaiger
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PHUKET: Recent speculation that Thailand’s real estate market is on the verge of collapsing, is far from the current reality, the head of a major real estate services firm has insisted.

The President of the Agency for Real Estate Affairs Company Limited (AREA), Dr Sopon Pornchokchai, PhD, has once again shunned news report warnings of an imminent property bubble burst.

Dr Sopon said that such reports, which have been circulating in the media over the last few weeks, may wrongly influence and affect decisions of potential home buyers, investors, developers, financial institutions and even policy makers in the government.

He insisted that not only are such reports invalidated, but on the contrary, he said that the Kingdom’s real estate outlook is quite good. He went on to outline the following three points:

• In the Bangkok real estate market, the total number of accommodation units (including condominiums, town-homes and other common house formats) sold last year was 107,412, which was more than the amount of brand new units sold (102,080). Dr Sopon added that there are currently 128,934 units still on the market in the capital and that such units should be off the market within 12 months.

• Likewise, of the above number, 65,215 of the total units sold were condominium units, 62,548 of which were brand new. Dr Sopon said that there are still 40,853 condo units on the market, which should be sold within seven months.

•As reported in the Phuket Gazette property section recently, Thailand’s up-country condominium market has also seen strong sales. In Phuket, there are currently 15,500 units in total, of which only 25% are still on the market and are expected to be sold within only 2.3 months. Likewise, a quarter of Pattaya’s 122,500 condos, as well as Hua Hin’s / Cha-am’s 17,600 condos are still on the market, but are expected to be off of it within a little over five months and 2.7 months, respectively. About 29% of Chiang Mai’s 10,700 condos are for sale, with an expected ‘sale-by’ window of 1.5 months, and of Khon Kaen’s 5,500 units, 22% have yet to be sold, but should be sold in less than a month.

Dr Sopon added that AREA has spoken with about 100 real estate agencies and consultancies from throughout the ASEAN region, and that the general perception of the real estate market is optimistic ahead of the 2015 ASEAN Economic Community (AEC).

And while he was adamant that buyers, speculators and investors need not worry about a bubble, he warned that banks and other financial institutions should be careful about issuing loans in the amount equal to, nearly equal to, or more than the value of the property, explaining that such ‘easy financing’ policies could make banks vulnerable.

Dr Sopon also echoed his previous suggestions, for the government to draft and enforce mandatory regulations on developers accepting down payments for unbuilt property.

Thailand’s Escrow Act of 2551 (2008 CE) doesn’t require a contract be drafted specifically about the down payment.

Dr Sopon argued that since it is up to the parties whether they wanted to be bound by contract, most developers didn’t offer such a contract, and instead used their reputation or track record in lieu of such a guarantee.

“Down payment protection guarantees should be mandatory and not left up to the will of developers,” he said.

Operating since 1994, AREA is one of the Kingdom’s first real estate services and information firms to research, survey and index property data to such a comprehensive degree.

— Phuket Gazette / AREA

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Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

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North East

Thai teenager dreams of being an architect, sells his artwork to earn tuition fees

Maya Taylor

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Thai teenager dreams of being an architect, sells his artwork to earn tuition fees | The Thaiger
PHOTO: Khaosod English

A talented teenager in the north-eastern province of Kalasin has taken to painting landscapes of his local area and selling them to earn his university fees. 18 year old Krittamet Saisaen, known as “Earth”, dreams of being an architect, but the prohibitively expensive fees put that beyond his reach. Earth’s mother died 2 years ago, at which point his father abandoned him and his brother to the care of their farmer grandparents.

While their mother was ill in hospital, Earth and his brother would alternate time in school with time spent looking after her. It was at this point that the young boy returned to his childhood passion of drawing in order to make some money. He started out by selling his work to neighbours for as little as 20 or 50 baht, all the time improving his skills with the help of You Tube videos and an art teacher at school.

The arrival of the Covid-19 lock-down provided him with extra time to focus on his art, reproducing more of his hometown’s rural landscapes. A report in Khaosod English says Earth’s long-term goal is to be an architect, but he found the Arsom Silp Institute of The Arts in Bangkok would cost 60,000 baht for his first term. In order to get a degree, he would be required to complete 10 terms, something his farmer grandparents could never afford.

“I would not have had money to go to school, unless my grandparents sold off their farmland, our family’s last asset. I won’t let them sell it because I love nature and I love the land. Although I have my dreams, if I can’t go to school then I can let it go.”

The teenager says a student loan is also out of the question as he couldn’t afford the repayments. Instead, he is relying on his talent with a paintbrush, saying that in addition to landscapes, he can produce still-life work such as flowers and other objects, although he draws the line at doing portraits.

After his story was highlighted in various media outlets, orders have started to flood in for his work, with each piece priced between 1,000 – 2,000 baht. Earth is also hoping to use his newfound success to shine a light on the environmental challenges faced by Kalasin, and hopes to build an environmentally-friendly hut in which to teach others how to paint while caring for the environment.

“Maybe people pity me, because they heard about my story. But I want to raise the issue of the environment too, to put the focus on that. There are so many issues in this area, deforestation, trash pollution, burning trash, chemical fertilisers. The issue is about both the environment and art. I want children to care for nature and the environment.”

Anyone interested in purchasing Earth’s work can contact him through his Facebook page.

SOURCE: Khaosod English

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Expats

Property investors offered access to Thai developer discounts – Thaiger Flash Sale

The Thaiger

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Property investors offered access to Thai developer discounts – Thaiger Flash Sale | The Thaiger
PHOTO: 24 hour Flash Property Sale starts at midday today - Agoda.com

PROPERTY EVENT

Today is the start of The Thaiger Property Flash Sale. It’s only for 24 hours (starting at midday today). The Thaiger has teamed up with fazwaz.com for this first-of-a-kind event.

When in a buyer’s market, that demand should be catered for, with discount offerings a key driver of success. The level of discount will depend on the developers’ willingness to accept lower profit margins, along with the supply available in the market. Bangkok, for example, has a large volume of property units available with many high-density development projects. In light of this market reality, a good ballpark figure to start discounting at is 15%-20%.

Since the beginning of April 2020, developers have begun launching their own e-commerce stores with incentive schemes to draw in clients. Although a good initiative in response to the current situation, around 90% of such offerings are only available in Thai, missing the opportunity to engage with international buyers.

Brennan Campbell, CEO at FazWaz, says that over the past 2 months, traffic to their property portal has increased exponentially.

“A huge proportion of our inquiries are explicitly looking to secure a deal.”

What is the potential for discount rates? Generally, discounts are uniform over an entire project and dependent on the saleable area, which can vary slightly. A recent survey of property developers, undertaken by FazWaz, showed that 31% of those questioned are willing to offer discounts of more than 10%.

Demand in the market is down and market sentiment is depressed; a clear indicator that developers need to be offering higher levels of discount to maintain a reasonable transaction volume. 69% of the developers surveyed haven’t implemented additional discounts during the current crisis – other than those that were already in place. The prediction is that this sentiment will change over time.

Flash Thursday will directly link potential property buyers with developers and sellers in one of Thailand’s largest online sales events. Developers from all regions and sectors in Thailand will be represented to bring enticing discounts to real estate investors.

Register now, it’s free. Runs from midday today (Thursday) to midday Friday.

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Events

4 reasons why you should register for this Thursday’s Thaiger Flash Sale

The Thaiger

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4 reasons why you should register for this Thursday’s Thaiger Flash Sale | The Thaiger

THAI PROPERTY EVENT THIS THURSDAY

Real estate experts are sounding the alarm… property prices are starting to drop! And The Thaiger Flash Sale, in conjunction with fazwaz.com is giving you the chance to own your dream home with the biggest discounts ever seen, all in one place for just 24 hours.

The Thaiger Flash Sale, happening this Thursday, June 18, 2020, starts at midday for just 24 hours. It’s the first online property sale where buyers can take advantage of great deals from Thailand’s best developers. If you’re not yet convinced, here’s a summary of the biggest benefits by joining this limited time property sale:

Big discounts

Big discounts and exclusive selections go hand-in-hand in any Flash sale. Fazwaz.com is delivering the same value to homebuyers and investors in Thailand real estate, as it puts all the best properties and marking them with the biggest discounts – all in one place!

Once-in-a-decade opportunity

It’s no stretch of the imagination that these discounts are part of a real estate market cycle that only happens once a decade. It’s a time where the savviest investors buy the best properties at the lowest price possible, making their value margins better than any other time of the decade. This goes to show that the best way to profit of your property investment is not by selling high, but by buying low.

Top-tier developments

Just because these are the biggest discounts ever seen, doesn’t mean they’re your mediocre selections! Fazwaz.com has built a strong relationship with Thailand’s top developers and has partnered with a number of them to deliver their best developments at the best prices exclusively for the duration of the Thaiger Flash Sale.

Refundable reservation fee

Buyers can reserve a property that they like with a refundable reservation fee within 14 days. Fazwaz.com understands that property investments are big commitments, especially in these uncertain times. That’s why buyers, who do not pursue the properties they reserved, can receive a full refund.

Are you ready for the biggest online property sales event in Thailand real estate? Register now at our expo.fazwaz.com

4 reasons why you should register for this Thursday's Thaiger Flash Sale | News by The Thaiger

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