elef Posted August 6, 2004 Report Share Posted August 6, 2004 PROPERTY MARKET: ?Now is the time to buy? Published on Aug 6, 2004 Housing expert, economist warn of rising cost of building materials; Virabongsa sees no sign of bubble A property expert yesterday urged homebuyers to invest quickly, saying now is the best time to buy as a delayed decision could entail paying higher prices. Housing Business Association president Prasong Owlarn urged consumers to buy houses this year, saying prices are sure to rise in the future. Although interest rates may be on a rising trend, he said, it would not be much compared with housing prices in the future, taking into consideration future rate rises and building-material costs. Now is a good time to buy a detached house, townhouse or condominium , he added. The opening of Bangkok?s first subway line will contribute to housing demand in the city, he said. Suvarnabhumi International Airport, scheduled to open next year, will create demand for residential and commercial property in eastern areas of Bangkok, he said, but cautioned developers to be careful about launching new projects. Construction-material costs are likely to increase further, partly due to higher oil prices, he said. Meanwhile, economist Dr Virabongsa Ramangkura said he saw no signs of a real estate bubble. However, he noted that the cost of construction materials ? such as steel, tiles and cement ? would rise further. Prices will be pushed up by strong demand in China and high oil prices, he said. Virabongsa also urged consumers to demand more information from property developers before making a decision to buy. Chulalongkorn University architecture lecturer Bandit Chulasai said advertisements in newspapers and brochures were not enough to attract buyers. He urged developers to work harder if they wanted to sell their projects. Bandit said research had shown that consumers gathered information in five areas before making a home-purchasing decision. First, they think about the convenience of the location and the neighbouring facilities. Second, they consider space utilisation. Third, consumers want to live in a pleasant community environment, while their fourth concern is security, followed finally by the architectural style of the building, he said at a seminar for homebuyers. Bandit added that demand for homes priced between Bt2 million and Bt5 million would be high this year, but demand for housing valued at Bt10 million and above is declining. Wichit Chaitrong The Nation Link to comment Share on other sites More sharing options...
Guest Posted August 7, 2004 Report Share Posted August 7, 2004 With the corruption and constant changes in policy and UN-friendly rules for non-thai ownership...is there ever REALLY a 'good time to buy?' Let non-thai's own land and property...then it would be better. Until the next election of course. "a fool and his money are soon parted" late. Link to comment Share on other sites More sharing options...
gummigut Posted August 7, 2004 Report Share Posted August 7, 2004 Only fair to recognize that Prasong Owlarn is the HOUSING BUSINESS ASSOCIATION president. Also the president of the OGC Group of companies. One of whose 4 core businesses is real estate. Now I don't know if he's got any projects in the works, but I wouldn't be surprised if he did. Also wish the economist would speak to the lecturer. If there is no signs of a housing bubble, why isn't newspaper advertisements and flyers enough to sell anymore? <<burp>> Link to comment Share on other sites More sharing options...
Guest Posted August 7, 2004 Report Share Posted August 7, 2004 Excellent point. The man in the article has an obvious vested intrest in the selling of homes. Of course he is going to say 'now is the time to buy.' He just forgot to add 'stupid farang' at the end. So next time he should quote: 'Now is the time to buy, stupid farangs.' He would sell hundreds of condos on his honest merit alone. ha ha Link to comment Share on other sites More sharing options...
JJsushi Posted August 7, 2004 Report Share Posted August 7, 2004 I don't know if there is a housing bubble in Thailand but I most assuredly believe that there is a high end housing development bubble in Bangkok. The amount of luxury apartments being developed is amazing, I really can't see how they can sustain such development. BTW- where are the housing development for the poor? Link to comment Share on other sites More sharing options...
Guest Posted August 7, 2004 Report Share Posted August 7, 2004 Good point. Conflicts of interest don't get the same recognition here that they get in the West. This is a serious problem that is often overlooked. Unfortunately Westerners, not recogniziing this, get burned here all of the time because of this. I posted a longer story about a friend who lost 1 million Baht and some change on a property transaction in Phuket on the general board where he ignored an obvious conflict-of-interest. Making predictions about the future of any market is always hazardous, but I am more than a little skeptical about the property boom in Bangkok. On the other hand, I am looking for a second place now outside of Bangkok and considering Pattaya because, in comparison to Bangkok and Phuket, your money goes further and, unlike Hua Hin, there are good roads and it will be very close to the new international airport. I may just keep looking... Link to comment Share on other sites More sharing options...
jitagawn Posted August 14, 2004 Report Share Posted August 14, 2004 PS- Several of my friends who are large scale BKK housing developers started saying 4-5 months ago that they are preparing for the inevitable turn-down and possible burst of this high end market. From the horses mouth so to speak. They know the drill... :: Link to comment Share on other sites More sharing options...
Paillote Posted August 18, 2004 Report Share Posted August 18, 2004 gummigut said:Only fair to recognize that Prasong Owlarn is the HOUSING BUSINESS ASSOCIATION president. Also the president of the OGC Group of companies. One of whose 4 core businesses is real estate. Now I don't know if he's got any projects in the works, but I wouldn't be surprised if he did. Also wish the economist would speak to the lecturer. If there is no signs of a housing bubble, why isn't newspaper advertisements and flyers enough to sell anymore? <<burp>> OGC makes glass tableware, but no doubt there is an interest conflict here anyway. Noble, a leading constructor of upmarket real estate lost over 18% on the SET today after very poor earnings for first half. Other builders are up, so the real estate picture right now is mixed. Not so sure we are going to see a crash, but a slide in the upper segment has already started. Thai economy are doing pretty well at the moment so my very safe guess is that it can go either way. Paillote Link to comment Share on other sites More sharing options...
.. Posted August 18, 2004 Report Share Posted August 18, 2004 Paillote said:Thai economy are doing pretty well at the moment so my very safe guess is that it can go either way.What is your metric for that? Please enlighten us idiot techies who are not financial analysts! Cheers, SD Link to comment Share on other sites More sharing options...
gummigut Posted August 18, 2004 Report Share Posted August 18, 2004 I'm an idiot!! I'm an idiot!! In any event, lol OGC makes much more than glass tableware. Check out the OGC group of companies. Think they are in the middle of the pack of the top 100 or so families. I ferget. <<burp>> Link to comment Share on other sites More sharing options...
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