Haggling for a condo deal
Are there any property bargains to be had after the earthquake?
Far as I can understand all these recently built condo blocks are built the same way: they just ram pillars into the ground and run some beams across and then they fill in the gaps with block work and render over to keep the partitions all together and then a coat of plaster to give a smooth surface over which to paint.
They're carrying out structural inspections, but all the structures are probably fine, it's just that the swaying shook off some of the render.
The affected blocks lie within one, two or maybe more thousand kilometers of Mandalay.
I would imagine the earthquake has put off a lot of potential buyers. And added to that there's been the crash in the stock market and we're heading into a global recession with further baht weakness as a result. So I should think amidst all this uncertainty and the click bait news in the mainstream media, there's going to be a drop off in demand.
I'd also imagine that there'll be a build-up of cheaper properties coming onto the market and for the less well off sellers who have to sell, they will be obliged to reduce their price. But for more expensive condos owned by wealthier people, they will have other options if they need a bit of liquidity and these people would not be inclined to panic and reduce their price.
So my guess would be that now would be a good time to negotiate lower prices on cheaper properties and the kind of people who'd be interested are people who want to move but also landlords.
Bearing in mind that the condos are probably perfectly okay and just need a couple hundred US dollars spent on pasting over the cracks, I agree with you that there probably are some real bargains, especially by forced sellers.
How long will this situation endure? I'd imagine until the end of the coming recession (not connected to the earthquake incidentally), so let's say a year or two. Classically, recession is the best time to buy a property and the worst time to sell.
So let's try and quantify that: you could get an additional 5% off high-end property, 10% off mid-range and 15% off lower priced properties.
Plus a further discount when you transfer money into an already depreciating currency, made worse by the new tariffs.
So in conclusion yes, as recession follows earthquake, now and in the short term is probably a good time to buy a property in Bangkok.
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> I just saw an article in the Bangkok times Facebook page which said that lots of lots of properties in Bangkok now got cracks inside and of course one of the comments was now is probably a good time to buy Bangkok properties.
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> I’m not entirely sure of this but I haven’t got money at the moment but what do you think of that idea ?
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