I was quoted 7,980,000 at the end of July 2023 for a 1 bed plus city-facing unit on the 21st floor. That price included a 'discount' of 1,200,000. Treat 'discounts' with a pinch of salt; 'smoke and mirrors' come to mind. At 6,200,000, AP are discounting by circa 20% on the July '23 prices. That suggests a very 'soft' market. The floor area was stated as 43.5 m2. The price was calculated on 44.17 m2. But, based on a plan with dimensions provided by the developer, the actual area was just under 40m2. They could not explain the difference to me. So, be sure to verify the floor area if you are a potential buyer. The common areas are lovely but you do not live in them. A complex of this size cannot be supported by a CAM of 50 baht: it will be 70 baht in short order. It's a nice area, but if you are tempted, do serious due diligence.
6.2M is the starting price. Prices for the same unit type differ based on floor, orientation, layout, etc. If the actual area is off by over 5% from the advertised area, you have the right by law to completely nullify the purchase. You could even sue for false advertising if you were really motivated. A CAM fee of 50 baht may sound low at face value, but remember that the amount is multiplied by the total square meters of all 421 units in the building, per month
@@JettGunther The CAM is way too low. It is a marketing pitch. More units equal more floor area equals more cost. It is not rocket science. I understand your role. Your video is an 'advertorial' for AP ;) Chok dee.
Jett: I would like to see a video about the resale value of real estate properties in Thailand. Obviously, it would have to be general, considering the complexity of the topic. Regardless, this is a very important issue, especially for those potential buyers familiar with investment properties in other countries. These units are not cheap and the return on one's investment meager at best. Before purchasing a condo, apartment, etc. in Thailand, it would be helpful for those of us interested in purchasing property in Bangkok or elsewhere in the country to have some idea of what we are getting into after making such a sizeable investment in real estate.
The resale market is terribly thin. Many people take years to sell their units, and often at a loss. Be very careful and do not believe a word agents tell you. Thai buyers want to buy new. They do not like buying from foreigners. The great majority of condos are cheaply built. Strong on 'marketing', weak on quality. Non-payment of CAM is a problem, particularly in lower priced buildings. You also need to check how the development has been funded. Nowadays, many developers mortgage the land and have a separate construction loan. How sound is the developer? Right now, Thai banks are rejecting 50/60% of mortgage applications which is adding to the excess of supply. Also, ask if Thai quota and foreign quota are priced differently. Walk away if foreign prices are higher. Instruct a lawyer to do serious due diligence and never pay a 'registration fee' until your lawyers gives the go ahead. Finally, there is no public record of transaction prices as in the US, UK etc. I could write a book on the condo market :)
A lot of strong claims here against resale. Where’s are you getting this info? Last year, 47,219 condos were re-sold, up 8% YoY with a total transaction value of 88.7 billion baht, up 12.4% YoY. The fastest growing segment was the 3-5m price range where 3,020 units changed hands, up 33.3% YoY with a total transaction value of 11.6 billion baht, up 32.7% YoY. Thailand’s Real Estate Information Center identified 4 main reasons people opted for second hand condos: 1. Location: many existing condos are in excellent locations compared to newer ones that had to build further out. 2. Size: more bang for buck. 3. Investment attractiveness: some are selling along with the existing tenant, a sweet deal. 4. Many foreigners are fine buying second hand. Original post: moneyandbanking.co.th/2024/95906/?fbclid=IwAR0NNeS0vzX_83oVFcFwhVnXBvC0vVA3V6mYX60vKLL79daBaFkv3f2uVn8 That’s from an external source. Anecdotally, we deal with resale properties all the time.
@@JettGunther A little background. I've been involved in real estate since 1971 - as a consultant, an owner and property restorer. I have been following the Thai condo market for 14 years and have not bought. I follow the stats provided by the REIC but these are composite figures. You need much more detail to make sense of what is really happening. My opinions are based on the experience of living in 5 condo developments, speaking to lots of buyers, and visiting many, many buildings, and not just in Bangkok. Anyone who fails do to serious due diligence is making a big mistake. I stand 100% behind my 'claims' :)
I stayed in a condo build by AP which was completed in 2021. I’m glad I was just a tenant. It is not build to last. Constant major repairs going on everywhere since the start. It looks all nice on the outside but when you look “under the hood” ..I’m not impressed.
Excellent point! Even from videos selling high-end condos and other luxury properties in Bangkok, if you look carefully, you will see certain features, etc., that don't quite live up to the hype.
I'm not cashing out my US investments that make me monthly income to buy a place. My wife and I are looking to rent long term. We really like the Ritz. we're cool with 200+k a month. Just concerned about the smog.
A Thai friend took a hit of 1 million on an AP condo. She said the quality was terrible. Buyers need to understand that the resale market in Siam is really thin.
Fees are always calculated based on your total square meter. So here, the maintenance fees are 50 baht per month x [your total square meters] , paid annually. The one time sinking fund is 500 baht per month x [your total square meters] , paid once. If you're asking whether you're handed two bills or one, that's a bit nuanced for my knowledge and it's best to ask the developer.
with the lack of capital growth in the condo market in bangkok I have to think you're much better off renting and investing the excess capital in higher yielding investments.
For instance, "The Bangkok condo market slowed in the third quarter of 2023, plunging to its lowest point for supply and demand since the third quarter of 2021, mainly attributed to rising interest rates. Property consultant Knight Frank Thailand reported new condo supply launched in the third quarter of 2023 totalled 5,367 units, down 45% year-on-year." (Bangkok Post). More related articles can be found on-line.
Quarterly dips and bounces are normal. You can look at a site such as globalpropertyguide.com which tracks price appreciation and rental yields of various markets across a much longer timeframe. For example: www.globalpropertyguide.com/asia/thailand/price-history
Many of us rarely move in the polluted streets of BKK, though. Breathing relatively fresh air over 90% of the time, in shopping centres, walking areas, etc. 🎉
Did my research online. Saves time and money. Visited Thailand three times last year and loved it. It all depends on what you're looking for. One man's heaven is another man's hell. What is your city of choice? since you're so well travelled.@@leotravel85
A maids room in a 100 sqm condo? Why would u do that? I have room Maids coming every day for 1h , but why would u live with them???? Except u are paralyzed...
You know what? I have been watching Thailand videos for 2 weeks. And I have not seen one bird of pigeon in any video. Where the hell are the birds? Oh God, is this why chicken is so cheap and plentiful there? And I am only halfway kidding about this. I have not seen a bird flying in their sky. Near the sky scrapers. Dial near the beaches on anywhere. And I have not seen any birds or pigeons in the streets. And considering how many food vendors are there? Pigeons with go there to beg for crumbs and stuff. Oh my God, where the hell of the birds?
I was quoted 7,980,000 at the end of July 2023 for a 1 bed plus city-facing unit on the 21st floor. That price included a 'discount' of 1,200,000. Treat 'discounts' with a pinch of salt; 'smoke and mirrors' come to mind. At 6,200,000, AP are discounting by circa 20% on the July '23 prices. That suggests a very 'soft' market. The floor area was stated as 43.5 m2. The price was calculated on 44.17 m2. But, based on a plan with dimensions provided by the developer, the actual area was just under 40m2. They could not explain the difference to me. So, be sure to verify the floor area if you are a potential buyer. The common areas are lovely but you do not live in them. A complex of this size cannot be supported by a CAM of 50 baht: it will be 70 baht in short order. It's a nice area, but if you are tempted, do serious due diligence.
6.2M is the starting price. Prices for the same unit type differ based on floor, orientation, layout, etc.
If the actual area is off by over 5% from the advertised area, you have the right by law to completely nullify the purchase. You could even sue for false advertising if you were really motivated.
A CAM fee of 50 baht may sound low at face value, but remember that the amount is multiplied by the total square meters of all 421 units in the building, per month
@@JettGunther The CAM is way too low. It is a marketing pitch. More units equal more floor area equals more cost. It is not rocket science. I understand your role. Your video is an 'advertorial' for AP ;) Chok dee.
Beautiful presentation, Jett, thank you!
Jett … into Real-estate now. Congratulations. Been following you for many years from Thai news onward. Take care. Wayne M. 🇨🇦
Thank you for doing more family friendly condos! Not enough channels do it! The price is a little steep for me though. Can we negotiate?
Sure thing! Can reach out to me at jettgunther.com
Let's talk
Bangkok literally has became *That City* on the world stage. It is what New York was 20 years ago.
Love this!
Jett: I would like to see a video about the resale value of real estate properties in Thailand. Obviously, it would have to be general, considering the complexity of the topic. Regardless, this is a very important issue, especially for those potential buyers familiar with investment properties in other countries. These units are not cheap and the return on one's investment meager at best. Before purchasing a condo, apartment, etc. in Thailand, it would be helpful for those of us interested in purchasing property in Bangkok or elsewhere in the country to have some idea of what we are getting into after making such a sizeable investment in real estate.
The resale market is terribly thin. Many people take years to sell their units, and often at a loss. Be very careful and do not believe a word agents tell you. Thai buyers want to buy new. They do not like buying from foreigners. The great majority of condos are cheaply built. Strong on 'marketing', weak on quality. Non-payment of CAM is a problem, particularly in lower priced buildings. You also need to check how the development has been funded. Nowadays, many developers mortgage the land and have a separate construction loan. How sound is the developer? Right now, Thai banks are rejecting 50/60% of mortgage applications which is adding to the excess of supply. Also, ask if Thai quota and foreign quota are priced differently. Walk away if foreign prices are higher. Instruct a lawyer to do serious due diligence and never pay a 'registration fee' until your lawyers gives the go ahead. Finally, there is no public record of transaction prices as in the US, UK etc. I could write a book on the condo market :)
A lot of strong claims here against resale. Where’s are you getting this info?
Last year, 47,219 condos were re-sold, up 8% YoY with a total transaction value of 88.7 billion baht, up 12.4% YoY.
The fastest growing segment was the 3-5m price range where 3,020 units changed hands, up 33.3% YoY with a total transaction value of 11.6 billion baht, up 32.7% YoY.
Thailand’s Real Estate Information Center identified 4 main reasons people opted for second hand condos:
1. Location: many existing condos are in excellent locations compared to newer ones that had to build further out.
2. Size: more bang for buck.
3. Investment attractiveness: some are selling along with the existing tenant, a sweet deal.
4. Many foreigners are fine buying second hand.
Original post: moneyandbanking.co.th/2024/95906/?fbclid=IwAR0NNeS0vzX_83oVFcFwhVnXBvC0vVA3V6mYX60vKLL79daBaFkv3f2uVn8
That’s from an external source. Anecdotally, we deal with resale properties all the time.
@@JettGunther A little background. I've been involved in real estate since 1971 - as a consultant, an owner and property restorer. I have been following the Thai condo market for 14 years and have not bought. I follow the stats provided by the REIC but these are composite figures. You need much more detail to make sense of what is really happening. My opinions are based on the experience of living in 5 condo developments, speaking to lots of buyers, and visiting many, many buildings, and not just in Bangkok. Anyone who fails do to serious due diligence is making a big mistake. I stand 100% behind my 'claims' :)
@jamesbarr2357 thank you for sharing
Looks amazing.
Thank you for filing this with a decent camera
Thank you. It’ll get better and better 😉
Very nice❤
OMG I wanna live there.
I stayed in a condo build by AP which was completed in 2021. I’m glad I was just a tenant.
It is not build to last. Constant major repairs going on everywhere since the start.
It looks all nice on the outside but when you look “under the hood” ..I’m not impressed.
Excellent point! Even from videos selling high-end condos and other luxury properties in Bangkok, if you look carefully, you will see certain features, etc., that don't quite live up to the hype.
I'm not cashing out my US investments that make me monthly income to buy a place. My wife and I are looking to rent long term. We really like the Ritz. we're cool with 200+k a month. Just concerned about the smog.
A Thai friend took a hit of 1 million on an AP condo. She said the quality was terrible. Buyers need to understand that the resale market in Siam is really thin.
Nice
love the channel, can you do some videos on some pet friendly buildings?
Stay tuned for the very next one!
are they also available for rent ?
What is the current rental for a 2-bedroom 2 bathroom unit?
Is this only for sale or rent as well? 2BR?
Hey, Jett...The three bedroom is a combination of one bedroom and 2 bedroom units...is that two maintenance and two building fees?
Fees are always calculated based on your total square meter.
So here, the maintenance fees are 50 baht per month x [your total square meters] , paid annually.
The one time sinking fund is 500 baht per month x [your total square meters] , paid once.
If you're asking whether you're handed two bills or one, that's a bit nuanced for my knowledge and it's best to ask the developer.
I would make that first "maids" room an office/work space and relocate the toilet/sink and wash machine to the bonus room next to the kitchen.
I like it!
เป็นลูกครึ่งไทยใช่ไมครับ น้องพูดไทยชัดมาก เหมือนคนไทยพูดเลยครับ
with the lack of capital growth in the condo market in bangkok I have to think you're much better off renting and investing the excess capital in higher yielding investments.
Lack? How do you know there’s a lack? Could you please provide some data?
For instance, "The Bangkok condo market slowed in the third quarter of 2023, plunging to its lowest point for supply and demand since the third quarter of 2021, mainly attributed to rising interest rates. Property consultant Knight Frank Thailand reported new condo supply launched in the third quarter of 2023 totalled 5,367 units, down 45% year-on-year." (Bangkok Post). More related articles can be found on-line.
Quarterly dips and bounces are normal.
You can look at a site such as globalpropertyguide.com which tracks price appreciation and rental yields of various markets across a much longer timeframe.
For example: www.globalpropertyguide.com/asia/thailand/price-history
@@JettGunther If the market is so strong, why is the resale market so poor?
You should pick a day when there’s no pollution in the background
If only I had that luxury
Bangkok would be a decent city without the massive pollution. Unfortunately, that's not the case
Decent? Its the best city in the world. Even with the pollution.
@@aloquicious You need to travel more mate
Is Thailand's 'Clean Air Act' enough to end pollution? www.dw.com/en/is-thailands-clean-air-act-enough-to-end-pollution/a-68022214
Many of us rarely move in the polluted streets of BKK, though. Breathing relatively fresh air over 90% of the time, in shopping centres, walking areas, etc. 🎉
Did my research online. Saves time and money. Visited Thailand three times last year and loved it. It all depends on what you're looking for. One man's heaven is another man's hell. What is your city of choice? since you're so well travelled.@@leotravel85
damn look at that pollution , no way would i live in bkk
Smog.
Not in any way impressed, only the prices are okay.
A maids room in a 100 sqm condo? Why would u do that?
I have room Maids coming every day for 1h , but why would u live with them???? Except u are paralyzed...
You know what? I have been watching Thailand videos for 2 weeks. And I have not seen one bird of pigeon in any video. Where the hell are the birds? Oh God, is this why chicken is so cheap and plentiful there? And I am only halfway kidding about this.
I have not seen a bird flying in their sky.
Near the sky scrapers. Dial near the beaches on anywhere. And I have not seen any birds or pigeons in the streets. And considering how many food vendors are there? Pigeons with go there to beg for crumbs and stuff. Oh my God, where the hell of the birds?
Lol of course there are birds. Try the parks.
Maids room looks like a closet, thats not a worthy living place.