Investment Activity Delays as Purchasers Hold Out For Price Reductions
In spite of constant awareness and additional properties available for sale, investment activity in the Bangkok real estate sector is not showing much positive response because price expectations of purchasers and sellers are far apart.
Investment interest in the Bangkok real estate sector continues to be strong; although, investors are mostly interested in distressed assets made available at discounted rates. Though, sellers don’t want to sell their properties at loss, even though they accept that the market conditions are not up to the mark. Consequently, investment activity in the Bangkok real estate sector has declined as purchasers like to adopt a wait-and-watch attitude, hoping prices to go down in response to the sensitivity of assessment.
In the past few months, it is observed that investors are much more interested in large land plots, office buildings or industrial properties in and around Bangkok.
At the same time as purchasers are looking forward to obtain a property at a much discounted cost, sellers have not yet met with the financial situation which would compel them to acknowledge losses on selling of properties. Up till now only a few landlords are ready to cut their asking prices.
The property values are sliding downwards. Although, the size of the decrease in property rates is very tentative. In the past 2-3 months only a few property investment transactions are recorded.
The government of Thailand has promised to begin a new tax on unused land in an endeavor to expand its revenue collection.
At the same time as the government will take approximately 2 years to plan this new property tax structure, a few developers have expressed distress over this plan, which mean more and more burdens on landowners.
Major developers now believe that investment activity in the Bangkok real estate sector may delay as purchasers are adopting a wait and watch attitude in anticipation of price reductions.
Investment interest in the Bangkok real estate sector continues to be strong; although, investors are mostly interested in distressed assets made available at discounted rates. Though, sellers don’t want to sell their properties at loss, even though they accept that the market conditions are not up to the mark. Consequently, investment activity in the Bangkok real estate sector has declined as purchasers like to adopt a wait-and-watch attitude, hoping prices to go down in response to the sensitivity of assessment.
In the past few months, it is observed that investors are much more interested in large land plots, office buildings or industrial properties in and around Bangkok.
At the same time as purchasers are looking forward to obtain a property at a much discounted cost, sellers have not yet met with the financial situation which would compel them to acknowledge losses on selling of properties. Up till now only a few landlords are ready to cut their asking prices.
The property values are sliding downwards. Although, the size of the decrease in property rates is very tentative. In the past 2-3 months only a few property investment transactions are recorded.
The government of Thailand has promised to begin a new tax on unused land in an endeavor to expand its revenue collection.
At the same time as the government will take approximately 2 years to plan this new property tax structure, a few developers have expressed distress over this plan, which mean more and more burdens on landowners.
Major developers now believe that investment activity in the Bangkok real estate sector may delay as purchasers are adopting a wait and watch attitude in anticipation of price reductions.
Labels: Bangkok real estate sector, property tax structure, property values
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