Wide Opening between Price Prospects in Property
Regardless of constant interest and additional properties up for sale, investment activity in the Bangkok property market has been unresponsive as there remains a wide opening between purchasers and sellers prospects.
Suphin Mechuchep, managing director of Jones Lang LaSalle, said interest in the Bangkok property market continued to be strong. Though, purchasers were generally looking for concerned assets obtainable at profound discounts.
All together, sellers decline to dispose of their property at a loss, in spite of uncomplaining the softer market circumstances. So, investment activity in the property market had declined, with purchasers abiding to adopt a wait-and-watch attitude.
“In recent months, we have been persistent to get enquiries from investors in hunt of large land plots, office buildings or industrial properties obtainable for sale in and around Bangkok. Though, all the enquiries were motivated by the search for concerned property assets,” said Umpon Thepnumsommanus, director of investments at Jones Lang LaSalle.
“At the same time as purchasers are expecting to obtain the property at a profoundly discounted price, sellers have yet to meet financial circumstances which would compel them to acknowledge losses,” Umpon said. “We have until now seen a few landlords only eager to decrease asking prices.”
The wide-ranging consent is that property values are declining. Though, the extent of the decline in property values is highly indecisive.
He said there have been only some property investment transactions since 2008 to date. Therefore, real transactions against which to standard are limited. For instance, land on Sathorn Road was transacted at Bt500,000 per square wah in 2005 and Bt800,000 in 2008. Until now in 2009, there has been not a single land transaction to sustain the concept that land prices in this area have plunged.
“In the present situation, sellers are lowering their asking prices. On the other hand, circumstances are up to now dissimilar from those during the tom yum kung disaster when owners were compelled to sell at a loss,” said Suphin.
Suphin Mechuchep, managing director of Jones Lang LaSalle, said interest in the Bangkok property market continued to be strong. Though, purchasers were generally looking for concerned assets obtainable at profound discounts.
All together, sellers decline to dispose of their property at a loss, in spite of uncomplaining the softer market circumstances. So, investment activity in the property market had declined, with purchasers abiding to adopt a wait-and-watch attitude.
“In recent months, we have been persistent to get enquiries from investors in hunt of large land plots, office buildings or industrial properties obtainable for sale in and around Bangkok. Though, all the enquiries were motivated by the search for concerned property assets,” said Umpon Thepnumsommanus, director of investments at Jones Lang LaSalle.
“At the same time as purchasers are expecting to obtain the property at a profoundly discounted price, sellers have yet to meet financial circumstances which would compel them to acknowledge losses,” Umpon said. “We have until now seen a few landlords only eager to decrease asking prices.”
The wide-ranging consent is that property values are declining. Though, the extent of the decline in property values is highly indecisive.
He said there have been only some property investment transactions since 2008 to date. Therefore, real transactions against which to standard are limited. For instance, land on Sathorn Road was transacted at Bt500,000 per square wah in 2005 and Bt800,000 in 2008. Until now in 2009, there has been not a single land transaction to sustain the concept that land prices in this area have plunged.
“In the present situation, sellers are lowering their asking prices. On the other hand, circumstances are up to now dissimilar from those during the tom yum kung disaster when owners were compelled to sell at a loss,” said Suphin.
Labels: Bangkok Property Market, investment activity, property assets
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