Condo market slowdown expected as elections approach.

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Re: Condo market slowdown expected as elections approach.

Post by Duncan » Sun Apr 30, 2017 1:23 pm

My interpretation of those words,,,, '' can command '',,,,, is they can, but don't .,,,, It's possible but not probable, and remember we're talking, on a monthly rental basis, which does not mean it's rented for a whole year.


On a monthly rental basis, according to Narinn, high-end apartments in BKK1 can command $1,500 for a one-bedroom unit, up to $2,500 for a two-bedroom, and between $2,500 and $3,500 for a three-bedroom apartment.
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Re: Condo market slowdown expected as elections approach.

Post by AE86 » Sun Apr 30, 2017 2:41 pm

Yeah, those numbers are a bit delusional for the "average" consumer. Only reason people pay those kinds of rates is because there are enough suckers filling up an occasional room to give the bug eyed cash seeking proprietors hope to dump massive sums of money in hopes of getting rich quick.

For what it's worth, our friends runs a restaurant in BKK 1 and rent is $3k, sits on the corner of a busy road, great location. Also considerably larger than a 3 bedroom apartment.
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Re: Condo market slowdown expected as elections approach.

Post by SinnSisamouth » Sun Apr 30, 2017 4:58 pm

this is my prediction
yes the condo market will slow but only because everyone says it will burst.then after the election it will just carry on where it left off

pp is not unique in building shit loads. to the untrained eye thatwhat it looks like but these people do it for a living they didnt just fancy building and selling condos

it will not change and buyers will buy,if not this year or next but in time
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Re: Condo market slowdown expected as elections approach.

Post by eriksank » Sun Apr 30, 2017 6:45 pm

CEOCambodiaNews wrote:
Sat Apr 29, 2017 2:16 am
Another glitzy condo sets up in BKK1, but occupancy is dismal
ImageThe Platinum Bay development in BKK1.
"On a monthly rental basis, according to Narinn, high-end apartments in BKK1 can command $1,500 for a one-bedroom unit, up to $2,500 for a two-bedroom, and between $2,500 and $3,500 for a three-bedroom apartment."

These rentals target the same people who would also qualify for mortgages. Hence, they don't really make sense as long-term rentals. But then again, a three-bedroom luxury apartment at $3500/30=$116/day could be competitive as a short-term rental on AirBnb. The rent is a bit steep, though. It will attract lots of competition. It would be the rate of return on a $3500 x 12 / 7% = $600 000 total investment, which is absolutely not the value of these apartments. I doubt that they sell for more than $150 000 per unit. So, indeed, their story does not seem to add up.
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Re: Condo market slowdown expected as elections approach.

Post by rogerrabbit » Sun Apr 30, 2017 9:41 pm

eriksank wrote:
Sun Apr 30, 2017 6:45 pm
CEOCambodiaNews wrote:
Sat Apr 29, 2017 2:16 am
Another glitzy condo sets up in BKK1, but occupancy is dismal
The Platinum Bay development in BKK1.
"On a monthly rental basis, according to Narinn, high-end apartments in BKK1 can command $1,500 for a one-bedroom unit, up to $2,500 for a two-bedroom, and between $2,500 and $3,500 for a three-bedroom apartment."

These rentals target the same people who would also qualify for mortgages. Hence, they don't really make sense as long-term rentals. But then again, a three-bedroom luxury apartment at $3500/30=$116/day could be competitive as a short-term rental on AirBnb. The rent is a bit steep, though. It will attract lots of competition. It would be the rate of return on a $3500 x 12 / 7% = $600 000 total investment, which is absolutely not the value of these apartments. I doubt that they sell for more than $150 000 per unit. So, indeed, their story does not seem to add up.
You cannot get 3 bedroom unit for $150.000 from BKK1 in this type of building. Studio and 1 bedroom are possible to get for that though but then those rent is usally $1600 and below.
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Re: Condo market slowdown expected as elections approach.

Post by eriksank » Sun Apr 30, 2017 10:17 pm

rogerrabbit wrote:
Sun Apr 30, 2017 9:41 pm
You cannot get 3 bedroom unit for $150.000 from BKK1 in this type of building.
Rather $250.000 ? But then again, even then, extracting 12 x $3.500 = $42.000 yearly out of a $250.000 real estate investment still sounds too much like digging up easy gold ...
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Re: Condo market slowdown expected as elections approach.

Post by Bitte_Kein_Lexus » Mon May 01, 2017 1:49 am

I visited that very building several months back and prices were way higher than what you're assuming.
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Re: Condo market slowdown expected as elections approach.

Post by Duncan » Mon May 01, 2017 8:22 am

Bitte_Kein_Lexus wrote:
Mon May 01, 2017 1:49 am
I visited that very building several months back and prices were way higher than what you're assuming.



When you say '' prices were higher '' Are you talking about the prices they were dreaming of,,, the prices they were asking ,,, the prices they are getting or the prices they are worth. ?
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Re: Condo market slowdown expected as elections approach.

Post by Bitte_Kein_Lexus » Mon May 01, 2017 11:40 am

Prices they were asking and prices at which the condos were (apparently) changing hands. What the article fails to mention is whether or not the units have been sold. It night have a low occupancy, but if the units were 90+% sold, they still made their money. I've visited about 8-15 different projects (no real intention to buy, just curious) and most are sold to Rich Khmer and overseas Chinese. In the one across Aeon's case, mostly a Japanese clientele. I don't see why they would inflate their sales, but it's definitely true that there's a large proportion of these units being sold to foreign investors as they typically guarantee a 7-10% return for the first two years. Empty units are thus common, but as I've always said, it just means that the average housing development doesn't help the average middle class family.
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Re: Condo market slowdown expected as elections approach.

Post by vladimir » Tue May 02, 2017 7:08 am

Surely they would inflate their sales to create a false sense of demand? Kind of obvious...like estate agents who tell property viewers that thay have had lots of offers and inflate the price of those offers...illegal in some countries, not in the UK, but then anything goes in the UK
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