Foreign demand for Bangkok condominiums, which arguably is currently at an all-time high, is not good news for everyone.
One particular aspects of the growth in overseas property buyers has been described by one Bangkok real estate agency as : ”… a time bomb waiting to explode”.
ThailandProperty.News has been told that a growing number of Thai property investors will be left out of pocket as more buyers and investors from overseas buy Thailand property.
The reason. Their intention to buy off-plan units and flip them to foreign buyers before completion – and make a decent profit at the same time – is not able to happen where some projects have already filled their 49 percent foreign quota.
Non-Thai buyers are only allowed to own a maximum of 49 percent of the available, sellable, space in any particular development.
And rather than complete the buying process, a few local investors and speculators are foregoing their initial deposits and down payments, and just walking away.
They are apparently unable to sell their units to Thai buyers.
The head of one Bangkok real estate agency specialising in Sukhumvit properties, spoke to ThailandProperty.News on condition of anonymity.
She predicted this issue will become an increasing problem for some Bangkok property developers, who will have assumed they’ve sold a unit when actually they haven’t.
“I’m aware of at least a dozen situations where this has happened during this month alone,” she said.
Her agency has been approached by local investors to sell what are mostly sub 40-sqm units in the lower Sukhumvit part of Bangkok, and with specific instructions regarding minimum acceptable prices.
“In some cases, these ambitious pricing levels are at least 15 percent and more above the pre-sale prices,” she said.
“I believe there will be a large number of similar cases in the coming months where local investors and buyers want to sell to foreigners at premium prices, but will not be able to as it would not be allowed by the Land Offices.”
“This is a time bomb waiting to explode,” she added.