EXCLUSIVE: Property speculation is alive and well in the central Bangkok condominium market.
A ThailandProperty.News survey, carried out today and focusing on leading Thailand property portals, has revealed at least eight separate units are available for “resale” in a central Bangkok development which launched for presales within the 10 days.
Units “for sale” at the project which has not yet broken ground, range from THB 225,000 per sqm upwards to close to THB 300,000 per sqm.
Units with smaller spaces are commanding higher per sqm prices.
Sources indicate that some speculative sellers are seeking to achieve a 20 percent profit by speculating and flipping their unit within a short time. It is understood the down payment at this development, located in Asoke, was negotiable during the presales event, and may have been as little as 5 percent of the total sales price.
With many research reports indicating a slowing of prime property prices in central Bangkok, property speculation in these locations can only be described as risky.
Buyers and investors now have substantial choices as more prominent Thailand property developers turn their attentions to the heart of Bangkok.
In outer parts of the city, buyers were speculating and forfeiting their deposit payments due to tighter financial restrictions put in place from Thai banks – meaning they were unable to flip their units before final payments were due.
Surely there will come a time with saturation levels for prime, expensive units are reached in the centre of the city?
Let’s hope today’s speculators have achieved their goals before those levels are reached, or it could be a costly gamble, both for them and for developers who could be flooded with unfinanced units.