EDITORIAL: Despite the economic conditions in Thailand, or perhaps because of them, property speculators are fairly active in the Bangkok condominium property market.
During past months Dot Property Group has reported how several off-plan real estate developments throughout Bangkok have sold-out in a very short time, however now the market is seeing resale transactions from buyers in those same projects who are keen to make a quick profit on their purchase.
Condominium units from a number of high-profile developers have already change hands within a matter of days of the original sale, underlining the strong potential for immediate re-sales in the prime Bangkok condominium market.
This trend certainly reinforces the popularity of Bangkok condominiums in popular locations as investments, and developments in popular locations will always attract short-, medium- and long-term investors.
Dot Property Group has noted a number of recent off-plan developments from all parts of the Thai capital are being listed for sale on various websites, with “buyers” asking anything up to THB 150,000 to transfer the sales and purchase agreement to a prospective purchaser.
Although many Thai developers have been raising the amount needed as a down payment to secure an off-plan purchase, resellers are still seemingly able to turn a quick baht.
Whilst this kind of business may only suit a brave investor, it does appear to be quite common and not too difficult in the current climate. Ultimately, whether the buyer achieves his or her aim will depend on being able to choose the right developer, project, location and unit type – and equally importantly at the right time.
And while there are individuals who are intent on making a quick profit, others are happy to sit and wait for even more demand to accumulate as the project nears completion before attempting to sell.
Yes – this kind of property trading is somewhat of an art, and there are those who can do this time and again with continued success – but there are dangers.
Naturally, things can go wrong and an unsuccessful speculator, buying purely for a quick profit, could end up with either a condominium unit they don’t want, finance they hadn’t planned for or, in a worst-case scenario, a lost deposit and potential legal action if they opt to break any legally-binding contract.
This is certainly not a scenario that’s unique to the Bangkok property market, but it’s one that city hasn’t really seen to any great degree for a few years, yet it’s one that it continues to see regardless of the current economic conditions.