Coronavirus in Bangkok: should I buy now?
Everywhere you look nowadays the main news items have something to do with the coronavirus. So much speculation and conjecture, creating uncertainty and concern. But what’s this to do with any decision to buy a condo in Bangkok?
Well, as with many major property markets, usually the time to buy is when many others hesitate to do so. You only have to look at the property market in Hong Kong in 2003, as an example, when SARS hit. The rebound from the lows was dramatic and many potential buyers regretted not buying.
Coming back to Bangkok, therefore, perhaps the most frequently asked question in the next few weeks will be: Is it a good time to consider to buy a condo in Bangkok?
There are several things to consider:
▪ as in any property market there are always some people who need to sell. It may be that they have a mortgage they need to repay or have several properties and cannot carry the costs of them all being vacant. Or it may simply be that their initial asking prices were too far above the market and they now realise that, if they wish to sell, they need to get realistic on price.
The effect: owners of such condos will be more negotiable on price and other terms if they need to sell. Put in an offer on a condo you like and see!
▪ many developers are slowing down their building programmes as they first need to clear their built but unsold condo inventories. There is also no point continuing to build if demand is, albeit temporarily reduced. If you wish to by a new condo, there are plenty of new ones to choose from in up and coming locations and, to clear their stock, developers will initially offer incentives or “value-adds” such as including some extra furniture or paying all of the transfer taxes and/or stamp duty for a buyer, to encourage sales. They may also offer selective prices reductions.
The result: you may be able to get a better deal on prices and terms from developers who are carrying higher vacancies and need to reduce the numbers of their unsold condos.
▪ condos in the more popular blocks in the primer locations typically will hold their value better than those in locations slightly out of the city. But, there again, there may be some foreign owners who have to repatriate funds to pay for properties or other expenses in their home countries where the property markets are being affected due to the virus.
Again, there may be interesting opportunities if you look around and do enough research. After all, a “buyers’ market” offers the opportunity to potential buyers of condos in Bangkok to choose between a variety of offers to find or negotiate a better sale price.