Grand Avenue

[spacearni]

See lots of units being resold these days at prices around 50-60.000/m2 which is close to original price. Any rumors what the reason might be ?

Location is great, construction progress looks ok now. Don’t believe the March 2019 finishing date but looks like late summer is doable, so why are people dumping their units ?

 

 

 

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[KittenKong]

50 minutes ago, spacearni said:

why are people dumping their units ?

In Pattaya (and in Thailand generally) it is quite common for people to buy units at launch with the intention of selling the contract on before the building is completed and before the full price becomes payable. This is known as "flipping".

By doing this they hope to benefit from the usually fairly big discounts available at launch without having to put up any significant cash of their own. They then hope that later on someone will assume that a resale at 5-10% under the current advertised developer price is a bargain. Of course that someone will not know that at launch the price was 20% lower than the amount they are paying.

Of course the "flipper" runs the risk of the building not being finished at all (hello, Waterfront buyers) or indeed of no mug being available later on for them to sell to and of then being obliged to actually complete the purchase, pay the full price and transfer costs, and also be faced with extra costs if they try to sell the chanote later. Or of cancelling the purchase and forfeiting everything that have paid up to that point.

Not a risk I would want to take but many people in Thailand find it impossible to resist the lure of "easy" money.

[spacearni]

Ok, thanks, had not thought of those guys. Would explain why there are multiple units being offered just now, shortly before completion, so they don’t have to pay the final installment [emoji106]
Thinking about buying there and was just wondering if anything going on behind the scenes


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[striderman]

Just now, spacearni said:

Ok, thanks, had not thought of those guys. Would explain why there are multiple units being offered just now, shortly before completion, so they don’t have to pay the final installment
Thinking about buying there and was just wondering if anything going on behind the scenes


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go and read the hot sale at the golden tulip in the general real estate thread................warning long thread

[KittenKong]

12 hours ago, spacearni said:

Thinking about buying there and was just wondering if anything going on behind the scenes

In Thai property there is always something going on behind the scenes.

[spacearni]

In Thai property there is always something going on behind the scenes.

Lol, yes... I am in Pattaya since 2011 about 6-7 times per year (for business) and just thinking about buying me a home base there so I dont have to stay in hotels everytime. Been contemplating it long time but never pulled the trigger. First thought with the amount of projects in progress prices should drop, but back then Russians were buying all the condos, when Russian Rubel crashed and I thought prices would crash the Chinese started to buy, etc...
Technically it sure looks like a bubble (I own condos elsewhere and stopped investing in more due to overheated markets), but seems the bubble does not burst yet... i am not in a hurry and don’t mind a delay in finishing of a project as long as it finishes but I like the location of Grand Avenue. I think this time the project will actually finish (one never knows I guess), so would accept residual risk just for the location but was curious why so many units being dumped just now - which I got the explanation for above [emoji106]
With global economy looking to be heading for another big nose dive in coming months, I’ll probably just wait another 6 months or so and snap up a unit from some desperate guy who needs to liquidate asset for cash...



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[Swinga]

Its because people paid deposits in 2013, and it's now 2019, and those that paid deposits, paid for a name Golden tulip with a 4 star hotel attached. Now its just a highrise project with a pool in a good location but no promises kept.