Saturday, March 18, 2017

I wasn't shocked at all to hear from a BBC documentary that the business of condominium today is no longer set up for housing as it is for investors. This is from my direct experience and also from the person I know who owns nearly 100 condo units all over Bangkok. People buy and sell condo units as if they buy and sell stocks in the stock market. Buyers do not even see the room before they buy them. The same seller may then sell it again without seeing it. A man from Saudi Arabia may buy a condo unit in Thailand one day and then sell it to a trader in China on the next day. This is possible because they trust their agents who earn the profit margins for every transaction made.

All day these agents wander around big cities looking for empty condo rooms that are worth investing for, then introduce them to their foreign investors by promising to make good profits for them. Then these units are resold to another group of investors or rent out for short-term housing until they find the next buyer.

More than half of the condo units bought and sold today are not for housing. It's a game for gamblers. No need to say how this will affect the quality of building them. A 60-stories condominium block may be finished withing months, rather than years. We are about to see a condo bubble soon in Thailand.  

Some key players who are involved in this game
- construction companies
- auditing companies
- banks and financial institutes
- international agents