What are the latest news from the Boiler Room ?
Well, they are quite… silent since a few weeks… like fleeing cockroaches, running away to take cover… They eventually understood that something was going on in the world, and something rather weird and of course totally unexpected : a recession.
Goddamnit ! It came so fast. Without warning. 😉
It’s time to adjust speeches and marketing pitches I guess… But as you will see, it’s a difficult exercise.
Take Songkran Issara, managing director of Charn Issara Development, for instance.
Thailand’s political upheaval and the international financial meltdown will lower land prices and the appraisal values of built structures but they are unlikely to bring discounts on ongoing projects, said Songkran Issara, managing director of Charn Issara Development Plc.
Prices of condominiums already under construction are unlikely to drop because developers generally lock in substantial sales before starting work, he said.
Although protests and confrontations have affected the country for months, prices of good new property had remained steady until demonstrators closed Bangkok’s airports in late November. (Bangkok Post)
Again, we see the famous thai rethoric at work. Let me translate it for you : “I can’t reduce my prices because… I would loose money if I do so !”
It’s a master piece. 😉
The bottom line is : if a developper is under the water with an on going project, and if he has no other solution (banks on his back, and customers behind), he will reduce his prices, eventhough it hurts. This is what we call a fire sale. And it happens particularily in hard times…
Anyway, we shall praise the courage of Issara : now the Boiler Room admits that the prices will go down… but for future projects only. 😉 It’s a big step forward. Must have been painful…
Let’s remember… 2 months ago, some were adamant :
Thailand’s property market is well insulated from the global financial crisis as it is far less dependent on debt than most property markets, said real estate firm CB Richard Ellis Thailand.
Between “The Terminator” and “The Insulator” I can’t make up my mind…
Anyway. 2009 is going to be an interesting and insulating year… I can feel it. 😉
Your insulated commentator.