These are indeed testing times and in light of this, Property Co. has implemented policies to ensure that our day-to-day business continues to run smoothly and most importantly, ensuring the safety and security of all our clients, staff and partners.
For our customers and partners here are some pointers we would like to share:
“1.6% fall in home value, 2.8% in infected areas.”
Wong, Grace, 2008, Hong Kong, SARS, 2003,Micro data on 44 housing estates
The Waiting Game
Research from previous outbreaks has shown Real Estate markets recover very quickly, bouncing back as soon as travel restrictions have been lifted and the virus has cleared. It is important for sellers to prepare for the bounce back to maximise their gains.
Use the current time to prepare your properties:
- Deep clean and optimise furniture layouts
- Declutter, throw out anything you no longer need
- Complete light renovations (that you can possibly do yourself)
- Prepare your marketing – New interior & exterior photos. Write a detailed description of the property and the surrounding areas
- Make a property brochure
- Speak with different agents to help you sell your property, short list the most professional to work with
- Get agents and websites with your listing refreshed with the most up to date information
- Prepare all documents, contracts and sales agreements
- Check utility bills and close outstanding debts, bills & service agreements (like the internet & phone bills).
“During SARS, Hong Kong house prices did not fall significantly, but transaction volumes fell by 33-72% as customers avoided human contact (“avoidance behavior” like avoiding travel, restaurants, and public gatherings). After the epidemic was over, transactions snapped back to normal volumes.”
Zillow Economic Research (2020)
The Quick Sell
Buyers are looking for the best deals in markets right now otherwise they will also wait it out, sellers that need to liquidate and cash might need to lower prices to attract buyers. We have seen that a 10% – 20% reduction on market value has helped to close transactions the past few weeks.
As we’re practicing social distancing we also recommend VIRTUAL VIEWINGS.
We have implemented “Virtual Viewings” as our preferred option, where we can perform live video calls (or sellers on our behalf) and walk prospective buyers through the property over a video call.
This personal touch is a great way to explore properties, the building, facilities and the surrounding area beyond static images or pre-edited videos.
- Book a solid appointment time
- Ensure that you have good internet speeds for high-quality video purposes
- Engage, ask questions and enjoy the viewings as if you were there
Some buyers might require an in-person viewing, they may have business or family requirements to find a property during this period, or Sellers that need funds and can’t wait until this is over. These need to be reviewed case by case and some buildings may have restrictions. You might have done a virtual viewing and this is the last stage to closing the deal. If timing is an issue then here’s our recommendations:
- Personal well being – Inform the agent and seller prior to attending a viewing if you’re feeling unwell, have a cough or any rise in temperature to allow us to reschedule.
- International travel – Inform us if you’ve traveled overseas in the past 14 days. We recommend self-quarantine for 14 days prior to any physical meetings.
- Avoid close contact with people – Stay apart during meetings by about 3 feet and limit contact with any surfaces. Allow the seller to guide you around.
- Always wear a face mask – This will allow you to openly communicate with sellers. This is also more for protecting others around you and done out of courtesy.
- Allow people to monitor your temperature – Locations have started a system to monitor guests temperature before entering. Most site visits need to be organised in advance and walk-ins will not be allowed.
- Wash your hands thoroughly and constantly – We request before and after you attend a site to use hand sanitiser and/or warm water with soap.
Need to move in soon?
Some clients have employment or family requirements, regardless of social, economic or environmental issues, buyers that need to find a home during this period will face restrictions on site visits.
These need to be reviewed case by case. Furthermore, we strongly recommend virtual tours which we are happy to set up to ensure the wellbeing of all parties.
There are no restrictions on purchasing during periods like this, we can support remotely on the safest, most secure process for buyers and sellers to complete a transaction, this can includes deposit handling and legal work.
Hot deals – up to 30% below market value
There are a small number of buyers out there looking for good investment opportunities. Small group of private sellers and developers are open to negotiating further at times like this. Focus is on ready to move in property or properties that will finish construction very soon. This is where the best deals can be found. Private home owners might not let their personal homes go for less than 20% but big businesses might take a lower offer to off-load stock.
Some investors will tell you, a great time to invest in stocks and property are when markets are down to make the biggest returns once they bounce back. But need to be prepared to hold on for 2 to 5 years to see the big gains.
We at Property Co. spend a great deal of time investing in our relationships with developers and property owners. We can assist you with insider knowledge of where the best deals can be found, however we can not openly promote these discounts as our partners prefer discretion.
Speak to us directly to find out more
email@example.com +66 959 242 968
Off-plan (In-construction) properties are a great option right now, lock in a good discount with as little as 10% to 30% deposit. With long construction deadlines of 2 to 4 years from now gives buyers ample time to prepare for the final payment.
Many developers are only offering small discounts between 2% to 10% as they have the funds to see themselves through and prefer to wait to sell at a higher price later in a year after.
- Don’t take risks, pick a well known and stable developer that has lived through other downturns
- Check the property is EIA approved
- Buy as early as possible (first rounds of pricing)
- Check Sales and Purchase conditions before you buy
- Focus on inner city and core areas where land prices always recover faster after each downturn
- Consider houses (not just condos) for better value and long term gains
Our team has most new project details on hand, during this time we can organise a call or live chat to help you:
- Find projects with discounts
- Negotiate a great deal
- Review buildings and unit floor plans
- Carry out virtual walkthroughs, showroom videos, and share photos
Carry out more in-depth research
Many of you will be working from home, without the daily commute you may find more free time on your hands. This is a great time to complete more in-depth research, explore locations in depth, historic performance figures and shortlist your favourite properties.
Speak with our local agents to explore locations and properties from someone with first hand experience.
- Request relocation quotes (Speak to us about obtaining one)
- Review tax laws
- Complete due diligence
- Review sales and purchase agreement terms
- Find local legal support for when you’re ready to make a purchase (We can also recommend a few respectable law firms).
- Review schools for your children or places of business, worship and employment.
Feel free to contact us at any time and stop by our site for all the latest new launches in Bangkok and Hua Hin https://www.propertycothailand.com/