Sunday, June 30, 2013

Condos in Penang vs Bangkok

I am surprised by the differences in the new condo market in Penang (Malaysia) versus Bangkok (Thailand). In Penang I am told, the condos are unfinished - no bathroom fixtures, toilets, or even floors! Presumably those who buy in Penang are more interested/vested in personalizing the place. In Bangkok, the market seems to be very different since not only are the condos completely finished, they are also completely furnished!

The obvious and perhaps wrong conclusion is that there is a larger foreign component in the Bangkok market who are buying for investment and income purposes by renting out to vacationers or the expat community whereas the Penang market caters more towards the locals who are more willing to deal with the added hassles of personalization.

But with the apparent never ending construction of new condos in Penang the local market might soon be tapped out. Will the Penang condo construction ever move toward the Bangkok model? With a smaller expat community, it is not likely, at least not all the way to fully furnished. But they may come with floors and toilets.

I wonder what the differences are in other places.

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