Samui Market In Dire Straits

[Rooo]

Samui market in dire straits

Sales in Pattaya, Phuket also slow

KANANA KATHARANGSIPORN

The property market on Koh Samui is facing so many problems

http://www.bangkokpost.com/Business/12Apr2007_biz46.php

[taxexile]

dire straits

thats because they expect 'money for nothing '

[LaoPo]

Samui market in dire straits

Sales in Pattaya, Phuket also slow

KANANA KATHARANGSIPORN

The property market on Koh Samui is facing so many problems

http://www.bangkokpost.com/Business/12Apr2007_biz46.php

I was mentioned here also:

http://www.thaivisa.com/forum/index.php?sh...p;#entry1247495

LaoPo

[Rooo]

dire straits

thats because they expect 'money for nothing '

Tax the bit that got me is 25 Million average price of a block of land in Phuket?[/b]

[taxexile]

i think that has to be a mistake.

[Samui Coconut]

i think that has to be a mistake.

I am not into land prices, but in Chaweng a rai goes for 50 Mio. Baht on the beach. 25 Mio. could be correct, however, it seems very high as an average.

[highdiver]

Samui market in dire straits

Sales in Pattaya, Phuket also slow

KANANA KATHARANGSIPORN

The property market on Koh Samui is facing so many problems

http://www.bangkokpost.com/Business/12Apr2007_biz46.php

I was mentioned here also:

http://www.thaivisa.com/forum/index.php?sh...p;#entry1247495

LaoPo

Yes it is facing a big problem.

the majority of Samui market was constructed as a scam. it realy reminds me of the pyramid games or MLM schemes. the onews who make the big money are the first from the top. the others are just trying to get more "suckers"in the game so they can profit too.

forigners set up nominee companies by lawyers who were aware of the law but could not resist the money.

the forign controled companies bought and developed land with out the proper permits and in some cases the land itself was not properly titled or with fake titles.

The developer then made a beutiful high end development with the intent of selling it to other farrangs who were led to belive by the developer or by real estae agents they can "legaly" buy land and house and override the law with the intent of renting it or selling it and making a huge return on investment.

The first developers made huge amounts of money and this accelerated the inflow of new developers to the Samui Gold Rush scheme.

following the latest news... DSI investigation of lands, FBA amendmants, capital inflow, business department invetigation to forigner controled companies. it is not surprising that most projects are now come toal halt or are selling at low prices.

8 years ago when Samui land and house prices were a bargin... many farrangs took a chance and bought land and house knowing it was lileagal but the price was so low they could afford the risk of loosing.

Since then many investors thought they could join in the game and easily develop and sell projects. and each one tried to take the bar higher and higer. resulting in properties being more and more expensive.

the latest news has made the buyers more aware of the legal issues. when you but land and house for 100k usd your considerations are different from buying a property for 1 million USD.

So now Samui is over developed with many greedy developers just looking for the next person that would buy into the dream and play the scam game. but the buyers are not so stupid any more, resulting in a shut down of real agancies, a halt of projects, and many houses lefet empty as no one is renting them.

the bubble has bursted.

[LaoPo]

i think that has to be a mistake.

I am not into land prices, but in Chaweng a rai goes for 50 Mio. Baht on the beach. 25 Mio. could be correct, however, it seems very high as an average.

Maybe that was paid recently by a large 'resort' group but I doubt it will be paid now.

One doesn't have to be an economist to calculate that it will take a very long time to make a profit....

50 Million Baht is roughly Euro 1,200,000 which is Us$ 1,550,000 for 1 Rai which is 1.600 SQ/M2...

Than you have to build a resort, a hotel or otherwise; hire staff.....oh, well I'll better stop.

If you take into consideration that you can rent a bungalow, right on the beach for some 1,000 Baht/night on Chaweng beach......

LaoPo

[JimmyTheMook]

dire straits

thats because they expect 'money for nothing '

And Chicks for Free ?

[sbk]

This is already being discussed in the housing section, with, apparently, some more relevant responses

here

[stevieff]

What I find a bit comical is that people seem to think land and house prices are expensive in Samui. You can still buy a piece of nice sea-view land, 800 sqm., in a good location close to beaches restaurants, airport, etc., build a brand new 3 bedroom, 2 bath house with swimming pool and gardens for 180,000 usd, on a beautiful tropical island with complete infrastucture, transportation,etc. There is simply no place in the world you can do that. You can still buy a small house for less than 50,000 usd on Samui. Samui expensive? Sorry, I have to laugh a little.

[Samui Coconut]

i think that has to be a mistake.

I am not into land prices, but in Chaweng a rai goes for 50 Mio. Baht on the beach. 25 Mio. could be correct, however, it seems very high as an average.

Maybe that was paid recently by a large 'resort' group but I doubt it will be paid now.

One doesn't have to be an economist to calculate that it will take a very long time to make a profit....

50 Million Baht is roughly Euro 1,200,000 which is Us$ 1,550,000 for 1 Rai which is 1.600 SQ/M2...

Than you have to build a resort, a hotel or otherwise; hire staff.....oh, well I'll better stop.

If you take into consideration that you can rent a bungalow, right on the beach for some 1,000 Baht/night on Chaweng beach......

LaoPo

All I am saying is that 25 Mio. per rai on average could be....even though it seems high. I am not talking about development which, and I agree with you, would make no sense at all....not even for a big resort company.

But you can also rent suites for 20,000 on Chaweng Beach

[lazeeboy]

i think that has to be a mistake.

I am not into land prices, but in Chaweng a rai goes for 50 Mio. Baht on the beach. 25 Mio. could be correct, however, it seems very high as an average.

Maybe that was paid recently by a large 'resort' group but I doubt it will be paid now.

One doesn't have to be an economist to calculate that it will take a very long time to make a profit....

50 Million Baht is roughly Euro 1,200,000 which is Us$ 1,550,000 for 1 Rai which is 1.600 SQ/M2...

Than you have to build a resort, a hotel or otherwise; hire staff.....oh, well I'll better stop.

If you take into consideration that you can rent a bungalow, right on the beach for some 1,000 Baht/night on Chaweng beach......

LaoPo

All I am saying is that 25 Mio. per rai on average could be....even though it seems high. I am not talking about development which, and I agree with you, would make no sense at all....not even for a big resort company.

But you can also rent suites for 20,000 on Chaweng Beach

does any one know any one who has sold any houses lately ? prices are about to plummet ,maybe gonna be some bargains very soon most developers rely on sales to build the last one sold ,so if youre the last one you may wait some time . the banks maybe getting a little edgy as well so beware............

[LaoPo]

does any one know any one who has sold any houses lately ? prices are about to plummet ,maybe gonna be some bargains very soon most developers rely on sales to build the last one sold ,so if youre the last one you may wait some time . the banks maybe getting a little edgy as well so beware............

Interesting question; would like to hear some details myself about people who sold their houses/villas. But, to be fair, also messages from people who bought, recently.

LaoPo

[lazeeboy]

does any one know any one who has sold any houses lately ? prices are about to plummet ,maybe gonna be some bargains very soon most developers rely on sales to build the last one sold ,so if youre the last one you may wait some time . the banks maybe getting a little edgy as well so beware............

Interesting question; would like to hear some details myself about people who sold their houses/villas. But, to be fair, also messages from people who bought, recently.

LaoPo

ive been buying and selling land in samui (not a developer) as a hobby only selling to good friends and relatives since 1996 when 1 rai in chaweng cost 400000b until now its been easy because i bought very cheap but have 3 houses on the market and have had zero response in over 6 months as i said this is a hobby already have a buissness in samui that works well so have time but im sure others out there are not in my position and are panicing a little. people who bought high will lose as did the early ex pats in the early 80s did in spain.thailand over the years have had money problems around every ten years or so as have many countrys thailands last collapse was july 1997 people panic then esspecial the lending banks,so beware its coming again soon .

[churchill]

i think that has to be a mistake.

I am not into land prices, but in Chaweng a rai goes for 50 Mio. Baht on the beach. 25 Mio. could be correct, however, it seems very high as an average.

Maybe that was paid recently by a large 'resort' group but I doubt it will be paid now.

One doesn't have to be an economist to calculate that it will take a very long time to make a profit....

50 Million Baht is roughly Euro 1,200,000 which is Us$ 1,550,000 for 1 Rai which is 1.600 SQ/M2...

Than you have to build a resort, a hotel or otherwise; hire staff.....oh, well I'll better stop.

If you take into consideration that you can rent a bungalow, right on the beach for some 1,000 Baht/night on Chaweng beach......

LaoPo

All I am saying is that 25 Mio. per rai on average could be....even though it seems high. I am not talking about development which, and I agree with you, would make no sense at all....not even for a big resort company.

But you can also rent suites for 20,000 on Chaweng Beach

does any one know any one who has sold any houses lately ? prices are about to plummet ,maybe gonna be some bargains very soon most developers rely on sales to build the last one sold ,so if youre the last one you may wait some time . the banks maybe getting a little edgy as well so beware............

I am sure banks are not exposed very much to the market in Samui - Maybe private money lenders are more worried - but if loans are not repaid they will just take the land papers which is what they gamble on .

There will be some forced sales but generally I don't think prices will drop - Hopefully prices will now level out , with the recent land investigations , height restrictions etc out of the way - and hopefully some better news from the government encouraging investors to come to Thailand !

I know that Land plots in the right location are still selling - so stay positive !

[LaoPo]

does any one know any one who has sold any houses lately ? prices are about to plummet ,maybe gonna be some bargains very soon most developers rely on sales to build the last one sold ,so if youre the last one you may wait some time . the banks maybe getting a little edgy as well so beware............

Interesting question; would like to hear some details myself about people who sold their houses/villas. But, to be fair, also messages from people who bought, recently.

LaoPo

ive been buying and selling land in samui (not a developer) as a hobby only selling to good friends and relatives since 1996 when 1 rai in chaweng cost 400000b until now its been easy because i bought very cheap but have 3 houses on the market and have had zero response in over 6 months as i said this is a hobby already have a buissness in samui that works well so have time but im sure others out there are not in my position and are panicing a little. people who bought high will lose as did the early ex pats in the early 80s did in spain.thailand over the years have had money problems around every ten years or so as have many countrys thailands last collapse was july 1997 people panic then esspecial the lending banks,so beware its coming again soon .

I appreciate your honesty; not everyone is like that!

LaoPo

[Scottbiker1976]

Well, i can only say 1 thing as an island resident ready to pack my bags and move to other regions in Thailand.

"SAMUI is DYING"

and it is not only the real estate market but also the local people that complain, even bar girls say they don't have customers these days, never been so bad here.

And i guess they all have to thank it on their own greed, this is the result.

The island that was so nice 10 years ago is gone and will never come back again........and it will never be the Bahamas or Virgin Islands, don't worry.............Another lost paradise again, When we will ever learn folks !

"Best things in life are NOT things."

Scottbiker

[maurizio04]

Well, i can only say 1 thing as an island resident ready to pack my bags and move to other regions in Thailand.

"SAMUI is DYING"

and it is not only the real estate market but also the local people that complain, even bar girls say they don't have customers these days, never been so bad here.

And i guess they all have to thank it on their own greed, this is the result.

The island that was so nice 10 years ago is gone and will never come back again........and it will never be the Bahamas or Virgin Islands, don't worry.............Another lost paradise again, When we will ever learn folks !

"Best things in life are NOT things."

Scottbiker

I had the same thoughts when i went to the beach and saw the resort on the right of mine:

it looked like a Las Vegas weird casino.

Goodby coconuts island....

The fact that every medium class resort is increasing rooms 500 bath every year won't help.

Overcharging for peak season either, they just shrink it and before mid december the island is empty....

But maybe with the russian turists the 200$ resort will be full...

ps: problem is, the other places are worse

-m

[koheesti]

The island that was so nice 10 years ago is gone and will never come back again...

No place is what it was 10 years ago. I was discussing the same things with friends here in Estonia and we all feel the same about here. But when new people arrive they don't have those memories and think this place is great. And everything I've heard from people recently in Samui is that it's...great. So maybe the thing for disappointed longtime residents to do is leave for somewhere else if they aren't happy. I don't mean that in a mean "love it or leave it" kinda way. I'm leaving Estonia after more than 10 years because for me it's lost a lot of what I loved about it 10 years ago (although everyday life is MUCH easier). I'm leaving Estonia and moving to Samui where as the new guy, my experience won't be ruined by memories of the good old days.

[mlkmnz]

Does this mean I can rent a house cheaper than I could a year ago ?

[Rooo]

Does this mean I can rent a house cheaper than I could a year ago ?

Are you kidding? This is still Samui...........................

[LaoPo]

The island that was so nice 10 years ago is gone and will never come back again...

No place is what it was 10 years ago. I was discussing the same things with friends here in Estonia and we all feel the same about here. But when new people arrive they don't have those memories and think this place is great. And everything I've heard from people recently in Samui is that it's...great. So maybe the thing for disappointed longtime residents to do is leave for somewhere else if they aren't happy. I don't mean that in a mean "love it or leave it" kinda way. I'm leaving Estonia after more than 10 years because for me it's lost a lot of what I loved about it 10 years ago (although everyday life is MUCH easier).

I'm leaving Estonia and moving to Samui where as the new guy, my experience won't be ruined by memories of the good old days.

Prepare for a culture shock....Estonia has some 1.3/1.4 million people, that's about the number of tourists (maybe less), coming to Samui per year.

Well, you're certainly not alone; would like to see your face, once you walk along the main street in Chaweng in the evening. It's a quiet, kind of shopping street with a few bars...not too many tourists though....

Just kidding...have fun.

LaoPo

[KhunMarco]

The island that was so nice 10 years ago is gone and will never come back again...

No place is what it was 10 years ago. I was discussing the same things with friends here in Estonia and we all feel the same about here. But when new people arrive they don't have those memories and think this place is great. And everything I've heard from people recently in Samui is that it's...great. So maybe the thing for disappointed longtime residents to do is leave for somewhere else if they aren't happy. I don't mean that in a mean "love it or leave it" kinda way. I'm leaving Estonia after more than 10 years because for me it's lost a lot of what I loved about it 10 years ago (although everyday life is MUCH easier).

I'm leaving Estonia and moving to Samui where as the new guy, my experience won't be ruined by memories of the good old days.

Prepare for a culture shock....Estonia has some 1.3/1.4 million people, that's about the number of tourists (maybe less), coming to Samui per year.

Well, you're certainly not alone; would like to see your face, once you walk along the main street in Chaweng in the evening. It's a quiet, kind of shopping street with a few bars...not too many tourists though....

Just kidding...have fun.

LaoPo

Yup great fun walking around Chaweng...remember to bring eartips...farking taxi drivers and their little brain.

[koheesti]

The island that was so nice 10 years ago is gone and will never come back again...

No place is what it was 10 years ago. I was discussing the same things with friends here in Estonia and we all feel the same about here. But when new people arrive they don't have those memories and think this place is great. And everything I've heard from people recently in Samui is that it's...great. So maybe the thing for disappointed longtime residents to do is leave for somewhere else if they aren't happy. I don't mean that in a mean "love it or leave it" kinda way. I'm leaving Estonia after more than 10 years because for me it's lost a lot of what I loved about it 10 years ago (although everyday life is MUCH easier).

I'm leaving Estonia and moving to Samui where as the new guy, my experience won't be ruined by memories of the good old days.

Prepare for a culture shock....Estonia has some 1.3/1.4 million people, that's about the number of tourists (maybe less), coming to Samui per year.

Well, you're certainly not alone; would like to see your face, once you walk along the main street in Chaweng in the evening. It's a quiet, kind of shopping street with a few bars...not too many tourists though....

Just kidding...have fun.

LaoPo

It won't be my first culture shock so I won't be totally unprepared (9 months of reading this forum beforehand will certainly help). Plus it isn't my first visit to Thailand.

Right now I live in the center of the tourist district here in Tallinn which gets millions of tourists each year itself. Noisy and more than enough drunk locals and tourists. I hope to avoid places like Chaweng at night for the most part. But we'll see.

[LaoPo]

I hope to avoid places like Chaweng at night for the most part. But we'll see.

If you arrive on Samui, why don't you create (for us) a new topic called "My adventures on Samui"...?

We are all curious about your findings !

LaoPo

[koheesti]

I hope to avoid places like Chaweng at night for the most part. But we'll see.

If you arrive on Samui, why don't you create (for us) a new topic called "My adventures on Samui"...?

We are all curious about your findings !

LaoPo

I'll be sure to create a new userame first.

[Lite Beer]

I hope to avoid places like Chaweng at night for the most part. But we'll see.

If you arrive on Samui, why don't you create (for us) a new topic called "My adventures on Samui"...?

We are all curious about your findings !

LaoPo

I'll be sure to create a new userame first.

Against forum rules.

[LaoPo]

I hope to avoid places like Chaweng at night for the most part. But we'll see.

If you arrive on Samui, why don't you create (for us) a new topic called "My adventures on Samui"...?

We are all curious about your findings !

LaoPo

I'll be sure to create a new userame first.

Against forum rules.

No worries koheesti, Joodikule Jumal annab

Writing in another language than English is also against forum rules

LaoPo

[SamuiJens]

ive been buying and selling land in samui (not a developer) as a hobby only selling to good friends and relatives since 1996 when 1 rai in chaweng cost 400000b until now its been easy because i bought very cheap but have 3 houses on the market and have had zero response in over 6 months as i said this is a hobby already have a buissness in samui that works well so have time but im sure others out there are not in my position and are panicing a little. people who bought high will lose as did the early ex pats in the early 80s did in spain.thailand over the years have had money problems around every ten years or so as have many countrys thailands last collapse was july 1997 people panic then esspecial the lending banks,so beware its coming again soon .

Lazyboy, I don't see it's a problem for you as you say you "only" sell to good friends and relatives?