Property prices: I can't get my head around this

[2009]

Condo:

Two beds, one bath, 50sqm

Asking price = 5 million

 

Townhouse:

4 beds, 4 baths, 135sqm

Asking price = 3 million 

 

Both in same location.

 

What is that all about?

 

Aside from the obvious difference in price per sqm.....in most countries houses are better investments cos you own the land and that drives the price up more....cos the property is literally worth more due to the land.

 

It is the land that inherently appreciates. The building inherently depreciates.

 

With a condo you don't own any land, why so expensive?

 

 

 

 

[brewsterbudgen]

Foreigners can buy condos, but only Thais can buy land/houses.

[Swimfan]

Greed and unrealistic expectations. A property is only worth what  someone is willing to pay for it.. People can ask what they want it doesn’t mean it is worth that much or anyone will pay that much. 

Edited April 26, 2021 by Swimfan

[tgw]

9 minutes ago, brewsterbudgen said:

Foreigners can buy condos, but only Thais can buy land/houses.

 

let's explain the rent...

[2009]

11 minutes ago, brewsterbudgen said:

Foreigners can buy condos, but only Thais can buy land/houses.

 

Obviously, but aren't you missing the point?

 

 

[2009]

5 minutes ago, Swimfan said:

Greed and unrealistic expectations. A property is only worth what  someone is willing to pay for it.. People can ask what they want it doesn’t mean it is worth that much or anyone will pay that much. 

 

I know but house prices are consistently priced far less per sqm than condos in the same area.

 

I am baffled.

 

 

[couchpotato]

Probably the townhouse is on the same land as the Condo building, therefore you only have the same rights as a Condo owner. These townhouses are usually smallish, so the price ratio seems ok to me.

As you said..both in the same location

For example there are many older Condos in the Jomtien area with this type of setup (have personal experience with this) .

Edited April 26, 2021 by couchpotato

[Swimfan]

1 minute ago, 2009 said:

 

I know but house prices are consistently priced far less per sqm than condos in the same area.

 

I am baffled.

 

 

May have something to do with the age of the property. 

[2009]

2 minutes ago, couchpotato said:

Probably the townhouse is on the same land as the Condo building, therefore you only have the same rights as a Condo owner. These townhouses are usually smallish, so the price ratio seems ok to me.

As you said..both in the same location

For example there are many older Condos in the Jomtien area with this type of setup (have personal experience with this) .

 

They ain't that close. Lol. Same general area. A few sois away.

[couchpotato]

2 minutes ago, 2009 said:

 

They ain't that close. Lol. Same general area. A few sois away.

If your post said a few sois away, then you might get a better answer, and not waste posters time.

[2009]

3 minutes ago, Swimfan said:

May have something to do with the age of the property. 

 

Yes, you have a point.

 

Older condos also trade at more attractive prices cos they look a bit dated and may need a lick of paint.

 

But still though, with the 2 million you'd save, you could really renovate nicely and still have change left over, not to mention the property is still almost x3 the size and in the same area.

 

[2009]

Just now, couchpotato said:

If your post said a few sois away, then you might get a better answer, and not waste posters time.

 

I said same location. What difference does a few sois make?

 

I didn't think someone would literally think the townhouse was on the same plot of land as the condo, lol, jeez.

[Maha Sarakham]

13 minutes ago, 2009 said:

I said same location. What difference does a few sois make?

 

I can think of a couple.  Strolling on Soi 6 vs. Soi 6/1 for example can make quite a bit of difference!

[ukrules]

42 minutes ago, brewsterbudgen said:

Foreigners can buy condos, but only Thais can buy land/houses.

 

That's quire irrelevant here, nearly everyone who buys a house or condo in Thailand is of course Thai. Occasionally a few foreigners buy a condo.

 

There is still a massive disparity in pricing between the over priced houses and the over priced condos.

 

It's a good question, the price per square meter is always very different.

 

I know people who talk about their 10-12 Million baht condos like it's some kind of luxury palace - when I see it in person I'm a little surprised at the smallness of everything.

 

[JeffersLos]

1 hour ago, brewsterbudgen said:

only Thais can buy land/houses.

 

Foreigners can buy land/houses.

 

 

They just won't be the owners. 

[2009]

Another example, except with condos (old and new)

 

New condo, right at MRT Bang Wa (outskirts of Bangkok, like almost the end of the new line, must be like 15 stations to Asok)

 

Two beds, one bath, 50sqm

Asking price = 5 million

 

 

Older condo, right at BTS Phra Khanong (inner city, next to high-so areas Ekamai and Thong Lor, only 4 stations to Asok)

 

Two beds, one bath, 72 sqm

Asking price = 4 million

 

Yes, the 2nd condo is older, but in great condition, well maintained (You wouldn't need to do anything to it).

 

And you have the nice hard-wood flooring and other good materials that they used to use, rather than the cheap <deleted> the new condos are made of.

 

Also, an extra 22 sqm and a million baht change left in the bank. Not to mention, inner city location.

 

I think Thais just like new, fancy looking status symbols; displays of wealth. The older condos don't look like much from the outside and don't have a fancy, superior sounding name. Just like the way they pay for a special number plate for their car.

 

 

 

 

 

Edited April 26, 2021 by 2009

[onebir]

5 minutes ago, 2009 said:

I think Thais just like new, fancy looking status symbols; displays of wealth. The older condos don't look like much from the outside and don't have a fancy, superior sounding name.

Good to know ????

[kingofthemountain]

1 hour ago, 2009 said:

Aside from the obvious difference in price per sqm.....in most countries houses are better investments cos you own the land and that drives the price up more....cos the property is literally worth more due to the land.

So far in Thailand the condos are usually considered like a better investissement because they are supposed to be more easy to sale\rent and also because usualy the rent\sqm income is better from a condo rather than from a house.

 

Also the cost of maintenance is supposed to be lower on a condo rather than on a house.

Of course it's not only true, but most of the Thais ''investissors'' in the real estate have no clue about the basics on a market, so a lot of prices are ridiculous and most of the time overpriced

The seller thinking there is always a possibility of a fool coming and buying at the price asked and in fact it happens relatively often.

(The foreigners have the reputation to be buyers in this category)

 

Plus you have the old beliefs and superstitions, still alive in Thailand

where a lot of people are sure the ''spirit'' of the dead are still ''living''

in the house if this person was the owner and lived in the house when 

he died. It seems this factor is less important for a condo, as the land

is shared with a lot of co owners, then the spirit is supposed to not stay here and migrate to a better place

Edited April 26, 2021 by kingofthemountain

[Airalee]

Even though I own a condo, I too believe that they are grossly overpriced.  That being said...
 

1.  P/E ratio and ease of rental gives them a speculative investment premium.

2. Location.  Not many houses right on Sukhumvit 

 

3.  Financing available for Thais is probably much easier to get for condos than for townhomes (especially older ones) as developers will have deals worked out with various lenders.

 

4.  Highest/Best use of land.  

 

5.  It’s not just Bangkok.  Look at the price per square foot in any major metropolitan area in the US (with some exceptions such as Manhattan) and you’ll see that it is similar to Bangkok.

 

Finally, where are you seeing 72sqm right at the PK BTS for 4mil?  I live in the area and I don’t see those prices.

Edited April 26, 2021 by Airalee

[soi3eddie]

1 hour ago, Airalee said:

3.  Financing available for Thais is probably much easier to get for condos than for townhomes (especially older ones) as developers will have deals worked out with various lenders.

 

Absolutely correct. Not just for condo but property in general. Many of the new build developers (condo or house) offer financing packages that are much easier to obtain than getting a mortgage/loan from a bank for resale property. 

 

[Airalee]

20 minutes ago, soi3eddie said:

 

Absolutely correct. Not just for condo but property in general. Many of the new build developers (condo or house) offer financing packages that are much easier to obtain than getting a mortgage/loan from a bank for resale property. 

 

Not only are the loans easier to get, but they often come with “incentives” such as negative amortization for the first few years (you’ll see the ads on occasion where the mortgage payment is far lower than a typical 30 year fully amortizing payment).  This appears to be a good thing until the interest rate resets and the loan recasts to a fully amortizing payment that could potentially double or even triple (if they are set up the way some of the loans were structured during the US housing bubble ca. 2004-2007) leaving the borrower in a financially precarious position.

[ExpatOilWorker]

2 hours ago, 2009 said:

Older condo, right at BTS Phra Khanong (inner city, next to high-so areas Ekamai and Thong Lor, only 4 stations to Asok)

 

Two beds, one bath, 72 sqm

Asking price = 4 million

Let me guess, Waterford Rama 4?

That place is a dump!

[ExpatOilWorker]

1 hour ago, Airalee said:

Finally, where are you seeing 72sqm right at the PK BTS for 4mil?  I live in the area and I don’t see those prices.

80 m2 for 4.3 million. Close enough. 

 

 

[Airalee]

10 minutes ago, ExpatOilWorker said:

80 m2 for 4.3 million. Close enough. 

 

 

That’s not even close to Phra Khanong BTS.  It’s more than a kilometer away.  I have a friend who lives there.  I certainly wouldn’t choose it.

[RichardColeman]

4 hours ago, brewsterbudgen said:

Foreigners can buy condos, but only Thais can buy land/houses.

Makes no odds to me. If it goes in my wife's name and eventually our daughters, my house in the UK is secure, so my eggs would never be all in one basket - which many seem to end up with trouble with

[baansgr]

Does the town house have a swimming pool, ample off street covered parking, gymnasium, cleaned everyday, gardens done for them, 24 hour security and also the obvious that Foreigners can't own townhouses

[Antonymous]

On 4/27/2021 at 7:05 AM, baansgr said:

Does the town house have a swimming pool, ample off street covered parking, gymnasium, cleaned everyday, gardens done for them, 24 hour security and also the obvious that Foreigners can't own townhouses

 

To be fair for comparison, you must accept that those things cost a whopping additional amount. How much extra in common fees would you pay typically on that 135 m2 condo? No common fees on a typical 135m2 townhouse.

[BritManToo]

On 4/26/2021 at 8:20 PM, 2009 said:

With a condo you don't own any land, why so expensive?

Condo ......... Priced for foreigners to buy.

House .......... Priced for Thais to buy.

 

Easy when you think about it.

[1FinickyOne]

On 4/26/2021 at 8:40 PM, 2009 said:

 

I know but house prices are consistently priced far less per sqm than condos in the same area.

 

I am baffled.

 

 

what about amenities? does the house have a swimming pool, a workout room, a staff and a guard? 

 

Yes, it is paid for in maintenance fees too, but it is a different type of living.. if the roof leaks at the house, who pays to fix it?

 

In a certain way it is like comparing oranges and lemons.. just not the same style..

[onekoolguy]

The problem is that there is no easy way to get comps here in Thailand. Realtors may or may not tell you what is really going on in the market? The only way to really get an idea is to start looking at a lot of properties and comparing asking prices. Some people will put a high price on a unit and never lower it? Others want or need to sell now and are open to offers.

As an example my friend bought a condo in sriratcha 4 years ago for 4 million baht with the realtors assurance that it could be resold quickly at 5 million! A few months ago he sold it for 2.6 million. He then started shopping for a replacement. Finally finding a large pool villa in a nice gated community in another city that was listed for 8 million. He offered 4 million and after several weeks of negotiation and other offers that fell through they accepted his offer. The reason for selling was very old foreign owner in poor health. Use your own attorney to check title and have a professional inspection done. Don't accept anyones word as to condition of title or property. Good luck with your search!