House buyers are being warned that they may have to pay an additional 5-8% next month because of rising construction costs, driven by the conflict in Ukraine which has spurred an increase in global oil prices.

 

President of the Home Builder Association Worawut Kanchanakul said today (Tuesday) that the costs of building houses have been increasing since last year, long before the war in Ukraine, due to the cost of steel reinforcement rods, which went up by over 50% last year.

 

Despite the rising construction costs, compounded by the COVID-19 pandemic, the housing market in the past year remained stable, as the economy gradually picked up.

 

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Full Story: https://www.thaipbsworld.com/thailands-housing-prices-expected-to-rise-by-5-8-percent-in-april/

 

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pick any house is massive America and it will be about 11 million baht, with many over 30 million.

 

Thailand needs to charge all falangs a minimum of 10 million per house, rent for falangs 15,000 minimum, and get these concrete houses selling for 30 million.

 

laugh now, it's coming...........................I remember when you could buy a house in America for $6,000 USD.  then the land bridge became more difficult to cross!! 

1 hour ago, snoop1130 said:

Despite the rising construction costs, compounded by the COVID-19 pandemic, the housing market in the past year remained stable, as the economy gradually picked up.

The economy is still in the Toilet.  All of these folks keep trying to upsale a dead market.  Prices should be dropping instead of increasing to get the dead properties (unsold for many years) off of the books.

6 hours ago, snoop1130 said:

House buyers are being warned that they may have to pay an additional 5-8% next month because of rising construction costs, driven by the conflict in Ukraine which has spurred an increase in global oil prices.

Really!.

 

6 hours ago, snoop1130 said:

President of the Home Builder Association Worawut Kanchanakul said today (Tuesday) that the costs of building houses have been increasing since last year, long before the war in Ukraine, due to the cost of steel reinforcement rods, which went up by over 50% last year.

So now the contradictory statement. It looks like any excuse to use to counter deflect that for the last few years the economy and pandemic has been totally mismanaged, which is one of the main reasons that prices are going up.

 

Anyway lets jump on the bandwagon and blame anyone and anything else, except the truth.

8 hours ago, Iamfalang said:

pick any house is massive America and it will be about 11 million baht, with many over 30 million.

 

Thailand needs to charge all falangs a minimum of 10 million per house, rent for falangs 15,000 minimum, and get these concrete houses selling for 30 million.

 

laugh now, it's coming...........................I remember when you could buy a house in America for $6,000 USD.  then the land bridge became more difficult to cross!! 

Someone’s started early. 

9 minutes ago, daveAustin said:

Someone’s started early. 

How old are you 153?

11 hours ago, ThailandRyan said:

The economy is still in the Toilet.  All of these folks keep trying to upsale a dead market.  Prices should be dropping instead of increasing to get the dead properties (unsold for many years) off of the books.

It's not so much housing cost increases that should be of concern, but instead agricultural land.

Never did understand the housing market in Thailand. I found a few places I tried to buy as bank repos years ago. And they would not budge on price and the places were literally falling down. Trying to get premium prices for a house that had been vacant for years.. 

Edited March 15, 20224 yr by garyk

38 minutes ago, garyk said:

I found a few places I tried to buy as bank repos years ago. And they would not budge on price

Banks aren't allowed to sell repossessions for less than the outstanding loan.

I believe it was a law passed by the Thai government to try to discourage banks giving excessive loans on a property.

14 minutes ago, BritManToo said:

Banks aren't allowed to sell repossessions for less than the outstanding loan.

 

Didn't know that.. that explains it.

13 hours ago, ThailandRyan said:

The economy is still in the Toilet.  All of these folks keep trying to upsale a dead market.  Prices should be dropping instead of increasing to get the dead properties (unsold for many years) off of the books.

Agreed, if they think house sales are going to increase they can forget it.

 

14 hours ago, snoop1130 said:

President of the Home Builder Association Worawut Kanchanakul

Obviously an ex-employee of TAT!  Not a week goes by when I see further price reductions in a variety of condos/houses/bars/businesses up for sale in the ghost town formerly known as Pattaya.

Edited March 16, 20224 yr by mikebell
punctuation

2 hours ago, garyk said:

Never did understand the housing market in Thailand. I found a few places I tried to buy as bank repos years ago. And they would not budge on price and the places were literally falling down. Trying to get premium prices for a house that had been vacant for years.. 

Thai's tend to be magical thinkers and as such don't really understand that prices need to reflect reality. They will absolutely sit on a property until they die if it means just the possibility they may get the price they have conjured up in their minds.

The market's flooded with bargain second-hand houses, the Thais need to work out the balance of their priorities between paying a pile more cash for a new build or risking the ghosts that might come with a house that's already been lived in. Simples.

2 hours ago, BritManToo said:

Banks aren't allowed to sell repossessions for less than the outstanding loan.

I can believe this might be the case, but then what are they supposed to do, hold it on the books forever? Or get it reclassified as raw land when the house literally returns to nature? Wait 50 years for the inevitable inflation so the absolute number no longer means anything?

The flaw in the article of course is the idea that the price of something depends on the cost of production, rather than what someone will pay. Now in the US at this time the cost of production really is one of the factors driving prices, but as always the real determining factor is demand.

 

14 minutes ago, Guderian said:

The market's flooded with bargain second-hand houses, the Thais need to work out the balance of their priorities between paying a pile more cash for a new build or risking the ghosts that might come with a house that's already been lived in. Simples.

I'm seeing trashy old houses for 1.5 million baht in Chiang Mai. Just opened up Facebook and saw this near the top. 1.67 million. That's a good deal?

 

I think the "Health Minister" is dreaming big again.

Maybe they expect the Chinese to continue buying.  Sure, they can use the profits from their massive Evergreen investments for collateral.  ????

 

Or maybe the Russians???  Would you take a ruble??   At what value?

Be interesting to watch what happens if they ever open up their stock market again.  I suspect that it will react like an Otis elevator with the cables cut and the safeties off.

9 hours ago, Laughing Gravy said:

Really!.

 

So now the contradictory statement. It looks like any excuse to use to counter deflect that for the last few years the economy and pandemic has been totally mismanaged, which is one of the main reasons that prices are going up.

 

Anyway lets jump on the bandwagon and blame anyone and anything else, except the truth.

The truth being greed

17 hours ago, snoop1130 said:

President of the Home Builder Association Worawut Kanchanakul said today (Tuesday) that the costs of building houses have been increasing since last year, long before the war in Ukraine, due to the cost of steel reinforcement rods, which went up by over 50% last year.

The value of ReBar in a 2 Bed 50 TW single story House is probably not more than 150,000 Baht in total at the new prices.

And with this price I would think also the Roof, Walls and all footings included

This cost is less than 10 % of all Construction materials.

Another price gouge

1 hour ago, Enzian said:

The flaw in the article of course is the idea that the price of something depends on the cost of production, rather than what someone will pay. Now in the US at this time the cost of production really is one of the factors driving prices, but as always the real determining factor is demand.

Production cost has almost nothing to do with retail price anywhere in the world.

Retail price is driven by the local populations ability to pay.

Which is why most of us are living in Thailand.

We earned $50k/year in our home countries and live in a country where the locals earn $5k/year.

Giving us a buying advantage on many retail items of 10:1. 

 

The real determining factor of pricing is the ability of local residents to pay.

Edited March 16, 20224 yr by BritManToo

Just more fictitious hyperbole from industry types. Unlike in the US and Europe, the economy here is in the toilet due to the "Great Prayuth sabotage". So, house prices will either remain stable, or drop in the short to medium term. Condo prices are already dropping, and will likely continue to drop.

 

The pain will be felt for many years to come. I anticipate condo prices to drop by half. A friend of mine recently moved to Pattaya. He looked at condos in Jomtien. He walked into one of the nicest towers, looked at a 36th floor unit with panoramic views, and when he was quoted 28,000 a month, he offered 10,000. They settled on 13,000. He said the agent more or less admitted the building was nearly empty, and they could not rent or sell anything, at this time. Another friend told me his girlfriend works as a senior level manager for one of Thailand's biggest developers. She told him that they have reduced their building by 90% of what it was pre-Covid, which was around 100 developments a year. She said they cannot sell or rent anything commercial, or residential, at a price point that makes sense to them, at this time. 

Demand is way down. The Chinese market is nearly gone, Russians are out of the market now, and even before Ukraine were hesitant to commit. And the long term tourists are gone too. So, who does that leave? Wealthy Thais, many of whom see the market collapsing, and would rather wait and see how all of this shakes out, and ex-pats, many of whom are smart enough to be shopping for bargains right now.

Anyone interested in buying a condo right now, would be better off waiting awhile. The number of available units, and buildings with very high vacancy is very high. Timing is on your side. Time is now your ally. The economy is going remain devastated here, for a very long time to come. And the longer this goes on, the more people are going to be affected by it, and the more desperate some will become. For the wealthy it barely matters. But, there are many middle income folks, who have money invested, and there are alot of Chinese and Russians who bought, and cannot even visit Thailand. Some of them will want to unload their properties. Wait. The condo market is severely overbuilt. And demand is low, for all but the top buildings.

 

 

21 hours ago, snoop1130 said:

House buyers are being warned that they may have to pay an additional 5-8% next month because of rising construction costs

Why that might be enough to make someone change their mind and just stay where they are.

 

So you could say it will turn 'house buyers' into 'non buyers'.

 

Most of them already own a house, putting off moving for most people is easily done.

I learned early that if you are a foreigner it is best to buy a new place, unless you are buying

from another expat, and his Thai partner.  I went with my Thai relatives and they were looking at

a condo which my Thai brother in law was thinking of buying. I said that I would come up to the condo

unit about 10 minutes after they had been there. I would say that I finished my business and make like

I did not know them. When the seller seen me, the price of the condo shot up 10 thousand baht.

  My brother in law was very angry, as the seller was his friend.  I told the seller that I was only catching a ride with 

these Thai people, and I asked why the Thai people seemed unhappy. So I said I would wait in the lobby until they were finished

and I guess the misunderstanding apology came out, and the price went back down, but it was too high to begin with

so my brother in law did not buy the place.  I seen one sign of another unit that faced the ocean at the other end of the

building, and sent my brother in law and others to check it out. I stayed in the lobby, and the price was a lot cheaper, and it was

a bigger unit. They phoned me to come up and look at it, and the Thai lady was happy to hear me speak my terrible Thai

and was just happy to be able to sell it as she was moving up country to near Chiang Mai. We were in the Cha Am area, 

where the condo was located.  Buyer beware,  seems the same all over the world.