Property boom and home improvement spending in Thailand

[snoop1130]

PHOTO: Brand Inside

 

Ker-ching!

 

A surge in spending on real estate and home improvement is being attributed to the post-pandemic revival of tourism in Thailand. The Bangkok Post reports that the effects can be seen in popular tourism destinations such as Phuket and Pattaya, according to property developers and home improvement firms.

 

The managing director of Home Product Centre, which operates home decoration and improvements store HomePro, agrees. Weerapun Ungsumalee says the firm’s increased revenue during the first quarter of the year was due to the recovery seen in the tourism sector.

 

“The recovery of the tourism industry led to an increase in spending on property renovation and improvement in tourist destinations, resulting in significantly higher growth compared to other provinces.”

 

Full Story: https://phuket-go.com/phuket-news/national-news/property-boom-and-home-improvement-spending-in-thailand/

 

-- © Copyright Phuket GO 2023-04-27

 

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[spidermike007]

Even in the smaller towns, which are not affected by tourism, land prices keep rising. Is this sustainable? Will we see a substantial correction down the road? Or is it up, up, up? 

 

A friend told me land in smaller cities in the PI is insane. Multiples of the cost of land in Thailand. Could this be a long term trend? Soaring land prices? 

[RichardColeman]

3 hours ago, spidermike007 said:

Will we see a substantial correction down the road? Or is it up, up, up? 

Based on the US economy, there is a high chance that if they do no lower interest rates then the bubble will burst at some point - US house prices - median - have fallen 10% in the past 3 months. 

 

Course they could be saved by foreigners buying housing. £50,000 might not buy you much back in my home uk, but you can get a 2 bed house for that here.

[SoilSpoil]

22 minutes ago, RichardColeman said:

Based on the US economy, there is a high chance that if they do no lower interest rates then the bubble will burst at some point - US house prices - median - have fallen 10% in the past 3 months. 

 

Course they could be saved by foreigners buying housing. £50,000 might not buy you much back in my home uk, but you can get a 2 bed house for that here.

You buy a garden shed these days for 50,000 pounds. A 2 bedroom apartment goes for 4 million and up, and building a bit of a decent house, land included goes for 5 million baht and up.

[sammieuk1]

I think Homepro's profits have been doubled by me in the last 18 months ???? 

[newnative]

Lots of new construction on the Darkside with a number of new housing projects.

[jacko45k]

23 hours ago, sammieuk1 said:

I think Homepro's profits have been doubled by me in the last 18 months ???? 

You might want to look in Lazada now and again..... Homepro 860 baht, Lazada 280+45 shipping for a light fitting I got!

[Jotnar]

On 4/28/2023 at 4:13 AM, spidermike007 said:

Even in the smaller towns, which are not affected by tourism, land prices keep rising. Is this sustainable? Will we see a substantial correction down the road? Or is it up, up, up? 

 

A friend told me land in smaller cities in the PI is insane. Multiples of the cost of land in Thailand. Could this be a long term trend? Soaring land prices? 

Up up up, as prices in Thailand have never come down.  Always someone willing to pay.  One thing they are not making, new land.   One of the best investment.  Same as God, always was and will be.

[zzaa09]

On 4/27/2023 at 2:13 PM, spidermike007 said:

Even in the smaller towns, which are not affected by tourism, land prices keep rising. Is this sustainable? Will we see a substantial correction down the road? Or is it up, up, up? 

 

A friend told me land in smaller cities in the PI is insane. Multiples of the cost of land in Thailand. Could this be a long term trend? Soaring land prices? 

Rural land prices have been insanely high for a decade or more.....evident of common paddy land, which has become really outta site. I suspect this will be the trend for some time to come.

[jacko45k]

39 minutes ago, Jotnar said:

Up up up, as prices in Thailand have never come down.  Always someone willing to pay.  One thing they are not making, new land.   One of the best investment.  Same as God, always was and will be.

No, we are making more people and less land.

[BritManToo]

1 hour ago, jacko45k said:

No, we are making more people and less land.

Not in Thailand, Japan or the western world.

[spidermike007]

11 hours ago, BritManToo said:

Not in Thailand, Japan or the western world.

Where common sense and reasoning prevail. Thailand too. The birth rate has fallen dramatically. Just two  generations ago, having 5 to 10 kids was not uncommon. Now one or two is common. Hooray. The planet celebrates. 

Edited April 29, 2023 by spidermike007

[spidermike007]

 

Top 10 Countries with the Highest Fertility Rates (by births per woman) - World Bank 2021 (2019 data)

Niger - 6.8

Somalia - 6.0

Congo (Dem. Rep.) - 5.8 (tie)

Mali - 5.8 (tie)

Chad - 5.6

Angola - 5.4

Burundi - 5.3 (tie)

Nigeria - 5.3 (tie)

Gambia - 5.2

Burkina Faso - 5.1

 

Many people are gaining common sense, looking at the world around them, pulling their heads out of the sand and having fewer babies, which the world does not need.

 

Africa continues to be the real problem. 

 

https://worldpopulationreview.com/country-rankings/total-fertility-rate

 

 

Edited April 29, 2023 by spidermike007

[Gknrd]

Of course I cannot own land in Thailand ,but here in the US construction materials have doubled and all around me have projects going on. So, if it is in Thailand and the US I would bet it is all over there world.

[freedomnow]

On 4/28/2023 at 2:27 AM, SoilSpoil said:

You buy a garden shed these days for 50,000 pounds. A 2 bedroom apartment goes for 4 million and up, and building a bit of a decent house, land included goes for 5 million baht and up.

Depends where you are in Thailand for average prices - doesn't it ?

[ezzra]

19 hours ago, Jotnar said:

Up up up, as prices in Thailand have never come down.  Always someone willing to pay.  One thing they are not making, new land.   One of the best investment.  Same as God, always was and will be.

Not so in CM, my friend has 2 houses for sale there, both reasonably priced, one sits on a very nice 2 rai land and the other not far from the center of town unable to find buyers for many months now.

[jacko45k]

18 hours ago, BritManToo said:

Not in Thailand, Japan or the western world.

Population of the UK certainly keeps increasing... it will be like Hong Kong in the future. Global issue...India soon to be the highest world population and they are mostly all young. It is being touted as a benefit, and a lot of manufacturing is moving there (even Apple). 

[mudcat]

I believe that when the wealth transfer from parents who own the land to the children who have no interest in being farmers happens the land will be sold to finance a new pickup or a condo near a real job will drive sale prices down once the car/mortgage payments catch up and overtake income.

[SoilSpoil]

3 hours ago, freedomnow said:

Depends where you are in Thailand for average prices - doesn't it ?

For average prices, it doesnt matter where you are. Average evens out the differences. We built a house in a village in the north (5 years ago) and are now in the process of building one in the south near the beach and the cost  of building a decent but simple house are at least 3 million baht, without land. That is if we can find builders, which is not that easy and straightforward these days.

[SoilSpoil]

2 hours ago, ezzra said:

Not so in CM, my friend has 2 houses for sale there, both reasonably priced, one sits on a very nice 2 rai land and the other not far from the center of town unable to find buyers for many months now.

CM's market took a big hit, partly because of the toxic living environment. Who would want to live there? I love Chiang Mai, don't get me wrong, but all the negative publicity makes it almost impossible to sell your property at the moment.

[sammieuk1]

22 hours ago, jacko45k said:

You might want to look in Lazada now and again..... Homepro 860 baht, Lazada 280+45 shipping for a light fitting I got!

I have also been responsible for Lazada's increased profits also but now my spending is at an end I think ????

[SoilSpoil]

6 minutes ago, mudcat said:

I believe that when the wealth transfer from parents who own the land to the children who have no interest in being farmers happens the land will be sold to finance a new pickup or a condo near a real job will drive sale prices down once the car/mortgage payments catch up and overtake income.

I feel that a lot of parents have already refinanced their properties. Financial institutions are actively preying on the gullible villagers to put their lands in the bank for some quick cash. Big problem for the next generation, who will be caught in the middle. Take care of your parents without the necessary heritage.