Land Sales On Samui

[Nepal4me]

I haven't read anything on this issue in a while. Wondering if any Samui people in the biz can comment on whether land transactions are taking place there or not.

I know things really slowed down a year or more ago. Anything picked up yet?

I am on Samui Estates email list and get periodic newsletters from them. Seems they are continuing to develop and if you believe what they imply, sales are going well.

Anybody have any stats or first hand knowledge of land transactions going on?

Thanks.......

[womble]

I'm not in the business but sold a piece of land I own recently. I think generally things are going very slowly and won't pick up until after the election.

I think real estate agents and developers often try to paint a rosy picture for obvious reasons.

Edited August 4, 2007 by womble

[Nepal4me]

I'm not in the business but sold a piece of land I own recently. I think generally things are going very slowly and won't pick up until after the election.

I think real estate agents and developers often try to paint a rosy picture for obvious reasons.

Whenever you read something in the BKK Post or Nation in the biz page and the article presents a favourable comment on condo sales or whatnot and you look at the source, it's usually soandso Reality Company.

However, it would still be interesting to hear from any sales agents on Samui. I heard they all left but not sure that wasn't a bit of exageration.

[Rooo]

I'm not in the business but sold a piece of land I own recently. I think generally things are going very slowly and won't pick up until after the election.

I think real estate agents and developers often try to paint a rosy picture for obvious reasons.

Whenever you read something in the BKK Post or Nation in the biz page and the article presents a favourable comment on condo sales or whatnot and you look at the source, it's usually soandso Reality Company.

However, it would still be interesting to hear from any sales agents on Samui. I heard they all left but not sure that wasn't a bit of exageration.

Several have shut shop, or gone ito marketing projects only.

[highdiver]

it is very difficult to know the real situaton.. most small to medium land sales now are made by changing shares of farrang companies and not through the land office.

those who still use the land office are mostly Thai or the ones buying big parcel of lands.

[womble]

I think the only area of real estate that still has some real interest is commercial, ie. resort on beach or ringroad parcels suitable for large scale service sector projects (big C, Mackro etc.).

These type of investors are in it for the long run and not speculators, they know Thailand/samui has strong fundamentals, and with long leases or property obtained freehold, they are no doubt still making sound investments.

I personally believe the residential market is over supplied, and many prospected clients will be scared of for quite a long time.

The commercial sector is being driven by domestic demand mostly, but also large corps that have BOT backing.

Different kettle of fish to the usual samui developer/speculator that are half the reason for the bubble that looms (although with a bit of luck the election will bring about another boom, although on a smaller scale.)

[BigC]

the bbc did a documentry on Thailand real estate. They were talking about the last big crash in Thailand about 12 yars ago or something. when the stock market hit rock bottom.

they were showing pictures of abaandond buildings in Bangkok. wherethey have put big sky scrapers off then just left them.

i also herd that big companies like toyota and ford and alot of factories are warning to move to surround countries unless thailand sortes them selves out soon.

nobody wants to invest in a politicaly un stable country. specially when hey re talking billions of U.S dollors.

Samui is extra quite this supposed to be high season.

a lady in the restuant today said she has been here for 12 years and never seen it this quite.

i suppose the changes tothe thai visa laws haven';t helped toursime much.

which mean that everyone is getting effected, forang and Thai.

Which is hightening tension. i see alot more angry people now than before.

how ever. i did read that more thai people are buying houses now and sitting on them till the price goes up.

i do know that if you are hoing for a boom in the house market. now is a good time to buy as some poeple cannot afford to keep thier houses becuase it is costing them money becuase they have borrrowed from the bank. alot of people have dropped thier prices by around 2 million baht just to pay off thier loans.

if you have the mony and time. i would perosnally buy now.

you can sit and wait with the house. best case sinario you can sell it for a profit. worst case you can live in it. that way who cares how long it takes to sell.

Edited August 5, 2007 by BigC

[BigC]

personally i don;t care. i have a beautifal house. i can live in it Looooong time. before i can sell.

[Samuian]

a lady in the restuant today said she has been here for 12 years and never seen it this quite.

I live here for a bit longer then this and I have to say I hear this every year!

If the business is roaring, people won't shout: "free drinks!"

If it's a bit quiet, people say: "never been this quiet!"

Funny, but that is how people are...

And then, think how many more businesses have gone up the last years!

Edited August 6, 2007 by Samuian

[highdiver]

a lady in the restuant today said she has been here for 12 years and never seen it this quite.

I live here for a bit longer then this and I have to say I hear this every year!

If the business is roaring, people won't shout: "free drinks!"

If it's a bit quiet, people say: "never been this quiet!"

Funny, but that is how people are...

And then, think how many more businesses have gone up the last years!

so so true

every year the same and every year more and more hotels bars and resteraunts.

[Samuian]

... sold a piece of land I own recently....

Well, there was also some really bad publicity and some very eager sharks at work, at the boom-times.

It's not only the "uncertainty concerning the Military-Government"!

Didn't know a foreigner can "own" land in the kingdom...

On Samui there are several big project comin' up, one is worth 1 Billion Baht!

Macro and BigC for Example, can't be bothered to try to by the land., they rent/lease it,

for amounts I almost fell off my chair.

Local people I know, build recently 40 Townhouse-Units in a not very favorable location and sold them...

one left!

Ban Rak near the Airport, Airport view!!!!!! Goes a Condominium up...and so on...look at the development around in the Choeng Mon Area, who is going to buy the Shophouses...?

And stilll many are sold - cause the interest on the bank is = Zero! Invest in the SET?

[Geppis72]

my 2 cents.

April - May - June I did not see one single client step in our real estate,

no inquiry, no interest shown.

In the last 3 weeks we sold 7 houses.

Ok let's say that we have our own develop. and we are not only a broker

so this help us a lot, in particular because we do not sell stand alone houses but we sell

villas on the beach in a Resort with all services.

Situation is unpredictable, in general I noted that lots of people with money is buying now,

on the other hand family and private small investor thinking a lot before put down their money

which is understandable.

[oswaldcassidy]

I haven't read anything on this issue in a while. Wondering if any Samui people in the biz can comment on whether land transactions are taking place there or not.

I know things really slowed down a year or more ago. Anything picked up yet?

I am on Samui Estates email list and get periodic newsletters from them. Seems they are continuing to develop and if you believe what they imply, sales are going well.

Anybody have any stats or first hand knowledge of land transactions going on?

Thanks.......

As far as I am aware it is a buyers market at the moment due to current uncertainty in Thailand dont pay the asking price.

[Rooo]

I haven't read anything on this issue in a while. Wondering if any Samui people in the biz can comment on whether land transactions are taking place there or not.

I know things really slowed down a year or more ago. Anything picked up yet?

I am on Samui Estates email list and get periodic newsletters from them. Seems they are continuing to develop and if you believe what they imply, sales are going well.

Anybody have any stats or first hand knowledge of land transactions going on?

Thanks.......

As far as I am aware it is a buyers market at the moment due to current uncertainty in Thailand dont pay the asking price.

So you are a speculator?Guess what ? some people can actually afford to sit & wait. Don't pay the asking price ???? Get real.

Edited August 8, 2007 by Rooo

[Kiiniow]

I haven't read anything on this issue in a while. Wondering if any Samui people in the biz can comment on whether land transactions are taking place there or not.

I know things really slowed down a year or more ago. Anything picked up yet?

I am on Samui Estates email list and get periodic newsletters from them. Seems they are continuing to develop and if you believe what they imply, sales are going well.

Anybody have any stats or first hand knowledge of land transactions going on?

Thanks.......

As far as I am aware it is a buyers market at the moment due to current uncertainty in Thailand dont pay the asking price.

Completely agree, do NOT pay the asking price or sign to the asking terms, it IS a buyers market and I have seen seller after seller not only being more flexible but bascially caving in to any potential buyer's terms.

[Rooo]

I haven't read anything on this issue in a while. Wondering if any Samui people in the biz can comment on whether land transactions are taking place there or not.

I know things really slowed down a year or more ago. Anything picked up yet?

I am on Samui Estates email list and get periodic newsletters from them. Seems they are continuing to develop and if you believe what they imply, sales are going well.

Anybody have any stats or first hand knowledge of land transactions going on?

Thanks.......

As far as I am aware it is a buyers market at the moment due to current uncertainty in Thailand dont pay the asking price.

Completely agree, do NOT pay the asking price or sign to the asking terms, it IS a buyers market and I have seen seller after seller not only being more flexible but bascially caving in to any potential buyer's terms.

I think you will find that trend more obvious with developers,that have empty houses,but I thnk a lot of the high end property owners,just sit & wait ( unless they are in dire financials).

[highdiver]

In the land office today many deals but only from thais to thais.

it seems that the thai elite from BKK is finding Samui very attractive.

[Devil]

Samui's property scene has been slower this year simply because of a few key reasons,the political situation (the coup), frequent news and headlines of tightening of the FBA laws, Samui's newer Zoning laws (building restrictions) tourist visa's stay restrictions and of course news of Samui land scandals have really hit Samui property hard.

There is still a huge demand for medium to high end Residential properties, the Luxury holiday Villa market, short/longterm mid priced rental housing markets seems to be getting stonger and stronger. One important point is all the projects we still see for sale on Samui are only 30-40% complete so buyers are not willing to buy off plan as they did before.First time buyers to Samui's market are much more savvy now than previous years (Buyers do their homework) and there are much more property/legal websites to study.The fact reamins very few mid priced/high end completed projects remain less than 70% sold out.

Condominiums (New to Samui) are selling well simply because of maintenance and ownership ease compared to other property options offered on the Island and developers are being imaginative in terms of design and lifestyle offering realistic rental returns such as (condo/hotels/resorts) to a attract a new breed of buyer.

The Island still offers dream like beaches and views and therefore there is a HIGH demand for Villas/properties but its the extra attention the legal ownership of land ownership and leases that has attracted attention and ultimately put potential buyers off.There is still no re-sale market which is key to any property market and pricing.

Samui Brokers/Agents and developers have been very fortunate for the past 8 years (seriously) and prices for land are over priced since the past 3 years with sellers confident they could always sell, now things have changed this year and hopefully prices will regulate.Which is a good thing for the market and for buyers.

Its the buyers and wait and see attitude affecting sales and even agents developers realize this, even suggesting to buyers ' Yes lets wait and see' and we will be in touch early next year. There are many agents who can say they have inquiries via websites with buyers waiting until later in 2008.

Bite the bullet Its a positive thing long term (fix now rather later), first time developers who were overpricing (obviously)and offering low standards of quality may of been scared away and taken some potential buyer's with them.The established and experienced developers have gone on to offer more property types,better choices and quality (with their prices rising not reducing)

However the fact remains, Samui is still a highly sought after location and the demand is still definitely there to buy property and land.

www.a1real.com

[chinthee]

In the land office today many deals but only from thais to thais.

it seems that the thai elite from BKK is finding Samui very attractive.

That's always the smartest money, well because property markets aren't always transparent in Phuket and Samui.

[tommyj4]

Samui is a dead duck & has been for the past year or so. No resales whatesoever. All the clients that bought land & had dream homes built for whatever reason are stuck with them. Investment side is finished. Samui in general isnt easily accesable, expensive flights etc, Major flooding after only 10 minutes of rain, constant burglaries. It is very quite this year, restaurants, bars, real estate...nothing to do with the coup or exchange rate...over development has caused this. Dont expect to make money buying here. Also your baht will go a lot further elsewhere. If you are determined to buy here, bargain well....30%-40% less than asking price & the seller to pay fees, taxes. I speak from experience so be careful befor taking the plunge. Maybe take a look at Hua Hin or Chumphon

[highdiver]

Samui is a dead duck & has been for the past year or so. No resales whatesoever. All the clients that bought land & had dream homes built for whatever reason are stuck with them. Investment side is finished. Samui in general isnt easily accesable, expensive flights etc, Major flooding after only 10 minutes of rain, constant burglaries. It is very quite this year, restaurants, bars, real estate...nothing to do with the coup or exchange rate...over development has caused this. Dont expect to make money buying here. Also your baht will go a lot further elsewhere. If you are determined to buy here, bargain well....30%-40% less than asking price & the seller to pay fees, taxes. I speak from experience so be careful befor taking the plunge. Maybe take a look at Hua Hin or Chumphon

i beg to differ.

Samui is a live and well.

there is a market change over the past 5 years.

5 years ago mostly small time investoe buying land to build a private home. only 3 real agencies on the island

3-4 years ago medium investors buying land and developing it to sa,ll projects.about 50 agencies on the island

2 years ago more medium but entrance of larger scale development companies into the market. about 100 agnecis on the island.

this past year. real estate sharks of grand scale like leman br and raimond land are buyin big parcels of lands for development.

Thai investors also buyin land and property. there are now over 200 Agencies on the island..

the reason you dont see it is that they dont brag about it and that most of those deals are made by transfering shares of companies and not through land office or through local lwayers. those deals are made by the big shot lawyers from bangkok.

Most of the complaining and bitching about the situation is coming feom those small time developers who can no longer compete with the Big boys that are coming in. they have better marketing better leagal facilities and better service and support for potential buyers.

So the small time developer is not going to be making 500% profit any longer...

The Samui market is no longer a play ground for amatures and thrill seekers . its becoming a high end profesional big time business.

[chinthee]

Samui is a dead duck & has been for the past year or so. No resales whatesoever. All the clients that bought land & had dream homes built for whatever reason are stuck with them. Investment side is finished. Samui in general isnt easily accesable, expensive flights etc, Major flooding after only 10 minutes of rain, constant burglaries. It is very quite this year, restaurants, bars, real estate...nothing to do with the coup or exchange rate...over development has caused this. Dont expect to make money buying here. Also your baht will go a lot further elsewhere. If you are determined to buy here, bargain well....30%-40% less than asking price & the seller to pay fees, taxes. I speak from experience so be careful befor taking the plunge. Maybe take a look at Hua Hin or Chumphon

i beg to differ.

Samui is a live and well.

there is a market change over the past 5 years.

5 years ago mostly small time investoe buying land to build a private home. only 3 real agencies on the island

3-4 years ago medium investors buying land and developing it to sa,ll projects.about 50 agencies on the island

2 years ago more medium but entrance of larger scale development companies into the market. about 100 agnecis on the island.

this past year. real estate sharks of grand scale like leman br and raimond land are buyin big parcels of lands for development.

Thai investors also buyin land and property. there are now over 200 Agencies on the island..

the reason you dont see it is that they dont brag about it and that most of those deals are made by transfering shares of companies and not through land office or through local lwayers. those deals are made by the big shot lawyers from bangkok.

Most of the complaining and bitching about the situation is coming feom those small time developers who can no longer compete with the Big boys that are coming in. they have better marketing better leagal facilities and better service and support for potential buyers.

So the small time developer is not going to be making 500% profit any longer...

The Samui market is no longer a play ground for amatures and thrill seekers . its becoming a high end profesional big time business.

I agree with you Higdiver, and as someone who has been through this before in Phuket, I'm not playing. Already did well, thank you very much.

[tommyj4]

Very much agent talk your posting. Explain why I have negotiated between 30% & 45% discounts on resales???...not that I am going to buy, just like to keep up with the situation. All the sellers were desperate... Still maybe something in what you say...just like the second airport thats been coming for the past 5 years...

[Devil]

What type of propertyhave you negotiated 45% off ?(Interesting read) Did you negotiate direclty or use an agent to drive you around all day for free?

I agree a lot of land is way over priced on Samui (Hillside) but properties?

You said resale properties... where they under 10Mil baht houses? As YES I have seen owners asking for stupid amounts when newer propoerties were much more reasonable and better quality.

Its a problem though that many projects are still not near completiton.And the resale properties are outdated overpriced properties.Little se wooden bungalows for sale 4 times what they are worth with no sea views or decent locations...

Have you negotiated 45% of properties med-high end say priced at 10-20 Mil Baht+.

Thanks for info

[Charma]

In a struggling market, properties in good locations with good views will fare the best and often hold their value.

In a rising market, property "fever" sets in and people buy any old rubbish - poor quality in bad locations with no views, because they will still make some money. When the market struggles, there is oversupply and no-one is interested in the poor quality stuff which then have to be heavily discounted to shift them.

I think this is particularly true of Thailand (even more to Samui) because of the total lack of planning control which has led to a plethora of poor quality, badly placed developments. Supply of the really good stuff is limited by geography and so prices are supported.

Obviously in a market crash - all prices may come down, but we are not there (yet).

Just my view

[1Rai.com]

I have noticed that in general prices are not falling, even if some sellers are getting desperate and telling agents they will negotiate more than they did. Some properties on 1Rai.com have been on the market for years but the price has never dropped - in some cases it has actually risen.

As for sales, I don't know as I don't sell. However, many agents have been whingeing about the lack of enquiry in and around May, then they've said that June and July have been bumper months. In June, 1Rai.com sent an all-time record number of sales requests to our Member Agents, which is obviously pretty good news.

I do know that my neighbour just sold his house on a 30-year leasehold for 3.4m Baht - asking price was 3.7m. Surely if the market was THAT dead, he would have had to have taken around 2.5m?

No doubt the market is quieter now than it was, say, April 2006 (pre-Thaksin's stepdown, pre-Samui land scandals, pre-coup), but there are glimpses of silver linings popping up all the time.

[Noodles]

Was at the land office today and it was very quiet compared to when I was there 2

years ago. We were in and out in 1 1/2 hours. Only one foreigner there as well as me,

the rest seemed to be old samui folk.

[lazeeboy]

Was at the land office today and it was very quiet compared to when I was there 2

years ago. We were in and out in 1 1/2 hours. Only one foreigner there as well as me,

the rest seemed to be old samui folk.

its not such a bad thing that its gone quiet ,will stop the cowboys coming and building sub standard properties ,and leave the way open for the pro's to do it properly .any professional doing construction here wont be scared of a drop in sales ,they have the money to wait till it picks up again ,which it will and make even more money ,in 1997 it was all doom and gloom ,3 years later it was booming ,i for 1 wont be panic selling anyway .

[Noodles]

Was at the land office today and it was very quiet compared to when I was there 2

years ago. We were in and out in 1 1/2 hours. Only one foreigner there as well as me,

the rest seemed to be old samui folk.

its not such a bad thing that its gone quiet ,will stop the cowboys coming and building sub standard properties ,and leave the way open for the pro's to do it properly .any professional doing construction here wont be scared of a drop in sales ,they have the money to wait till it picks up again ,which it will and make even more money ,in 1997 it was all doom and gloom ,3 years later it was booming ,i for 1 wont be panic selling anyway .

I agree

[Samuian]

As it has been said already, Location, Quality, Building Standards are the go and that always has been and will remain so.

Who the heck would buy an overpriced, old and substandard car?