Property Value

[WilliamCave]

How is the property value in BKK now. I am returning to BKK in January and I am hearing many different stories...up, down not selling property and homes. I am going to buy again and an woundering what the truth will be.

your views thanks. any one buy a home recently and was it up down or stable

bill

[JimmyTheMook]

How is the property value in BKK now. I am returning to BKK in January and I am hearing many different stories...up, down not selling property and homes. I am going to buy again and an woundering what the truth will be.

your views thanks. any one buy a home recently and was it up down or stable

bill

You can bascially steal a house now from the right seller, condo's are a differnt story regarding the ownerships detials.

[Irene]

Likely to be up because of higher construction cost.

[bingobongo]

maybe this will help, prices are down due to overbuillding and even though interest rates are artificially low, prices are still in a downtrend.....

Edited November 25, 2007 by bingobongo

[WilliamCave]

I like the chart Bingo....very helpful,,and I agree with others it has dropped,,,, since my last house purchase.

thanks for the feed back

[quiksilva]

OP yes the average PRICE of HOUSING that has been LAUNCHED has declined because developers are now targeting lower income market sectors. Not disputing what that chart says or the general thrust of Bingo's point but jI feel the need to clear some stuff up.

Assuming you are speaking about condo units then first ignore that graph because it refers to housing, then second, you should note that something similar has happened in this sector too, but its not the same.

When compared to the condo boom from 2004-2006, there is very little demand today for high end condominium units. This is mostly due to failing confidence in the government. Supply in fact has dropped off recently for this sector, ask yourself are there more or less ads for new ultimate condos today than there were a few years ago?

The 2004 boom was so hot because there was next to no supply in this sector in the period of 1997-2004, so we had seven years of pent up demand that fueled this sector. Developers of course rushed to cater to this sector and this sector alone. Unfortunately, not all developers can see where demand has come and still cater to these sectors and many falied to see just how much demand was fueled by speculators flipping units or buying to let.

This has caused rentals to falter and will see high end values fall. Note that a building once considered to be Grade A may no longer fit into that category, as it becomes older and tastes change, so can its grade. For example units can now be had in President Park Sukhumvit Soi 24 for Baht 45,000 psm , where they used to fetch THB 55-57,000 psm.

Whereas several housing projects launched during this time, L&H did very well for example when they switched development tactics and built on spec to ease buyers concerns about the ability of a developer to complete a project.

When talking about values and prices a definition is often useful, here is OMV as defined by the Royal Institution of Chartered Surveyors.

Open Market Value

An opinion of the best price at which the sale of an interest in property after reasonable period of marketing (having regard to the nature of the property) would have been completed unconditionally for cash consideration on the date of valuation, assuming:

(a) a willing seller;

( that, prior to the date of valuation there had been a reasonable period of marketing (having regard to the nature of the property and the state of the market);

© that the state of the market, level of values ands other circumstances were, on any earlier assumed date of exchange of contracts, the same as on the date of valuation;

(d) that no account is taken of any additional bid by a prospective purchaser with a special interest; and

(e) that both parties to the transaction had acted knowledgeably, prudently and without compulsion.

With that being said, when you ask "how are property values in Bangkok right now?" you should also state which sector of the market you are looking at.

Only when one knows what you are looking for can anyone give you true insight into your question.

Edited November 26, 2007 by quiksilva