Consrtuction Cost Up, Buyers Missing

[BEENTHEREDONETHAT]

Talking to a builder and he said construction cost are up 15 to 20% and with the price of oil and everything else rising the cost of construction will continue to rise.

Now normally when the price of new construction goes up the old also goes up because of replacement value.

But when you are in a near dead market what will happen to prices on old and new? Up, down or stay the same?

My guess is the price will stay the same of rise slightly on the old and go up on the new. The market here seems to hate to reduce the price.

Is it time to buy, sell or hide and watch?

[bingobongo]

Talking to a builder and he said construction cost are up 15 to 20% and with the price of oil and everything else rising the cost of construction will continue to rise.

Now normally when the price of new construction goes up the old also goes up because of replacement value.

But when you are in a near dead market what will happen to prices on old and new? Up, down or stay the same?

My guess is the price will stay the same of rise slightly on the old and go up on the new. The market here seems to hate to reduce the price.

Is it time to buy, sell or hide and watch?

- another coup possibilty

- oversupply

- rampant inflation on everything from som tham to condos (as a result interest rates will rise)

- do you actually believe a builder whose goal is to separate you from your dough?

what do you think?

[BEENTHEREDONETHAT]

Bingo

You missed

Globalwarming

Earthquakes

Nuclear strike

Black plague

Athletes foot

[bingobongo]

maybe i missed the point because your OP was more about guessing and not about thinking, anyway.........

when interest rates rise, real estate prices go down

why do interest rates rise? to control inflation which is rampant in LOS and globally. if interest rates do not rise/are increased then somchai has to decide, do i buy condo or feed myself or walk to work as he can't do all

the BOT is done lowering interest rates unles of course there is another coup

[BEENTHEREDONETHAT]

Haven't really noticed a significant rise in interest rates in Thailand. Inflation is apparent and the reason for construction cost increases.

The point was if construction cost go up and demand goes down what happens to the price. I'm talking about Thailand now not the US. Thais would rather hold on to a property than sell for less than they wanted.

[backflip]

"another coup"

When the current PM tried to reassign a couple dirty cops, his decision was immediatley overturned. If he can't reassign cops, how will he manage to revise the constitution? The kingdom, the Monarchy, and the consitution are safe from the PM. The PM is colorless, witless, and as sharp as the leading edge of a bowling ball. The military has no reason to disturb the PM while he sleeps.

[jumnien]

"another coup"

When the current PM tried to reassign a couple dirty cops, his decision was immediatley overturned. If he can't reassign cops, how will he manage to revise the constitution? The kingdom, the Monarchy, and the consitution are safe from the PM. The PM is colorless, witless, and as sharp as the leading edge of a bowling ball. The military has no reason to disturb the PM while he sleeps.

It does seem stupid for the coup-mongers to get to excited about a coup while they have a friendly royalist in power in Samak.