Price Of Land In Samui

[anthonyu]

Hi everyone,

I was wondering if locals could give me their independent valuations on a property in Samui. I was approached by a friend's mother to find a buyer for her property and i find her valuation a little hard to swallow.

Its about 46 rai on Maenam beach, beachfront and access to main road. All land titles are chanote. There's already an existing property built there but I'm inclined to think any potential buyer will want to knock it down and do a new build. She values the entire property at about 1,400 million THB which is a little over 30 million THB per rai.

In your estimations what do you think this property is worth and is she being unrealistic? These numbers are on par with Phuket and I can imagine any investors making a much bigger return there.

Thanks for all your time and help.

[MSingh]

Without calculating exactly, that's about 20m GBP ????

Good luck...

[Boater]

in Phuket you can can the same prime land with a private beach ( 200 Metre Frontage ) at 25 million a rai.

The land is most probably worth around 12-15 Million THB, as you can still but Beachfront in Choeng Mon at 20 !

recent land sales have been about 10 million a rai in that area ( on large land purchases )

Cheers

[Samuian]

Don't confuse "what they want" with "Property prices"!

Boater is somewhat right it shouldn't exceed 10-14 Mill. a Rai in Mae Nam Area - if it is not Laem Sai!

And striktly speaking BEACH Property - anything away from the beach will drop in value - land price!

So if it is 46 Rai... it got to be devided - yes the locals - I know...

But then, once they have got an Idea, they usually stick to it!

Very difficult to make them change their mind, because they will ever be obsessed by the idea "to have lost money"!

It's always worth a try and if you know someone trustworthy as a negotiator... otherwise pay up or forget - I would do the latter and run...

Edited July 9, 2008 by Samuian

[anthonyu]

Thanks guys for your replies. 30 mil a rai is very steep considering I know properties in Phuket that are much cheaper. I just don't know enough about Samui property to make an educated valuation. When I first heard the details of the land I was thinking 4-500 mil total and her valuation blew me away (you know how hard it is to keep a straight face when they quote you 3 times the price you're thinking?) My guess is that the lady looked around the websites and saw prices at around 20 mil a rai and then tacked on her development costs.

I definitely won't be taking this to any of my clients unless she lowers her asking price significantly.

[MSingh]

Let's take a moment to take into consideration that the deal that this thread is about is worth 20m GBP or 40m USD approximately..

There aren't too many people out there that the Land Owner has a chance to sell to, Sub Division is the ONLY realistic option & even then, forget the price that you have said, even in 1 Rai parcels..

But, Land is only worth as much as some one want to pay for it...

If someone/Company wants to pay that kind of money, more fool them..

Edited July 9, 2008 by MSingh

[highdiver]

can you give us more information about the layout of the property.

46 rai in Mae Nam. where,?, in the center or in the outer boundary?

some areas in Mae Nam are defined in the zoning map has having more construction rights then other areas. this will effect the price.

what is the size of the beach front is it very wide or very small?

the larger the beach frontage the better price the property can get.

[anthonyu]

can you give us more information about the layout of the property.

46 rai in Mae Nam. where,?, in the center or in the outer boundary?

some areas in Mae Nam are defined in the zoning map has having more construction rights then other areas. this will effect the price.

what is the size of the beach front is it very wide or very small?

the larger the beach frontage the better price the property can get.

Hi highdiver,

Location is west side of MaeNam Beach. Title deeds are all chanote and there is already an existing resort built on the property so future construction permits shouldn't be a problem. Looking at the pictures I'm guessing beach frontage to be about 50m. Most of the land is located towards the road away from the beach but depending on topography might have a view.

I think the main difference of thought I have with the landowner is that she views the resort as a cost she needs to reclaim and I view it as a liability for potential investors as they have to knock it down.

[highdiver]

can you give us more information about the layout of the property.

46 rai in Mae Nam. where,?, in the center or in the outer boundary?

some areas in Mae Nam are defined in the zoning map has having more construction rights then other areas. this will effect the price.

what is the size of the beach front is it very wide or very small?

the larger the beach frontage the better price the property can get.

Hi highdiver,

Location is west side of MaeNam Beach. Title deeds are all chanote and there is already an existing resort built on the property so future construction permits shouldn't be a problem. Looking at the pictures I'm guessing beach frontage to be about 50m. Most of the land is located towards the road away from the beach but depending on topography might have a view.

I think the main difference of thought I have with the landowner is that she views the resort as a cost she needs to reclaim and I view it as a liability for potential investors as they have to knock it down.

thanks for the info.

you can look at the zoning map to determine the construction rights on this property in the Ta saban office. this is very important as outer MaeNam is maximum 25- 40% with limitations on hight while the inner MaeNam has more rights regarding size hight and and density of construction.

46 Rai with only 50 meters beach front is a very narrow plot thats not "really beach front"

its more like 2 Rai beach front and the other 44Rai is land that has nothing to do with the beach.

I think your friend needs to rethink the value of the land...

[womble]

does anyone know of the value of beach land in chaweng per rai at the moment? I heard it was around 40m per rai a couple of years ago anyone know what it is at now?

[Boater]

is there anyone else involved in the sale, or are you direct with the owner?

as in alot of these cases, there is someone acting on there behalf who is adding a nice little profit og his/her own to the asking price

[anthonyu]

is there anyone else involved in the sale, or are you direct with the owner?

as in alot of these cases, there is someone acting on there behalf who is adding a nice little profit og his/her own to the asking price

Thanks for the info highdiver. That lowers my assessment of the land even more.

Boater - I'm good friends with the owner's son which puts me in between a rock and a hard place since the mum knows i have contacts who want to pump money into Thai real estate but I know they're not going to touch her property with a 20 foot pole. Its fustrating that a lot of Thai owners are really delusional about what their land is avtually worth. Even after you get them to do an independent land valuation they'll still insist on doubling the price it was valued at.