Pattaya Business And Property Values

[snoophound]

Some I am currently dealing with suggests as a result of the Phuket disaster values in pattaya have increased substantialy.

What is the feeling from the locals??

[Crazy Dave]

yes i feel sure that over the last 2 days since the disaster in phuket, land and business values in pattaya have quadrupled, i heard that the blues factory has just this minute been put on the market for a measly 100 million baht and is going up in price by 1 million baht per hour, so get in there quick with an offer

[snoophound]

And worth every Satang I am sure

yes i feel sure that over the last 2 days since the disaster in phuket, land and business values in pattaya have quadrupled, i heard that the blues factory has just this minute been put on the market for a measly 100 million baht and is going up in price by 1 million baht per hour, so get in there quick with an offer

<{POST_SNAPBACK}>

[eljeque]

Wait a month and there willl be little change. In fact, assuming prices in Phuket have fallen a little or more than a little, the prices in Pattaya would also have to fall to stay in line, as Pattaya is a substitute not a compliment.

Then, there is the other idea that the situation in Thailand might keep people out all together. In that case, prices in Pattaya would fall as well.

I really doubt that many people who spent alot of time deciding to make an investment in Phuket because of what Phuket was/is are going to change their minds and invest in Pattaya because of what it is instead.

Phuket people are still going to go to Phuket and Pattaya people are still going to go to Pattaya.

People who enjoy Phuket's beauty are not going to switch to Pattaya for its... whatever.

A good way to compare the price of anything is to use internationally recognized formulas. Compare likely income to price, and use whatever formula is normal for that specific business.

Apartment buildings out here have asking pices in the neighborhood of 160 times rent, and even higher. Only a fool would buy for that price. Rents need to be in the neighborhood of 1/80 to 1/120 of the price, depending on interest rates.

There are similar formulas for nearly every business, and every smart restauranteur from Germany, England or the US knows these numbers.

The most important thing to avoid is the massive KEY MONEY requests that many building owners are looking for. They would rather let their buildings sit, and wait for a sucker to come along and pay the big key money ... until he goes out of business, and the owners retake the property, only to make it available while waiting for the next fool.

[T4K]

I have been on holiday to Pattaya a few times already and I came to buy this time. I almost did a couple of weeks ago.

The comments about prices possibly dropping in the country on the wake of the disaster, worrying and making me think more than twice.

[x846nua]

I think talk of property flying high in pattaya is a bit pie in the sky.For one prices in pattaya are quite high in fact overpriced.the pattaya market has copied the uk and some european markets and risen high.the uk markets are in decline slightly and i believe the same will happen in pattaya .The fall in Pattayas market may be fuelled by last weeks disaster but the fall will not be severe.Remember most investors in pattaya property are by people who love the place and these people will continue to return.

property prices rise when money and confidence is rife many falangs invested after making money in there homeland.I can see a 20 per cent fall in the area with a recovery within 5 years but i would not be put off buying just dont expect to reap big gains confidence will be low for quite a while.

On another point i was talking to a uk mp a few months ago he seems to think that before long the thais will have to open the doors to forigners to buy property outright which will be brought on by political pressure it will be interesting to see what trade agreements are made in the next few years.

[johnnyk]

Some I am currently dealing with suggests as a result of the Phuket disaster values in pattaya have increased substantialy.

What is the feeling from the locals??

<{POST_SNAPBACK}>

Sure, real estate values always shoot up within hours.

Everybody knows that.

[simon_derv]

Some I am currently dealing with suggests as a result of the Phuket disaster values in pattaya have increased substantialy.

What is the feeling from the locals??

<{POST_SNAPBACK}>

Sure, real estate values always shoot up within hours.

Everybody knows that.

<{POST_SNAPBACK}>

a little cold can result from disaster as real esate in resoirt area is linked to tourism activity. But observe a crash in prices or a huge increase is not normal, and it is not the case in the market i know, Hua Hin, Pattaya, Samui and Phuket.