Home Prices

[WilliamCave]

Hi my wife and i went out today to look for a house and the new homes are still being built at an alarming rate with over valued prices. Is thailand recession proof, seeing all the people lousing there jobs in the paper like Toytota cutting its production in half as an example. or is it just going to take longer to feel the global market in the housing area. woow what a day looking at homes lol, any opinion out there on this..it is in the Nontaburi area ,,or bang bo tong

[Pib]

Welcome to house hunting in the Bangkok Metropolitan Area....the wife and I live/own a home in Khet Talingchan just south of Nontaburi/Bang Bua Thong. While you would think prices of homes should be falling significantly, they are not and probably won't as Thai's generally resist lowering of home prices and will just wait it out. Now some developers selling brand new homes may offer a few good deals on certain homes, but generally their quoted prices haven't dropped or dropped very little. During serious price negotiations (that is, both you and the developer know you are serious about buying), you should be able to get approximately a 3% reduction in price and/or approx 3% in add-on of options. For the Bangkok area, it's the land value versus the structure cost that is the bigger price driver....location, location, location.

[tipghong]

I'm wondering the same thing. My husband and I are planning to purchase a condo or a townhouse, but I don't know if it 's possible the maybe right now there are more supply than demand in the market , and since the foreign economy isn't doing so well. Maybe, it could effect the projects in BKK. So, we are still waiting and see the whole market adjusts to the new global recession.

[tango]

It is doubtful that housing prices will ever fall in LOS as Thais will not lower their prices. In 15 years I have yet to witness any lowering. Thais would rather sit it out, awaiting a recovery and a sale. Your best best would be to purchase land and build your own, probably at a third to half what a similar new one is being marketed at by land companies.

[Milano77]

I see the same thing. Now I coming here for five years, Pattaya, Phuket, and Chiang Mai, all have prices so expensive getting higher. I think I buy for myself something small in CHiang Mai where it is a little cheaper, but still they ask for too much for the economy like this.

[tangcoral]

Thailand was different economics than than first world countries.

Keep in mind I am only generally speaking but for the most part, property owners in thailand are owned by upperclass or plainly put people with money to spare.

While in the states most homeowners would be in the range of middle class.

Thai property owners can generally wait and hold much longer than middle class would in a developed nation.

So I see no drastic devaluation in property prices even during global crisis unless of course there is a major crisis here at home.

Anyone know what happened during the 97 crisis, did property stay steady or devalued drastically?

[Pakboong]

I fear what has happened in the Thai housing market in the past will have no bearing on what will happen in the next few years. The flow of money will drop significantly. Pension funds in the west are off near the 40% range. These numbers are significant and the typical Thai home seller has no idea what any of the problems in the west actually are. This is a different ball game altogether. IMHO, anyone not grasping the significance of the new variables will suffer. It is merely a matter of how much suffering.

[Gary A]

As stated above, Thais normally will never lower their price. In fact if the property doesn't sell, they are likely to raise the price. On the other hand properties owned via Thai companies that are controlled by westerners are coming down. If you persist and look around enough, you will be able find a bargain.

[JimmyTheMook]

As stated above, Thais normally will never lower their price. In fact if the property doesn't sell, they are likely to raise the price. On the other hand properties owned via Thai companies that are controlled by westerners are coming down. If you persist and look around enough, you will be able find a bargain.

This is correct , buy from a foreigner who is looking to cash out of his Thailand dream.

Trust me there are plenty about

[12DrinkMore]

Anyone know what happened during the 97 crisis, did property stay steady or devalued drastically?

Lots of opinions thought property prices would crash. Never did, but a lot of half built condos stayed half built for years and years.

As part of the bailout Thailand also said it would it easier for foreigners to buy property here. That never happened either.

[hhgz]

"Thailand was different economics than than first world countries...I see no drastic devaluation in property prices even during global crisis unless of course there is a major crisis here at home.

Anyone know what happened during the 97 crisis, did property stay steady or devalued drastically?"

Doesn't the '97 crisis qualify as a "major crisis at home"? From what I read, there was a 20% drop in property prices - severe, but not nearly as bad as some places in the rest of the world today. Several months after the tsunami, I bought a condo in BKK thinking that if a natural disaster that killed 250,000 people doesn't cause property values to fall, it must be a good bet. Thus far, my investment has done OK.

Asset values in all classes (gold, oil, fine art, real estate) change daily. Accordingly, you need some tolerance of risk and, of course, money.

[londonthai]

it is in the Nontaburi area ,,or bang bo tong

in a year or two the train is planned for that area - that's why developers do advertise that and hope to sell houses at inflated prices. Houses being finished now where build in the very time of the oil price hike, which affected price of building materials and labour.

Recently I was looking at this same area, but decided to buy some land for 10k/sq wa closer to town, with a better public communication links, on the border of Nonthaburi province and Bangkok Talling Chan, around chim plee. The price of building materials are now falling down and with a rising unemployement I hope to build a modest house within 1 mln baht budget and have a really decent size garden and a pond - and still saving money over the ready build houses.

the problem with many of those cheaper houses on moo baans is luck of privacy, as the houses are build next to each other, with only a very little space between them.