Why

[ernest1966]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

Even looking at prices in KK for houses vs condos they are way over the top.

Has anyone actually ever come accross an inexpensive yet uncramped, nice view, good build condo ? Do they exist?

[MeetJohnDoe]

Condos are mostly built in Bangkok and the resort areas popular with farangs for 2nd holiday homes, rental investments, and retirement. For the most part, these condos are built for foreigners as Thais, as a general rule, properly see them as overpriced and not conducive to their lifestyle of living with extended family and having lots of family and friends over for long-stay visits.

Therefore, for these reasons, most condo developments have a 2-tier price structure...1 for ting-tong farangs and one for local Thais or farang/Thai couples. To induce the Thais to buy the 51% of units that are alloted to them, they get 20-30% off list prices. In order to pay for the cost of the development, the 49% of the units alloted to farangs (and where most of the demand will come from for units) are over-charged by a similar amount. Therefore, the development can be completed (hopefully) and some profit is built in for the developer.

[PattayaParent]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

It costs less per m2 to build a house than to build a condo, (depending on finishings and facilities) that's why they're cheaper.

[quiksilva]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

It costs less per m2 to build a house than to build a condo, (depending on finishings and facilities) that's why they're cheaper.

This and the fact that condominiums tend to be built in inner city locations where land values are significantly higher.

[ernest1966]

PP, I have to disagree in the nicest possible way. Please explain this to me.

Here's my thinking.

Apart from the added costs for structural reinforcements condos are a win win for devs.

Less windows, less cost

Shared walls, floors/ceiling

Shared piping.

Can make a mint from service charges

The more floors you build the higher the profits

Only one door - usually, lol.

Is my logic skewed, I am not in the building trade so I don't if I got the a** end of the stick...

E

[PhilHarries]

Simple, it is relatively very easy for a farang to purchase a condo compared with the hurdles and pitfalls involved with a house.

Therefore condos are more expensive.

Hence the, somewhat understandable, xenophobic paranoia surrounding the issue of farangs owning land.

[yabaaaa]

Condos are mostly built in Bangkok and the resort areas popular with farangs for 2nd holiday homes, rental investments, and retirement. For the most part, these condos are built for foreigners as Thais, as a general rule, properly see them as overpriced and not conducive to their lifestyle of living with extended family and having lots of family and friends over for long-stay visits.

Therefore, for these reasons, most condo developments have a 2-tier price structure...1 for ting-tong farangs and one for local Thais or farang/Thai couples. To induce the Thais to buy the 51% of units that are alloted to them, they get 20-30% off list prices. In order to pay for the cost of the development, the 49% of the units alloted to farangs (and where most of the demand will come from for units) are over-charged by a similar amount. Therefore, the development can be completed (hopefully) and some profit is built in for the developer.

Well I find that a bit odd as when i bought my condos the prices were the same for me or the Thais direct off LPN. Id say the complex of 1100 units is owned 90% by Thais. Many young Thais with reasonable jobs now seem to want their own place, not shared with the family.

[PattayaParent]

PP, I have to disagree in the nicest possible way. Please explain this to me.

Here's my thinking.

Apart from the added costs for structural reinforcements condos are a win win for devs.

Less windows, less cost - There's usually as much glassed area in a condo than a house (think full balcony windows around)

Shared walls, floors/ceiling - lots more community space (corridors) in a condo needing plaster / paint

Shared piping. - in excess of 5kms of piping in a condo!!

Can make a mint from service charges

The more floors you build the higher the profits - and the higher the lifts have to go, no lifts in a house

Only one door - usually, lol. - not if you want to compare a 3 bedroom condo with a 3 bedroom house.

Water services and the huge pump needed to get the water up the building.

Fire fighting piping

10kms ++ of electrical wiring

Swimming pool

Car park

Is my logic skewed, - yes

I am not in the building trade so I don't if I got the a** end of the stick...

E

[hhgz]

"Why is there such a huge difference in price ?"

Planning to buy, or just inquisitive?

[MeetJohnDoe]

Well I find that a bit odd as when i bought my condos the prices were the same for me or the Thais direct off LPN. Id say the complex of 1100 units is owned 90% by Thais. Many young Thais with reasonable jobs now seem to want their own place, not shared with the family.

This can be the case with young Thai singles and the mega-condos in Bangkok filled with 25-50 sqm studio and 1 BR units. Of course, as soon as they marry and have kids there're out of there...and of course, there would not be much demand for these units for foreigners, except from youngish English teacher types and they will most likely rent.

My comments primarily refer to higher-end stuff in Bangkok and the resorts of Pattaya and Phuket.

[trogers]

PP, I have to disagree in the nicest possible way. Please explain this to me.

Here's my thinking.

Apart from the added costs for structural reinforcements condos are a win win for devs.

Less windows, less cost

Shared walls, floors/ceiling

Shared piping.

Can make a mint from service charges

The more floors you build the higher the profits

Only one door - usually, lol.

Is my logic skewed, I am not in the building trade so I don't if I got the a** end of the stick...

E

You see the surface but not the hidden.

Difference in cost of land - Bt 250,000 - Bt 500,000/wah compared with Bt 10,000 - 50,000 for landed

Services in a highrise - Fire fighting and alarm, lifts, water storage and supply, drainage, waste treatment, security, etc.

Foundation and structural supports.

Net liveable area 55-60% of gross construction area due to circulation, facilities, car park lots and driveways.

[pkrv]

I would add that Condos are owned outright 'freehold' (more often than not). You own a % share of all assets including the land in perpetuity. As a Farang, with a house you can rent or buy leasehold, which is a form of extended rent upfront, for I think 30 years (not my area). Leasehold much like a car, is an ever diminishing asset. Leasehold is not exactly popular for this reason alone.

Edited March 25, 2009 by pkrv

[ernest1966]

I just got pwned by PattayaParent and trogers :-)

I will <deleted> :-)

E

[Asianrider]

I never understand why Thai's tend to construct a lot of single storey houses, the cost of the foundations & roof is the same, but they can double or treble their useable floor space with additional floors !

[trogers]

I never understand why Thai's tend to construct a lot of single storey houses, the cost of the foundations & roof is the same, but they can double or treble their useable floor space with additional floors !

The elderly needs elevator.

[loong]

I never understand why Thai's tend to construct a lot of single storey houses, the cost of the foundations & roof is the same, but they can double or treble their useable floor space with additional floors !

The elderly needs elevator.

More than single storey, you will lose a certain amount of space on each floor for stairways

[LennyW]

I never understand why Thai's tend to construct a lot of single storey houses, the cost of the foundations & roof is the same, but they can double or treble their useable floor space with additional floors !

Not true, the cost for foundations, re-enforcing steel, and concrete is significantly higher for houses over a single storey, and the higher you go the costs rise further!!

[trogers]

I never understand why Thai's tend to construct a lot of single storey houses, the cost of the foundations & roof is the same, but they can double or treble their useable floor space with additional floors !

Not true, the cost for foundations, re-enforcing steel, and concrete is significantly higher for houses over a single storey, and the higher you go the costs rise further!!

True that cost is higher, but not in direct proportion. Two storeys will not double the cost of foundation and vertical structural supports, nor 3 storeys triple the cost. So construction cost per sq metre is cheaper for 3, then 2 storeys than for a single storey house. Lost of floor area per floor for the stairwell is at least 10 m2 (2x5m) and can be as high as 12 m2(3x4m) for an open stairwell, but will not increase construction cost per sq metre significantly.

Strongest reason to choose single storey over 2 or 3 storeys is to avoid climbing the stairs. If you have the land space, why build higher?

Edited March 29, 2009 by trogers

[MJo]

Loads of two storey houses in BKK, most likely due high cost of land. Also all townhouses are more than one storey, not uncommon to see 5 storeys ! Even younger folks will have issues without a lift...

[BigSnake]

Why?? Greed, Material, Quality of the house/apartment, supply and demand to name a few reason. Location can also be a factor, however if I was buying I would be looking for quality, Materials and good workmanship above all else.

[VegasVic]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

It costs less per m2 to build a house than to build a condo, (depending on finishings and facilities) that's why they're cheaper.

PP, You obviously haven't worked in or around the construction industry Condos with similiar intrerior ammenities are far more cheaper per m2 to build than houses! The only reason that houses are more reasonable priced than condos in thailand is due to the fact that foriegners can own a condo outright in the LOS but they can't own a house. If the real estate ownership rules were changed so that farangs could own homes outright then homes prices would escalate, conversely if real estate laws changed so that farangs could not own condos outright then the condo market in Pataya, Phuket, Huahin, Koh Samui and a good portion of BKK would colapse

[PattayaParent]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

It costs less per m2 to build a house than to build a condo, (depending on finishings and facilities) that's why they're cheaper.

PP, You obviously haven't worked in or around the construction industry<snip>

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on the contrary mate. But it's obvious you haven't!

[VegasVic]

Why is there such a huge difference in price ?Thinking about this a house would cost more to build with less profit than a condo. It's the old mass production vs a one off (even on a complex)

It costs less per m2 to build a house than to build a condo, (depending on finishings and facilities) that's why they're cheaper.

PP, You obviously haven't worked in or around the construction industry<snip>

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on the contrary mate. But it's obvious you haven't!

I retired before I hit 50 from developing real estate, I just play golf and dabble in the market now Better luck next time there son!

[PattayaParent]

Pity you didn't learn anything about the business when you were still in it Mr. Trump.

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[pkrv]

The only reason that houses are more reasonable priced than condos in thailand is due to the fact that foriegners can own a condo outright in the LOS but they can't own a house.

Well you said more, but I agree with your above statement - god did I just say that ];-)

Edited April 14, 2009 by pkrv