Samui Developers Lost Bt17b In 6 Months

[Boater]

The property consultancy firm Agency for Real Estate Affairs (AREA) has disclosed that 21 property projects on Koh Samui have been adversely affected by the current global economic crisis, suffering losses of as much as Bt16.943 billion for lack of buyers during the first half of the year.

Vasan Khongjan, AREA managing director, said his company had completed a survey of the property markets on Koh Samui and two other major expats’ destinations — Phuket and Hua Hin — last June and found that many luxury-villa projects on the island and the other destinations were facing financial problems because of the economic downturn.

Based on the survey, there are 21 luxury-villa projects/549 units on Samui that had gone bankrupt, losing a total of Bt16.943 billion. The average price per unit of these villa units is Bt30.8 million.

The AREA report showed that 62 luxury-villa projects with 2,063 units from Phuket, Hua Hin and Samui had been closed down and had incurred total losses of Bt36.391 billion. Samui was the hardest hit among the destinations.

Hua Hin had nine luxury-villa projects/413 units closed. The projects had a total cost of Bt1.951 billion and average price per unit of Bt 4.7 million. Phuket had 32 luxury villa projects worth Bt17.497 billion and with an average unit price of Bt15.8 million abandoned.

According to the AREA survey, as much as 82 percent of the total value of the luxury-villa projects on Samui had not been recovered. There are at present 46 luxury-villa projects/1,114 units on the island valued at Bt20.673 billion, AREA said. “The Samui property market was the worst hit in the first half, as 82 percent of the property projects were inactive with no sales, activities and construction,” Vasan said. AREA said the slump in tourism since late last year contributed to the failure of property projects in the first half of the year.

As of June 30, properties offered for sale in the three destinations totaled 302 projects with 15,551 units, worth a combined Bt178.8 billion.

In Pattaya, Vason said, the market was stable as most residential units were in the lower-end segment.

http://news.samuiexpress.net/real-estate/5...n-6-months.html

[frankman]

The property consultancy firm Agency for Real Estate Affairs (AREA) has disclosed that 21 property projects on Koh Samui have been adversely affected by the current global economic crisis, suffering losses of as much as Bt16.943 billion for lack of buyers during the first half of the year.

Vasan Khongjan, AREA managing director, said his company had completed a survey of the property markets on Koh Samui and two other major expats' destinations — Phuket and Hua Hin — last June and found that many luxury-villa projects on the island and the other destinations were facing financial problems because of the economic downturn.

Based on the survey, there are 21 luxury-villa projects/549 units on Samui that had gone bankrupt, losing a total of Bt16.943 billion. The average price per unit of these villa units is Bt30.8 million.

The AREA report showed that 62 luxury-villa projects with 2,063 units from Phuket, Hua Hin and Samui had been closed down and had incurred total losses of Bt36.391 billion. Samui was the hardest hit among the destinations.

Hua Hin had nine luxury-villa projects/413 units closed. The projects had a total cost of Bt1.951 billion and average price per unit of Bt 4.7 million. Phuket had 32 luxury villa projects worth Bt17.497 billion and with an average unit price of Bt15.8 million abandoned.

According to the AREA survey, as much as 82 percent of the total value of the luxury-villa projects on Samui had not been recovered. There are at present 46 luxury-villa projects/1,114 units on the island valued at Bt20.673 billion, AREA said. "The Samui property market was the worst hit in the first half, as 82 percent of the property projects were inactive with no sales, activities and construction," Vasan said. AREA said the slump in tourism since late last year contributed to the failure of property projects in the first half of the year.

As of June 30, properties offered for sale in the three destinations totaled 302 projects with 15,551 units, worth a combined Bt178.8 billion.

In Pattaya, Vason said, the market was stable as most residential units were in the lower-end segment.

http://news.samuiexpress.net/real-estate/5...n-6-months.html

[Mark Wolfe]

The average price per unit of these villa units [in Samui] is Bt30.8 million.

Well, that's surely at the very high end of the market. I wouldn't guess that the housing market in Samui is dominated by 30.8 million baht villas.

So the super rich aren't taking bites out of the Samui apple? Boo-hoo....

[LaoPo]

The average price per unit of these villa units [in Samui] is Bt30.8 million.

Well, that's surely at the very high end of the market. I wouldn't guess that the housing market in Samui is dominated by 30.8 million baht villas.

So the super rich aren't taking bites out of the Samui apple? Boo-hoo....

Are they ?

LaoPo

[frankman]

Fly high, fall deep.......

[Chayaphum]

Fly high, fall deep.......

agree 100%

"Som nam na"

years before they had made large profits and now it turns down.....roller coaster, thats life.

I have no sympathy with those who are affected.

Chayaphum

[nakachalet]

worse is, this might not be the very bottom of the ultra real estate market in thailand as yet....

the worst perhaps is yet to come....

a pretty large segments of business in thailand are copy-cat category without any real experty, just very similar to the budding stalls seen all over all towns and provinces....

part of me felt very empathetic toward johnny-come-lately real estate investors, but the other half felt very much otherwise....

every nation around the globe should have it figured out by now that

many farangs are truly simple.... but most are not simple-minded.... especially those leaving their marks behind in thaivisa cyber, these are probably the sharpest farangs on earth.... lol

cheers

Edited August 23, 2009 by nakachalet

[JR Texas]

worse is, this might not be the very bottom of the ultra real estate market in thailand as yet....

the worst perhaps is yet to come....

a pretty large segments of business in thailand are copy-cat category without any real experty, just very similar to the budding stalls seen all over all towns and provinces....

part of me felt very empathetic toward johnny-come-lately real estate investors, but the other half felt very much otherwise....

every nation around the globe should have it figured out by now that

many farangs are truly simple.... but most are not simple-minded.... especially those leaving their marks behind in thaivisa cyber, these are probably the sharpest farangs on earth.... lol

cheers

They deserve what is coming to them..........in large part because of their activities, Thailand's reputation as a low-cost, safe retirement haven has been destroyed.

The social engineering project failed.........the "quality tourists" concept failed............will they learn from their mistakes? No way.......TIT.

We have not seen the bottom yet.

[antony77]

worse is, this might not be the very bottom of the ultra real estate market in thailand as yet....

the worst perhaps is yet to come....

a pretty large segments of business in thailand are copy-cat category without any real experty, just very similar to the budding stalls seen all over all towns and provinces....

part of me felt very empathetic toward johnny-come-lately real estate investors, but the other half felt very much otherwise....

every nation around the globe should have it figured out by now that

Samui has a bad reputation for crime. A mafia transport setup plus a lot of trashy farangs living there. No longer the ideal place for retirees

many farangs are truly simple.... but most are not simple-minded.... especially those leaving their marks behind in thaivisa cyber, these are probably the sharpest farangs on earth.... lol

cheers

They deserve what is coming to them..........in large part because of their activities, Thailand's reputation as a low-cost, safe retirement haven has been destroyed.

The social engineering project failed.........the "quality tourists" concept failed............will they learn from their mistakes? No way.......TIT.

We have not seen the bottom yet.

[PatinBKk]

You only have to look at some of the agents, previously employing 30-40 staff and now down to less than 10....none of them had any real sales experience, just put a pic in the window and it sold but now it is a different story and they aint got a clue about the business....

[stevehaigh]

The average price per unit of these villa units is Bt30.8 million.

what moron thought you could sell Bt30M villas in Samui the first place? that's close to one million dollars, far more than most people spend on their primary home in any country, never mind a dodgy one where you can't even own the land!

Edited August 24, 2009 by stevehaigh

[angiud]

Always wondering me why a mysterious rich customer should buy a million dollar villa in a place like Samui

[kosh]

The average price per unit of these villa units is Bt30.8 million.

what moron thought you could sell Bt30M villas in Samui the first place? that's close to one million dollars, far more than most people spend on their primary home in any country, never mind a dodgy one where you can't even own the land!

Well no more concrete truck speeding around, but the land is destroyed forever.

even if after bankrupcy they sell it at 99% discount who is going to buy something is not yours by law?

To buy a home i want 100% of land/building on my name, and at least a 10 years visa for starter....

rich and poor morons are extinct.....

[frankman]

The average price per unit of these villa units is Bt30.8 million.

what moron thought you could sell Bt30M villas in Samui the first place? that's close to one million dollars, far more than most people spend on their primary home in any country, never mind a dodgy one where you can't even own the land!

Well no more concrete truck speeding around, but the land is destroyed forever.

even if after bankrupcy they sell it at 99% discount who is going to buy something is not yours by law?

To buy a home i want 100% of land/building on my name, and at least a 10 years visa for starter....

rich and poor morons are extinct.....

No problem mate, let your 'mom in law' buy it for you, if you can trust your family!

For an apple and an egg. and then have a nice warming up party

[LaoPo]

They deserve what is coming to them..........in large part because of their activities, Thailand's reputation as a low-cost, safe retirement haven has been destroyed.

The social engineering project failed.........the "quality tourists" concept failed............will they learn from their mistakes? No way.......TIT.

We have not seen the bottom yet.

It never was a safe retirement heaven; not in a country which doesn't allow you to own the land on which the house is built on.... That's not a safe retirement heaven....

LaoPo

[frankman]

They deserve what is coming to them..........in large part because of their activities, Thailand's reputation as a low-cost, safe retirement haven has been destroyed.

The social engineering project failed.........the "quality tourists" concept failed............will they learn from their mistakes? No way.......TIT.

We have not seen the bottom yet.

It never was a safe retirement heaven; not in a country which doesn't allow you to own the land on which the house is built on.... That's not a safe retirement heaven....

LaoPo

Jep, can not own your own land.

But still not too bad,

to just hang out here, for the rest of this life, ain't it??

Or why are we all here...?

Looking for something we couldn't find,

where we come from...?

I guess so.

Any thoughts?!

[ParadiseLost]

Quite an exclusive market these guys target...

Anyone care to guess how much was drawn as salaries, expenses and tea money which helped to send these projects to their doom?

Or how about guessing how much was dirty money being laundered - the losses hardly matter (plenty more where that came from)...

Big money projects are hardly ever run by idiots, my guess - at least one of these is a cover for something else.

[womble]

Friend of mine sold two houses this week, prices greatly reduced, by over 30%, basically to the price it cost to build. People do still want property here. My prediction is the samui property market will slowly bounce back, I doubt it will ever be as mad as it was, but i'm sure a recovery is on the horizon.

I hope most of these greedy developers lose their shirts, a horrible breed most of them are..........

[Northbank]

I noticed the development Samujana was advertising a recently completed house on one agents site for 85 million baht, on another agents site i noticed a resale of one of the homes from that development for a reduced for quick sale price of 52 million baht, obviously someone desperate for the cash trying to unload, probably at a loss.

Samujana's developers and others that own houses on the development must have choked when they saw the advert, even if they didn't expect to get 85m, if someone is selling a house almost the same for 52m it kind of kills the illusion that those homes are worth anywhere near 85m.

As for 'who would be stupid enough to buy million dollar homes on Samui'...believe it or not some people do like Samui and some of those people are wealthy enough to have a million dollar holiday home or first home in some cases ... but on the whole it's mostly investors looking for a good return and up until a couple of years ago going back several years they had very good returns, which is why the money kept flooding in. There is always going to be a point where the cycle of boom stops and collapses to some degree and there are always going to be the unlucky, the greedy or the stupid that get caught out when the collapse comes, the market will bottom out and the cycle of investment and boom will begin again much the same as it does in England and the States.

Edited August 25, 2009 by Northbank

[BEENTHEREDONETHAT]

Now to make up the shortfall in sales they will have to raise the price.

[carmine]

Friend of mine sold two houses this week, prices greatly reduced, by over 30%, basically to the price it cost to build. People do still want property here. My prediction is the samui property market will slowly bounce back, I doubt it will ever be as mad as it was, but i'm sure a recovery is on the horizon.

I hope most of these greedy developers lose their shirts, a horrible breed most of them are..........

Hope you are right about the housing market picking up, although i do not think it will and frankly see little reason, in the near future atleast, why it should. There are so many better and more sensible places to buy.

Sadly, the greedy developers i think you will find, have mostly left already with the money from paid for property, leaving us with derelict construction sites.

[MrWiggle]

Funny how you all complain, but given the funds plenty of you would jump at the chance to do similar business and make similar gains.

[smokie36]

Sadly, the greedy developers i think you will find, have mostly left already with the money from paid for property, leaving us with derelict construction sites.

Only the rich or foolish will be handing over their cash to developers here now.

It makes much more sense to buy a house already built or simply rent.

Might be some bargains on unfinished property though....

[ThaiBasil]

I noticed the development Samujana was advertising a recently completed house on one agents site for 85 million baht, on another agents site i noticed a resale of one of the homes from that development for a reduced for quick sale price of 52 million baht, obviously someone desperate for the cash trying to unload, probably at a loss.

Samujana's developers and others that own houses on the development must have choked when they saw the advert, even if they didn't expect to get 85m, if someone is selling a house almost the same for 52m it kind of kills the illusion that those homes are worth anywhere near 85m.

As for 'who would be stupid enough to buy million dollar homes on Samui'...believe it or not some people do like Samui and some of those people are wealthy enough to have a million dollar holiday home or first home in some cases ... but on the whole it's mostly investors looking for a good return and up until a couple of years ago going back several years they had very good returns, which is why the money kept flooding in. There is always going to be a point where the cycle of boom stops and collapses to some degree and there are always going to be the unlucky, the greedy or the stupid that get caught out when the collapse comes, the market will bottom out and the cycle of investment and boom will begin again much the same as it does in England and the States.

Could be a resale by owner and have nothing to do with the developer. I had a client like that and pointed out to him that on one site his villa was around 40 mill at another site it was 28 mill. He just changed his mind a lot as he didn't really want to sell it and told different agents different things. Not really a smart move.

[PatinBKk]

When a bag of cement is approx 100 Baht a bag, PCC bricks 18 Baht each, roof tiles 11 Baht each....windows, doors cheap, even marble and granite is only approx 2000 Baht sqm....how can anybody have the nerve to charge anything above 4-5 million Baht for a property...OK, land cost may be expensive for sea view but still dosnt equate to 30,40,50 million Baht houses....

[nakachalet]

patinbkk

do you still have any cement at about 100 baht per bag....?

last week the price of a bag of cement was around 156 baht....

sure like to order around 1,500 bags for my swimming pool and the reconstruction of my two out of three manmade caves which due to torrid rain last night, shifted backward some 2 meters taking the entire roofs et al with them.... yes, i went out this morning and measured them with tears rolling down my eyes.... lol

our swimming pool size is considerably less than seabear's 450 sq.m. but it would be just sufficient for our purpose.... lol

[PatinBKk]

Get some decent builders and am sure they can get the ceent for you

[carmine]

Funny how you all complain, but given the funds plenty of you would jump at the chance to do similar business and make similar gains.

I don't have a problem with anyone making money in an honest and reputable manner. Making money is fine done in the correct manner. I was refering to developements where the manner of which matters have been conducted is "questionable".

[smokie36]

I was refering to developements where the manner of which matters have been conducted is "questionable".

Hmm...Scarpering with your development unfinished and a wad of your customers cash. I think the word you are looking for is "criminal".

[concerned]

When a bag of cement is approx 100 Baht a bag, PCC bricks 18 Baht each, roof tiles 11 Baht each....windows, doors cheap, even marble and granite is only approx 2000 Baht sqm....how can anybody have the nerve to charge anything above 4-5 million Baht for a property...OK, land cost may be expensive for sea view but still dosnt equate to 30,40,50 million Baht houses....

What a totally bizarre statement! How long is a piece of string? And how big is the house you are talking about? And how many Rai at 6-8 million baht a rai ( Prime Seaview ) or 20 million baht a rai ( beachfront ) does it stand on?