Samui Developers Lost Bt17b In 6 Months

[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.

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.

Yes i assumed the one priced 52m was nothing to do with the developer..... when i first saw this development advertised a few years ago while construction was in progress they were advertised at 65m and now the final one to be completed i have seen advertised for as much as 85m, even now. So whoever is selling at 52m i can only imagine is prepared to take a bit of a loss.

I know if i were a neighbour having probably payed anywhere between 65m -85m baht in the last couple of years i wouldn't be too happy that on top of the possible loss i was suffering from the general decline in house values of late, that now someone was further reducing the perceived value of the properties around theirs by pricing way below what even the current market would suggest is a fair price.

[Northbank]

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?

If thats his thoughts on the property market i can only imagine what his thoughts on the art market are.... 400 baht bit of canvas... 200b worth of paint.... Mona Lisa as valued by Patin.... 600 baht.

[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....

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?

If thats his thoughts on the property market i can only imagine what his thoughts on the art market are.... 400 baht bit of canvas... 200b worth of paint.... Mona Lisa as valued by Patin.... 600 baht.

Bit of a difference between fine art and cement

Land at 8million, still leaves 20-30 million Baht for building materials, do the maths, aint such a bizarre statement.

Greed is the main problem

[frankman]

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?

If thats his thoughts on the property market i can only imagine what his thoughts on the art market are.... 400 baht bit of canvas... 200b worth of paint.... Mona Lisa as valued by Patin.... 600 baht.

Bit of a difference between fine art and cement

Land at 8million, still leaves 20-30 million Baht for building materials, do the maths, aint such a bizarre statement.

Greed is the main problem

GREED it is!!!!

[Northbank]

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?

If thats his thoughts on the property market i can only imagine what his thoughts on the art market are.... 400 baht bit of canvas... 200b worth of paint.... Mona Lisa as valued by Patin.... 600 baht.

Bit of a difference between fine art and cement

Land at 8million, still leaves 20-30 million Baht for building materials, do the maths, aint such a bizarre statement.

Greed is the main problem

Yes there is a difference but the principle is the same, there are many factors that dictate the value of something not just the cost of the raw materials, some of the factors are easy to see and some of them are not.

You can call it greed but in reality all capitalism could be labelled as greed and most of us if not all of us are a part of the capitalist system. I don't know what you do for a living but i will bet you you didn't ever tell anyone they were paying you too much for doing it and i will bet you if you were offered a pay rise you didn't turn it down because you were able to get by on what you had. In business you are generally taking financial risks so you want the best return possible for what you do, you can only sell your product or services for what people are prepared to pay for them, if you happen to be lucky enough to do well out of that whats to begrudge, none of us are immune to wanting to make more money it's just that some of us don't have the balls, the ability or the opportunity to do so.