July 30 Auction Report

[fxm88]

Just got back from the 30 July Auction at Pattaya Hill Resort. A bit of technical difficulty with the microphones got things off to a slow start about 30 minutes late, but it allowed some of the stragglers to show up. It didn't matter too much because the auction was over about 40 minutes later. There were about 40 mostly farang bidders in attendance.

Most, if not all, of the 30-or-so lots failed to garner their minimum bids. Disappointing no doubt both for the owners and the bidders whose bids will be submitted "provisionally" for the owners to reject to accept. I didn't take notes so perhaps someone who did can share the actual numbers with us but I clearly remember quotations from the auctioneer like "I'm not afraid to submit any bid [to the owners]" and "This is awful" (sorry if I've got those wrong but they certainly convey the sentiment).

It would be interesting to find out how many of the "provisional" bids are eventually accepted but I suspect we'll only hear reports of "another successful auction" in the press releases masquerading as newspaper articles.

[bangkapiboy]

How do I find out about the next one?

[SEAtramp]

www.pattaya-auction.com

[niceboy]

how many of the "provisional" bids are eventually accepted but I suspect we'll only hear reports of "another successful auction" in the press releases masquerading as newspaper articles.

<{POST_SNAPBACK}>

The reason for that is simple. The man backing this so far farce is the publisher of a dirty newspaper and a small so called house magazine which is full of his own promotional crap about these wonderful auctions

[The_Moog]

The auctioneers must be equally disappointed, as they make commission only on sales.

I suppose the Reserves were set too high.

One goes to a property auction to get a bargain in Europe. In NZ and Australia its even more mainstream to buy a property at auction.

Auctions provide a revealing picture of true property value. Sellers in Thailand deceiving themselves into believing their real estate is more valuable than people will pay, are just being Walter Mittys.

[icecubes]

Great to see the property boom is still in full swing

Selling like hot cakes. Or is it cold tarts?

Have a nice day

[SEAtramp]

The_moogThe auctioneers must be equally disappointed, as they make commission only on sales.

Easy money for them Moog. 3% on all sales Nice work if you can get it.

3% of 0 = Tough sh#t.

[eljeque]

I really find it amazing when people tell me how much they want for a property here, when there are so many of equal quality and price int eh same area, and those others have been for sale for a long time......meaning years.

Also, the asking price/monthly rent relationship is often way out of whack here in Pattaya. I really think that there are a lot of people who think that they can get back in a sale what they did not get in rent.

Then again, maybe people are willing to "take a small loss" or get quick small money whent he rent their place out, but want to make a killing for the finaly.

Then again, maybe I am wrong.

[icecubes]

eljeque,2005-08-01 16:48:04]

I agree with what you say.

Its very hard for people from the west or some other part of the globe.

to admit that a property is worth less than they paid for it,

but the reality in Thailand shows this is common place.

with only a few exceptions.

A lot of property for sale in Pattaya is property developers selling to property developers.

The one on the end is left holding the baby. ( a very expensive one some times)

People should only buy property they wish to

Live in.

Have a nice day

[astral]

The_moogThe auctioneers must be equally disappointed, as they make commission only on sales.

Easy money for them Moog. 3% on all sales Nice work if you can get it.

3% of 0 = Tough sh#t.

<{POST_SNAPBACK}>

Isn't it strange for the Buyer to pay the commission?

I thought it was the seller.

[Kerryd]

As everyone knows, foreigners are not allowed to own land in Thailand. The loophole is of course, to form a Thai company, which can buy the land (and resell it of course).

It amazes me every time I look at property listings in Thailand. Houses and land are just as expensive, if not more so, than back in North America ! Why ? Too many foreign speculators (er, I mean, Thai companies) snatching up land to sell to other foreigners (er, I mean, suckers).

I saw a listing for 25 rai (10 acres) outside of Chang Mai recently. When you did the calculations, it worked out to (US) $100,000 per ACRE ! Just for the land !

Another, more devious listing, noted that the price being asked (for land in a different area) was 1,200 baht per twa (4 sq meters). When you calculated that out to dollars per acre, it was astronomical (400 twa = 1 rai, so 400 x 1,200 = 480,000 baht per rai, or approx $300,00 US). Crazy.

By quoting the price per twa, it made the property look more reasonable (especially to some sucker that doesn't know what a twa is).

I expect that we will see prices jump even higher soon, as the Thai baht is losing value recently (34 to 1 vs the Canadian $, 41 to 1 vs the US $, that's worse that when the big bank crisis hit in early 1998 !)

I seem to recall noticing that real estate prices shot up dramatically then (early '98), as all the "speculators" tried to keep the prices equivalent to what they they had been worth in US $ (i.e. a 500,000 baht property suddenly became worth 550-600,000 baht, so that if it sold, the seller would have the equivalent (in US $) as he would have before the baht lost value).

Of course, when the baht regained it's value shortly after, the prices never dropped. I expect we'll be seeing more of that soon.

[monty]

KerryD,

No idea what the price of land is in the USA, but for Europeans the price in Thailand is dirt cheap...

In my home town in Belgium, a residential area about 15km away from Antwerp, price of building land runs between 10000 and 15000 Baht/sqm (between 1 and 1.5 million US$/acre )

If you want some land in the UK you can easily triple that amount...

The cheapest one can buy land (on which you are allowed to build a home anyway) in Belgium, basically in the middle of nowhere, without citywater, cableTV or telephone line but with electricity, you'll still pay 300000 US$/acre

So we don't feel suckered buying land in a decent residential location for 100000 US$/acre (which is if I'm correct around 1.6 million/rai)

Unfortunately we com from the lands where you pay 1.3 Euro/liter for premium fuel (6.

5$/gallon)

[Kerryd]

KerryD,

No idea what the price of land is in the USA, but for Europeans the price in Thailand  is dirt cheap...

In my home town in Belgium, a residential area about 15km away from Antwerp, price of building land runs between 10000 and 15000 Baht/sqm (between 1 and 1.5 million US$/acre    )

If you want some land in the UK you can easily triple that amount... 

The cheapest one can buy land (on which you are allowed to build a home anyway) in Belgium, basically in the middle of nowhere, without citywater, cableTV or telephone line but with electricity, you'll still pay 300000 US$/acre

So we don't feel suckered buying land in a decent residential location for 100000 US$/acre (which is if I'm correct around 1.6 million/rai)

Unfortunately we com from the lands where you pay 1.3 Euro/liter for premium fuel (6.

5$/gallon)

<{POST_SNAPBACK}>

I can see from your point of view that Thailand is cheap by comparison. In some places in Canada (newer subdivisions, close to big cities), you can pay $75,000 Cdn for a 1/3 acre plot of dirt.

In other areas, (like outside of Edmonton), you can get a new, 2 bedroom house on the same amount of land for about $90,000 (if you like the winters and cold weather).

Where I grew up, in the interior of BC, I can get a log house (about 72 sq meters or 770 sq ft on the main floor) with loft and basement, stone fireplace, cedar cabinets for the kitchen and so on, ready to move in to, for about $125,000 (4.3 million baht), including a 2 acre plot of land.

That's why when I see people advertising an acre of dirt for $100,000 US, I shake my head. I suppose if you tour around Isaan and talk to the locals, you can find cheap prices still, depending on where you want to live.

[Kerryd]

Unfortunately we com from the lands where you pay 1.3 Euro/liter for premium fuel (6.

5$/gallon)

<{POST_SNAPBACK}>

Oh yeah, I just came back from Egypt a few days ago. Gas prices were 60 Piasters/litre for regular, and 1 LE (Egyptian Pound) for premium !

1 Egyptian pound = 7.1 Thai baht, per liter, for premium !

Regular works out to 4.2 baht per liter !

Hmmm, wonder what realty prices are like there.........

[snoophound]

Yes well

cant think why anyone would want to live in eygypt.

Patts is getting a little un realistic.

Auctions tend to set a buyers value.

The specs in pattaya have had their fun.

And small money in reality compared to respective homes.

Unfortunately we com from the lands where you pay 1.3 Euro/liter for premium fuel (6.

5$/gallon)

<{POST_SNAPBACK}>

Oh yeah, I just came back from Egypt a few days ago. Gas prices were 60 Piasters/litre for regular, and 1 LE (Egyptian Pound) for premium !

1 Egyptian pound = 7.1 Thai baht, per liter, for premium !

Regular works out to 4.2 baht per liter !

Hmmm, wonder what realty prices are like there.........

<{POST_SNAPBACK}>

[Goddess of Whatever]

I'm tired..

[gharknes]

you can quote land prices till the cows come home, it really depends on where it is.

I think the Thai housing market is going a bit crazy, my guess would be that there are two markets developing, foreigners and a few Thai nationals getting very rich, and the rest, it will collapse and we will see a lot of bag holders, thai economy cannot support the capitalistic tempory market being created, and to be honest I hope it doesn't, it is fed from western greed, thailand don't need it, hope the government steps in and pulls the plug, stranger things have happend.

I've seen property in Jomtien priced at twice what you'd pay in a UK city environment.....like £350k or $500k.................same at home for about <£200k - that is just simply crazy.

[Bel Mondo]

Gentlemen:

The bubble has BURST!

Have you seen Beach road and all the "Will-Be-Developed" and the ultimately "Still-Undeveloped areas?

Have you seen the pathetic pilings on the large "Eastern European" styled condo on Beach Road? Nice artist's rendering on what investors "hope" a "finished" project will look like....assuming more purchasers pay down-payments to get this project off the ground.

Pattaya Trader keeps getting thicker as do other real estate publications. Good for them! But food for thought and CAUTION.

The 1997 economic collaspe here as well as the Philippine economic collaspe under Marcos were fueled by the same factors as we are seeing in Pattaya--"Hot Money"---

Developers having easy access to cheap bank loans (or easy, rich investors) never intending to pay back the loans if things go wrong;

Speculators using cheap down-payments to buy on "spec" and never intending to pay the next BIG installment or finance with the bank (their goal is to "flip" the property);

and a diminishing "Focus Market" i.e., that bunch of "suckers" who are wiling to part with their money after a good sales pitch and a pretty 3D rendering of the "project

Right now--Pattaya is full of HUSTLERS---all colors, races and creeds---and many of them seem to have focused on our "Beverly Hills" propety values.

[bangkapiboy]

I bet you guys don't even own any property in Thailand anyway. There are always deals around, it just takes time to find them..

[Jai Dee]

Right now--Pattaya is full of HUSTLERS---all colors, races and creeds---and many of them seem to have focused on our "Beverly Hills" propety values.

Pattaya, like any resort town worldwide, has it's share of hustlers... do your homework first and you won't get burnt.

I bet you guys don't even own any property in Thailand anyway.

Quality post that one... not.

[fxm88]

If you want some land in the UK you can easily triple that amount... 

<{POST_SNAPBACK}>

Now this is something I've never understood: if UK land is at such a premium how is it feasible to keep 5+ million cattle lounging about? And after the mass incinerations of a few years back what happened to all that newly freed-up land?

[Kerryd]

Now this is something I've never understood: if UK land is at such a premium how is it feasible to keep 5+ million cattle lounging about?

And after the mass incinerations of a few years back what happened to all that newly freed-up land?

<{POST_SNAPBACK}>

Maybe it's all been turned into chicken farms (waiting for a bird flu epidemic, so they can incinerate the birds and collect the insurance )

And yes, I do not own any property in Thailand, yet. I'm still trying to figure out where I want to put down my roots. The state of affairs in Pattaya has me looking at locations in the surrouinding areas, where the speculators haven't ventured into, yet.

Probably have some good deals in the Hat Yai area !

And having spent the last 2 years here, living with barbed-wire walls and concrete bunkers all around, I'd probably feel right at home !

[pedro01]

If you want some land in the UK you can easily triple that amount... 

<{POST_SNAPBACK}>

Now this is something I've never understood: if UK land is at such a premium how is it feasible to keep 5+ million cattle lounging about? And after the mass incinerations of a few years back what happened to all that newly freed-up land?

<{POST_SNAPBACK}>

In the UK - it's called 'green belt' - they simply aren't allowed to develope huge swathes of land.

Out in Pattaya - I'm happy that I just brought a brand new 3 bedroom 2-storey detached house in Central Park 4 for 2.8 million Baht. 3 miles away (or less) in Jomtien, people are paying that for squares in the air (condos).

If the Property market crashes - I don't see myself being out more that 2.8 million

[icecubes]

If the Property market crashes - I don't see myself being out more that 2.8 million

<{POST_SNAPBACK}>

Great to see a realistic attitude towards the Property market.

I hope your new home works out ok for you.

Have a nice day.

[fxm88]

http://www.pattaya-auction.com/ doesn't appear to have been updated since last year.

http://www.asianauctions.net/ too.

http://www.mgiglobalauctions.com/ is also down.

So, was that the end of auctions in Pattaya?

[mazo]

The Property market in pattaya is way out of line there are at least six houses in my village for sale from 4 million up to 7 million two years a go they would of cost 2 million to 4 million. And they all have been for sale for over six months now no buyers i am willing to bet they will still be for sale in six more months. Its just greed hyped by western property agents

[Gary74]

Greed and more greed is the cause. Thailand attracts crooks and criminal to sell and fools to buy.

Current prices are grossly over priced and only fools will buy.

[Pattaya_Fox]

Just watch the prices start to fall due to the uncertainty of government visa rules.

Demand + availability = price increases

Over availability + low demand = price drop.

Panic selling + Over availability = price crash

God forbid another natural disaster or other peril then coupled with uncertainty it will take years to get rid of a house or condo.

[mrbojangles]

Just watch the prices start to fall due to the uncertainty of government visa rules.

Demand + availability = price increases

Over availability + low demand = price drop.

Panic selling + Over availability = price crash

God forbid another natural disaster or other peril then coupled with uncertainty it will take years to get rid of a house or condo.

Agreed Foxxy. But many a bargain can also be had

[Rdrokit]

Yes, there are bargains out there. It is also where you want to live. Just bought 4 rais (in the wifes name) in Non Sung (just outside of Korat) for 440,000bt to build a second house on. It is within the city limits so the utilities are at roadside. Putting a 1800 sqft house with pool on the property for 1,000,000bt (in my name). Same same in Pattaya 10-12 million baht. If you are wondering why Non Sung it is 1km from the in-laws and I am getting tired of staying at their house.