Why Are Propertys So Ridicculously Overpriced In Phuket

[petercallen]

We have been looking at property's here and everything we have seen is overpriced.

When you look at them and thank them for the privilege and say you are still looking

at other property's they instantly lower there price by a substantial amount.

Before the Agents/developers jump in google Hui Hin/Cha Am, check the first web

site on the page and you will see what i mean.

That area has everything that Phuket has as far as i am concerned and the property's

are not badly overpriced and sell regularly, value wise they slaughter Phuket

[morphious]

Thats the way it goes

[Benjie]

Supply and Demand, If Hua Hin is exactly the same why are you looing at Phuket property?

[angiud]

Here in Koh Phangan the market is frozen but nobody low the price of the properties or of the lands.

?

[petercallen]

Supply and Demand, If Hua Hin is exactly the same why are you looing at Phuket property?

What are you talking about supply and demand, In Phuket there is a huge supply and nearly

no demand, when people cannot sell there house instead of putting the price down they put

the price up and 2 years later they still have not been able to find a buyer, unless they get a

newbie buyer who has no idea of property values

We have definitely decided to look at Hua Hin as a place to live if we cannot find value for

money here

You would not have an interest in the real estate/ developing field by any chance.

[steelepulse]

That's why you might want to consider what was suggested to you in another thread if you can't find anything suitable in your budget. Buy 1/2 rai or whatever, then build the house to your specs and you'll have something nicer. The only thing you'll have lost is your time overseeing the project.

Property is a lot more expensive here than in Cha Am/Hua HIn area (according to KBB) not too mention the sea, facilities, infrastructure, entertainment options, international direct access etc. are a lot better than in Hua Hin. Another reason why property is not as cheap as other places is most of the houses over a few million are owned by foreigners that paid cash, so unless they are desperate to sell. If both places were equal, the market would be showing that and you'd be looking seriously up there also.

If as you say, everyone drops the price when you walk, why haven't you picked something up? I'm sure the answer is, it wasn't very nice nor was it what you were looking for, but the question is rhetorical.

Anyway, good luck in your search as it's not as easy as it should be.

<added> Cross posted when you replied to an earlier suggestion to look in Hua Hin. I'd be interested as would many others as to what you find up there.

Edited October 28, 2010 by steelepulse

[Benjie]

Supply and Demand, If Hua Hin is exactly the same why are you looing at Phuket property?

What are you talking about supply and demand, In Phuket there is a huge supply and nearly

no demand, when people cannot sell there house instead of putting the price down they put

the price up and 2 years later they still have not been able to find a buyer, unless they get a

newbie buyer who has no idea of property values

We have definitely decided to look at Hua Hin as a place to live if we cannot find value for

money here

You would not have an interest in the real estate/ developing field by any chance.

Not quite how it works, a property is worth what it sells for, property in Phuket sells for more than property in Hua Hin. Phuket is a more popular place.

I can't help feeling that this sounds like sour grapes because you can't afford to buy here.

[Jimi007]

Peter, it does defy logic, but then Thai's were never known for logic. I've see a block of nice shop houses for sale for 3 years now and not one has sold. Land is much more here than anywhere else in Thailand and it's getting worse to live here with the over development. I found a nice spot several years ago and I've been offered my land and house to buy, but it's cheaper to rent than to buy, so why bother? But the mark up on developed land is over the top around here. You can still find some land and build what you want possibly. I would want to tear this house down and start over as it has many cracks and is going to fall apart someday and it's only five years old. I'll just have to make due with it until I can't stand it around here anymore. As an old song says: They've paved paradise and put up a parking lot. But here they forgot about parking, just building!

[pmgthailand]

I know of some really nice 4 bed villas with 4 x 8 swimming pools, 8.8 million baht. Do you want to see some pics. Owned and built by a European chap, that is why they are reasonably priced. Don't buy anything from Thais, I asked one Thai real estate agent why Thai people ask so much and then will not even contemplate a reduction. She says that it has to do with face, (ah yes that cultural defect) and they feel that their property is worth what they ask and that they will lose face by reducing the price. It has nothing to do with market values. her words not, mine.

Edited October 28, 2010 by pmgthailand

[babsy65]

Never mind the location. I would be more concerned in finding a low-rise house with no balconies.

[petercallen]

That's why you might want to consider what was suggested to you in another thread if you can't find anything suitable in your budget. Buy 1/2 rai or whatever, then build the house to your specs and you'll have something nicer. The only thing you'll have lost is your time overseeing the project.

Property is a lot more expensive here than in Cha Am/Hua HIn area (according to KBB) not too mention the sea, facilities, infrastructure, entertainment options, international direct access etc. are a lot better than in Hua Hin. Another reason why property is not as cheap as other places is most of the houses over a few million are owned by foreigners that paid cash, so unless they are desperate to sell. If both places were equal, the market would be showing that and you'd be looking seriously up there also.

If as you say, everyone drops the price when you walk, why haven't you picked something up? I'm sure the answer is, it wasn't very nice nor was it what you were looking for, but the question is rhetorical.

Anyway, good luck in your search as it's not as easy as it should be.

<added> Cross posted when you replied to an earlier suggestion to look in Hua Hin. I'd be interested as would many others as to what you find up there.

The budget i have set should buy what i wantin an established home IF its not overpriced.

I said in an earlier thread i said Cha AM/ Hua HIn was better priced than Phuket and KBB agreed with me.

I have been to the area twice,facilities,infrastructure, entertainment options are fine as far as i am concerned.

Bars and nightclubs have to close at 12 PM, The beaches are fine maybe not as good as here, but i do not

swim in the ocean here in the high season i don't want to get stung.

2 hours bus ride to Bangkok International airport will get me direct none stop flights to anywhere in the world

A lot of foreigners bought in when the value of properties was increasing at 20% per year and thought it would go on for ever.

This does not happen for every boom on average you get a bust especially at 20% a year

There are foreigners who want to sell and are prepared to except any reasonable price

Even at the reduced price the places we have seen are overpriced.

If and when we find what we want i will make a cash offer, if its not accepted there are lots of other houses available

I am seriously thinking about Hua Hin and other areas, another lost buyer in Phuket

[ilyelol]

only reason prices are so bad is people don't look around

http://www.baanthail...+villas/1001916

i went to see it, well worth the price. sea view from balcony. Seems like its built on western standard.. good materials and everything straight/done to perfection.

Also a few months ago i found about 1 rai for 1mil baht IN phuket town

Edited October 28, 2010 by ilyelol

[F1fanatic]

only reason prices are so bad is people don't look around

http://www.baanthail...+villas/1001916

i went to see it, well worth the price. sea view from balcony. Seems like its built on western standard.. good materials and everything straight/done to perfection.

Also a few months ago i found about 1 rai for 1mil baht IN phuket town

But foreigners don't want to buy in Phuket Town, they're looking to buy somewhere near the beach - preferably beach front.

Property is over-priced because the sellers don't realise that they're asking too much and are determined to make a profit - even when nobody's buying....

The wealthy Thais that have built houses for Westerners aren't prepared to accept less than they originally thought they would get. Instead they put the price UP to make up for the loss of bank interest on the money....

The Westerners looking to sell their house look at those house prices and think that's the 'going price'. So nobody sells anything, except the lucky few who either have beach-front property or are prepared to accept a price someone is prepared to pay.

[HDRIDER]

Phuket is an Island, have you thought about that, only so much land for sale, Hua Hin, just keep adding land they will never run out.

[Benjie]

only reason prices are so bad is people don't look around

http://www.baanthail...+villas/1001916

i went to see it, well worth the price. sea view from balcony. Seems like its built on western standard.. good materials and everything straight/done to perfection.

Also a few months ago i found about 1 rai for 1mil baht IN phuket town

It's tiny.

[McFarang]

only reason prices are so bad is people don't look around

http://www.baanthail...+villas/1001916

i went to see it, well worth the price. sea view from balcony. Seems like its built on western standard.. good materials and everything straight/done to perfection.

Also a few months ago i found about 1 rai for 1mil baht IN phuket town

It's tiny.

Tiny,Ugly,Overpriced and NO Pool yuch!!!!

[seaeagle]

I agree with some of petercallen's points, but, nevertheless, land does move at silly prices.

Close to my place, there are 3 plots of just under 600 m2 each for sale at a total of 15m baht. I know that offers have been made up to 13m. So, even if a sale is agreed at 13m, that's 4.3 per plot.

The variables in building costs are the quality of the house, finishings, and total packaage. So, even if you build a 3 bed pool villa of avaerage quality, it will still cost 4 / 4.5. So, in petercallen's budget of 10m, that will leave only a profit margin of around 15% : not outrageous.

[petercallen]

Phuket is an Island, have you thought about that, only so much land for sale, Hua Hin, just keep adding land they will never run out.

Mate there's lots of vacant ground here you don't even have to look hard to find it.

There is still vacant land in the middle of Patong.

Land with a so called road and electricity running in front of it is not a developed

peace of land ready to build on as far as i am concerned.

Its going to be a very long time before Phuket runs out of vacant land that can be developed.

It seems to be the attitude here that if a piece of land sells for 6m, theres of equal size is

worth the same even if the land sold is far superior.

Its the same with houses, the house up the street sold for 5m so mine is worth 5m to

[Benjie]

Vacant land doesn't mean that someone owns it and it's ready to be built on.

Peter it's obvious that you want to live in Phuket, so do lots of other people - simply put, that's why prices are high.

[ilyelol]

theres thousands of beachfront rais near koh sirey for sale. but then again farangs want to be close to bangla.

[petercallen]

I agree with some of petercallen's points, but, nevertheless, land does move at silly prices.

Close to my place, there are 3 plots of just under 600 m2 each for sale at a total of 15m baht. I know that offers have been made up to 13m. So, even if a sale is agreed at 13m, that's 4.3 per plot.

The variables in building costs are the quality of the house, finishings, and total packaage. So, even if you build a 3 bed pool villa of avaerage quality, it will still cost 4 / 4.5. So, in petercallen's budget of 10m, that will leave only a profit margin of around 15% : not outrageous.

I am not interested in making a profit.

I would not pay 4.3m for 600 SQM of land in Phuket.

Anyone who would must have rocks in there head unless it an exceptional piece of land.

[bubba1]

i guess you have not heard, foreigners can not own land in Thailand. Why would you take the risk.?

[petercallen]

Vacant land doesn't mean that someone owns it and it's ready to be built on.

Peter it's obvious that you want to live in Phuket, so do lots of other people - simply put, that's why prices are high.

At the prices are inflated they are asking here.

Lots of people live in other areas of Thailand where the prices are value for money.

Equally as good as Phuket if you are not into the bar/nightclub scene.

There is plenty of vacant land here which is privately owned

You are so right, its not ready to be built on.

A long way from it actually.

[Benjie]

Phuket is the wealthiest region in Thailand, a luxury destination with great beaches, easy air travel and limited space. I can't think of any other region which ticks all those boxes, if you want cheaper and don't need a beach try Chiang mai.

[petercallen]

i guess you have not heard, foreigners can not own land in Thailand. Why would you take the risk.?

I know the laws of land ownership in Thailand.

A 30 year lease will see me out and as long as i chose the person i lease from which i will arrange

that will suite me fine.

[petercallen]

Phuket is the wealthiest region in Thailand, a luxury destination with great beaches, easy air travel and limited space. I can't think of any other region which ticks all those boxes, if you want cheaper and don't need a beach try Chiang mai.

It seems you have not seen much of Thailand.

[logbags]

In Phuket there are a number of markets. The first is high end, near the beach stuff designed for farang by farang that will only usually be sold to farang. Then there are places either Thais of farang might buy then lastly places Thais would buy before farangs because of location, price etc.

The market has been way overpriced for years mainly because of farang agents and others talking up the market. This year I've noticed prices have dropped in a number of areas in both high end and low end. Yesterday I was told of a place near my place in Bang Tao that was 2 million. It has 3 BR's and a place to park the car with reasonable sized plot.

I think the prices will keep going down as more and more people are moving to places like Phang-nga and Krabi where you can buy a huge spread for the same price it costs for an apartment in Phuket. Also there are so many rooms being built everywhere it will be cheaper to rent in the future.

My house is 13,000 a month and 1000 for power. Unless I see a bargain I wouldn't bother buying. There are places to rent everywhere I go. If house hunting the first thing I'd do Peter is keep my spotty farang face hidden and send a Thai in to negotiate the price. It's always going to be a higher price if they know it's a farang buyer no matter who is selling.

Most of the high prices you hear are simply quoted to see if a sucker price can be got. Also most people who hear of a cheap place go around telling the price with a hefty commision for themselves added on. I'd wait til after this high season as many people here need a big high season just to survive.

Lots of people have built thinking they'll get renters in to pay the bills. Not enough farangs around and no Thais will pay high rents. There is a house in my street that was built before the tsunami, never seen it occupied.

[ESB7]

The budget i have set should buy what i wantin an established home IF its not overpriced.

I said in an earlier thread i said Cha AM/ Hua HIn was better priced than Phuket and KBB agreed with me.

I have been to the area twice,facilities,infrastructure, entertainment options are fine as far as i am concerned.

Bars and nightclubs have to close at 12 PM, The beaches are fine maybe not as good as here, but i do not

swim in the ocean here in the high season i don't want to get stung.

2 hours bus ride to Bangkok International airport will get me direct none stop flights to anywhere in the world

A lot of foreigners bought in when the value of properties was increasing at 20% per year and thought it would go on for ever.

This does not happen for every boom on average you get a bust especially at 20% a year

There are foreigners who want to sell and are prepared to except any reasonable price

Even at the reduced price the places we have seen are overpriced.

If and when we find what we want i will make a cash offer, if its not accepted there are lots of other houses available

I am seriously thinking about Hua Hin and other areas, another lost buyer in Phuket

Peter, fistly it is a myth that bars shut at midnight in HH/Cha am and that there isnt any entertainment, in fact I find it far superior than Samui, Krabi and Phuket and many bars are open all night and you can stay out drinking till 8am..no fear of being mugged,stabbed or shot either...as far as property prices, they are mostly on a par and even more expensive in some locations than Phuket....I could list endless properties that have sold out in the past 2 years at stupid prices...30 million Baht condos sold out befor completion. A lot of people think the units are empty but they have been purchased by Thais from BKK for a crash pad at the seaside and only used a few times a year...Most developments aimed at foreigners are struggling to sell as there isnt a market for gated communities 30 minutes drive from the beach with no 7/11 or other facilities close by but condos and independantly owned houses really are selling like hot cakes in HH/Cha am...land also is changing hands at ludicrous prices.....you could get somewhere nice with a pool for around 4 million but it will be miles out of town if that is what you are looking for

[Benjie]

Phuket is the wealthiest region in Thailand, a luxury destination with great beaches, easy air travel and limited space. I can't think of any other region which ticks all those boxes, if you want cheaper and don't need a beach try Chiang mai.

It seems you have not seen much of Thailand.

Why is that?

Name me the other places with an International airport, loads of beaches and great restaurants, nightlife and schooling etc... and no not Pattaya.

[seaeagle]

I agree with some of petercallen's points, but, nevertheless, land does move at silly prices.

Close to my place, there are 3 plots of just under 600 m2 each for sale at a total of 15m baht. I know that offers have been made up to 13m. So, even if a sale is agreed at 13m, that's 4.3 per plot.

The variables in building costs are the quality of the house, finishings, and total packaage. So, even if you build a 3 bed pool villa of avaerage quality, it will still cost 4 / 4.5. So, in petercallen's budget of 10m, that will leave only a profit margin of around 15% : not outrageous.

I am not interested in making a profit.

I would not pay 4.3m for 600 SQM of land in Phuket.

Anyone who would must have rocks in there head unless it an exceptional piece of land.

But, petercallen, that's the issue, and your conundrum - people are buying land at those prices, albeit not in as great numbers as before. I also happen to think that, using your turn of phrase, they have rocks in their head. But deals are definitely happening.

Because most deals here are cash, there are few 'stressed' sellers where the banks are leaning on them. Inevitably, some may need the cash quickly, but until those numbers swell past whatever is the tipping point, then there'll be no fire-sale of land here.