Why Are Propertys So Ridicculously Overpriced In Phuket

[KarenBravo]

Is Phuket land expensive? A subjective question at best.

I've been on the property ladder here since 1991. Each time I bought something, the experts sucked in there breath and came out with comments such as "whoa! They saw you coming", or, "you paid far too much".

Yet, when I eventually sold, those same people seemed to get selective amnesia and offer comments such as "Boy, you're were lucky to buy that at the price you did", or, "you were lucky to find a buyer".

As mentioned before, most properties are bought cash, or, some other way not using a mortgage. There is not so much pressure to sell if the desired price hasn't been met. This messes with supply and demand theory.

Also know of people with the same thoughts as petercallen who saw land, but, did not buy because they perceived it as too expensive. Couple of years later they are still looking and kicking themselves that they didn't pay the asking price two years ago.

I remember in 1987 hearing about the first rai of land in Patong selling over one million a rai that was bought by a foreigner. Everyone thought that was a crazy price (including myself), yet, if I had done the same, I wouldn't have to work now (which I do).

Phuket IS unique. An international airport that year by year increases direct flights to new destinations. It also has a good future with the trend for visitor numbers increasing; witness the big hotel chains all piling in. I'm sure they do their research.

Boom times don't last and neither do busts. Once the world economy turns the corner in a few years, it'll be full steam ahead for Phuket and land prices will go up again.

Either jump on the train, or, miss it.

[stevenl]

I am sure if people do a comparison on the web of the Two places they will agree with me as far as value for money goes.

If you look sec at 2 comparable houses, probably with a few exceptions Phuket will be more expensive. But that is not the issue with houses, you can't compare it that way.

Prices to pay and value for money can be something completely different, so Peter, I agree Phuket is more expensive, but I don't agree HH offers better value for money. It simply depends on what you're looking for.

[KarenBravo]

I am sure if people do a comparison on the web of the Two places they will agree with me as far as value for money goes.

If you look sec at 2 comparable houses, probably with a few exceptions Phuket will be more expensive. But that is not the issue with houses, you can't compare it that way.

Prices to pay and value for money can be something completely different, so Peter, I agree Phuket is more expensive, but I don't agree HH offers better value for money. It simply depends on what you're looking for.

I agree. Bit like comparing prices in central Sydney and far out in the burbs.

[HDRIDER]

>> airport that's an hour and a half drive from my house in Rawai.

Off topic,

I drove at a comfortable pace on Tuesday morning to the airport and made it in 38 minutes. Granted it was 6:15 when I started, but 1.5 hours is not the normal travel time.

Sorry, but another whatever. I have to make sure I am on time or early for a flight. And I have been caught in traffic, especially on the way home when my flight arrives at 4:30 PM.... Lets see if you can make it at that time of day in December in 38 minutes...

He can do it, i have seen his car

[LivinLOS]

Theres stretches of beachfront on Phuket for +-5m !!

Never come across any of those unless it's a 100+ rai plot. Doubt there are any 2-3 rai plots at 5 million a rai in Phuket these days but if you come across any, please let me know

Actually there were some mangrovey plots up by the yacht haven that would qualify, and north east coast.. If you discount absolute beachfront but include with a few m of beachfront the list up there expands.

Then theres this, just over the bridge and looking back on phuket (so I can understand if that disqualifies it but still).. Been for sale for at least a couple of years..

http://www.phuketgazette.net/classifieds/details.asp?thequerytype=&id=105423

Its a surprisingly good plot, not so mangrovey and swampy as others, quite useable, nice long rectangular plot so not just a sliver of beachfront and could be used for one incredible villa or a couple of still pretty good villas of the higher end type.. The area it is might even be more desirable than the natai side as would get far less storm damage. If you travel the natai plots where they have been villa building, the onshore winds are so harsh many villas are actually putting up ugly green netting in low season which blocks all seaview and looks awful, simply to protect from the harsh elements and sand blasting. Kinda defeats the point IMO.

[steelepulse]

>> airport that's an hour and a half drive from my house in Rawai.

Off topic,

I drove at a comfortable pace on Tuesday morning to the airport and made it in 38 minutes. Granted it was 6:15 when I started, but 1.5 hours is not the normal travel time.

Sorry, but another whatever. I have to make sure I am on time or early for a flight. And I have been caught in traffic, especially on the way home when my flight arrives at 4:30 PM.... Lets see if you can make it at that time of day in December in 38 minutes...

He can do it, i have seen his car

Shhhhh HDRider, don't tell everyone about my yugo.

>>I've been on the property ladder here since 1991. Each time I bought something, the experts sucked in there breath and came out with comments such as "whoa! They saw you coming", or, "you paid far too much".

Yet, when I eventually sold, those same people seemed to get selective amnesia and offer comments such as "Boy, you're were lucky to buy that at the price you did",

I bought a bit of prime land 10 years ago and people were cackling about how I overpaid. Now everyone says " How did you get that land so cheap"?

LivinLos, yeah I saw that same piece of 3.5 rai up north in the mangroves for sale for a few years for 19 million, now someone appears to have bought it ( maybe not though judging by the same photo used) and are offering "beachfront plots" for 3.8 million. I wonder how much land you get for that?

[HDRIDER]

Is Phuket land expensive? A subjective question at best.

I've been on the property ladder here since 1991. Each time I bought something, the experts sucked in there breath and came out with comments such as "whoa! They saw you coming", or, "you paid far too much".

Yet, when I eventually sold, those same people seemed to get selective amnesia and offer comments such as "Boy, you're were lucky to buy that at the price you did", or, "you were lucky to find a buyer".

As mentioned before, most properties are bought cash, or, some other way not using a mortgage. There is not so much pressure to sell if the desired price hasn't been met. This messes with supply and demand theory.

Also know of people with the same thoughts as petercallen who saw land, but, did not buy because they perceived it as too expensive. Couple of years later they are still looking and kicking themselves that they didn't pay the asking price two years ago.

I remember in 1987 hearing about the first rai of land in Patong selling over one million a rai that was bought by a foreigner. Everyone thought that was a crazy price (including myself), yet, if I had done the same, I wouldn't have to work now (which I do).

Phuket IS unique. An international airport that year by year increases direct flights to new destinations. It also has a good future with the trend for visitor numbers increasing; witness the big hotel chains all piling in. I'm sure they do their research.

Boom times don't last and neither do busts. Once the world economy turns the corner in a few years, it'll be full steam ahead for Phuket and land prices will go up again.

Either jump on the train, or, miss it.

i Think this is spot on, about 9 years ago they where building a small estate on Nanai Road, me and a friend went to have a look, that time the price was 2,6 mill, my friend bought 2 houses and i said no way this is never gonna go, well, 4 or 5 years later he sold one for 6 mill, he still laugh when he see me, and i had the money to buy at that time, silly me

[LivinLOS]

Is Phuket land expensive? A subjective question at best.

I've been on the property ladder here since 1991. Each time I bought something, the experts sucked in there breath and came out with comments such as "whoa! They saw you coming", or, "you paid far too much".

Yet, when I eventually sold, those same people seemed to get selective amnesia and offer comments such as "Boy, you're were lucky to buy that at the price you did", or, "you were lucky to find a buyer".

As mentioned before, most properties are bought cash, or, some other way not using a mortgage. There is not so much pressure to sell if the desired price hasn't been met. This messes with supply and demand theory.

Also know of people with the same thoughts as petercallen who saw land, but, did not buy because they perceived it as too expensive. Couple of years later they are still looking and kicking themselves that they didn't pay the asking price two years ago.

I remember in 1987 hearing about the first rai of land in Patong selling over one million a rai that was bought by a foreigner. Everyone thought that was a crazy price (including myself), yet, if I had done the same, I wouldn't have to work now (which I do).

Phuket IS unique. An international airport that year by year increases direct flights to new destinations. It also has a good future with the trend for visitor numbers increasing; witness the big hotel chains all piling in. I'm sure they do their research.

Boom times don't last and neither do busts. Once the world economy turns the corner in a few years, it'll be full steam ahead for Phuket and land prices will go up again.

Either jump on the train, or, miss it.

Balanced post and the last lines I agree with totally.. At some point, probably within the next decade, the prices we see in nominal terms will look cheap.. Tho I see that as due to money printing and the debasement of money / effect of inflation.. So you can hedge that same problem by buying gold or investing in real assets or production of real assets (commods, miners, etc).. When looked at in Oz's of gold per rai, I wouldnt make the same statement.

I also have a secondary issue, and that is even if the price of land rises, with everyone 'piling in' do I wish to live in a busier Phuket ?? Taking the investment side out, as I am investing my money in areas I feel will at least match and hopefully well beat Phuket land appreciation, the greater question is 'will I want to still live in this location 5 years or 10 years' further down the development timeline, no matter what the price or return ?? For a long while I was on the edge of both sides of this, but am happy to realize I am now not in the market for it and hence am glad I didnt jump on various options that I turned down. BTW none of those options would have appreciated as well as the money I would have had to invest has appreciated, so double win.

Theres also a missing element of all the guys who did get on the property ladder, who lost it to tilak one way or another.. One sensible people can hedge against, but lifes a funny thing.

[LivinLOS]

LivinLos, yeah I saw that same piece of 3.5 rai up north in the mangroves for sale for a few years for 19 million, now someone appears to have bought it ( maybe not though judging by the same photo used) and are offering "beachfront plots" for 3.8 million. I wonder how much land you get for that?

Yeah they are trying to also sell sub divisions at 600 sqm for 3.8m.. Tho I think its the same seller trying a new angle as the adverts both run concurrently, one time its all another time its plots..

Of course should one plot sell, the divisions may become less attractive.

[LivinLOS]

i Think this is spot on, about 9 years ago they where building a small estate on Nanai Road, me and a friend went to have a look, that time the price was 2,6 mill, my friend bought 2 houses and i said no way this is never gonna go, well, 4 or 5 years later he sold one for 6 mill, he still laugh when he see me, and i had the money to buy at that time, silly me

And the same period ago I was banging the table to anyone that would listen to buy gold, back at $300.. and HUI sub 180.. Its now 1300 plus and 500 plus..

With the ability to sell it any second I choose, fully liquid market, with total ownership, and no tax implications. Fiat money is going to get crushed, people need to save in real things.

[ilyelol]

>> airport that's an hour and a half drive from my house in Rawai.

Off topic,

I drove at a comfortable pace on Tuesday morning to the airport and made it in 38 minutes. Granted it was 6:15 when I started, but 1.5 hours is not the normal travel time.

it is when you switch back to the middle lane everytime there's 1meter futher you can advance. Then breaking because its obviously the slow lane, going back 5cars, and starting over and over again. Which is how most people drive.

Rawai-airport is about 40mins unless its 5-6pm where it might take 15mins more.

i mean hel_l, at 5:30pm it took me 24mins from rawai to tesco lotus, most people would tkae 1hour because they can't calculate distance between them and cars and traffic flow

[Benjie]

To be fair it likely does take an hour and a half on a scooter from Rawai to the airport.

[petercallen]

To be fair it likely does take an hour and a half on a scooter from Rawai to the airport.

I took the wife to the airport recently from chalong.

The distance is 30 KM

I am not a slow driver but i am a safe driver.

The traffic was medium density

It took me 55 minutes to get there and 50 minutes to get back

The only people who pass be most of the time would not have a driving license where i come from

[petercallen]

Anyone who has a house or land they think we could be interested in PM me

other people already have, as long as it is a realistic price and has the

features we are looking for we are happy to have a look..

Cheers,

Peter

[ilyelol]

peter, if you get in front of all the monkeys as soon as possible, you enter a zone of no traffic which you are totally alone in (meaning is, if you goto a light and manage to be in the first 1 or 2 spots, you accelerate at a western pace which is 0 to 50 in less than 5mins) Doing this saves you 10 to 20mins on any journey. You catch all the green's and you dont have to keep breaking all the time.

[petercallen]

peter, if you get in front of all the monkeys as soon as possible, you enter a zone of no traffic which you are totally alone in (meaning is, if you goto a light and manage to be in the first 1 or 2 spots, you accelerate at a western pace which is 0 to 50 in less than 5mins) Doing this saves you 10 to 20mins on any journey. You catch all the green's and you dont have to keep breaking all the time.

OK mate, i am 30KM from the airport it takes me about 55 minutes to get there in normal traffic.

Take 20 minutes of that makes it 35 minutes for the trip.

To do this i would have to maintain a constant average speed of 85/86KPH

This is not possible as far as i am concerned unless travelling between 3AM to 6AM when there is no traffic on the road.

[stevenl]

OK mate, i am 30KM from the airport it takes me about 55 minutes to get there in normal traffic.

Take 20 minutes of that makes it 35 minutes for the trip.

To do this i would have to maintain a constant average speed of 85/86KPH

This is not possible as far as i am concerned unless travelling between 3AM to 6AM when there is no traffic on the road.

LOL, 35 minutes with an average speed of 85 kph takes you almost 50 K's Peter.

Maybe do your maths again?

To do 30 K in 35 minutes your average speed would have to be about 51 km/hour.

Edited October 29, 2010 by stevenl

[KarenBravo]

Obviously drives like an old woman .

I can get to the airport in 35 minutes on my Honda 90.

[petercallen]

OK mate, i am 30KM from the airport it takes me about 55 minutes to get there in normal traffic.

Take 20 minutes of that makes it 35 minutes for the trip.

To do this i would have to maintain a constant average speed of 85/86KPH

This is not possible as far as i am concerned unless travelling between 3AM to 6AM when there is no traffic on the road.

LOL, 35 minutes with an average speed of 85 kph takes you almost 50 K's Peter.

Maybe do your maths again?

To do 30 K in 35 minutes your average speed would have to be about 51 km/hour.

Yes you are right i forgot the final calculation.

I was waiting for someone to pick it up.

Even 51KPH considering all the traffic lights would be would be hard to do.

When we go to northern Thailand we leave before 6AM in the morning to miss the local traffic.

Once on the open road i travel at between 100 and 120KPH and have a overnight stop at

HH/Cha Am, on the way we stop once for a meal and once for a coffee break

my average is 80KPH for the trip.

[inmysights]

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.

Now, that's what we're looking for

On the other side of the coin, there are an awful lot of tossers offering sod all for you're property having fallen prey to all the doom and gloom media asserting falling property prices and now bitching about being misled re aforesaid.

Just go and buy something in Hua Hin then! What's stopping you?! Apart from the fact that Phuket much more beautiful and with better amenities. Go on, off you pop

Edited October 29, 2010 by inmysights

[inmysights]

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

Oh no!

[LivinLOS]

OK mate, i am 30KM from the airport it takes me about 55 minutes to get there in normal traffic.

Take 20 minutes of that makes it 35 minutes for the trip.

To do this i would have to maintain a constant average speed of 85/86KPH

This is not possible as far as i am concerned unless travelling between 3AM to 6AM when there is no traffic on the road.

LOL, 35 minutes with an average speed of 85 kph takes you almost 50 K's Peter.

Maybe do your maths again?

To do 30 K in 35 minutes your average speed would have to be about 51 km/hour.

Yes you are right i forgot the final calculation.

I was waiting for someone to pick it up.

Even 51KPH considering all the traffic lights would be would be hard to do.

When we go to northern Thailand we leave before 6AM in the morning to miss the local traffic.

Once on the open road i travel at between 100 and 120KPH and have a overnight stop at

HH/Cha Am, on the way we stop once for a meal and once for a coffee break

my average is 80KPH for the trip.

Leave at 6am.. HH for 1pm then ?? (7 - 7:30 hours is usual HH if the missus doesnt need 3 rice stops and separate pee breaks)..

The challenge drive is Phuket Chiang Mai or Phuket udon thani.. Thats a full days drive..

[inmysights]

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. SO YOUR AVERAGE BUYER WAS SIMPLY AN IDIOT UNDER THE SPELL OF SOME 'REAL ESTATE GENT THE, 'LOL INTO MY EYES, NOT AROUND MY EYES, LOOK INTO MY EYES ... This year I've noticed prices have dropped in a number of areas in both high end and low end. Yesterday I was told UH HU, UH UH ... of a place near my place in Bang Tao that was 2 million. GOSH, ANY PICS, REAL ESTATE NUMBER? 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 THERE IS INDEED A MARKET FOR SOME WANTING TO LIVE OUT IN THE BOONIES 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. OH THAT OLD CHESTNUT. FACT IS THAT THAI MATE OF YOURS WILL ALMOST CERTAINLY WANT HIS/HER CUT .... FROM BOTH PARTIES t'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 OH NOT AGAIN high season as many people WHO RELY SOLELY ON A THAI BIZNIZ 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. IF IT REALLY WAS THAT LONG, QUITE POSSIBLY DEAD AND NO FAMILY TO CARE OR INHERIT.

[SeanPhuket]

OK mate, i am 30KM from the airport it takes me about 55 minutes to get there in normal traffic.

Take 20 minutes of that makes it 35 minutes for the trip.

To do this i would have to maintain a constant average speed of 85/86KPH

This is not possible as far as i am concerned unless travelling between 3AM to 6AM when there is no traffic on the road.

LOL, 35 minutes with an average speed of 85 kph takes you almost 50 K's Peter.

Maybe do your maths again?

To do 30 K in 35 minutes your average speed would have to be about 51 km/hour.

Yes you are right i forgot the final calculation.

I was waiting for someone to pick it up.

Even 51KPH considering all the traffic lights would be would be hard to do.

When we go to northern Thailand we leave before 6AM in the morning to miss the local traffic.

Once on the open road i travel at between 100 and 120KPH and have a overnight stop at

HH/Cha Am, on the way we stop once for a meal and once for a coffee break

my average is 80KPH for the trip.

Leave at 6am.. HH for 1pm then ?? (7 - 7:30 hours is usual HH if the missus doesnt need 3 rice stops and separate pee breaks)..

The challenge drive is Phuket Chiang Mai or Phuket udon thani.. Thats a full days drive..

Well I'm around 12 mins from the airport whether I drive like a loon or a Sunday afternoon driver, Rawai is well over-rated!

And how I've been enjoying the closeness of the airport recently and again next Tuesday...

PETER - I'll call you tomorrow ...

[ilyelol]

Yes you are right i forgot the final calculation.

I was waiting for someone to pick it up.

Even 51KPH considering all the traffic lights would be would be hard to do.

When we go to northern Thailand we leave before 6AM in the morning to miss the local traffic.

Once on the open road i travel at between 100 and 120KPH and have a overnight stop at

HH/Cha Am, on the way we stop once for a meal and once for a coffee break

my average is 80KPH for the trip.

then you are a danger who's unconfortable at the wheel.

Also you waste gas. on the highway 90-100km/h is best speed for gas economy

[petercallen]

Leave at 6am.. HH for 1pm then ?? (7 - 7:30 hours is usual HH if the missus doesnt need 3 rice stops and separate pee breaks)..

The challenge drive is Phuket Chiang Mai or Phuket udon thani.. Thats a full days drive..

Why would i want to drive all the way to Chang Mai i one day.

I have all the time i want to travel

Why drive around 1400/1500 KMS in one day

[petercallen]

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

Oh no!

Are you the type of person who likes to stalk the forum hiding behind a keyboard,

Or just a frustrated seller or agent.

Or maybe you do not even live here and haven't a clue.

[fatcatkamala]

Yes you are right i forgot the final calculation.

I was waiting for someone to pick it up.

Even 51KPH considering all the traffic lights would be would be hard to do.

When we go to northern Thailand we leave before 6AM in the morning to miss the local traffic.

Once on the open road i travel at between 100 and 120KPH and have a overnight stop at

HH/Cha Am, on the way we stop once for a meal and once for a coffee break

my average is 80KPH for the trip.

then you are a danger who's unconfortable at the wheel.

Also you waste gas. on the highway 90-100km/h is best speed for gas economy

you obviously have no idea what average speed means ilyelol...

average of 80 KPH travelling around Thailand is a good average speed in fact ,for anyone.

Edited October 29, 2010 by LivinginKata
Flame removed

[LivinginKata]

Let's get back on topic about property prices. If you all want to discuss driving time to the airport then start a new topic. Thank you.

[paulfromphuket]

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

looks like it was built by a 5 year old out of lego!