Why Are Propertys So Ridicculously Overpriced In Phuket

[logbags]

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

If you lease land you might as well just rent as a 30 year lease is just another form of renting. Renting gives you the freedom to move if you have a beef with somebody or somebody builds a factory next door.

I live in South Bang Tao, the people here hate the people who live in North Bang Tao, you never find out about all the local troubles until you have paid your money so I'd carefully scope the area both day and night. My area has so many dogs that if one starts barking another 50 join in so you'd better like dogs if you live in my area.

Nobody tells you about the neighborhood psychopaths until AFTER you buy and move in.

[SeanPhuket]

I have a pad for sale Peter and its not ridiculously overpriced, its in a lovely location, no crime close by ... Come and take a look.

In fact I had another for sale which I sold a while ago now (I built 2 next door to each other) to a nice foreign couple, they love the place and it suits their lifestyle perfectly. They said the price was excellent value for them.

Now the misses and I are moving up to Bangkok as we have just had our second child so we have LOWERED the price from what the couple paid for next door to hopefully encourage a quick sale. We had already agreed a sale for this price recently only for the hopeful buyer to drop out due to lack of funds (deposit refunded) so its not just 1 person who can see its good value!

PM me if you want to see a good value house.

[Jimi007]

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.

Amazing, I actually agree with you!

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

And I also agree with you Peter. The locals all gossip about how much they sell something for. I mean old time born and raised here in Rawai people I know. Old local families. So they hear somebody down the road sold something for so much, how could they sell theirs for less? I'll leave it there, I could go on about all the gossip I hear at times....

[Jimi007]

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.

Many people, including Peter and myself could care less about schools, nightlife, tourists, overpriced restaurants and an airport that's an hour and a half drive from my house in Rawai. I like the beach as I was born, raised and have lived at one all of my 55 years, but your condescending snip, is a bit uncalled for, in my humble opinion. I will have to agree with Peter that you haven't seen much of Thailand, if all you can relate to is Pattaya or Phuket...

Edited October 28, 2010 by Jimi007

[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.

Many people, including Peter and myself could care less about schools, nightlife, tourists, overpriced restaurants and an airport that's an hour and a half drive from my house in Rawai. I like the beach as I was born, raised and have lived at one all of my 55 years, but your condescending snip, is a bit uncalled for, in my humble opinion. I will have to agree with Peter that you haven't seen much of Thailand, if all you can relate to is Pattaya or Phuket...

I won't argue how much of 'the real Thailand' I have seen as it's a little childish and we are talking about Phuket here.

If you don't care about any of the things above why don't you live out in the boonies. Plenty of beaches in the middle of nowhere where your money would easily stretch 2 or 3 times as far.

Really if you are looking for value for money, 'the real Thailand' and don't care for the things I mentioned above, Why Phuket?

[Jimi007]

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.

Many people, including Peter and myself could care less about schools, nightlife, tourists, overpriced restaurants and an airport that's an hour and a half drive from my house in Rawai. I like the beach as I was born, raised and have lived at one all of my 55 years, but your condescending snip, is a bit uncalled for, in my humble opinion. I will have to agree with Peter that you haven't seen much of Thailand, if all you can relate to is Pattaya or Phuket...

I won't argue how much of 'the real Thailand' I have seen as it's a little childish and we are talking about Phuket here.

If you don't care about any of the things above why don't you live out in the boonies. Plenty of beaches in the middle of nowhere where your money would easily stretch 2 or 3 times as far.

Really if you are looking for value for money, 'the real Thailand' and don't care for the things I mentioned above, Why Phuket?

Ah, I see... You don't read the posts before you write, and you put in your 2 satang worth in and respond to anyone who doesn't share your opinion. I have a house here, Peter is looking for one, he has been to my house. I really don't think you have much to contribute to this thread, or have I missed something? Or are you another farang property developer in denial?

[thaiwanderer]

Bit of a futile bunfight arguing over 'value for money' when mistaking leasehold, shaky corporate holdings or buying for someone else to hold rather than freehold.....but if comparing Phuket with other parts of Thailand yes its more expensive, what's the problem? buy or not its up to you

As to inflated advertised / negotiation prices they of course abound in Phuket where many visitors take leave of their senses but someone who gets burnt there will get burnt in any negotiated deal no matter where it is and what it involves, unless of course blinded by something else here.

[Benjie]

Ah, I see... You don't read the posts before you write, and you put in your 2 satang worth in and respond to anyone who doesn't share your opinion. I have a house here, Peter is looking for one, he has been to my house. I really don't think you have much to contribute to this thread, or have I missed something? Or are you another farang property developer in denial?

I see you avoided the questions, If there is nothing particularly attractive about Phuket, then why live here or look for houses here?

If you admit that there is something attractive about living in or owning a home in Phuket then you have your answer as to why it's expensive here (that's called demand).

You can bitch and moan all you like but that won't bring the prices down, Property is cheaper in Chiang Mai, Issan and the areas between Phuket and Bangkok, like Chumphon for example.

[Jimi007]

Ah, I see... You don't read the posts before you write, and you put in your 2 satang worth in and respond to anyone who doesn't share your opinion. I have a house here, Peter is looking for one, he has been to my house. I really don't think you have much to contribute to this thread, or have I missed something? Or are you another farang property developer in denial?

I see you avoided the questions, If there is nothing particularly attractive about Phuket, then why live here or look for houses here?

If you admit that there is something attractive about living in or owning a home in Phuket then you have your answer as to why it's expensive here (that's called demand).

You can bitch and moan all you like but that won't bring the prices down, Property is cheaper in Chiang Mai, Issan and the areas between Phuket and Bangkok, like Chumphon for example.

Whatever... I've lived here for years and Phuket wasn't so trashed as it is now. I have land that I can build in another part of Thailand, but my place here is cheap to keep.... And there is a housing bubble here that I think will burst... Good luck with whatever you have or do here, but I can still disagree with your opinion...

[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.

[Jimi007]

>> 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...

[Gonsalviz]

Farang investors.

[Colonel_Mustard]

Phuket is certainly more expensive than other areas of Thailand, with the exception of Bangkok, but I'm not sure that this makes it overpriced.

Phuket is a tourism orientated island with an international airport, golf courses, great beaches, entertainment/nightlife, international schools etc and is therefore seen by many as a desirable place to live. Just as property is Penang is probably more expensive than elsewhere in Malaysia, except KL, for the same reasons.

We looked at property in HH a few years ago but didn't really find it much cheaper than Phuket, There are some lovely areas of coastline that are still relatively cheap in Thailand but those areas generally lack facilities.

[stevenl]

Whatever... I've lived here for years and Phuket wasn't so trashed as it is now. I have land that I can build in another part of Thailand, but my place here is cheap to keep.... And there is a housing bubble here that I think will burst... Good luck with whatever you have or do here, but I can still disagree with your opinion...

Hardly any forced sales on the island, so i doubt the bubble will burst. I don't think it is a bubble really since the prices are not inflated. Sellers in general simply think: pay my price or i don't sell.

[steelepulse]

>>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...

Whatever................. Did I say I was in traffic from the airport at 4:30 ..................No? So what's the point of your post as I specifically said to the airport at 6 am. FYI, I arrived in the afternoon and it took 65 minutes for the same journey that took 38 in the am due to traffic, so I have no doubt it could take 90, but I wasn't addressing that issue was I?

Back on topic, The best bang for your buck is to buy land and build yourself as many have done.

[petercallen]

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

I like the HH/Cha am area, my budget is not set in concrete, currently its 5 to 10m

I do not live here because of places like Bangla Road

I don't want to live in Patong and i don't want to live near the centre of Hua Hin.

I have currently been looking at houses here and checking the web sites for 2 years.

I have checked prices in HH/Cha AM on the web.

There is a beach front house advertised up in that area with direct access to the

beach for 12m, try buying the same on or near Phuket i don't think its possible.

I am quite happy to live 30 minutes drive from the main town centre

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.

[LivinLOS]

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.

You could also say Phuket has more fresh of the plane fools, who dont research properly and say 'hey its cheaper than back home'.. Whereas other areas tend to have people that know what build costs are and dont accept that developers need a >100% return on some shoddy thrown up build. I accept Phuket has higher wages and larger margins on building materials, but really the profits desired by developers got insane mid decade, and that fed price expectations and market pricing that was just silly.

Theres also such wild diversity in pricing.. I recently saw a HUGE 5 bedroom proper highish end villa.. On the market for 38 mil a few years ago, get sold for 12 mil to a bangkok Thai whose sitting on it as an investment not to live in.. Farang seller back in the us just wanted it gone and it would be 18m to even build these days. That tells you what kind of actual pricing the market has to make to really sell something.. Yet at the same time I see Thais asking 8 10 or 12m for 2 bed bungalows on no plot with no views and a 6 meter pool.. They call them villas but thats casting a wide net.

[LivinLOS]

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

Thats being held up as a bargain ??

320 sqm plot.. A little vertical house.. No pool or any much garden.. Hidden over on Panwa.. For 5 mil !!

Bargain !!

[LivinLOS]

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.

At what price ??

Patong land becoming unpurchasable lately, leases only etc..

[seaeagle]

I like the HH/Cha am area

and I have currently been looking at houses here and checking the web sites for 2 years

Looking at stuff in Phuket for 2 years, and still no decision??? You're one of these people who continually put off and put off, and sit back. All this time land prices rise, material prices rise, exchange rates move - - all having an impact on your investment and perceived costs / pricing.

For property, the main three things to look for have always been "L:ocation, location, and location". Despite Phuket's shortcomings, of which there are many, this island continues to offer much more than most parts of Thailand, and prices are commensurate with that popularity. When I start to see huge package tourists flocking to stay in a place like Ban Groot for 2 weeks, then I'll start to believe in both the demise of Phuket and fairies.

Look, petercallen, face it that you're never going to buy here, and go and join the Hua Hin / Cha-Am forum.

[LivinLOS]

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.

Cant think of anywhere that matches those requirements..

Really if you need the services I need, your left with Phuket, Hua Hin, outside (very outside !!) Pattaya, or CM without beaches. Only Phuket has the limited development space and inability to 'sprawl' that the others do, coupled with a much higher visitor arrival stats and ready to buy dreamers.

Plus the road network on Phuket means distances are amplified, something 10 - 15km out of town in chiang Mai is 10 - 15 mins drive, something 15km from Patong can be 30 min to bloody ages in traffic. So local desire to be near places increases demand. No matter if that place is Nai Harn or Patong, the road network is similar all over, doesnt have freeways and ring roads, due to island geography and landscape.

[LivinLOS]

And I also agree with you Peter. The locals all gossip about how much they sell something for. I mean old time born and raised here in Rawai people I know. Old local families. So they hear somebody down the road sold something for so much, how could they sell theirs for less? I'll leave it there, I could go on about all the gossip I hear at times....

A large part of what has made an inflated market.. The fact Thais will never admit to selling low (even when they do) and prices instantly rise to the highest price anyone else asks (not gets mind).. So much of the market isnt a real active traded market, its pretend pricing claimed, with the odd 'off the plane' buyer who resets the whole chain upwards, even if there was one of him for every 100 for sale..

Then when those buyers stop coming or slow down, the market sits there not finding a real base.

If they can afford to do that.. More power to them.. But those vigo payments add up, and more and more Thais have land 'in the bank' than ever before IMO.. We will see where it all ends. Probably under 10,000 boxy shop houses and cheap rooms for air asia and jetstar visitors IMO, another massage and or internet cafe anyone ??

[LivinLOS]

Many people, including Peter and myself could care less about schools, nightlife, tourists, overpriced restaurants and an airport that's an hour and a half drive from my house in Rawai. I like the beach as I was born, raised and have lived at one all of my 55 years, but your condescending snip, is a bit uncalled for, in my humble opinion. I will have to agree with Peter that you haven't seen much of Thailand, if all you can relate to is Pattaya or Phuket...

You have lived in Thailand for 55 years ??

Or you mean you like a beach somewhere else in the world ??

[stuandchris]

A hour and a half to the airport from Rawai, do you walk it?

[petercallen]

>> 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...

It takes me 55 minutes from where i live in Chalong to get to the airport with a decent run.

From where Jim lives you can add another 10/15 minutes.

Jim is right to allow 90 minutes in case of traffic jams which are not unusual.

So 2/3 hours in a bus from HH/ Cha AM to the biggest international airport in

Thailand with the most direct flights is not bad as far as i am concerned

House prices there are a lot better just go on the web and check for yourself.

We have been offered a block of land by a neighbor for 1M we will check it out

with her tomorrow,We are also going to have a look at a house which someone

genuinely wants to sell,

HH/Cha AM is a good alternative if we cannot find what we want here.

[Colonel_Mustard]

The only places in Thailand that offer the facilities I need (plus beach) are Phuket and Pattaya. Of the 2, Phuket, despite being more expensive, is my preferred option. If I didn't need those facilities, then I too would probably look at Hua Hin or elsewhere.

There are stretches of beachfront around Thailand available for less than 5M per rai but don't expect much in the way of facilities/services.

[steelepulse]

>>We have been offered a block of land by a neighbor for 1M we will check it out

How big is that block of land? Sounds like a decent deal if it's at least 600 SQM.

[LivinLOS]

The only places in Thailand that offer the facilities I need (plus beach) are Phuket and Pattaya. Of the 2, Phuket, despite being more expensive, is my preferred option. If I didn't need those facilities, then I too would probably look at Hua Hin or elsewhere.

There are stretches of beachfront around Thailand available for less than 5M per rai but don't expect much in the way of facilities/services.

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

Theres stretches out in the boonies for far less..

[Colonel_Mustard]

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

[geriatrickid]

The only places in Thailand that offer the facilities I need (plus beach) are Phuket and Pattaya. Of the 2, Phuket, despite being more expensive, is my preferred option. If I didn't need those facilities, then I too would probably look at Hua Hin or elsewhere.

There are stretches of beachfront around Thailand available for less than 5M per rai but don't expect much in the way of facilities/services.

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

Theres stretches out in the boonies for far less..

Where exactly is this low cost beachfront? Is it on the "beach" that is prone to windstorm and sea surges, or is it near the sewage discharge pipes? Does the beach have Karon quality sand or is it like the beaches up near Nai Yang?

As for the people laughing at the 90 minute drive times to the airport, it can take me 60 -90 minutes from Patong on a rainy day or in high season. Usually it takes my driver 45 minutes to get there. This of course assumes there are no protests blocking traffic.