Is Phuket Property Market Inflated?

[petercallen]

Sorry,

I'm not in the real estate industry, although I do own a few rental properties in various places .

If you own rental properties some if not all your income comes from real estate.

And of course you would like the value of those properties to increase like it was doing up to 4 years ago

[steelepulse]

If you own rental properties some if not all your income comes from real estate.

And of course you would like the value of those properties to increase like it was doing up to 4 years ago

Did I mention they were here? I don't think I did .

[petercallen]

If you own rental properties some if not all your income comes from real estate.

And of course you would like the value of those properties to increase like it was doing up to 4 years ago

Did I mention they were here? I don't think I did .

From your posts i would guess you do have real estate investments here

[katabeachbum]

Why apologise Peter, is working in real estate something to apologise for? Isn't that what you used to do yourself?

Apart from 6 months i have never worked in real estate i have invested in it but not here.

Correct me if i am wrong, dealing in land and retailing are occupations reserved for Thai nationals

Which i am not so i would not think about doing it here.

any national can be managing director for a co ltd, and as such dealing in land and retailing

[katabeachbum]

Most people do not know what type of buyer i am, especially people who do not know me.

The average Thai buyer is not going to pay 30K a month in payments, more likely around 10K.

Thai people will not buy from a farang spec builder, the can buy much better elsewhere

most of the of the newbie farang buyers who listen to spec builders have gone,

There is a recession on and a lot of these buyers came from countries still in recession.

Different posters have stated on this forum the high end market is still going well.

I suggested people look up a advertisement in the Phuket Gazette and make up there own minds.

The advertisement is headed CHARMING POOL VILLA in the houses for sale section

I believe the seller really wants to sell the property and has priced it realisticly

Spec builders are not doing the same, and they cannot sell there properties unless they get a newbie mug.

medium cost house, nice decorations, sqm furnished house at 20k baht?

talangwha land at 20k baht?

ad 600k for pool

thats realistic price

but check private road access before making a deal Peter

[petercallen]

Why apologise Peter, is working in real estate something to apologise for? Isn't that what you used to do yourself?

Apart from 6 months i have never worked in real estate i have invested in it but not here.

Correct me if i am wrong, dealing in land and retailing are occupations reserved for Thai nationals

Which i am not so i would not think about doing it here.

any national can be managing director for a co ltd, and as such dealing in land and retailing

You are right of coarse, you can be a managing director and run the business.

But only Thai nationals have the right to actually sell or retail real estate

i stand corrected if i am wrong

[petercallen]

Most people do not know what type of buyer i am, especially people who do not know me.

The average Thai buyer is not going to pay 30K a month in payments, more likely around 10K.

Thai people will not buy from a farang spec builder, the can buy much better elsewhere

most of the of the newbie farang buyers who listen to spec builders have gone,

There is a recession on and a lot of these buyers came from countries still in recession.

Different posters have stated on this forum the high end market is still going well.

I suggested people look up a advertisement in the Phuket Gazette and make up there own minds.

The advertisement is headed CHARMING POOL VILLA in the houses for sale section

I believe the seller really wants to sell the property and has priced it realisticly

Spec builders are not doing the same, and they cannot sell there properties unless they get a newbie mug.

medium cost house, nice decorations, sqm furnished house at 20k baht?

talangwha land at 20k baht?

ad 600k for pool

thats realistic price

but check private road access before making a deal Peter

Thankyou, i have heard the tales about people keeping a strip of land between the govt road road and the development

and then holding people to ransom

I have also been told the road should be on the title deeds and then it belongs to the property owners not the developer

[inmysights]

I totally agree. It's just sad to think that one day there will be a lot of shophouses, bars, guest houses etc sitting vacant and derelict.

There are plenty of shop houses and bars( especially in the low season) sitting vacant now.

You do not need to travel very far to find vacant shop houses and some have been that way for a long time.

But they still keep building more.

Money laundering. Or in Thai 'Black Money'.

[petercallen]

Most people do not know what type of buyer i am, especially people who do not know me.

The average Thai buyer is not going to pay 30K a month in payments, more likely around 10K.

Thai people will not buy from a farang spec builder, the can buy much better elsewhere

most of the of the newbie farang buyers who listen to spec builders have gone,

There is a recession on and a lot of these buyers came from countries still in recession.

Different posters have stated on this forum the high end market is still going well.

I suggested people look up a advertisement in the Phuket Gazette and make up there own minds.

The advertisement is headed CHARMING POOL VILLA in the houses for sale section

I believe the seller really wants to sell the property and has priced it realisticly

Spec builders are not doing the same, and they cannot sell there properties unless they get a newbie mug.

medium cost house, nice decorations, sqm furnished house at 20k baht?

talangwha land at 20k baht?

ad 600k for pool

thats realistic price

but check private road access before making a deal Peter

Yes mate, the prices you are quoting are what a developer would charge expecting to make a reasonable/good profit.

Unfortunately a lot of small builders (not Thai) are not happy with a reasonable/good profit they are greedy.

I would not buy a new house furnished, i can furnish it my self with the same or better quality furniture at a much better price

You get the furniture like, most people prefer to select there own furniture especially woman.

[katabeachbum]

medium cost house, nice decorations, sqm furnished house at 20k baht?

talangwha land at 20k baht?

ad 600k for pool

thats realistic price

but check private road access before making a deal Peter

Thankyou, i have heard the tales about people keeping a strip of land between the govt road road and the development

and then holding people to ransom

I have also been told the road should be on the title deeds and then it belongs to the property owners not the developer

private road usually has its own land deed, and each land owners right to use it can be

1. registered in land deed

2. have a court ruling, or

3, if its been used for 10 years, non of the above is really needed

banks lending money require #1

[phuketrichard]

Don't know about the rest of the island but here in Kamala I have seen plenty of houses for rent NOW.

This is the first year out of the past 14 that i have seen that.

so either

1. there are fewer long stay visitors here this year

or

2.the landlords have gotten over greedy and charging to much and FINALLY the people are saying no by not taking the rentals

[petercallen]

:jap:

Don't know about the rest of the island but here in Kamala I have seen plenty of houses for rent NOW.

This is the first year out of the past 14 that i have seen that.

so either

1. there are fewer long stay visitors here this year

or

2.the landlords have gotten over greedy and charging to much and FINALLY the people are saying no by not taking the rentals

Over the past 5 years by looking around there are now probably 10 times the amount of rental properties

available, and i think i am being conservative in my estimate.

The exchange rate of some foreign currencies against the Thai baht is nothing like it used to be

lots of people can no longer afford a long term holiday in Thailand anymore.

Greedy landlords will not be able to rent there properties because of the amount of competition

Realistic landlords will adjust there prices according to demand and will still rent there properties

A property rented out at a lower rate is much better than hanging out out for a higher rate which may not happen

Or A BIRD IN THE HAND IS WORTH TWO IN THE BUSH, a old Aussie saying :jap:

[thaiwanderer]

15 to 20 million baht is a lot of money in anyones books

Yes i agree with you, but when you compare the property i mentioned against another property

i was offered at 15.8M it makes the true value of the 15.8 property 6 to 7M

Asking prices need not necessarily have any basis in reasonable reality just as heavily discounted asking prices may still be unreasonable.

However what is reasonable when there are still mug newbie punters around is a slippery concept.

(and 15 to 20 million isn't alot of money in anyone's books - perceived value may be more narrowly viewed).

[petercallen]

Yes i agree with you, but when you compare the property i mentioned against another property

i was offered at 15.8M it makes the true value of the 15.8 property 6 to 7M

Asking prices need not necessarily have any basis in reasonable reality just as heavily discounted asking prices may still be unreasonable.

However what is reasonable when there are still mug newbie punters around is a slippery concept.

(and 15 to 20 million isn't alot of money in anyone's books - perceived value may be more narrowly viewed).

20M is a lot of money to some people and not to others.

20M is a lot of money to pay for a house in Phuket considering the quality of the building

and the unskilled labours used who cannot even put a light switch on the right way.

The only way you can establish the true value of property in Phuket is to take a good look

around yourself, then you see the huge variation in the prices of properties that should

be priced the same taking land value in account.

I do not think there are many mug newbies among the Indians, Chinese and Russians

[thaiwanderer]

20M is a lot of money to some people and not to others.

20M is a lot of money to pay for a house in Phuket considering the quality of the building

and the unskilled labours used who cannot even put a light switch on the right way.

The only way you can establish the true value of property in Phuket is to take a good look

around yourself, then you see the huge variation in the prices of properties that should

be priced the same taking land value in account.

I do not think there are many mug newbies among the Indians, Chinese and Russians

If you can pass the parcel / hot potato 'value' need not be a great concern regardless of light switches etc..

Perhaps less % mug newbies but you also have to factor in how much of the purchase monies was come by.

'True value' is an unhelpful concept in an alchemist's market.

[snamos]

:jap:

Don't know about the rest of the island but here in Kamala I have seen plenty of houses for rent NOW.

This is the first year out of the past 14 that i have seen that.

so either

1. there are fewer long stay visitors here this year

or

2.the landlords have gotten over greedy and charging to much and FINALLY the people are saying no by not taking the rentals

Over the past 5 years by looking around there are now probably 10 times the amount of rental properties

available, and i think i am being conservative in my estimate.

The exchange rate of some foreign currencies against the Thai baht is nothing like it used to be

lots of people can no longer afford a long term holiday in Thailand anymore.

Greedy landlords will not be able to rent there properties because of the amount of competition

Realistic landlords will adjust there prices according to demand and will still rent there properties

A property rented out at a lower rate is much better than hanging out out for a higher rate which may not happen

Or A BIRD IN THE HAND IS WORTH TWO IN THE BUSH, a old Aussie saying :jap:

Show me a chess champion in this country (someone who can think 2 moves ahead). People have to remember there is a golden goose here

[petercallen]

Show me a chess champion in this country (someone who can think 2 moves ahead). People have to remember there is a golden goose here

From following your posts you think the same way as as i do.

There was a gold goose but now its head as been cut of\:jap: