How Much Longer Before Chaweng Has Nothing But Empty Buildings

[livinthailandos]

May I'm wrong on this matter but in certain areas of chaweng lots of empty shops keep showing up places in point

where subway is, 3 shops on the same side empty now

across the street from subway living senses spa closed note this is the second time its closed down

up the street near will wait restaurant to left a bunch of empty shops for rent

I wonder how long before the majority of chaweng beach is just empty buildings

[Boater]

it all depends on when the owner of the units wake up and smell the coffee ! some unit owners charge uto 300 K a MONTH just for a simple shop unit,

people who rent these units need to make a profit , and with 50% of the unit rents over 100 K a month ( takeing in key money ect ) , this is simply immpossible , yes some places have good rent , thats why they are still in buiness.

[starcandle]

It seems that someone will always come along and pay extortionate prices,

they think their idea is better than everyone elses, and they are the only ones that know

what they are doing.

on a very rare trip into chaweng on monday I got charged 120 baht for a tiger in one of the more popular bars,

in a smaller bar off the green mango, in a right dump I was hit for 100 baht.

So sack that I'll stay in bangrak and pay 75 baht which is enough anyway.

some people who come here to "live the dream" end up selling up and moving back home within a relitively

short time period.

If your going to survive and make a good go at running a business, you have to leave holiday mode at the airport and work hard.

[MSingh]

It seems that someone will always come along and pay extortionate prices,

they think their idea is better than everyone elses, and they are the only ones that know

what they are doing.

on a very rare trip into chaweng on monday I got charged 120 baht for a tiger in one of the more popular bars,

in a smaller bar off the green mango, in a right dump I was hit for 100 baht.

So sack that I'll stay in bangrak and pay 75 baht which is enough anyway.

some people who come here to "live the dream" end up selling up and moving back home within a relitively

short time period.

If your going to survive and make a good go at running a business, you have to leave holiday mode at the airport and work hard.

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

[badwig]

It seems that someone will always come along and pay extortionate prices,

they think their idea is better than everyone elses, and they are the only ones that know

what they are doing.

on a very rare trip into chaweng on monday I got charged 120 baht for a tiger in one of the more popular bars,

in a smaller bar off the green mango, in a right dump I was hit for 100 baht.

So sack that I'll stay in bangrak and pay 75 baht which is enough anyway.

some people who come here to "live the dream" end up selling up and moving back home within a relitively

short time period.

If your going to survive and make a good go at running a business, you have to leave holiday mode at the airport and work hard.

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

yep I'll go along with that, but like you say it's the greed of the few landlords pushing up prices.

Samui will end up pricing itself out of the tourist market sooner if not later, should prices keep escalating.

you can get a bucket of 5 bottles of budweiser with a plate of chips now in benidorm for 5 euro.

[steelerian]

Rent of 200k baht a month for s small shop unit is total madness. How many business running down there can even take enough revenue to cover that, never mind pay staff and other overheads and turn a profit?

Big problem is that there are so many stubborn Thai land/shop/house owners who would rather see their places empty than compromise and charge a more realistic rent.

For example, a friend of mine lives on a small soi near the Lamdin Market. Nice little road with western style 2 up 2 down houses. He pays 8k a month. There are about 22 houses in the street, of which at least 6 are vacant and for rent, and have been a long time. I called 3 of them recently that I know to have been empty for about 12 months now, and asked how much for rent. All wanted between 16-18k a month. Trying to negoiatiate with them was a complete waste of time. They would rather see their property sat empty and get no rent, then lower their prices.

[BusyBee123]

well it was the farangs that drove up the prices in the first place paying stupid prices for rent so what is with moaning now?

[H2oDunc]

It isn't just Chawang though. Look at the nice new shopping complex near the big Buddha market. The last time I passed there wasn't a shop open yet it has been finished for a while now.

Greedy landlords wanting ridiculous key money and expensive monthly rents.

Luckily I have a rare breed of Thai landlord who understands business and doesn't insist of rent rises every 3 years and no key money changed hands.

[LaoPo]

Rent of 200k baht a month for s small shop unit is total madness. How many business running down there can even take enough revenue to cover that, never mind pay staff and other overheads and turn a profit?

Big problem is that there are so many stubborn Thai land/shop/house owners who would rather see their places empty than compromise and charge a more realistic rent.

For example, a friend of mine lives on a small soi near the Lamdin Market. Nice little road with western style 2 up 2 down houses. He pays 8k a month. There are about 22 houses in the street, of which at least 6 are vacant and for rent, and have been a long time. I called 3 of them recently that I know to have been empty for about 12 months now, and asked how much for rent. All wanted between 16-18k a month. Trying to negoiatiate with them was a complete waste of time. They would rather see their property sat empty and get no rent, then lower their prices.

The point is that Thai/Asians THINK different than we westerners do. The real estate is probably paid for already a long time ago and they simply don't care (anymore) if it's rented out or not.

They have no mortgages running on the buildings, otherwise they would have to rent out.

Now they don't.

Someone whispered a certain amount of money into their ears and THAT's the money they want. You don't want to pay? Than you won't get it.

I suppose most of them haven't studied at the University of Economics but hey, they live a lot more simple and relaxed than most of their western real estate colleagues...

LaoPo

[carmine]

well it was the farangs that drove up the prices in the first place paying stupid prices for rent so what is with moaning now?

[robsamui]

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

It is not merely greed, although I'm sure that's a part of it. I think it is the utter lack of awareness of basic economics and the laws of supply and demand, which Thai people demonstrate generally, much to the utter bewilderment of us whities. (As LaoPo has already pointed out.)

Witness 20 stalls in a row by the side of the highway, every single one of them selling oranges. Witness bungalow resorts in low season putting their prices up because they have no money coming in. Witness the (now defunct) mini supermarket close to the Bo Phut lights which was so successful that two other supermarkets got opened right alongside - and then they all wondered why they weren't making any money. Witness Samui seeing an 8-10% increase in visitors each year and an overall increase in residential construction of 25% a year. Witness beach sellers trying to sell the things they like (maps of Thailand and hats made out of beer cans) instead of working out what might be wanted or needed (cold drinks, ice-cream, sun creams, peace and quiet etc).

(I think that much of all this is also rooted in the fact that most Thai people live in an isolated bubble with no awareness of the world outside their borders and the way it works.)

And that's without considering face. Witness the Thai bar owner who would rather blow up his own speakers than have the farang bar next door with louder sounds. He has the same face-set as the owner who won't drop his rental prices lower than his neighbours in the same street.

When you wrap up the two aspects together and you get something that's beyond farang understanding - this farang anyway!

R

Edited March 19, 2011 by robsamui

[carmine]

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

It is not merely greed, although I'm sure that's a part of it. I think it is the utter lack of awareness of basic economics and the laws of supply and demand, which Thai people demonstrate generally, much to the utter bewilderment of us whities. (As LaoPo has already pointed out.)

Witness 20 stalls in a row by the side of the highway, every single one of them selling oranges. Witness bungalow resorts in low season putting their prices up because they have no money coming in. Witness the (now defunct) mini supermarket close to the Bo Phut lights which was so successful that two other supermarkets got opened right alongside - and then they all wondered why they weren't making any money. Witness Samui seeing an 8-10% increase in visitors each year and an overall increase in residential construction of 25% a year. Witness beach sellers trying to sell the things they like (maps of Thailand and hats made out of beer cans) instead of working out what might be wanted or needed (cold drinks, ice-cream, sun creams, peace and quiet etc).

And that's without considering face. Witness the Thai bar owner who would rather blow up his own speakers than have the farang bar next door with louder sounds. He has the same face-set as the owner who won't drop his rental prices lower than his neighbours in the same street.

When you wrap up the two aspects together and you get something that's beyond farang understanding - this farang anyway!

R

Good post

[robsamui]

And that's without considering face. Witness the Thai bar owner who would rather blow up his own speakers than have the farang bar next door with louder sounds. He has the same face-set as the owner who won't drop his rental prices lower than his neighbours in the same street.

ps

Just to add to this I have a (farang) friend who has bought three houses on a small development as investments. He was renting these out (up till 2 years ago) at 25,000 a month each. He's now had to drop his price to 12,500B a month simply to keep them full for 10 months a year. Most of the other houses in the street are owned by Thais who (my friend tells me) are laughing their heads off at the way this farang has lost status and debased himself. When he points out that their houses have been standing empty for a year they just grin and shake their heads.

R

Edited March 19, 2011 by robsamui

[BusyBee123]

The west teaching thais economics haha! have you people been to the west recently? how is the thai economy doing in comparison to the west? dont worry it was a rhetorical question.

[Birdman]

It isn't just Chawang though. Look at the nice new shopping complex near the big Buddha market. The last time I passed there wasn't a shop open yet it has been finished for a while now.

Greedy landlords wanting ridiculous key money and expensive monthly rents.

Luckily I have a rare breed of Thai landlord who understands business and doesn't insist of rent rises every 3 years and no key money changed hands.

It isn't just Samui though. Before Samui and before Phuket I lived in Pattaya. And already during that time there were enormous building complexes completely empty. Interested people asked and hoped for some discounts, but no can do at all....so buildings stayed empty all the time...

[robsamui]

It isn't just Chawang though. Look at the nice new shopping complex near the big Buddha market. The last time I passed there wasn't a shop open yet it has been finished for a while now.

Greedy landlords wanting ridiculous key money and expensive monthly rents.

Luckily I have a rare breed of Thai landlord who understands business and doesn't insist of rent rises every 3 years and no key money changed hands.

It isn't just Samui though. Before Samui and before Phuket I lived in Pattaya. And already during that time there were enormous building complexes completely empty. Interested people asked and hoped for some discounts, but no can do at all....so buildings stayed empty all the time...

Yep, as stated this is a national trait.

R

[angiud]

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

It is not merely greed, although I'm sure that's a part of it. I think it is the utter lack of awareness of basic economics and the laws of supply and demand, which Thai people demonstrate generally, much to the utter bewilderment of us whities. (As LaoPo has already pointed out.)

Witness 20 stalls in a row by the side of the highway, every single one of them selling oranges. Witness bungalow resorts in low season putting their prices up because they have no money coming in. Witness the (now defunct) mini supermarket close to the Bo Phut lights which was so successful that two other supermarkets got opened right alongside - and then they all wondered why they weren't making any money. Witness Samui seeing an 8-10% increase in visitors each year and an overall increase in residential construction of 25% a year. Witness beach sellers trying to sell the things they like (maps of Thailand and hats made out of beer cans) instead of working out what might be wanted or needed (cold drinks, ice-cream, sun creams, peace and quiet etc).

(I think that much of all this is also rooted in the fact that most Thai people live in an isolated bubble with no awareness of the world outside their borders and the way it works.)

And that's without considering face. Witness the Thai bar owner who would rather blow up his own speakers than have the farang bar next door with louder sounds. He has the same face-set as the owner who won't drop his rental prices lower than his neighbours in the same street.

When you wrap up the two aspects together and you get something that's beyond farang understanding - this farang anyway!

R

Amen

[Gatorade]

How many of those Gaffs that the OP is talkign about do you reckon would be " owned/rented " by people coming here wanting to live the dream though ??

A relatively small amount i'd say, i know the Israeli couple & their young Daughter next door to Murphy's with a Fashion Shop that i assume the Missus designs the Clobber, the rest i'd say was a mixture of Thai/Nepal/Indian/Big ish Brands..

It's just astronomican greed by the intial Landowners that cause that Bottle of Beer to be 100 - 120 THB i'm afraid..

& it simply isn't justified in teh slightest.

It is not merely greed, although I'm sure that's a part of it. I think it is the utter lack of awareness of basic economics and the laws of supply and demand, which Thai people demonstrate generally, much to the utter bewilderment of us whities. (As LaoPo has already pointed out.)

Witness 20 stalls in a row by the side of the highway, every single one of them selling oranges. Witness bungalow resorts in low season putting their prices up because they have no money coming in. Witness the (now defunct) mini supermarket close to the Bo Phut lights which was so successful that two other supermarkets got opened right alongside - and then they all wondered why they weren't making any money. Witness Samui seeing an 8-10% increase in visitors each year and an overall increase in residential construction of 25% a year. Witness beach sellers trying to sell the things they like (maps of Thailand and hats made out of beer cans) instead of working out what might be wanted or needed (cold drinks, ice-cream, sun creams, peace and quiet etc).

And that's without considering face. Witness the Thai bar owner who would rather blow up his own speakers than have the farang bar next door with louder sounds. He has the same face-set as the owner who won't drop his rental prices lower than his neighbours in the same street.

When you wrap up the two aspects together and you get something that's beyond farang understanding - this farang anyway!

R

Good post

:thumbsup: :thumbsup: