Building A Small Apartment... How Much?

[chrisdouglas123]

Im planning to build a small apartment on my girlfriends land:

it would have 6 rooms on each floor ( 3 rooms on each side of the corridor) each room would be standard studio size with a small bathroom in the corner.

there would be 4 floors (anything more than 4 floors would need an elevator right?)

my question is - how much would this cost, a rough ball park figure....

Thanks

[InterestedObserver]

Whatever it costs, can you afford to lose the money?

[sotsira]

To estimate a cost you ned to be more specific on the finish.

Would they be fully furnished ready to live in or ?

Are they for rental use or resale or ?

[chrisdouglas123]

they would be for rent, students mainly because its close to a large uni, rental price would be 3500-4000baht a month

finishings would be simple and cheap, and i would cover the cost of furniture... just want to know the building cost... structure built, walls painted, bathroom tiled and fitted with sink, toilet and shower, electric in- lights and sockets. thats all

thanks

[trogers]

Single loaded corridor is not cost efficient.

A high cost item is foundation support. No mention of soil condition, thus no comment for this item.

[chrisdouglas123]

Soil condition! no idea.. regular soi, with other town houses and small apartments nearby, largest apartment would be about 6-8 floors

im thinking the construction price would come in at around 2.5- 3 million baht??? am i way off?

[trogers]

Soil condition! no idea.. regular soi, with other town houses and small apartments nearby, largest apartment would be about 6-8 floors

im thinking the construction price would come in at around 2.5- 3 million baht??? am i way off?

Multiply those numbers by 3...

Edited April 17, 2011 by trogers

[johnnyk]

Thai uni students paying 3500-4000/month?

More like 2000 IMO.

[PattayaParent]

15,000 Baht a square metre, probably less.

[chrisdouglas123]

thanks for the comments,

@pattaya parent... have u had or got experience of this type of price for this type of building?

@trogers, why would i need to x3?

the land is 40 wai... = 160 sqaure meters

160 x 15,000baht = 2,400,000 baht

i had another estimate at 18,000baht per square meter = 2,880,000 baht

[PattayaParent]

Well I used to b an estimator Chris and much of it is common sense and gut feeling when looking at data.

I know the price of a single storey reasonable standard (Western) house is 10K Baht per square metre and a condo is 20K Baht per square metre, due mainly to additional foundations, lifts and electrical / firefighting services.

So for an apartment block as you describe a max of 15K. It will all depend on which area you are building in (Sukhuvit /Silom in Bangkok would be more) and soil conditions as trodgers suggests but if there's other similar places in the area perhaps you culd get some ideas from them. At the very least the designs would have to be lodged at City Hall / Land Office for planning permission?

[trogers]

thanks for the comments,

@pattaya parent... have u had or got experience of this type of price for this type of building?

@trogers, why would i need to x3?

the land is 40 wai... = 160 sqaure meters

160 x 15,000baht = 2,400,000 baht

i had another estimate at 18,000baht per square meter = 2,880,000 baht

When someone gives you an estimated cost of construction in Bt/m2, it is applied to the total floor area of the building to be constructed, and not to the land area.

[chrisdouglas123]

thanks for the comments,

@pattaya parent... have u had or got experience of this type of price for this type of building?

@trogers, why would i need to x3?

the land is 40 wai... = 160 sqaure meters

160 x 15,000baht = 2,400,000 baht

i had another estimate at 18,000baht per square meter = 2,880,000 baht

When someone gives you an estimated cost of construction in Bt/m2, it is applied to the total floor area of the building to be constructed, and not to the land area.

... So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!

really?

[chrisdouglas123]

thanks for the comments,

@pattaya parent... have u had or got experience of this type of price for this type of building?

@trogers, why would i need to x3?

the land is 40 wai... = 160 sqaure meters

160 x 15,000baht = 2,400,000 baht

i had another estimate at 18,000baht per square meter = 2,880,000 baht

When someone gives you an estimated cost of construction in Bt/m2, it is applied to the total floor area of the building to be constructed, and not to the land area.

... So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!

really?

[sfokevin]

... So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!

really?

Kha Phom...

[katabeachbum]

160 sqm land.

set back for walls with windows is 2 meters

set back from road is ???meters

set back for walls with no windows is 0,5 meters

so buildable area is ??sqm

more than 3 floors, fire staircase is needed.

no requirements for elevator, but who wants to walk 6 stairs?

15k baht pr sqm floor area, pluss watersystem, pluss decorations, environment plan when more than 8 units.

one car park for every second unit

and it is not on your land, so are you sure you can loose all this money?

and will you ever get acceptable ROI?

[think_too_mut]

An acquaintance was telling me about his small condo building in Pattaya back in 2005. On his wife's land he built a small block that has 10 x 36sqm simple studios each with bathroom. Cost was 4 million baht and the rooms are rented at 2,000B each. One room was rented to a farang who uses it to keep his suitcases, old appliances, as a storage. Always rented, brings him 5% return when he is not spending on maintenance.

As renting to students, they rarely live on their own, more like 2-3-4 of them in 1 room so OP's intent to rent at 4,000B would most likely come from several tenants, whether they are visible in papers or not.

[InterestedObserver]

So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!........really?

Better to invest the 9.6 million baht in secure government bonds for your retirement. Your Thai girlfriend will get along just fine without all that money.

[steveromagnino]

So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!........really?

Better to invest the 9.6 million baht in secure government bonds for your retirement. Your Thai girlfriend will get along just fine without all that money.

6 studios at 25sqm per unit X 3 floors and 70% efficiency (rest is lobby, hallways, stairs etc - this is difficult to acheive) = 645sqm of total space X 15,000b = 9.7mb.

Furnishings per unit (aircon, basic furniture) 50,000b = 900k

Outside basic landscaping (parking area etc) = 200k

Other - legal fees, etc = 300k

TOTAL investment 11.1mb

income 4,000b per month per room X 18 units X 90% occupancy rate = 777,600b income annually

less costs

Security 60,000b

Rates/garbage collection 50,000b

Maintenance 40,000b

utilities for corridors, water, etc etc 12,000b

other incl. bad debts 20,000b

earnings before tax excluding labour costs 595,000b a year

Seems like a lot of work to earn not much; why do you think property developers build stuff, then sell it to the next person to earn 5% returns?

[trogers]

So if the floor space is 160 square meters, that would be multiplied by 4- if there were 4 floors? 160 x 4 = 640....... 640 x 15,000 = 9.6 million baht!!!!!........really?

Better to invest the 9.6 million baht in secure government bonds for your retirement. Your Thai girlfriend will get along just fine without all that money.

6 studios at 25sqm per unit X 3 floors and 70% efficiency (rest is lobby, hallways, stairs etc - this is difficult to acheive) = 645sqm of total space X 15,000b = 9.7mb.

Furnishings per unit (aircon, basic furniture) 50,000b = 900k

Outside basic landscaping (parking area etc) = 200k

Other - legal fees, etc = 300k

TOTAL investment 11.1mb

income 4,000b per month per room X 18 units X 90% occupancy rate = 777,600b income annually

less costs

Security 60,000b

Rates/garbage collection 50,000b

Maintenance 40,000b

utilities for corridors, water, etc etc 12,000b

other incl. bad debts 20,000b

earnings before tax excluding labour costs 595,000b a year

Seems like a lot of work to earn not much; why do you think property developers build stuff, then sell it to the next person to earn 5% returns?

That is why I have mentioned about single loaded corridors with their usual efficiency of less than 63% (net area/gross area).

My estimated construction cost for a 3-storey apartment building with finishing class closer to government housing is Bt10k/m2. But note an apartment building for rent will need a office with a store room to manage the building, thereby losing one apartment unit on the first floor.

[Khun Jean]

Buying 18 units in an existing building for about 250K a piece would total the cost to 4.500.000.

Rent though would be close to 2500-3000 baht a month giving you a monthly return of 45.000 baht.

Maintenance costs are very low as it is just a concrete shell.

ROI of around 10% is possible.

Building new cost more but if done right and even more important in the right location it should have a good sales value too.