Are Houses Overpriced In Pattaya?

[Darrel]

err... care to show me any adverts of "very nice places" in south of France?

I'm looking for a 4 BR*, approx. 500 sqm new-looking house (fully renovated is ok too), with maids quarters, living room, office, play room for the kids, snooker room and a approx. 14*7 meter pool, with en-suite bathrooms for all the bedrooms, on a minimum of 2 rai of land (approx. 2800 sqm), carport for 2 cars minimum.

That's approximatively what you can buy for 20m baht, and IT IS FULLY FURNISHED.

What you may consider nice and reasonable here is probably not what would be considered nice and reasonable there. The way buildings are constructed makes this obligatory as the house you buy there will still be standing 200 years from now, unlike something bought here which will be very glossy when new but will probably fall down in a few years. So you would get less space but better quality. If you could build there to Thai standards (and no reputable builder would, nor would he be permitted to) then you could probably get something nearly as large for the same price. That said, I know of very nice places in very desirable areas of Provence with 5 en-suite bedrooms, perhaps 250+sqm living space, big pool, no crappy neighbours, 4000 or 5000sqm of land on sale for under 30MB (equiv). And houses actually sell daily at that price, unlike here where they will just sit on sale for years on end, before being reduced to 6MB and still not selling (as we have seen).

Above all, many of the local inhabitants in Europe could some day aspire to buying your house, which would make it a not at all unusual or unreasonable purchase. Indeed you will find many thousands of similar places in all sorts of towns and villages covering vast areas, unlike here where the expensive places are pretty well all within a few minutes drive of Pattaya.

Here you will be living in something that the average local resident would never be able to buy in a million years and which would make it stick out like a sore thumb (with all the security issues that entails), especially when compared with houses in areas just a few minutes (seconds?) drive away.

I think I know which places are overvalued.

[manarak]

But in the 20 mill Thailand house you cant even drink the water! Never mind REAL popriety issues!!!

these are real arguments and real drawbacks of the villa in Thailand, whereas Darrel makes a lot of assumptions and takes a lot of shortcuts stating the following:

What you may consider nice and reasonable here is probably not what would be considered nice and reasonable there. The way buildings are constructed makes this obligatory as the house you buy there will still be standing 200 years from now, unlike something bought here which will be very glossy when new but will probably fall down in a few years. So you would get less space but better quality.

"less space but better quality" oh yeah, but I want the space.

and you actually confirm that the same can't be had in Europe.

"unlike something bought here which will be very glossy when new but will probably fall down in a few years"

tell that Naam! LOL.

And if you want a quality house in the LOS, you can also opt to have it built your way.

I'm still waiting on a link to a French advert selling a comparable property, not something that is "reasonable in a French context".

The "reasonable" properties in France are relatively nice, but do not deserve the name "villa" (they are just too small) and are quite dull compared to what is available in the LOS.

Simply put, I'm sick of reasonable and boring stuff.

Here is something I would consider comparable:

http://www.fnaim06.fr/maison/vente-Maison-VALBONNE-06560-14423480-24121.html

but it costs 3.5 Million EUR

This one is pleasant, but lacks space:

http://www.propertyindex.com/HS4734537/4-Bedrooms---House--Villa---Provence-Alpes-Cote-d%27Azur---For-Sale/100/

and it sells for 1.1 Million EUR, and looks like it is in dire need of renovation

Here you will be living in something that the average local resident would never be able to buy in a million years and which would make it stick out like a sore thumb (with all the security issues that entails), especially when compared with houses in areas just a few minutes (seconds?) drive away.

Well, here you are comparing the properties in the LOS with what would be the equivalent of a full-blown castle in France. I say if you had the same style of property in France than in the LOS, the average French guy also will never hope to be able to buy it, and vicious jealously being commonplace in France, you would regularly find your BMW coupé scratched by keys or screwdrivers and the star of your Benz ripped away if you park in your peaceful "village".

And I speak from experience, my father drives a very reasonable 230E Benz (lower range), and his car has been damaged countless times by jealous scum in plain daylight.

Edited April 19, 2011 by manarak

[tropo]

Yes, houses and condos are both overpriced in Pattaya.

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

To get a true indication of value wouldn't it make sense to determine what a property would cost to build. If houses were priced to sell in the current dead market then its quite possible that houses need to be sold at under building cost.

If I owned a house I would wait several years before making a decision and make sure I keep it maintained and looking pretty. I believe the Russians maybe poised to set off a new property boom.

[tropo]

20m for a house here these days is not so strange, have a look around Pheonix/Huay Yai area - 40, 50, 70M and upwards is not uncommon.

I know: I've seen some. And not one of them was worth anything approaching the price they were supposedly for sale at.

20M in Thailand is absurd, 40M is doubly absurd.

There's nothing absurd about it. There's always people with money who don't mind splashing out for luxury.

[PolPat]

20m for a house here these days is not so strange, have a look around Pheonix/Huay Yai area - 40, 50, 70M and upwards is not uncommon.

I know: I've seen some. And not one of them was worth anything approaching the price they were supposedly for sale at.

20M in Thailand is absurd, 40M is doubly absurd.

There's nothing absurd about it. There's always people with money who don't mind splashing out for luxury.

Not enough apparently. Most of these people will admit that they are fishing. Hoping for a sucker.

[Awohalitsiktoli]

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

Two years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Five years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Ten years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Edited April 19, 2011 by Awohalitsiktoli

[tropo]

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

Two years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Five years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Ten years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

You sarcasm is misplaced. Just because Europeans have basically left the market place doesn't mean others won't jump in to take their place. I've actually met Russians employed as real estate agents here in Pattaya. What do you think they are doing? I would say they are waiting for negative losers ready to fire sale their properties and thereby generate a new property boom.

Look for Australians to catch up the slack too. Their currency has appreciated around 40% in the last 2 years.

This market requires some patience. People with foresight could make a killing.

(I'm not a real estate agent and don't own property here)

[Awohalitsiktoli]

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

Two years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Five years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Ten years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

You sarcasm is misplaced. Just because Europeans have basically left the market place doesn't mean others won't jump in to take their place. I've actually met Russians employed as real estate agents here in Pattaya. What do you think they are doing? I would say they are waiting for negative losers ready to fire sale their properties and thereby generate a new property boom.

I understand what you are saying as was just making a joke. Many people are waiting for a realistic adjustment in both house and condo prices before purchasing anything, and that makes sense give that prices (sell/rent) do not reflect reality, only a real estate fantasy reality that is treading water. Russians will buy if prices drop substantially. The problem is that people are refusing to accept reality and drop prices and apparently have no financial incentive to drop prices so they wait ten years, fifteen years, twenty years for a miracle to happen. "Negative losers" is another phrase for "suckers" who bought into a dream. Prices for houses and especially condos are way too high, period. I can think of many other places to invest in real estate, places that are truly "hot" markets. Pattaya and Jomtien are no longer hot markets; they are markets ready for a big fall, IMHO.

[craigt3365]

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

Two years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Five years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Ten years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

You sarcasm is misplaced. Just because Europeans have basically left the market place doesn't mean others won't jump in to take their place. I've actually met Russians employed as real estate agents here in Pattaya. What do you think they are doing? I would say they are waiting for negative losers ready to fire sale their properties and thereby generate a new property boom.

I understand what you are saying as was just making a joke. Many people are waiting for a realistic adjustment in both house and condo prices before purchasing anything, and that makes sense give that prices (sell/rent) do not reflect reality, only a real estate fantasy reality that is treading water. Russians will buy if prices drop substantially. The problem is that people are refusing to accept reality and drop prices and apparently have no financial incentive to drop prices so they wait ten years, fifteen years, twenty years for a miracle to happen. "Negative losers" is another phrase for "suckers" who bought into a dream. Prices for houses and especially condos are way too high, period. I can think of many other places to invest in real estate, places that are truly "hot" markets. Pattaya and Jomtien are no longer hot markets; they are markets ready for a big fall, IMHO.

I've seen some really nice houses for sale for under 4M Baht. I wouldn't consider that overpriced. Over supply? For sure. Lack of buyers? For sure. Investors who don't hold a mortgage holding out for much higher prices? For sure...and I can't blame them. If you don't have to sell at a loss, why do it? I have several friends in that category. They refuse to drop the price because they don't have to. Even if that means waiting it out. They are in no hurry.

Russians are buying in huge numbers now. Just heard about one who spent 20M on a seaview condo. Wish I had that kind of money.

Prices for housing dropped in many places around the world. Pattaya is not unique. My Mom lives in Vegas. Prices are at rock bottom there...there's only so far down they will go...and it's still not far enough. But prices aren't the only problem. There's no buyers! NONE. My Mom bought her very nice house in 2005, it's now worth about 1/2 of what it was back then. Sucker? Not even. Stuck? For sure.

Where are the hot markets you talk about? Would love to know!

[Naam]

I lived and worked in the south of France for 33 years, in Provence. Did you? How many houses have you owned there? I can show you places for 40MB (equiv) in private valleys, constructed to state of the art building standards, with 300+sqm of living space, all well finished. Not on the sea-front

owned for 18 years a holiday home 18km (as the crow flies) north of Cannes, 1 hour serpentine drive to the beach. a shack built with rough stones, 2 bedrooms, 2½ bathrooms, 138m² living area on 425m² land, no heating, no airconditioning, no pool. building quality "el cheapo²".

we bought it in 1980 for DEM 165,000 (~USD 100,000), sold it in 1998 for DEM 385,000 (USD 240,000). the German buyer did a little renovation and sold it in 2005 to a Ukrainian sucker who paid € 395,000 cash. when i think of the property taxes, general maintenance, etc. we could have lived cheaper in a suite of a fancy hotel in Cannes or Nice those 3-4 weeks a year we used the house.

Not on the sea-front

in your posting you mentioned "on the Med".

[banglay]

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

Two years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Five years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

Ten years from now: "Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead."

You sarcasm is misplaced. Just because Europeans have basically left the market place doesn't mean others won't jump in to take their place. I've actually met Russians employed as real estate agents here in Pattaya. What do you think they are doing? I would say they are waiting for negative losers ready to fire sale their properties and thereby generate a new property boom.

I understand what you are saying as was just making a joke. Many people are waiting for a realistic adjustment in both house and condo prices before purchasing anything, and that makes sense give that prices (sell/rent) do not reflect reality, only a real estate fantasy reality that is treading water. Russians will buy if prices drop substantially. The problem is that people are refusing to accept reality and drop prices and apparently have no financial incentive to drop prices so they wait ten years, fifteen years, twenty years for a miracle to happen. "Negative losers" is another phrase for "suckers" who bought into a dream. Prices for houses and especially condos are way too high, period. I can think of many other places to invest in real estate, places that are truly "hot" markets. Pattaya and Jomtien are no longer hot markets; they are markets ready for a big fall, IMHO.

Just out of curiosity Awohalitsiktoli....so we can get a better picture of where you are coming from ....where doing you live in the Pattaya area ? are you a house or a condo owner ? do you rent ....do own a car and/or a motorbike ...I ask these question because all your posting re property seem to be very negative and anti all thing real estate....and I have notice most people on TV who are negative are not in a possession too actually buy into real estate what ever the state of the property market

[Naam]

And just because you have spent 25MB on your house doesnt make it worth 1 Baht more than someone else might be prepared to pay for it. So it will be interesting to see how much you get for it if you sell it one day. And of course how you came by the money you used to buy it is totally beside the point. You might as well say you got it by selling drugs or guns or your mother, or by winning the lottery: it has no bearing on anything.

actually it is your posting which is completely irrelevant and has no bearing on anything as i care a flying fàrt who is willing to pay what price for my house because it is not for sale, not for 5 million and not for 50 million. personally i pity people who put a monetary value on their home because for me that equals "no preferred life style, no class". and you live in a dreamland if you don't consider expenditure like income tax and general living expenses in France (or in a developed country elsewhere). next thing you might come up is that a cook, a housemaid and a gardener are easily affordable in France.

back to the topic... real estate in Pattaya is indeed overpriced because of the ballooning land prices. after googling a bit i found several alternatives for those who can't afford land here. there is affordable land galore available in the outskirts of Mazar-e-Sharif, Afghanistan and in the suburbs of Ougadougou, Burkina Faso. construction cost in both places quite moderate as rock and clay is quite cheap.

[Naam]

Prices for housing dropped in many places around the world. Pattaya is not unique. My Mom lives in Vegas. Prices are at rock bottom there...there's only so far down they will go...and it's still not far enough. But prices aren't the only problem. There's no buyers!

in 2004 (before the big price hike) we sold our Florida home (lakefront) for $ 635k. yesterday i got a "Zillow" update with a price estimate of $ 236k.

[Naam]

But in the 20 mill Thailand house you cant even drink the water!

people who drink water from a tap are not entitled to own a house

[tropo]

Russians will buy if prices drop substantially.

I don't think that's accurate. Any savvy potential buyer be they Russian or other are going to buy when they feel the prices are as low as they are going to go. When a market hits an oversupply stage as it has in Pattaya, it's always smart to hold back to see how low the prices will go. Only people desperate for cash will sell cheap so maybe there isn't as many desperates around as people might think.

[tropo]

But in the 20 mill Thailand house you cant even drink the water!

people who drink water from a tap are not entitled to own a house

If I owned a 20 million house I would be running a filtration system.... I'm sure many do.

[Naam]

"unlike something bought here which will be very glossy when new but will probably fall down in a few years"

tell that Naam! LOL.

the usual BS from people who possess a wealth of "no idea" as far as construction is concerned. what they don't consider is that the Thai concrete skeleton construction is much more stable than any "brick on brick" European house, that the Thai steel roof structure does not rot away like European wooden rafters and that concrete tiles are not destroyed by hail as this is a common occurence in Europe where they use flimsy clay tiles.

a house in Thailand where the owner made sure that all provisions of the building department are followed and perhaps adding his own ideas for improvement will outlast the average European home. period!

[Naam]

But in the 20 mill Thailand house you cant even drink the water!

people who drink water from a tap are not entitled to own a house

If I owned a 20 million house I would be running a filtration system.... I'm sure many do.

if you have spend 20 million on a house you can't afford a water treatment. you just forget the water (except for showers) and drink beer or wine.

[guzzi850m2]

Houses are like condo's all about location. In my village in North Pattaya many local doctors are buying as it is convenient near to BKK/Pat hospital where many of them work. When we signed the contract for our new house in 2009 we were told that the price for same house will go up by 200k bath in 2010.

Many of the houses in the village are still empty but are sold already to Thais as an investment. That is a pretty good indicator to me that the prices in our village will not drop over say 5 years time.

Our old house (in same village) was sold to the developer as part of buying the new/bigger house-land in 2009 and I got 4,8 mill for it. This house was purchased for 4.4mill in 2008 so I earned maybe 100-200k bath on it. This house as I write this in still unsold and I can see that they have painted it outside & inside to try to make the house more attractive. The developer is a quite big company with many activities so they can afford to wait and are in no hurry to sell. My new house is almost 8 mill bath when we are done with air-cons but also quite big at almost 300 m2. A house like that in DK will cost something like 12-20 mill depending on location.

When we were looking for a house to buy in 2008, we were going around for about two month to check as many moo bans as possible. Some of the villages in East Patt were very bad- too big or half abandoned. Some were very nice but my wife didn't like it for different reasons. Different people different stokes. When we were looking my budget was app. 4-5 mill and now I am a happy man in a 8 mill house (which I will have paid out at the end of this year ).

I can only advise to people whom are looking for a house: Check - check and then check again, there are many really nice houses out there but make sure you buy in the right (for you) location and you might also be able to make a contract so you pay the house off over maybe 2 years time at a very low (or none) interest rate.

I don't think the quality are that bad, a friend on mine live in a 12 year old house and it looks very nice. A bit of cheap maintenance will do a lot.

[craigt3365]

Prices for housing dropped in many places around the world. Pattaya is not unique. My Mom lives in Vegas. Prices are at rock bottom there...there's only so far down they will go...and it's still not far enough. But prices aren't the only problem. There's no buyers!

in 2004 (before the big price hike) we sold our Florida home (lakefront) for $ 635k. yesterday i got a "Zillow" update with a price estimate of $ 236k.

Wow! What town was it in? Unreal....lucky you got out!

Houses are like condo's all about location. In my village in North Pattaya many local doctors are buying as it is convenient near to BKK/Pat hospital where many of them work. When we signed the contract for our new house in 2009 we were told that the price for same house will go up by 200k bath in 2010.

Many of the houses in the village are still empty but are sold already to Thais as an investment. That is a pretty good indicator to me that the prices in our village will not drop over say 5 years time.

Our old house (in same village) was sold to the developer as part of buying the new/bigger house-land in 2009 and I got 4,8 mill for it. This house was purchased for 4.4mill in 2008 so I earned maybe 100-200k bath on it. This house as I write this in still unsold and I can see that they have painted it outside & inside to try to make the house more attractive. The developer is a quite big company with many activities so they can afford to wait and are in no hurry to sell. My new house is almost 8 mill bath when we are done with air-cons but also quite big at almost 300 m2. A house like that in DK will cost something like 12-20 mill depending on location.

When we were looking for a house to buy in 2008, we were going around for about two month to check as many moo bans as possible. Some of the villages in East Patt were very bad- too big or half abandoned. Some were very nice but my wife didn't like it for different reasons. Different people different stokes. When we were looking my budget was app. 4-5 mill and now I am a happy man in a 8 mill house (which I will have paid out at the end of this year ).

I can only advise to people whom are looking for a house: Check - check and then check again, there are many really nice houses out there but make sure you buy in the right (for you) location and you might also be able to make a contract so you pay the house off over maybe 2 years time at a very low (or none) interest rate.

I don't think the quality are that bad, a friend on mine live in a 12 year old house and it looks very nice. A bit of cheap maintenance will do a lot.

Sounds like you have a beautiful house and are happy. Great stuff. As Naam stated, not all of us look at homes as investments. Not that we want to lose money, but making money is not the prime factor in a home for us...enjoy!!!

[thaimate]

"unlike something bought here which will be very glossy when new but will probably fall down in a few years"

tell that Naam! LOL.

the usual BS from people who possess a wealth of "no idea" as far as construction is concerned. what they don't consider is that the Thai concrete skeleton construction is much more stable than any "brick on brick" European house, that the Thai steel roof structure does not rot away like European wooden rafters and that concrete tiles are not destroyed by hail as this is a common occurence in Europe where they use flimsy clay tiles.

a house in Thailand where the owner made sure that all provisions of the building department are followed and perhaps adding his own ideas for improvement will outlast the average European home. period!

Never had you down as a dreamer Naam,that is the biggest load of bull i have ever heard ,and thats from an ex property developer.

[Tolley]

20 million baht isn't a huge amount of money for a property in Thailand if you compare it to property prices in Australia.

I have an investment property in Coogee Sydney and it is worth around 20 million baht and it is a very small and old two bedroom flat.

Personally I wouldn't pay that much in Thailand for a property heck I wouldn't even buy here but there are enough people who have that kind of money so obviously there is going to be a market for it.

What is really overpriced is condos. Huge amounts for dog boxes in housing commission style places.

[tropo]

What is really overpriced is condos.

I don't think you should compare condo prices to the price of houses because they are a special market offering easy ownership to foreigners,.

A bird in the hand is worth at least 2 in the bush, or owning one outright is worth more than one twice the size or two shared with your Thai partner.

Edited April 20, 2011 by tropo

[Naam]

in 2004 (before the big price hike) we sold our Florida home (lakefront) for $ 635k. yesterday i got a "Zillow" update with a price estimate of $ 236k.

Wow! What town was it in? Unreal....lucky you got out!

half way between Orlando and Daytona Beach. in 2007 we did not consider ourselves lucky when a neighbour told us our former house was sold for nearly a million (which could be also a fairy tale)

if you look at the satellite photo you see a house estimated at 160k and another one for 141k. both homes i build for german friends, building cost 205k and 182k (including the lakefront lots). sold in 2004 for 315k and 265.

but we are talking "Zillow". i have no idea what the actual market prices are today.

[Naam]

"unlike something bought here which will be very glossy when new but will probably fall down in a few years"

tell that Naam! LOL.

the usual BS from people who possess a wealth of "no idea" as far as construction is concerned. what they don't consider is that the Thai concrete skeleton construction is much more stable than any "brick on brick" European house, that the Thai steel roof structure does not rot away like European wooden rafters and that concrete tiles are not destroyed by hail as this is a common occurence in Europe where they use flimsy clay tiles.

a house in Thailand where the owner made sure that all provisions of the building department are followed and perhaps adding his own ideas for improvement will outlast the average European home. period!

Never had you down as a dreamer Naam,that is the biggest load of bull i have ever heard ,and thats from an ex property developer.

that explains each and everything

[Tolley]

What is really overpriced is condos.

I don't think you should compare condo prices to the price of houses because they are a special market offering easy ownership to foreigners,.

A bird in the hand is worth at least 2 in the bush, or owning one outright is worth more than one twice the size or two shared with your Thai partner.

And that is exactly why I wouldn't buy here.

You can't really own your own property (house and land)and the fact that if you buy a house you are usually a little bit off the beaten track and outside the easily accessible transport routes.

And the condos by and large are ugly, over priced, and you then have to deal with problem neighbours etc

[Naam]

Never had you down as a dreamer Naam,that is the biggest load of bull i have ever heard ,and thats from an ex property developer.

talking about dreamers and bull. what does an "ex property developer" think of somebody who has planned and supervised the construction of his house when he sees how that chap had his pond built? perhaps feeling like a load of bull because his only experience was dealing only with suckers who allowed the developer to use chickenwire as concrete reinforcement and concrete mixture for foundations 30:1 instead 3:1 ?

does the right honourable ex property developer think that only suckers exist? my "property developer" who was the general contractor, nice chap by the way, had less technical knowledge about construction that i have in one of my pinky fingers. what was unfortunate though was that he took his 20% commission and left his main Thai contractor with a few million Baht loss out in the cold.

load of bull... my àss

[PattayaParent]

Yes, houses and condos are both overpriced in Pattaya.

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

To get a true indication of value wouldn't it make sense to determine what a property would cost to build. If houses were priced to sell in the current dead market then its quite possible that houses need to be sold at under building cost.

If I owned a house I would wait several years before making a decision and make sure I keep it maintained and looking pretty. I believe the Russians maybe poised to set off a new property boom.

Then the prices would have to be slashed by 50% to 70%, so they are overpriced.

[julemanden]

Back on topic which is Are Houses Overpriced In Pattaya

Four newly built Houses close to me started life at 20m baht three years ago, they have been steadily reduced in price down to 6.5m and still have no takers.

Sorry to say, but i think you must be dreaming....

[Awohalitsiktoli]

Yes, houses and condos are both overpriced in Pattaya.

Are you sure? Just because they can't sell doesn't necessarily indicate that they are overpriced, just that the market is dead.

To get a true indication of value wouldn't it make sense to determine what a property would cost to build. If houses were priced to sell in the current dead market then its quite possible that houses need to be sold at under building cost.

If I owned a house I would wait several years before making a decision and make sure I keep it maintained and looking pretty. I believe the Russians maybe poised to set off a new property boom.

Then the prices would have to be slashed by 50% to 70%, so they are overpriced.

Apparently, the following logic applies: No, not overpriced because if the seller waits 50 years he will finally get the price he wants today I wonder why it is so hard for some people to come to grips with the FACT that houses are overpriced and condos are grossly overpriced. Tick, tick, tick, time will tell.