Issan Building Boom

[kwonitoy]

In the last year around my little part of the northeast there has been a flurry of house constructions happening.

Within 10 kms of me I can count over a dozen big new houses started, under construction and finshed products. These are not small shacks but large 3-5 million baht houses. Not one of these houses has foreign money finaceing it according to the wife. The one across the road from me, just completed was 3 million plus, built by a local school teacher. I'd be proud to call it my own.

The wife also informs me that it's the availability of low cost mortgages for government employees.

Just wondering if this is happening in other parts of Issan, or Thailand in general

[chuckd]

My village between Nong Bua Lamphu and Loei is the same. Several smaller homes being built and one just up the road from me that is built like our home but is somewhat larger.

All Thai owned and operated.

[Briggsy]

kwonitoy

Your wife is absolutely right about the cheap loans for public sector employees.

When a public sector employee tells you they only get 10,000 Baht salary per month, this is not the complete picture. There are a range of other benefits.

Often loans, typically in the 7-figure bracket are available at ridiculously low rates of interest e.g. 1%. These loans are often administered by Krung Thai as the principal government bank. Sometimes they are dealt with internally. This benefit is available to all types of public sector employee above the very lowest grades. Teachers, yes, civil servants, yes, government agency employees, yes, state enterprise employees (TOT, CAT, etc.), yes.

In addition, many employees feel they will never have to pay it back. However, it ties them to the job for the rest of their working life.

[Fookhaht]

Since we don't know what part of Isaan the OP is posting from, we cannot fully answer his/her question.

However, within an hour of Khon Kaen (my area), there are at least 20 dormitories constantly under construction (fueled by rising student attendance at seven local tertiary institutions). In addition, I'd say at least 30-40 homes in the 2-3 million baht range are under construction as well. This particularly "building boom" in my area has been going on for at least 9 years.

Such a contrast to my home state back in the USA where about 70% of home/commercial builders have gone out of business since 2008, and the building trades are still struggling. The building materials manufacturer for which I worked has scaled down from 700 employees to 300 employees, laying off managers who'd been there for 20+ years. It's ugly.

[kwonitoy]

Since we don't know what part of Isaan the OP is posting from, we cannot fully answer his/her question.

However, within an hour of Khon Kaen (my area), there are at least 20 dormitories constantly under construction (fueled by rising student attendance at seven local tertiary institutions). In addition, I'd say at least 30-40 homes in the 2-3 million baht range are under construction as well. This particularly "building boom" in my area has been going on for at least 9 years.

Such a contrast to my home state back in the USA where about 70% of home/commercial builders have gone out of business since 2008, and the building trades are still struggling. The building materials manufacturer for which I worked has scaled down from 700 employees to 300 employees, laying off managers who'd been there for 20+ years. It's ugly.

Fookhaht: I'm about 120km northeast of Udon Thani.

There has always been lots of smaller houses being built. It's the surge in big houses that has caught my attention

Briggsy: You're completely right about the fringe benefits that the civil service employees have, and according to our neighbor he says he could care less about paying it off. Just taking advantage of what's on offer by the government. No different than anywhere else.

[pnustedt]

I agree with Briggsy - most of the development is being carried out by government employees on borrowed money. Also check out the number of new cars around. There is also more disposable income in the villages where the rice price is about Bt15/kilo compared with about Bt9 three years ago. Real estate prices are increasing too. It seems to be common to most of Isaan.

[Briggsy]

Also, economically Isaan has a lot of catching up to do with other regions of Thailand. The difference in terms of per capita income, industrialisation, wages, land prices, etc. is unsustainable in the long term and there will be economic pressure to narrow the gap.

Here in the Chonburi - Rayong industrial area, every second company employee I meet is either from Isaan or has an Isaan parent and strongly identifies with the region. I am not talking about unskilled production line noddies. The difference in land prices between the Central region and the North-East has led to a natural increase in money earned in the Central region being ploughed into land and houses in Isaan.

The floods are another factor. No point buying or building your flash house in Ayuthaya or Minburi any more.

Finally, the current government will be switching the flow of funds to its voter base in Isaan by means of its populist policies, govt contracts, etc.

What you have noticed is echoed by just about everyone I meet. "Udon has really taken off these days". "Korat will be the new industrial zone of Thailand." "Loei is a boom province."

[Gweiloman]

Some of the teachers' homes I see in the Yasothon area would put some Bkk hi-so houses to shame. Couple that with some 3-4 cars in the garage, I sometimes can't help but think that maybe even some teachers have their priorities wrong. What I mean by this is that as teachers, they should be examples in the society and not rack up debt (if even at 1% interest). I see nothing aspirational in that.

[sirchai]

Considering that Thai teachers pay only 1% interest at their extraordinary bank, especially for government employees in each province, makes it very easy to build property.

. Fact is that they come right after the Lord Buddha, if somebody's questioning that please ask Mr. Thaksin.

He'd made it happen that most teachers a few years ago didn't have to pay their debts back.One reason for supporting him.

That's why most of them like red shirts more than blue ones.

Edited March 4, 2012 by sirchai

[Thighlander]

Since we don't know what part of Isaan the OP is posting from, we cannot fully answer his/her question.

However, within an hour of Khon Kaen (my area), there are at least 20 dormitories constantly under construction (fueled by rising student attendance at seven local tertiary institutions). In addition, I'd say at least 30-40 homes in the 2-3 million baht range are under construction as well. This particularly "building boom" in my area has been going on for at least 9 years.

Such a contrast to my home state back in the USA where about 70% of home/commercial builders have gone out of business since 2008, and the building trades are still struggling. The building materials manufacturer for which I worked has scaled down from 700 employees to 300 employees, laying off managers who'd been there for 20+ years. It's ugly.

Total bloodbath here in Arizona. Remodeling business is great as people are buying and repairing foreclosures. New home builds are about 10% of what they were.

[SantiSuk]

Same around SiSaket and Ubon, where poverty (as defined by not having enough to eat or secure shelter) is pretty-much eradicated IMO. It's partly due to the spiralling prices for agricultural land and above-inflationary increases in industrial agricutural products like casava, corn and rubber.

[barrybankruad]

Large amount of new construction going on here in Buriram. Started ten years or more ago when Thaksin introduced cheap loans, as has been going on ever since. Not only fancy style houses being built by public servants, but the introduction of rubber plantations which are coming on line has boosted the local economy enormously. Needless to say the price of land has dramatically increased also. For example about 12 years ago I bought 5 rai in my village for 40K baht. I have been offered half a million without chanote. When I get that in a couple of months I could probably double that.

[pipo1000]

Since we don't know what part of Isaan the OP is posting from, we cannot fully answer his/her question.

However, within an hour of Khon Kaen (my area), there are at least 20 dormitories constantly under construction (fueled by rising student attendance at seven local tertiary institutions). In addition, I'd say at least 30-40 homes in the 2-3 million baht range are under construction as well. This particularly "building boom" in my area has been going on for at least 9 years.

Such a contrast to my home state back in the USA where about 70% of home/commercial builders have gone out of business since 2008, and the building trades are still struggling. The building materials manufacturer for which I worked has scaled down from 700 employees to 300 employees, laying off managers who'd been there for 20+ years. It's ugly.

Fookhaht: I'm about 120km northeast of Udon Thani.

There has always been lots of smaller houses being built. It's the surge in big houses that has caught my attention

Briggsy: You're completely right about the fringe benefits that the civil service employees have, and according to our neighbor he says he could care less about paying it off. Just taking advantage of what's on offer by the government. No different than anywhere else.

Well,at the end someone will have to pay the bill,isn't it?

1997 is on it's way back again.

[DJH77]

Mukdanan City has been booming for years now. In the last 6 years we have had at least 10 new Hotels built including one of 16 stories with a Revolving Restaurant on the top. I think we have more hotel rooms than the population of Mukdahan. As for houseing, this is the same with numerous new estates constantly under construction plus many new factories and industrial areas. Also Big C is currently under construction and it is reported that big stores like Robinsons and Homeworks or the like are to be here soon. One of the reasons for all this is that the Lao people come over the bridge to do all their shopping here as there is nothing in Savannakhett, This gives the local economy a tremendous boost. As for Large Expensive Homes,well there are many new ones scattered throughout the city and on the Riverfront there are currently 2 under way at a cost of 20 to 25 Million Baht each,not including the land value which ranges from 3 to 4 Million per Rai and constantly increasing plus new Restaurants of concrete and steel construction, no more wooden shacks. This is a boom town without a doubt.

[Gary A]

Here in Loei province there are many new projects. Just south of Loei, Tesco Lotus has a new super store open and nearby there is a Macro being built as well as a Big C. Wang Saphung now has a Tesco Lotus mini store recently opened. There is a new sugar cane processing factory being built between Non Hin and Wang Saphung.

Following these bigger projects are new houses being built, likely for the new staff required for these projects. Maybe the flood threats are helping to move big business to Issan. It's now time for Thailand to expand the rail service to these areas.

[ubonrthai]

Many new moobaans going up in Ubon. The manager of one of them said they are selling almost as fast as they are built. She said after the flood this year they sold quite a few to people from Bangkok as a 2nd home in case it floods again.

Edited March 5, 2012 by ubonrthai

[pianoman]

There has definetly been a Building Boom going on here in the Kalasin area... I figured that it was just this area until reading the above posts... Have a Farang friend and his wife who are trying to find a builder to start on a new home in the area, and are hearing mostly "Too Busy" or "Maybe next year"... Glad that we built our home 7 years ago when it was cheaper and the best builders were not too "Busy" to talk with you...

Pianoman

Edited March 10, 2012 by pianoman

[surayu]

In Prachinburi there are lots of new buildings too, but many are still empty from years, some have never been completed and despite this, they are still building up new ones....

I also noticed that the cost of the iron around here almost doubled up right now, last year a piece costing 1.150B jumped to 1.500B and 5-6 months later went back to 1.200B, now they reached 1.900B.

[vpi78]

My village between Nong Bua Lamphu and Loei is the same. Several smaller homes being built and one just up the road from me that is built like our home but is somewhat larger.

All Thai owned and operated.

Na Klang, Na Wang, Erawan or Wang Saphung?

We're near Na Wang/Erawan. There is a lot of building going on by both Thais and foreigners these days.

[chuckd]

My village between Nong Bua Lamphu and Loei is the same. Several smaller homes being built and one just up the road from me that is built like our home but is somewhat larger.

All Thai owned and operated.

Na Klang, Na Wang, Erawan or Wang Saphung?

We're near Na Wang/Erawan. There is a lot of building going on by both Thais and foreigners these days.

Between Na Klang and Nawang. One kilometer off 210.

[vpi78]

My village between Nong Bua Lamphu and Loei is the same. Several smaller homes being built and one just up the road from me that is built like our home but is somewhat larger.

All Thai owned and operated.

Na Klang, Na Wang, Erawan or Wang Saphung?

We're near Na Wang/Erawan. There is a lot of building going on by both Thais and foreigners these days.

Between Na Klang and Nawang. One kilometer off 210.

[vpi78]

Quite a few Anglos moving up here these days. I know another Englishman moving to Nong Hin from Pattaya in early April. Need to organize a weekly poker game.

[chuckd]

Quite a few Anglos moving up here these days. I know another Englishman moving to Nong Hin from Pattaya in early April. Need to organize a weekly poker game.

Don't play poker but do, on occasion, drink a cold beer. Send me a PM and let me know.

[surayu]

Need to organize a weekly poker game.

Is it legal here? i see cards for sale even at 7/11, but i can't remember to have ever seen thais to play cards in public, i did see some of them to play some strange game years ago, with a printed mat on the floor, i can't remember if they were using cards or not, but it was a weird situation because it was in the back yard of a private house, and someone told me to speak slowly because apparently the bib is on the chase for those kind of games???

The only game they seems to play everywhere is some sort of "Checkers" ?

[vpi78]

Quite a few Anglos moving up here these days. I know another Englishman moving to Nong Hin from Pattaya in early April. Need to organize a weekly poker game.

Don't play poker but do, on occasion, drink a cold beer. Send me a PM and let me know.

You should get out more. Thais are some of the most addicted gamblers in the world. It is somewhat like Prohibition and Prostitution .... just because you don't see it in the open does not mean it isn't going on.

[vpi78]

Need to organize a weekly poker game.

Is it legal here? i see cards for sale even at 7/11, but i can't remember to have ever seen thais to play cards in public, i did see some of them to play some strange game years ago, with a printed mat on the floor, i can't remember if they were using cards or not, but it was a weird situation because it was in the back yard of a private house, and someone told me to speak slowly because apparently the bib is on the chase for those kind of games???

The only game they seems to play everywhere is some sort of "Checkers" ?

You should get out more. Thais are some of the most addicted gamblers in the world. It is somewhat like Prohibition and Prostitution .... just because you don't see it in the open does not mean it isn't going on.

[vpi78]

Quite a few Anglos moving up here these days. I know another Englishman moving to Nong Hin from Pattaya in early April. Need to organize a weekly poker game.

Don't play poker but do, on occasion, drink a cold beer. Send me a PM and let me know.

You should get out more. Thais are some of the most addicted gamblers in the world. It is somewhat like Prohibition and Prostitution .... just because you don't see it in the open does not mean it isn't going on.

Sorry Chuck ... ipad operator error. I will PM you when things settle a little here in Nawang/Erawan. Poker or not come on over for a Leo or 3.

[diggledunc]

Need to organize a weekly poker game.

Is it legal here? i see cards for sale even at 7/11, but i can't remember to have ever seen thais to play cards in public, i did see some of them to play some strange game years ago, with a printed mat on the floor, i can't remember if they were using cards or not, but it was a weird situation because it was in the back yard of a private house, and someone told me to speak slowly because apparently the bib is on the chase for those kind of games???

The only game they seems to play everywhere is some sort of "Checkers" ?

You should get out more. Thais are some of the most addicted gamblers in the world. It is somewhat like Prohibition and Prostitution .... just because you don't see it in the open does not mean it isn't going on.

Addicted is just the right word. how many farms are sold because of it? Printed mat is for HiLo a game palyed with 3 dice some of which are reputadly remote controlled. Usual card games are 2card, 3card, pot deang all of which are are mixture of pontoon and brag and belive it or not rummy. every time someone dies in the villages there can be three days of all this and the tea money flows. Funniest thing though is seeing heads bobbing in the forest nearby or tadpole tanks, then sometimes the scatter if the bib come. Goes on a lot and sometimes in the open when tea money is a regular part of life. Like pot deang myself. Any other views.

[legendarysurfer]

Same outside Nong Bua... not worried about foreigners or the educated, it's the country folk that concern me. It has been my experience that the average rice farmer does not grok the concept of loans and payback easily. What may be a boom for them now, could very well be a bust later on.

[chuckd]

Need to organize a weekly poker game.

Is it legal here? i see cards for sale even at 7/11, but i can't remember to have ever seen thais to play cards in public, i did see some of them to play some strange game years ago, with a printed mat on the floor, i can't remember if they were using cards or not, but it was a weird situation because it was in the back yard of a private house, and someone told me to speak slowly because apparently the bib is on the chase for those kind of games???

The only game they seems to play everywhere is some sort of "Checkers" ?

You should get out more. Thais are some of the most addicted gamblers in the world. It is somewhat like Prohibition and Prostitution .... just because you don't see it in the open does not mean it isn't going on.

Addicted is just the right word. how many farms are sold because of it? Printed mat is for HiLo a game palyed with 3 dice some of which are reputadly remote controlled. Usual card games are 2card, 3card, pot deang all of which are are mixture of pontoon and brag and belive it or not rummy. every time someone dies in the villages there can be three days of all this and the tea money flows. Funniest thing though is seeing heads bobbing in the forest nearby or tadpole tanks, then sometimes the scatter if the bib come. Goes on a lot and sometimes in the open when tea money is a regular part of life. Like pot deang myself. Any other views.

Somebody just opened a gambling den 100 meters from my back porch. It ran all night a couple of nights ago but didn't bother me.

Ran the dogs crazy though.