The Pattaya Property Bubble

[londoedan]

As I have stated many times before I personally couldnt be bothered trying to swim through the shark invested waters when it comes to property in Thailand.

I am sure some people have made money out of property in Thailand but equally so I am sure more have lost out .

+1 I'm going to carry-on renting for a while (and i don't believe rental prices are at all inflated at the moment).

Might buy though if there is a crash and prices drop a bit - anyone got anything in VT 6 ?

[ray35ty]

While it is certainly possible that you are 29 years old and are retired, how do you manage to live in Thailand? What sort of Visa do you have?

Hi I applied for this Visa its fantastic they gave me it in Sydney and im aloud to stay here one year no exits or even 3 months going to immigration.

It took me six weeks to get but. You can have a read of it here. Funny thing when i arrived at the bangkok immigration the lady didnt know what it was a was very reluctant to let me stay for 1 year.

How do I manage to live in thailand ? very well, have 2 investment properties in Aus, no mortgage and live a good lifestyle here.

OVERVIEW

As of 12 September 2005, Australians aged between 18-30 years wishing to travel to and work temporarily in Thailand can apply for a Thailand-Australia Work and Holiday Visa.

Qualification for an applicant of a working holiday visa

- Be an Australian national currently residing in Australia

- Be aged between 18-30 years at the time of application

- Not accompanied by children or dependents

- Have tertiary qualifications (full time courses with at least 3 years of study)

- Have a valid Australian passport (valid for at least 6 months)

- Have a return ticket or sufficient funds to purchase the ticket

- Have sufficient funds of at least AUD$ 5,000.00 for living expense in Thailand

- Be in good health and hold a medical and comprehensive health insurance that remains valid throughout the stay in Thailand

[metisdead]

A post bringing the Royal family into the discussion has been removed as well as the replies.

[londoedan]

im aloud to stay here one year no exits or even 3 months going to immigration.

You've got a degree and you cannot spell allowed or put a basic sentence together

Australian universities must be worse than I thought.

[simple1]

im aloud to stay here one year no exits or even 3 months going to immigration.

You've got a degree and you cannot spell allowed or put a basic sentence together

Australian universities must be worse than I thought.

Didn't you know spelling and punctuation is no longer a core capability for many school leavers in Australia? A regular complaint from the Unis is Year 12 (age 18) school leavers from Government schools need to take on an English language subject when going to Uni as skill level in written English is poor

[ray35ty]

trolls are out. yes my

english was not my best subject. and normally i always use spell check. and also my grammer is bad too but oh well cant have everything in life

my grandma sister was an english teacher. she also thought my english and grammer were horrible too. she use to correct me all the time when we spoke.

Sent from my GT-I9000 using Thaivisa Connect App

Edited August 25, 2012 by ray35ty

[simple1]

@ray35ty: have a great time in Thailand!

Edited August 25, 2012 by simple1

[croweater]

I think its a fairly normal market for the type of destination that it is. Meaning fairly normal ups and down. In my time participating in it I haven't seen overly extreme bubbles OR crashes. That doesn't mean either can't happen but I really don't see the fundamental reasons for either to happen.

But i do think bubbles occur when they start building and building and building I see so many apartments going up and you see so many cranes. Are they investors or people actually wanting to live here. I think if the demand is high no problem keep building but if there is a hiccup and there is an over supply and no demand there will be trouble.

correct amundo,they wouldn't get built if they hadn't already been sold off the plans. I know this I am SAS, real estate division.

[Rimmer]

Flame and counter flame removed

[Awohalitsiktoli]

I am astonished that condo units continue to be built and some people continue to buy those units at grossly overpriced prices. My guess is that many people from Bangkok are buying those units as an alternative to Bangkok (not so much farangs buying them, but not sure). Given what I see as a long-term decline in the overall quality of life there (have seen it decline since 1986), I foresee, not just a bubble, but a major crash. When? Not sure. Why? At some point even Bangkonians will run out of investment money, the global economy is not going to improve any time soon, the infrastructure is not keeping up with the building construction, too many human rats flocking to the place (seems like the worst of the worst end up there), and the real estate myth/spin machine is running on fumes. Why buy when you can rent? The concrete coffins that you can buy for 1.2 million are renting all over the place for10K..........meaning it would take you about ten years of renting to reach 1.2 million! And you are locked in to a sinking ship. Renting gives you the freedom to move when the obvious really does finally become obvious. I am not saying that Jomtien/Pattaya has no positive side, it does. I have to add that last part because the trolls (who reject any negative impression of the area) will say I am troll, which is not the case at all. I am telling it like I see it and have no financial reason to be positive or negative on this issue.

Edited August 25, 2012 by Rimmer
Pattaya Bashing Para removed

[JanKlaasen]

How about this for a change.

Bangkok people are buying condo's in Pattaya because they can easily get a mortgage.

I know buildings in Jomtien where entire floors are foreclosed by the bank because the mortgage isn't paid.

Clearly visible since there is a sticker on the door of each foreclosed condo that says it is owned by SCB for example.

Because the Thais buy and keep it empty doesn't mean they have money to burn,it means in many cases that they don't have money to pay their loan.

[JanKlaasen]

all serving to make Pattaya an undesirable place to live. These details are not part of the 'popular' dialogue because they would negatively effect sales. Also, one needs to consider the state of the global economy when asking the question "Who is going to buy all these units?"

Let me answer that for you.

Those who are making Pattaya undesirable to live ( for westerners ) are coincidental the only ones buying all these units.

Are you refering to Russians or Thais buying all these units ? Because if you say its the Russians then

ask yourself whose cars are jamming up the roads here.

And by the way,the only reason the roads are clogged here are the cops manupilating the traffic signals.

Keep an eye on it.At 4.30 PM the roads are allright but at that time the WIB step in and change the light cycles to 5 minutes or more and within the next 10 minutes Pattaya traffic is jammed as the side soi's and the soi's that connect to these side soi's are all blocked because the traffic on the main road is not allowed to move.

In response Thai drivers with their me first attitude will not give way anymore to traffic that tries to escape.

It is all one big chain reaction,and as long as they don't get some proper traffic regulation education this will get worse.

[rgs2001uk]

I am astonished that condo units continue to be built and some people continue to buy those units at grossly overpriced prices. My guess is that many people from Bangkok are buying those units as an alternative to Bangkok (not so much farangs buying them, but not sure). Given what I see as a long-term decline in the overall quality of life there (have seen it decline since 1986), I foresee, not just a bubble, but a major crash. When? Not sure. Why? At some point even Bangkonians will run out of investment money, the global economy is not going to improve any time soon, the infrastructure is not keeping up with the building construction, too many human rats flocking to the place (seems like the worst of the worst end up there), and the real estate myth/spin machine is running on fumes. Why buy when you can rent? The concrete coffins that you can buy for 1.2 million are renting all over the place for10K..........meaning it would take you about ten years of renting to reach 1.2 million! And you are locked in to a sinking ship. Renting gives you the freedom to move when the obvious really does finally become obvious. I am not saying that Jomtien/Pattaya has no positive side, it does. I have to add that last part because the trolls (who reject any negative impression of the area) will say I am troll, which is not the case at all. I am telling it like I see it and have no financial reason to be positive or negative on this issue.

"The concrete coffins that you can buy for 1.2 million are renting all over the place for10K...." ROFL.

Someone somewhere must be pissing their pants.

In Bkk I rent for 10k per month a house that could sell for 5.5 million.

I also rent a house in Chan for 4k per month.

Please tell me what I am missing out on and why I should buy.

[breadbin]

IMO all property has a price, it's just whether the owners want to sell.

Again, IMO and having sold a condo in BKK,I experienced this 1st hand, if a property is worth 4 million along with 100 others you have fierce competition, My condo was valued at 6 million, i thought it was too high, others were on the marker for more, some for less.

I decided I wanted to sell, I put it on the market at 4.5 million, just under the next cheapest, i was offered a lower price, i decided to take it, bish bosh, all completed.

My point is that sellers in Thailand as well as agents try to put too high prices on property, if you buy high you may need to take a loss when you sell, if you decide to or if not, you'll have to wait until prices go up.

My thought, there are bargains in Pattaya, not hundreds, but someone somewhere will want to sell more than the other person.

As a further example, my friend, who is selling his house in Pattaya has it under offer for probably 1.5 million (min) baht below what is is probably worth. He is happy, buyer is happy. He can afford to sell it and wants to invest in something else. Everyone is happy.

The way to sell is to sell at undervalue and make it a good deal.

My thoughts and opinions only and I am sure I am now going to be bashed!!!

[lumply]

There can be no better example of a property bubble bursting than in Dubai. Oh for the days when people bought property to live in. Greedy b$#*ards who get their fingers burnt through over speculating in property get absolutely no sympathy from me. However, all to their own and one hopes that Pattaya will not pop.

[tropo]

Well honestly I bought about 10 years ago in a good location and based on my understanding the REAL resale value and also the rents, I think there is NO BUBBLE! Unless there was already a bubble when I bought. About Pattaya as a tourism city. Yes it is. And yes there always seems to be a new demographic to replace ones they have lost and I see no sign they can't continue with that indefinitely.

In the Pratumnak Hill area landlords have had little trouble finding tenants to pay big rents over the 6 years I've been in this area. My previous landlord has all his apartments full and most are on long leases... and this is the slow season. It's very hard to find rentals here in the high season and they're not cheap.

[Awohalitsiktoli]

I am astonished that condo units continue to be built and some people continue to buy those units at grossly overpriced prices. My guess is that many people from Bangkok are buying those units as an alternative to Bangkok (not so much farangs buying them, but not sure). Given what I see as a long-term decline in the overall quality of life there (have seen it decline since 1986), I foresee, not just a bubble, but a major crash. When? Not sure. Why? At some point even Bangkonians will run out of investment money, the global economy is not going to improve any time soon, the infrastructure is not keeping up with the building construction, too many human rats flocking to the place (seems like the worst of the worst end up there), and the real estate myth/spin machine is running on fumes. Why buy when you can rent? The concrete coffins that you can buy for 1.2 million are renting all over the place for10K..........meaning it would take you about ten years of renting to reach 1.2 million! And you are locked in to a sinking ship. Renting gives you the freedom to move when the obvious really does finally become obvious. I am not saying that Jomtien/Pattaya has no positive side, it does. I have to add that last part because the trolls (who reject any negative impression of the area) will say I am troll, which is not the case at all. I am telling it like I see it and have no financial reason to be positive or negative on this issue.

"The concrete coffins that you can buy for 1.2 million are renting all over the place for10K...." ROFL.

Someone somewhere must be pissing their pants.

In Bkk I rent for 10k per month a house that could sell for 5.5 million.

I also rent a house in Chan for 4k per month.

Please tell me what I am missing out on and why I should buy.

I do not see any financial reason to buy real estate in Pattaya-Jomtien, unless, of course, you believe that prices will go way up........which they have not done in ten years, except for the high-end units (and even then I wonder if these investors could make a lot more money putting their money elsewhere). There could be other reasons for purchasing condo units/houses in Pattaya-Jomtien, other than "to make money." I am not going to be specific, but you can probably figure it out if you think about the purpose of a washing machine

[sotsira]

Just like any other metropolis around the world, there are landlords and there are tenants.

Without landlords, there would be no tenants so it's a matter of preference and Pattaya

is no different.

To all the tenants out there, it's your money that keeps the buyers in buying property.

[hotandhumid]

I am astonished that condo units continue to be built and some people continue to buy those units at grossly overpriced prices. My guess is that many people from Bangkok are buying those units as an alternative to Bangkok (not so much farangs buying them, but not sure). Given what I see as a long-term decline in the overall quality of life there (have seen it decline since 1986), I foresee, not just a bubble, but a major crash. When? Not sure. Why? At some point even Bangkonians will run out of investment money, the global economy is not going to improve any time soon, the infrastructure is not keeping up with the building construction, too many human rats flocking to the place (seems like the worst of the worst end up there), and the real estate myth/spin machine is running on fumes. Why buy when you can rent? The concrete coffins that you can buy for 1.2 million are renting all over the place for10K..........meaning it would take you about ten years of renting to reach 1.2 million! And you are locked in to a sinking ship. Renting gives you the freedom to move when the obvious really does finally become obvious. I am not saying that Jomtien/Pattaya has no positive side, it does. I have to add that last part because the trolls (who reject any negative impression of the area) will say I am troll, which is not the case at all. I am telling it like I see it and have no financial reason to be positive or negative on this issue.

"The concrete coffins that you can buy for 1.2 million are renting all over the place for10K...." ROFL.

Someone somewhere must be pissing their pants.

In Bkk I rent for 10k per month a house that could sell for 5.5 million.

I also rent a house in Chan for 4k per month.

Please tell me what I am missing out on and why I should buy.

I do not see any financial reason to buy real estate in Pattaya-Jomtien, unless, of course, you believe that prices will go way up........which they have not done in ten years, except for the high-end units (and even then I wonder if these investors could make a lot more money putting their money elsewhere). There could be other reasons for purchasing condo units/houses in Pattaya-Jomtien, other than "to make money." I am not going to be specific, but you can probably figure it out if you think about the purpose of a washing machine

Agreed. I would only buy now if I wanted to buy a 'home' ie somewhere to live and die and maybe to raise a family, not financially motivated. Even with renting there are no guarantees, then you have the hassles of the upkeep of the place, maintenace fees, making sure your tenant isn't wrecking the place, dealing with real estate people etc etc..

Edited August 28, 2012 by hotandhumid

[apalink_thailand]

I just wonder how the impending laws on money laundering will affect the situation. Pretty soon buying condos with a suitcase full of cash will be a thing of the past.

Sent from my HTC One X using Thaivisa Connect App

[Awohalitsiktoli]

You said it, not me Your point is clear, but TIT. The level of "you know what" is so high, that laws do not seem to matter, especially if you are wealthy and influential. Most of the readers here know that there is a jet ski problem and laws are on the books to protect people from the so-called jet ski mafia, but nothing is done, and we all know why. The market here seems unique. One would have expected it to crash a long time ago. It did not do so (at least officially). The units continue to go up, and that monster of a condo development plan that will reach up over 90 floors high is still being promoted (amazing Thailand). Russsians have invaded in large numbers. Are they buying these condo units/houses? The Chinese are coming. Are they buying condo units/houses? The majority of farangs that I see seem to be "sex tourists." I doubt they are buying condos/houses and prefer to spend their money on booze and the other thing. I think the current market is being supported by a growing middle-class, which is residing in Bangkok, a lot of hype from organized real estate entities who are doing everything in their power to make money, and people searching for large washing machines But there are people here that will swear that the real estate market has never seen better days and there are better days ahead. That would not be me.