Is It Us Or There A Rapid Increase In The Value Of Land And Houses?

[tim armstrong]

We live on a small farm near Nakhon Sawan. In the past 2yrs maybe, there seems to be a rapid increase in the value of land in this area, accompanied by massive commercial

property and housing development. We are wondering if the same is happening in other rural areas. Traditionally this is a very productive rice and sugar cane growing area, but we are now seeing several new resorts 3 new shopping malls and a lot of housing not just in Nakhon Sawan but also surrounding villages. Agricultural land has also increased in value by 30%+ as well. We don't quite understand why.

Maybe its connected the unlimited credit for cars and Kubotas that's also happening - which is a worry. I saw the same thing happen in Oz 15 years ago. It didn't work for farmers there either. I just have a feeling that the credit bubble will burst soon, and maybe when rice pledging is no longer sustainable by the government.

[chiang mai]

We've seen some serious price increases in land around Sukhothai, not too far away from you, the asking prices are going up but not many people are biting/buying, one chap wanted 2.9 for one Rai of rice paddy, absolutely crazy. I don't believe there is a credit bubble, if you read some of the other threads you'll see the subject has been discussed to death, conclusion is that there is rapid credit growth at present but there is no bubble.

[TPI]

Around Phrae the prices of houses and land has gotten crazy, you cannot buy a house for less than a million baht and land anywhere near a concrete road is going for a million a rai!

I think that the old folk are feeling the pinch and the youngsters are not supporting them! So, the only thing they can do is sell the family farm and/or house and move to where ever the kids are!

Something has got to give sooner or later?

[SantiSuk]

Boom and bust, every 10 years or so - it is the capitalist way. For 200 years or more now.

[tim armstrong]

Thanks for the replies, interesting to see that its a general pattern. Sorry about the double post.