webfact Posted June 13, 2013 Share Posted June 13, 2013 Real estate expert says Siam Square is overvalued By Coconuts Bangkok BANGKOK: -- On Wednesday, veteran real estate evaluator Sopon Pornchokchai, president of the Agency for Real Estate Affairs (AREA), said that the land in and around Bangkok’s Siam Square might be grossly overvalued. According to Sopon’s research, land surrounding Siam Square should not be valued at greater than THB2 million per square wah (an area roughly equal to four square miles). He said that prices should increase to about THB1.7 million per square wah by the year’s end. The land surrounding Siam Square is generally regarded as the most expensive in Thailand. Full story: http://bangkok.coconuts.co/2013/06/13/real-estate-expert-says-siam-square-overvalued -- Coconuts Bangkok 2013-06-13 Link to comment Share on other sites More sharing options...
Popular Post OzMick Posted June 13, 2013 Popular Post Share Posted June 13, 2013 I knew it was a good decision not to buy it. 4 Link to comment Share on other sites More sharing options...
jaidam Posted June 13, 2013 Share Posted June 13, 2013 Pardon my ignorance but in a largely free market, how can a commodity like land become "overvalued"? Surely the laws of supply and demand dictate the price at any given time? Sounds like Sopon has sour grapes afer missing out on buying real estate in the Siam square area. Link to comment Share on other sites More sharing options...
Popular Post cyberholz Posted June 13, 2013 Popular Post Share Posted June 13, 2013 ... THB2 million per square wah (an area roughly equal to four square miles) should probably read equal to four square METERS. Otherwise I'm definitely a multi-millionaire with my few talang wahs here at Ekkamai... 8 Link to comment Share on other sites More sharing options...
MacWalen Posted June 13, 2013 Share Posted June 13, 2013 Pardon my ignorance but in a largely free market, how can a commodity like land become "overvalued"? Surely the laws of supply and demand dictate the price at any given time? Sounds like Sopon has sour grapes afer missing out on buying real estate in the Siam square area. Exactly. Price is what the market thinks it is. If someone will be willing to pay more it will cost even more. Very relative, supply and demand. Link to comment Share on other sites More sharing options...
Popular Post Payboy Posted June 13, 2013 Popular Post Share Posted June 13, 2013 Remind me again, who owns that land? 8 Link to comment Share on other sites More sharing options...
retell Posted June 13, 2013 Share Posted June 13, 2013 thats cheaper than the land inside buriram city Link to comment Share on other sites More sharing options...
smutcakes Posted June 13, 2013 Share Posted June 13, 2013 I presume where the article says an area roughly 4 square miles, it should be roughly 4 square meters? I presume that it is also all a little pie in the sky as the land around there is owned by either the the Crown or by Chula, and as far as I am aware it is not being sold, only leased out. 1 Link to comment Share on other sites More sharing options...
tomross46 Posted June 13, 2013 Share Posted June 13, 2013 I presume where the article says an area roughly 4 square miles, it should be roughly 4 square meters? I presume that it is also all a little pie in the sky as the land around there is owned by either the the Crown or by Chula, and as far as I am aware it is not being sold, only leased out. Could it be that some greedy property developer wants the land. I could have been mistanken to thing that there were property developers that were not greedy. Is this also the area that was burned down during the riots in 2010? Link to comment Share on other sites More sharing options...
WhizBang Posted June 13, 2013 Share Posted June 13, 2013 Is this also the area that was burned down during the riots in 2010? The cinema opposite the BTS station was torched, but that was all in the Siam Square area that I am aware of. BIG development going up there now. Link to comment Share on other sites More sharing options...
Chrisswe Posted June 13, 2013 Share Posted June 13, 2013 The hole Bangkok is overvalued!! Reason most of Bangkok already under seawater level !!! 1 Link to comment Share on other sites More sharing options...
bigbamboo Posted June 13, 2013 Share Posted June 13, 2013 Time for another land auction then? After the guide price has been substantially reduced of course. Link to comment Share on other sites More sharing options...
itchybum Posted June 13, 2013 Share Posted June 13, 2013 Prime waterfront land is expensive in any city. 1 Link to comment Share on other sites More sharing options...
BangkokHank Posted June 13, 2013 Share Posted June 13, 2013 As Warren Buffett so succinctly put it: "Price is what you pay. Value is what you get." There is such a thing as a reasonable price - and an unreasonable price - for any asset. This reasonable price can be determined by comparing the income-earning potential of the given asset to other assets, modified, of course, to reflect the differences in the assets being compared. So, as some people have already pointed out, prices can - and often do - diverge from values. Link to comment Share on other sites More sharing options...
Thait Spot Posted June 13, 2013 Share Posted June 13, 2013 ... THB2 million per square wah (an area roughly equal to four square miles) should probably read equal to four square METERS. Otherwise I'm definitely a multi-millionaire with my few talang wahs here at Ekkamai... Yes - an incredible mistake. I'll take the lot a t double that rate Link to comment Share on other sites More sharing options...
PREM-R Posted June 13, 2013 Share Posted June 13, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? Link to comment Share on other sites More sharing options...
itchybum Posted June 13, 2013 Share Posted June 13, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? mbk also I believe innit? Link to comment Share on other sites More sharing options...
PREM-R Posted June 13, 2013 Share Posted June 13, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? mbk also I believe innit? I believe that you are correct Link to comment Share on other sites More sharing options...
Jasun Posted June 13, 2013 Share Posted June 13, 2013 There has to be a motive here somewhere. Link to comment Share on other sites More sharing options...
Thai at Heart Posted June 13, 2013 Share Posted June 13, 2013 Is there anything for sale that is undeveloped there? Link to comment Share on other sites More sharing options...
kblaze Posted June 13, 2013 Share Posted June 13, 2013 TV uses coconuts stories that coconuts gets from "the other news site"...ummmhmmm... Link to comment Share on other sites More sharing options...
soi41 Posted June 13, 2013 Share Posted June 13, 2013 TV uses coconuts stories that coconuts gets from "the other news site"...ummmhmmm... All of them hoping, for you to hit the magic sponsor-button!! Link to comment Share on other sites More sharing options...
HerbalEd Posted June 13, 2013 Share Posted June 13, 2013 Pardon my ignorance but in a largely free market, how can a commodity like land become "overvalued"? Surely the laws of supply and demand dictate the price at any given time? Sounds like Sopon has sour grapes afer missing out on buying real estate in the Siam square area. Pardon my ignorance but in a largely free market, how can a commodity like land become "overvalued"? Surely the laws of supply and demand dictate the price at any given time? Sounds like Sopon has sour grapes afer missing out on buying real estate in the Siam square area. You say "pardon my ignorance" but then infer that Sopon's interpretation of real estate prices are only "sour grapes" when obviously he has extensive professional experience that qualifies him to evaluate real estate in Thailand. Link to comment Share on other sites More sharing options...
tragickingdom Posted June 13, 2013 Share Posted June 13, 2013 Yes most areas in Bangkok and other cities are grossly overvalued. It is what someone pays for it. But beware, the expert hopes that by telling this the prices will drop, he might be representing a buyer. Link to comment Share on other sites More sharing options...
Payboy Posted June 13, 2013 Share Posted June 13, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? I thought Chula holds the 90 year old lease from CPB. Link to comment Share on other sites More sharing options...
metisdead Posted June 13, 2013 Share Posted June 13, 2013 Off topic posts have been removed. Link to comment Share on other sites More sharing options...
ratcatcher Posted June 14, 2013 Share Posted June 14, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? Maybe it belongs to the Crown Property Bureau as does all the land between Payathai, Saen Saeb Canal and Ratchaprasong. http://en.wikipedia.org/wiki/File:Map_Siam_Ratchaprasong.png http://en.wikipedia.org/wiki/Siam_District Link to comment Share on other sites More sharing options...
PREM-R Posted June 14, 2013 Share Posted June 14, 2013 (edited) Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? Maybe it belongs to the Crown Property Bureau as does all the land between Payathai, Saen Saeb Canal and Ratchaprasong. http://en.wikipedia.org/wiki/File:Map_Siam_Ratchaprasong.png http://en.wikipedia.org/wiki/Siam_District "Maybe it belongs to the Crown Property Bureau as does all the land between Payathai, Saen Saeb Canal and Ratchaprasong." Siam Square is owned by Chulalongkorn University and is managed by its Property Management Office, known as Chula Property. . Edited June 14, 2013 by PREM-R 1 Link to comment Share on other sites More sharing options...
ratcatcher Posted June 14, 2013 Share Posted June 14, 2013 Remind me again, who owns that land? Chulalongkorn University is the owner of Siam Square, did you think it was someone else? Maybe it belongs to the Crown Property Bureau as does all the land between Payathai, Saen Saeb Canal and Ratchaprasong. http://en.wikipedia.org/wiki/File:Map_Siam_Ratchaprasong.png http://en.wikipedia.org/wiki/Siam_District "Maybe it belongs to the Crown Property Bureau as does all the land between Payathai, Saen Saeb Canal and Ratchaprasong." Siam Square is owned by Chulalongkorn University and is managed by its Property Management Office, known as Chula Property. . Touché Link to comment Share on other sites More sharing options...
Time Traveller Posted June 14, 2013 Share Posted June 14, 2013 Pardon my ignorance but in a largely free market, how can a commodity like land become "overvalued"? Surely the laws of supply and demand dictate the price at any given time? Sounds like Sopon has sour grapes afer missing out on buying real estate in the Siam square area. The answer is because land is not the same price everywhere. If one sq meter of land is much more expensive than one sq meter of land elsewhere, the valuation is done by comparing the rental yield at that place against the average rental yield of comparable real estate. If the rental yield is significantly less than average (ie. price is more expensive) then they declare that place as overvalued. Even is the land price elsewhere is much less per sq meter it could still be declared overvalued if the rental yield is much below average yields on comparable property. 1 Link to comment Share on other sites More sharing options...
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