How can they keep building new buildings and apartments?

[soomak]

johnthompson said:

I don't think Thailand is a particularly rich country.

I guess it comes down to how you define rich. Do you consider Indonesia a 'rich country' ? Brazil ? China ? Would you say the top 10% in Bangkok had more money than the top 10% in Arkansas ?

Exactly the thought I had reading the OP.

Do not know how they keep building. Not an expert on bubbles etc.

But saying Thailand is not a rich country is a bit too rich.

Thailand is a very rich country. But 95% - 99% of population is not rich.

I think give or take a few %% explains the situation more precisely.

On the other hand, isn't this situation true for other countries?

Thailand is ranked something like like 90 out 180 countries in terms of GDP per capita.

"Rich" is subjective, but the Thai people are definitely much less wealthy than any Western country.

The reason most people buy condos is they think it would give them a better return then putting the money in the Thai banks (which currently give you 2-3% per year).

Of course there are many other channels of investment, but most common people in Thailand are not aware or don't have access to them.

Some do put money in Gold or in the stock market, but still most go for condos.

[Banzai99]

Simple thing is, Farangs want to come to Thailand, the English are miserable in their own country, the Russians freeze for half the year, the beer is cheap and you can be an ugly bastard and still get laid.

I have a Condo in Wong Amat, the building around here has been incredible the last few years, but still it goes on, someone must be buying don't you think ?

Or do ThaiVisa members know best ?

[giggles]

theres tons of hot money from corruption and vice that needs a home so just throw up some more buildings ,that way it can be laundered and made transparent .

[jaideeguy]

How can they keep building new buildings and apartments?

Simple answer............they build cheaply with low quality materials so that the average Thai house falls apart after 7 years and you have to tear down and build another 'disposable house'.

Well mr jaideeguy, you obviously don't know anything about building or finance.

Lets start with finance, some one is loaning the money and the developer will need to get a percentage sold to make it viable to start building, until they reach that point there will be no start.

As for the actual building it takes several years of planning and gaining aprovals before the green light is given to actualy build.( im talking high rise) If your in Australia with all the red tape it can take a life time, im still waiting 18 mths for town planning approval for 3 units down on the coast.

And my number one HATE is when I hear or read from stupid mornons who have no f""""" idea of building and use that worn out old term..."cheap materials"

To enlighten you over time the industry changes as do the products we use some good reasons are for costs and availability of what we once used, also some of these so called cheaper options actually are better engineered for todays needs. There are many examples of these products such as roof trusses, engineered hyspan beams, MDF archs and skirts, in fact lot of manufactured board are used in high end joinery and fit out, only the style and profile and fittings vary between a million dollar house to a $150,000 house.

Thailand once built in timber but shrinking forests and rising costs pretty much killed that, concrete construction is a European style introduced because its cheap and not necessarily the best due to heat retention but hey they don't mind.

There is no cheap materials but if the job is not well supervised by professionals who know there game you will get poor workmanship and that my friend is the problem the world over.

Well mr Alex...............I have been in the building business both here and abroad and see with my own eyes the results of cheap materials and poor unsupervised workmanship, cutting corners, and knocking the houses up with Burma labor that is untrained.

My brother in law works for a mid sized steel shop that is thriving in this current boom and the shops get notice in advance when the inspector is coming to town and they simply close the shop so they are not caught with low grade steel.

BTW.......when did you get off the plane??

[Banzai99]

How can they keep building new buildings and apartments?

Simple answer............they build cheaply with low quality materials so that the average Thai house falls apart after 7 years and you have to tear down and build another 'disposable house'.

Well mr jaideeguy, you obviously don't know anything about building or finance.

Lets start with finance, some one is loaning the money and the developer will need to get a percentage sold to make it viable to start building, until they reach that point there will be no start.

As for the actual building it takes several years of planning and gaining aprovals before the green light is given to actualy build.( im talking high rise) If your in Australia with all the red tape it can take a life time, im still waiting 18 mths for town planning approval for 3 units down on the coast.

And my number one HATE is when I hear or read from stupid mornons who have no f""""" idea of building and use that worn out old term..."cheap materials"

To enlighten you over time the industry changes as do the products we use some good reasons are for costs and availability of what we once used, also some of these so called cheaper options actually are better engineered for todays needs. There are many examples of these products such as roof trusses, engineered hyspan beams, MDF archs and skirts, in fact lot of manufactured board are used in high end joinery and fit out, only the style and profile and fittings vary between a million dollar house to a $150,000 house.

Thailand once built in timber but shrinking forests and rising costs pretty much killed that, concrete construction is a European style introduced because its cheap and not necessarily the best due to heat retention but hey they don't mind.

There is no cheap materials but if the job is not well supervised by professionals who know there game you will get poor workmanship and that my friend is the problem the world over.

Well mr Alex...............I have been in the building business both here and abroad and see with my own eyes the results of cheap materials and poor unsupervised workmanship, cutting corners, and knocking the houses up with Burma labor that is untrained.

My brother in law works for a mid sized steel shop that is thriving in this current boom and the shops get notice in advance when the inspector is coming to town and they simply close the shop so they are not caught with low grade steel.

BTW.......when did you get off the plane??

As a responsible member of society ( ThaiVisa Member ), why don't you turn the steel shop in ?

[kannot]

How can they keep building new buildings and apartments?

Simple answer............they build cheaply with low quality materials so that the average Thai house falls apart after 7 years and you have to tear down and build another 'disposable house'.

Well mr jaideeguy, you obviously don't know anything about building or finance.

Lets start with finance, some one is loaning the money and the developer will need to get a percentage sold to make it viable to start building, until they reach that point there will be no start.

As for the actual building it takes several years of planning and gaining aprovals before the green light is given to actualy build.( im talking high rise) If your in Australia with all the red tape it can take a life time, im still waiting 18 mths for town planning approval for 3 units down on the coast.

And my number one HATE is when I hear or read from stupid mornons who have no f""""" idea of building and use that worn out old term..."cheap materials"

To enlighten you over time the industry changes as do the products we use some good reasons are for costs and availability of what we once used, also some of these so called cheaper options actually are better engineered for todays needs. There are many examples of these products such as roof trusses, engineered hyspan beams, MDF archs and skirts, in fact lot of manufactured board are used in high end joinery and fit out, only the style and profile and fittings vary between a million dollar house to a $150,000 house.

Thailand once built in timber but shrinking forests and rising costs pretty much killed that, concrete construction is a European style introduced because its cheap and not necessarily the best due to heat retention but hey they don't mind.

There is no cheap materials but if the job is not well supervised by professionals who know there game you will get poor workmanship and that my friend is the problem the world over.

Well mr Alex...............I have been in the building business both here and abroad and see with my own eyes the results of cheap materials and poor unsupervised workmanship, cutting corners, and knocking the houses up with Burma labor that is untrained.

My brother in law works for a mid sized steel shop that is thriving in this current boom and the shops get notice in advance when the inspector is coming to town and they simply close the shop so they are not caught with low grade steel.

BTW.......when did you get off the plane??

As a responsible member of society ( ThaiVisa Member ), why don't you turn the steel shop in ?

Because as you fully know NOTHING would happen!

[Banzai99]

Evil prevails when good men do nothing.

[AlexRRR]

_{The world is flat.....you will fall off the edge if you sail out to far.}

[MrWorldwide]

johnthompson said:

I don't think Thailand is a particularly rich country.

I guess it comes down to how you define rich. Do you consider Indonesia a 'rich country' ? Brazil ? China ? Would you say the top 10% in Bangkok had more money than the top 10% in Arkansas ?

Exactly the thought I had reading the OP.

Do not know how they keep building. Not an expert on bubbles etc.

But saying Thailand is not a rich country is a bit too rich.

Thailand is a very rich country. But 95% - 99% of population is not rich.

I think give or take a few %% explains the situation more precisely.

On the other hand, isn't this situation true for other countries?

Yes, it is true for other countries - many of them Thailand's near neighbours where decades (centuries ?) of corruption and cronyism have ensured that wealth is concentrated in the hands of relatively few, but if we can point to an emerging middle class in China surely Thailand is also experiencing some of that 'magic' ? Folks who grow up in families where property is accepted as a potential shortcut to wealth and banks are happy to lend to people investing in same.

That's precisely how China built it's 'ghost cities', but one of its sternest critics appeared on our Dateline recently saying that there may be some light at the end of the tunnel for investors who hang on long enough for the cities to 'fill up', claiming that one such city did so within 5 years. Unfortunately, Thailand doesn't have 400 million people in rural areas or state-sponsored programs to relocate them to highrise living. When I looked at the farmers in that story, it was a struggle to picture them surviving in apartments, but apparently they are given no choice - totally different system to Thailand.

One of the things that stuns me about SE Asia is how ready folk seem to accept failed developments on their doorstep - from the hulks along Kuta Beach to similar monstrosities in Port Dickson, developers seem to be able to just walk away when the money runs out (as it did during the currency crisis). The return of the wrecking ball is the best thing to happen to central BKK over the last decade or so, even if some will inevitably miss landmarks like Washington Square.

[jaideeguy]

How can they keep building new buildings and apartments?

Simple answer............they build cheaply with low quality materials so that the average Thai house falls apart after 7 years and you have to tear down and build another 'disposable house'.

Well mr jaideeguy, you obviously don't know anything about building or finance.

Lets start with finance, some one is loaning the money and the developer will need to get a percentage sold to make it viable to start building, until they reach that point there will be no start.

As for the actual building it takes several years of planning and gaining aprovals before the green light is given to actualy build.( im talking high rise) If your in Australia with all the red tape it can take a life time, im still waiting 18 mths for town planning approval for 3 units down on the coast.

And my number one HATE is when I hear or read from stupid mornons who have no f""""" idea of building and use that worn out old term..."cheap materials"

To enlighten you over time the industry changes as do the products we use some good reasons are for costs and availability of what we once used, also some of these so called cheaper options actually are better engineered for todays needs. There are many examples of these products such as roof trusses, engineered hyspan beams, MDF archs and skirts, in fact lot of manufactured board are used in high end joinery and fit out, only the style and profile and fittings vary between a million dollar house to a $150,000 house.

Thailand once built in timber but shrinking forests and rising costs pretty much killed that, concrete construction is a European style introduced because its cheap and not necessarily the best due to heat retention but hey they don't mind.

There is no cheap materials but if the job is not well supervised by professionals who know there game you will get poor workmanship and that my friend is the problem the world over.

Well mr Alex...............I have been in the building business both here and abroad and see with my own eyes the results of cheap materials and poor unsupervised workmanship, cutting corners, and knocking the houses up with Burma labor that is untrained.

My brother in law works for a mid sized steel shop that is thriving in this current boom and the shops get notice in advance when the inspector is coming to town and they simply close the shop so they are not caught with low grade steel.

BTW.......when did you get off the plane??

As a responsible member of society ( ThaiVisa Member ), why don't you turn the steel shop in ?

Because if my brother in law's shop closed, guess who would have to support him. 555

[skyaslimit]

There will be a major change in Immigration laws, they will allow all the foreigners living here for more than 2 weeks to stay permanently and then they will allow all of us to buy/occupy all these vacant apartments/condominiums. After all the population is in decline.... isn't it?

[Naam]

How can they keep building new buildings and apartments?

Simple answer............they build cheaply with low quality materials so that the average Thai house falls apart after 7 years and you have to tear down and build another 'disposable house'.

repeating silly claims won't make them come true.

[Benjie]

I would have thought the answer was fairly simple, build 3 shop houses for a million baht each and it doesn't really matter if the other two remain empty for a while if you've already sold 1 of them at 3 million baht.

[LennyW]

I regularly travel to Malaysia, Vietnam, Borneo and Myanmar and wherever you look there seems to be a huge ammount of construction going on, everything - houses, apartments, high rises, infrastructure work, it's quite amazing but not unique to Thailand.

[jpeg]

1 more thing, there isn't really a bubble to burst. From a developers pov, they have built equity. Eventually it will sell, in the mean time, the banks funding their next build.

If the shoddy workmanship/tropical climate doesn't reduce it to a moldy heap of rubble first.