New Houses Not Selling?

[klikster]

A post some time back claimed that the new surges of construction in Isaan cities are not selling. I'm certainly no expert on Isaan's economy, but a recent visit to one housing development made me pause to ponder those claims.

In an attempt to settle on a color scheme for our new build here in Khon Kaen, wife and I visited the upscale project adjacent just east of Mittiphap on the bypass/ring road interchange. The houses are very nice looking and built around man-made lakes. Prices apparently range Bt 7-10m or thereabouts. I don't know how many houses are in that development, but I would guess upwards of 80 - 100.

According to the sales woman who took us inside, all properties have been sold. Some 6 or 8, if I recall correctly, are available for resale.

[inzman]

Who has that kind of money to buy a house that expensive in Issan, yet alone 80-100. Think about it.

[hansnl]

Ah....

You found out.

Good!

What is quite a normal practice nowadays parts of the project are sold in lots of 6-8 houses to investors.

Who buys the lots for a rather reduced price and then sells those houses one by one on for a rather higher price.

The combined rathers are quite a hefty profit, a million a house is quite possible.

For the project it is good thing while the houses are paid for in parts while being built, no bank loans needed!

For the lot buyers the profit is considerable.

And you, the buyer, pay Bangkok prices for houses that are too expensive.

Asked for offers from builders for a house to be built on a piece of land we own.

4 bed, 4 bath, fitted kitchen, diningroom, sittingroom, two stories, annex, double walls, tiles everywhere, insulated.

Total price varying from 1.8 to 2.6 million

Do your sums, guess the land does not cost 4-6 million?

Edited January 12, 2014 by hansnl

[klikster]

Ah....

You found out.

Good!

What is quite a normal practice nowadays parts of the project are sold in lots of 6-8 houses to investors.

Who buys the lots for a rather reduced price and then sells those houses one by one on for a rather higher price.

The combined rathers are quite a hefty profit, a million a house is quite possible.

For the project it is good thing while the houses are paid for in parts while being built, no bank loans needed!

For the lot buyers the profit is considerable.

And you, the buyer, pay Bangkok prices for houses that are too expensive.

Asked for offers from builders for a house to be built on a piece of land we own.

4 bed, 4 bath, fitted kitchen, diningroom, sittingroom, two stories, annex, double walls, tiles everywhere, insulated.

Total price varying from 1.8 to 2.6 million

Do your sums, guess the land does not cost 4-6 million?

Making assumptions are we?

BTW, what exactly have I "found out"?

My house in 95% finished, so it should be pretty obvious that I have done my sums -- and a fair amount of planning as well.

[Mike45]

A post some time back claimed that the new surges of construction in Isaan cities are not selling. I'm certainly no expert on Isaan's economy, but a recent visit to one housing development made me pause to ponder those claims.

In an attempt to settle on a color scheme for our new build here in Khon Kaen, wife and I visited the upscale project adjacent just east of Mittiphap on the bypass/ring road interchange. The houses are very nice looking and built around man-made lakes. Prices apparently range Bt 7-10m or thereabouts. I don't know how many houses are in that development, but I would guess upwards of 80 - 100.

According to the sales woman who took us inside, all properties have been sold. Some 6 or 8, if I recall correctly, are available for resale.

When I started looking 15 months ago I found the same thing. All houses were sold in the development. I really didn't want to go through a house build because I am not living in Thailand yet. I wanted to avoid all the miscommunication and misunderstanding of a build from afar. I just wanted to buy a house that was completed and make my changes when I finally moved there.

Instead I'm waiting for our house to be completed and we are dealing with all the issues as best as we can.

Sent from my iPad using ThaiVisa app

[SantiSuk]

Location, location. A nice lakeside property with full spec build and fittings within a few k of a big Isaan city could well be 'worth' 7-10 million baht. Silly trying to compare that with own build in Nakhon nowhere (he said making his own silly assumption ).

[thehelmsman]

In Sakon city out by the Airport there's a couple of developements - 3-4 Mil Small lots, usual cheap construction which in itself is tolerable but the lot size was way too small. And, didn't see much in the way of people living there. It was kind of depressing looking.

[swissie]

It won't be long and some Farangs will break down the door of the sales office while singing the Thai-National Anthem and slamming 10 Mil Baht on the sales-desk at the same time. Shortly after they will e-mail back to Europe "Have made the investment of my life, even the sales-lady has confirmed, that it will double in price within the next 2 years! Of course, all in wife's name, so I am on the safe side"

I am on the edge of my seat, clearly, another Thai-Success -Story is in the making.

Cheers.

[somo]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

[transam]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

Correct........ ............Numnuts are out there that pay daft money for what..............

[yankee99]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

650k wouldnt be enough to build a kitchen for me. I guess everyone has a different standard of living

[transam]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

650k wouldnt be enough to build a kitchen for me. I guess everyone has a different standard of living

Perhaps you are being ripped off........ .....................

[klikster]

It won't be long and some Farangs will break down the door of the sales office while singing the Thai-National Anthem and slamming 10 Mil Baht on the sales-desk at the same time. Shortly after they will e-mail back to Europe "Have made the investment of my life, even the sales-lady has confirmed, that it will double in price within the next 2 years! Of course, all in wife's name, so I am on the safe side"

I am on the edge of my seat, clearly, another Thai-Success -Story is in the making.

Cheers.

In your haste to impart your pearls of wisdom, you apparently missed the "all sold out" status of the development I posted about.

And I didn't see even one farang as we made our brief tour of the place. Was told that most of the residents are doctors and retired uni staff.

As this seems to have turned into an assumptions thread, should we assume that you have been ripped off?

[klikster]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

Have you seen the development?

"Buy some land, get a good builder and build your own. "

Been there done that. Didn't read my OP very well did you?

[gerry123]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

sorry, a large NEW teak house for 650 k???? i would like 2 please

[NeverSure]

"sorry, a large NEW teak house for 650 k???? I my girlfriend would like 2 please"

[Naam]

Ah....

You found out.

Good!

What is quite a normal practice nowadays parts of the project are sold in lots of 6-8 houses to investors.

Who buys the lots for a rather reduced price and then sells those houses one by one on for a rather higher price.

The combined rathers are quite a hefty profit, a million a house is quite possible.

For the project it is good thing while the houses are paid for in parts while being built, no bank loans needed!

For the lot buyers the profit is considerable.

And you, the buyer, pay Bangkok prices for houses that are too expensive.

Asked for offers from builders for a house to be built on a piece of land we own.

4 bed, 4 bath, fitted kitchen, diningroom, sittingroom, two stories, annex, double walls, tiles everywhere, insulated.

Total price varying from 1.8 to 2.6 million

Do your sums, guess the land does not cost 4-6 million?

4 bed, 4 bath... Total price varying from 1.8 to 2.6 million

120m² or 650m² living area?

[Naam]

"sorry, a large NEW teak house for 650 k???? I my girlfriend would like 2 please"

for that price i take a couple of homes too. a few weeks in a cool area is a nice change.

[Rdrokit]

Who has that kind of money to buy a house that expensive in Issan, yet alone 80-100. Think about it.

Well there must be people with money in Issan as a development in Korat called Land & Home has 500 plus houses 5M-10M and they are all sold.

Paid 1.8M for my house 6 years ago in a development called Home Gardenville and now they same house is going for almost 3M. The land prices have sky rocketed 100%. And still 99% of the homes being built in this area are already sold. Go figure.

[FiftyTwo]

Who has that kind of money to buy a house that expensive in Issan, yet alone 80-100. Think about it.

Well there must be people with money in Issan as a development in Korat called Land & Home has 500 plus houses 5M-10M and they are all sold.

Paid 1.8M for my house 6 years ago in a development called Home Gardenville and now they same house is going for almost 3M. The land prices have sky rocketed 100%. And still 99% of the homes being built in this area are already sold. Go figure.

Land and Home.

Expensive builder, but not a quality builder.

Several of their MooBaans in CM flood every year.

@Naam

My misses paid 1M8 for a 145M2 living area on a 56TW plot near CM.

Six months ago all house sales dried up, so they put the price up to 1M9.

Not many sales since then, but plenty of empty new houses, more being build, and some of the originals now up for resale.

Guess they can't make the repayments.

@OP

Not sure I consider a development parceled out to smaller investors for resale as "sold".

They are only sold when people start living in them.

Edited January 13, 2014 by FiftyTwo

[p_brownstone]

Are these "Sold" Houses actually occupied though?

It's a common tactic, at least in Bangkok, for Houses and Condos to be classed as "Sold" when in fact the purchaser has only put down a small speculative "Deposit" with the intent of later selling on the Booking for a profit.

Patrick

[inzman]

These prices quoted on this thread for new homes in Issan are double what you would pay in the US. In the US you get a large lot, real roads and civil amenities. Plus in the US the average family income is at least double that of Thailand. So I simply don't believe any of the bullshit I read here. Thai families in Issan don't buy out 500 unit subdivisions of 10 m baht houses. Somebody is playing games. Remember the speculation of 1997, and all the unfinished buildings and subdivisions left behind. They are still visible all over Thailand. I fear that after reading this blog, we a drawing closer to that happening again. Be careful what you buy.

[tom21]

the price of land in isaan has gone up a lot in the past three years .

[klikster]

These prices quoted on this thread for new homes in Issan are double what you would pay in the US. In the US you get a large lot, real roads and civil amenities. Plus in the US the average family income is at least double that of Thailand. So I simply don't believe any of the bullshit I read here. Thai families in Issan don't buy out 500 unit subdivisions of 10 m baht houses. Somebody is playing games. Remember the speculation of 1997, and all the unfinished buildings and subdivisions left behind. They are still visible all over Thailand. I fear that after reading this blog, we a drawing closer to that happening again. Be careful what you buy.

Kind of a broad statement, inzman. And ill-defined claims as well. How "large" is large? My last 2 homes in the US (Southern California), sold in the 1990's (which wasn't such a great RE market in SoCal) for between $280k and $300k. Neither had more land than the house in KK, Umphur Muang that is now 95% complete with a total investment that will be about 50% of that.

Granted, both had more floor space, but not double my current property.

I wonder what those 2 SoCal homes would sell for now?

[terak]

These prices quoted on this thread for new homes in Issan are double what you would pay in the US. In the US you get a large lot, real roads and civil amenities. Plus in the US the average family income is at least double that of Thailand. So I simply don't believe any of the bullshit I read here. Thai families in Issan don't buy out 500 unit subdivisions of 10 m baht houses. Somebody is playing games. Remember the speculation of 1997, and all the unfinished buildings and subdivisions left behind. They are still visible all over Thailand. I fear that after reading this blog, we a drawing closer to that happening again. Be careful what you buy.

But wouldn't you have to live in the US for those new homes ?

[FiftyTwo]

These prices quoted on this thread for new homes in Issan are double what you would pay in the US. In the US you get a large lot, real roads and civil amenities. Plus in the US the average family income is at least double that of Thailand. So I simply don't believe any of the bullshit I read here.

Yeh, but in the USA he would only have the choice between shagging a 200lb 60+ year old in a pink velour pants suit or the local crack whore.

What cost a house in the USA now then?

[PattayaPhom]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

650k wouldnt be enough to build a kitchen for me. I guess everyone has a different standard of living

Perhaps you are being ripped off........ .....................

I'm with building yourself but 650k for large land and large teak house in my experience is impossible. Even on some paddy land not filled teak is expensive and with costing in electrics and plumbing cant belief it could be done

Sent from my ST27a using Thaivisa Connect Thailand mobile app

[inzman]

Much happier shagging a 45 kilo lbfm and renting here, but still can't get my head around those outrageous prices for houses in Issan. My god, it ain't the carribean or Monaco. Issan? I thought this was still a banana republic. These kinds of prices are not indicative of some of the choicest areas in the world. Freaking Issan for a small lot at 10 million? You can get a nice House in Pattaya near the lake for 5 or 6 million.

[swissie]

It won't be long and some Farangs will break down the door of the sales office while singing the Thai-National Anthem and slamming 10 Mil Baht on the sales-desk at the same time. Shortly after they will e-mail back to Europe "Have made the investment of my life, even the sales-lady has confirmed, that it will double in price within the next 2 years! Of course, all in wife's name, so I am on the safe side"

I am on the edge of my seat, clearly, another Thai-Success -Story is in the making.

Cheers.

In your haste to impart your pearls of wisdom, you apparently missed the "all sold out" status of the development I posted about.

And I didn't see even one farang as we made our brief tour of the place. Was told that most of the residents are doctors and retired uni staff.

As this seems to have turned into an assumptions thread, should we assume that you have been ripped off?

"All sold out status." Doctors and retired uni-staff. Aaahhhh......

As it reads, the sales-lady has conveyed all this crucial information to you. Excellent. One can never go wrong by accepting advice/information from the sales-staff !

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- Have never been ripped-off by any land-deal, because I never had the inclination to buy anything in Thailand. I am a bit particular: I only buy land in countries that allow me to have it in MY name

.

But I have great respect of Farangs that DO buy land in Thailand. They are of noble character, because they are basically giving a "Donation" to a Thai-National. Mostly wife/family.

So, Farangs of all nations, open your heart and especially your wallet wide in favor of the Thai-populace, because:

- According to the teachings of Buddha, such unselfish behavior ensures a return as a human-being in the next life (at least). Quite opposite to deceiving sales-people: They will be re-incarnated as worms. Yes Sir !

Cheers.

[chiang mai]

Anyone paying over 2 million for a house here is nuts and will regret it.

Most of these projects are a con and the resale value about halfwhat you pay for it but probably a lot less as there will be no takers.

Buy some land, get a good builder and build your own. I have a beautiful large teak house with plenty of land all for 650k.

Would cost me over 1/2 million pounds back in the UK

You'd be very lucky to be able to buy an existing "teak house" for it's wood value alone in a rural village anywhere in Thailand for under 500k baht, more likely you'd need to buy two to get an adequate supply of decent quality wood. Figure rework and reassembly costs of at least 250k, more likely around 400k plus land costs on top! Total cost at least 1.25 mill. baht, more likely around 1.75K unfinished..