Recession In The Pattaya Detached Housing Market

[robsay]

The Thailand Real Estate & Property Guide has published an interview with Clayton Wade, Managing Director of Premier Homes in which he states that he expects "a recession in the [Pattaya] detached housing market simply because there is a glut of houses available, even now, and there is more construction underway to add to the supply." Is this too pessimistic a view of the market?

[Thaiquila]

Not to mention the unmentionable issue of the illegality of foreign ownership ...

If this is true, sounds plausible to me, I wonder whether condo values will also recess. For the foreign owned condos, an argument could be made it is in many ways an unrelated market.

[naturalpoints]

The Thailand Real Estate & Property Guide has published an interview with Clayton Wade, Managing Director of Premier Homes in which he states that he expects "a recession in the [Pattaya] detached housing market simply because there is a glut of houses available, even now, and there is more construction underway to add to the supply." Is this too pessimistic a view of the market?

YEP.........I AGREE.

IT'S ALL ABOUT SUPPLY & DEMAND.

THERE'S TOO MANY HOUSES MATE....................

NO TAKERS INIT!!

[Digger]

I have not read the article, however from what I have seen, there are too many poorly designed and built houses coming onto the market at premium prices. Good designed, well built houses are continuing to sell, but there are loads of badly designed houses at silly prices, that frankly are not worth the money. Too many people are assuming, oh just build a house, double the price and some clown will buy it. Well there aint to many clowns buying property above 10,000,000 but there's lots of people trying to sell them.

[fisherd3]

I have not read the article, however from what I have seen, there are too many poorly designed and built houses coming onto the market at premium prices. Good designed, well built houses are continuing to sell, but there are loads of badly designed houses at silly prices, that frankly are not worth the money. Too many people are assuming, oh just build a house, double the price and some clown will buy it. Well there aint to many clowns buying property above 10,000,000 but there's lots of people trying to sell them.

But there are a lot of 'Clowns' trying to sell them

[robsay]

Would Digger and fisherd3 (and any other contributors) care to point out those projects that are in their view expensive whilst being substandard? i.e. which projects are extremely poor value for money and at risk should the market enter a recession?

[Digger]

Would Digger and fisherd3 (and any other contributors) care to point out those projects that are in their view expensive whilst being substandard? i.e. which projects are extremely poor value for money and at risk should the market enter a recession?

Its not so much projects that I have seen that are badly done but one off houses where basically some guy has purchased up to a rai of land, designed what he considers to be his dream home using a piece of paper and a ruler and then had it built while all the time planning to never live in it, but sell it on at double what he paid. Lots of examples around Maprachan resevoir of just this.

One example springs to mind of a detached house built next directly next to the crematorium of the Wat overlooking the temple. I'd like to see the farang builders selling that one to a Thai wife !!!! Talk about bad karma from all the dead spirits floating about the grounds. I think they want 12,000,000 baht for it. Anybody that knows that area also knows the noise is horrendous as the temple grounds are the hub of all social activity.

I did actually see a village the other week, built by a farang where they had no consideration for car parking - so basically for 6,000,000 baht or thereabouts, you buy a house and leave your car parked on the street, that was barely wide enough for one car, let alone 2 cars to go down - the irony was that once in your 'castle' you could not even see the car, because the walls are 2m high. Incidentally same place had baths made out of concrete and then tiled. Thats all well and good if your building a bath for the local rugby team, but in a house????

Lots of examples, but they tend not to be the bigger named projects where this is so obvious and I think that is where Clayton is coming from in the article.