Calculating value of apartment for resale or rent

[eeeya]

Im looking for a way to calculate (roughly) the value of an apartment based on real estate advertising or other means (if anyone knows any)

is there a rough and ready formula for this? I was thinking averaging all the prices for an apartment block then subtracting a percentage?

[bkksiam]

When you say apartment- do you mean rental value? Or do you mean sale value of a condominium? If you are calculating real estate value of a condo then a good way to estimate is to look at price per square meter,

According to Knight Frank (Bangkok condominium market overview 2013) "...premium grade condominium projects, offering units with the price of over THB 150,000 per square metre in the city area. In addition, the average selling price per square metre for condominium projects in the peripheral area has also increased to around THB 60,286 in this quarter - from just THB 53,916 per square metre at the end of 2012.

Knight Frank shows that prices for condos in the Ratchda/Ladprao area went from 66,868 baht per square meter in 2009 to 90,994 in 2013.

You need to factor in location and proximity to public transportation as well as view and age. Those factors may increase or decrease price per square meter.

[trogers]

The real estate professionals use Baht/sqm to compare sales value.

How you appraise the sales value is another matter.

[asdecas]

You should also bear in mind that it is in the interests of agents such as Knight Frank to inflate values.

[bangkapi]

There are no standards in Thailand....

It's not like the west.

A few years ago the same size condo in the same project in Bangkapi (around 60 meters) on sale for between 1.8 million to 5.4 million baht.

The differences were that the 1.8 million one was being sold by the owner and was unfurnished. The more expensive one was fully furnished and being sold by the property management company.

[eeeya]

This would also be the problem I face when looking at the sale prices for the condo I'm looking at

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[hagler]

You should also bear in mind that it is in the interests of agents such as Knight Frank to inflate values.

How is it in their interests to inflate values?

it is in any good agents interests to suggest to an owner to place a fair market value upon a property so it sells in a reasonable time frame rather than sitting around for ages doing nothing for both the owners , the buyers and the agents in the marketplace.

No sale means no money for the owner or the agent.

Edited March 27, 2014 by hagler

[rotary]

Are you looking for the value before the soon to be property crash or after the same type of crash they had in 1997?

I believe property values in Thailand to be way over the mark when you look at income levels so therefore a risky investment in most cases.

[sidewaysallwayz]

Hi I'm looking for a way to easily print out my apartments utilities to my tenants without having to manually walk to each meter box with a pen and paper. I know it exists but don't know what's it called or where to search. Appreciate any help

[Senechal]

Knight Frank shows that prices for condos in the Ratchda/Ladprao area went from 66,868 baht per square meter in 2009 to 90,994 in 2013.

And if you believe Knight Frank, I have a bridge to sell you. Don't take rosy stock-market analyses from people trying to sell you stock. Don't believe "this is the best car on the market" boasts from car dealerships. And don't listen to the tripe that Knight Frank tells you about the real-estate market. KF is permanently bullish, despite critical levels of household debt, rising NPL's at banks, political instability, cost-of-living increases and flat personal income growth.

If you want to get a good picture of the market, you'll need to do it yourself. Pay attention to real-estate sites and look at prices. But most importantly: Pay attention to the time properties stay on the market. Asking prices are not selling prices. And the reported statistics from major brokers and developers simply are not credible and never have been. Your best indicator is FSBO pricing for quick sales.

[Senechal]

You should also bear in mind that it is in the interests of agents such as Knight Frank to inflate values.

How is it in their interests to inflate values?

it is in any good agents interests to suggest to an owner to place a fair market value upon a property so it sells in a reasonable time frame rather than sitting around for ages doing nothing for both the owners , the buyers and the agents in the marketplace.

No sale means no money for the owner or the agent.

Sorry, but that's not correct. KF's prices aren't competitive and never have been. Take a look at literally any third-party real estate website and you will find vastly better psm prices than you will via KF.

The game of the big players like KF is to secure exclusive contracts with developers and then place a wide margin on "new" and "premium" despite the grossly uncompetitive pricing.

The original poster was asking about a *resale* value of his/her unit. The last place one should pay attention to is KF and other premium brokerages who are playing a completely different game. They are not interested in reselling standard units .... although they will gladly represent any and all properties at above-market rates to protect their precious developments with cushy back-end deals.

OP: Take a look at ddproperty and do your own diligence. It's the only way. Look for comparative locations, distance to public transportation, building age, building size and other comparables. Also recognize that the asking/selling spread in Thailand is often large by Western standards. Looking at prices offered by KF will lead you to incorrect pricing assumptions.

Edited April 3, 2014 by Senechal

[johnnyk]

Estate agents are always ready and willing to fit suckers, er, buyers with a new set of pink lenses.

Prices in the toilet? No pompem, great buying opportunity. Hurry!

Prices in the sky? No pompem, get in now before they go up even more.

[eeeya]

Found a pretty interesting website.

Google hip and flat

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[trogers]

Knight Frank shows that prices for condos in the Ratchda/Ladprao area went from 66,868 baht per square meter in 2009 to 90,994 in 2013.

And if you believe Knight Frank, I have a bridge to sell you. Don't take rosy stock-market analyses from people trying to sell you stock. Don't believe "this is the best car on the market" boasts from car dealerships. And don't listen to the tripe that Knight Frank tells you about the real-estate market. KF is permanently bullish, despite critical levels of household debt, rising NPL's at banks, political instability, cost-of-living increases and flat personal income growth.

If you want to get a good picture of the market, you'll need to do it yourself. Pay attention to real-estate sites and look at prices. But most importantly: Pay attention to the time properties stay on the market. Asking prices are not selling prices. And the reported statistics from major brokers and developers simply are not credible and never have been. Your best indicator is FSBO pricing for quick sales.

KF did not explain the basis of their advice on price rise - prices were based on new launches and have been grouped together for projects near Ladprao to Petcheburi.

There would not have been enough sales on the secondary market to make such a statement... and I am sure prices on the secondary market would not have risen 40-50% in just 4 years.

Asking prices of new development needs to be coupled with sales figures to be useful. And sales figures means just that - the percentage of unit transferred to buyers. Don't rely on just no. of bookings...

[farang000999]

You stage the property as well as you can and then you sell/rent it to the biggest idiot. That is how much it is worth.

[johnnyk]

Buyers often first decide where they want to live, for numerous reasons. Rather than relying on numbers concocted by drones in cubicles, check out similar properties in the area. The buyer is looking for the best value for his money. Act accordingly.

Edited April 8, 2014 by johnnyk