Phuket Property forecast view for rest of 2014? 2015?

[usasia8888]

A lot of property for sale. What are people's views of Phuket Property forecast for rest of 2014? 2015? Any particular areas you think will be different than the overall market? For example, certain regions appreciate and other depreciate? or upper end (above 50mn Baht different than below lower end (below 5mn Baht)? May it be better to buy in 2015 vs now? Issues to consider when thinking about price negotiations?

[shirtless]

I think Phuket as an investment has lost its attraction, but you will never hear that in any property reports.

[nedkellylives]

The majority of people think their property is worth a lot more than it is and most of the properties on the market are very overpriced

When we were looking for a home for ourselves we inspected lots of properies all over the island for 7 months before we

found a house we both liked, that was about 3 years ago

In all that time with the hundreds if not thousands of houses avaliable for sale we saw less than 10 that were value for money

and all of these houses were put on the market by genuine sellers,Some were people who speculated in property and realized it was

time to get out of the game and others were people who wanted to sell up and return to theirhome country for different genuine reasons

usually health or finance

If you advertise to buy a house you will find that after awhile you will know whats worth looking at by peoples description of their

property if they are honest, a lot of people are not and when you go to inspect these peoples properties you will drive away and

not bother inspecting the property

Everyone thinks they can sell real estate here and once people know you are looking the bank manager, apartment owner, driving instructer

ETC will want to show you properties hoping to get a commision which is usually added to the price by the property owner before you inspect

the property

If you find a house you like inspect it thoroughly for stuctural damage cracks, subsiding etc, the majority of small builders ere have no

qualifacations and do not build to the approved plans

Edited May 15, 2014 by nedkellylives

[usasia8888]

The majority of people think their property is worth a lot more than it is and most of the properties on the market are very overpriced

When we were looking for a home for ourselves we inspected lots of properies all over the island for 7 months before we

found a house we both liked, that was about 3 years ago

In all that time with the hundreds if not thousands of houses avaliable for sale we saw less than 10 that were value for money

and all of these houses were put on the market by genuine sellers,Some were people who speculated in property and realized it was

time to get out of the game and others were people who wanted to sell up and return to theirhome country for different genuine reasons

usually health or finance

If you advertise to buy a house you will find that after awhile you will know whats worth looking at by peoples description of their

property if they are honest, a lot of people are not and when you go to inspect these peoples properties you will drive away and

not bother inspecting the property

just a question since you went through the process. in HK you can easily track buying and selling actual prices, the homes/apts location, etc. is there any "real" statistics for Phuket? It seems a mystery to me from a far and I only hear positives but seems to be missing reality or statistics. or another way, in the words of Mark Twain there are "lies, damined lies and statistics" I was looking for the latter.

[steelepulse]

There are no official records that can be checked down at the government offices. Quite often also sales are undervalued to minimize tax exposure, so even if there were records, they wouldn't necessarily be accurate.

[usasia8888]

There are no official records that can be checked down at the government offices. Quite often also sales are undervalued to minimize tax exposure, so even if there were records, they wouldn't necessarily be accurate.

SP, thank you. helpful and good to know. It seems looking around quite a bit more than normal, negotiating price will take some time.

[nedkellylives]

The majority of people think their property is worth a lot more than it is and most of the properties on the market are very overpriced

When we were looking for a home for ourselves we inspected lots of properies all over the island for 7 months before we

found a house we both liked, that was about 3 years ago

In all that time with the hundreds if not thousands of houses avaliable for sale we saw less than 10 that were value for money

and all of these houses were put on the market by genuine sellers,Some were people who speculated in property and realized it was

time to get out of the game and others were people who wanted to sell up and return to theirhome country for different genuine reasons

usually health or finance

If you advertise to buy a house you will find that after awhile you will know whats worth looking at by peoples description of their

property if they are honest, a lot of people are not and when you go to inspect these peoples properties you will drive away and

not bother inspecting the property

just a question since you went through the process. in HK you can easily track buying and selling actual prices, the homes/apts location, etc. is there any "real" statistics for Phuket? It seems a mystery to me from a far and I only hear positives but seems to be missing reality or statistics. or another way, in the words of Mark Twain there are "lies, damined lies and statistics" I was looking for the latter.

No its not like HK or Aust where its easy to check what properties sold for previously especially the ones you may be interested in

You will only find out values by checking and comparing prices all over the island, thats we did it took a lot of time but it was worth it

Got sick of doing towards the end and almost gave up and kept renting

Edited May 15, 2014 by nedkellylives

[usasia8888]

The majority of people think their property is worth a lot more than it is and most of the properties on the market are very overpriced

When we were looking for a home for ourselves we inspected lots of properies all over the island for 7 months before we

found a house we both liked, that was about 3 years ago

In all that time with the hundreds if not thousands of houses avaliable for sale we saw less than 10 that were value for money

and all of these houses were put on the market by genuine sellers,Some were people who speculated in property and realized it was

time to get out of the game and others were people who wanted to sell up and return to theirhome country for different genuine reasons

usually health or finance

If you advertise to buy a house you will find that after awhile you will know whats worth looking at by peoples description of their

property if they are honest, a lot of people are not and when you go to inspect these peoples properties you will drive away and

not bother inspecting the property

just a question since you went through the process. in HK you can easily track buying and selling actual prices, the homes/apts location, etc. is there any "real" statistics for Phuket? It seems a mystery to me from a far and I only hear positives but seems to be missing reality or statistics. or another way, in the words of Mark Twain there are "lies, damined lies and statistics" I was looking for the latter.

No its not like HK or Aust where its easy to check what properies sold for previously especially the ones you may be interested in

You will only find out values by checking and comparing prices all over the island, thats we did it took a lot of time but it was worth it

Got sick of doing towards the end and almost gave up and kept renting

Very helpful to know what you did. Sounds like what we will have to do as well if we want to find the right place and be comfortable we did our search right. Much appreciated.

[NamKangMan]

There are hundreds, if not thousands of properties on the market for sale here. That should say something to you.

Some have been on the market for years - and that is not an exaggeration, years.

Many of these properties will not sell because the listing price is too high, most probably because the owner originally paid too higher price for the property when they bought it.

The land the property is sitting on most likely has a 30 year land lease, so is diminishing year by year, and who know what will happen when year 30 arrives.

They keep building and building and building here, so there will definately be, if not already, an oversupply of property on the market, pushing sales and rents down.

Phuket property boomed in the late 80's to early 90's - a lot of these properties will have their 30 years land leases up soon. It will be interesting to see what happens.

In my opinion, I think you will see downward pressure on the property market here.

If you chose to buy, do so without any expectation there will be any appreciation of the asset, in fact, you should expect depreciation.

You should just look at your purchase as a lifestyle decision, rather than an investment. The trouble with that is, as there is no town planning here, you never really know what will become of the area you chose to live in.

Edited May 16, 2014 by NamKangMan

[usasia8888]

There are hundreds, if not thousands of properties on the market for sale here. That should say something to you.

Some have been on the market for years - and that is not an exaggeration, years.

Many of these properties will not sell because the listing price is too high, most probably because the owner originally paid too higher price for the property when they bought it.

The land the property is sitting on most likely has a 30 year land lease, so is diminishing year by year, and who know what will happen when year 30 arrives.

They keep building and building and building here, so there will definately be, if not already, an oversupply of property on the market, pushing sales and rents down.

Phuket property boomed in the late 80's to early 90's - a lot of these properties will have their 30 years land leases up soon. It will be interesting to see what happens.

In my opinion, I think you will see downward pressure on the property market here.

If you chose to buy, do so without any expectation there will be any appreciation of the asset, in fact, you should expect depreciation.

You should just look at your purchase as a lifestyle decision, rather than an investment. The trouble with that is, as there is no town planning here, you never really know what will become of the area you chose to live in.

this is very helpful to have your perspective. much appreciated. M

[NamKangMan]

There are hundreds, if not thousands of properties on the market for sale here. That should say something to you.

Some have been on the market for years - and that is not an exaggeration, years.

Many of these properties will not sell because the listing price is too high, most probably because the owner originally paid too higher price for the property when they bought it.

The land the property is sitting on most likely has a 30 year land lease, so is diminishing year by year, and who know what will happen when year 30 arrives.

They keep building and building and building here, so there will definately be, if not already, an oversupply of property on the market, pushing sales and rents down.

Phuket property boomed in the late 80's to early 90's - a lot of these properties will have their 30 years land leases up soon. It will be interesting to see what happens.

In my opinion, I think you will see downward pressure on the property market here.

If you chose to buy, do so without any expectation there will be any appreciation of the asset, in fact, you should expect depreciation.

You should just look at your purchase as a lifestyle decision, rather than an investment. The trouble with that is, as there is no town planning here, you never really know what will become of the area you chose to live in.

this is very helpful to have your perspective. much appreciated. M

You won't hear a similar perspective from any other member who has bought property here.

[nedkellylives]

There are hundreds, if not thousands of properties on the market for sale here. That should say something to you.

Some have been on the market for years - and that is not an exaggeration, years.

Many of these properties will not sell because the listing price is too high, most probably because the owner originally paid too higher price for the property when they bought it.

The land the property is sitting on most likely has a 30 year land lease, so is diminishing year by year, and who know what will happen when year 30 arrives.

They keep building and building and building here, so there will definately be, if not already, an oversupply of property on the market, pushing sales and rents down.

Phuket property boomed in the late 80's to early 90's - a lot of these properties will have their 30 years land leases up soon. It will be interesting to see what happens.

In my opinion, I think you will see downward pressure on the property market here.

If you chose to buy, do so without any expectation there will be any appreciation of the asset, in fact, you should expect depreciation.

You should just look at your purchase as a lifestyle decision, rather than an investment. The trouble with that is, as there is no town planning here, you never really know what will become of the area you chose to live in.

this is very helpful to have your perspective. much appreciated. M

You won't hear a similar perspective from any other member who has bought property here.

A internet expert who does not own any property here and never will

Repeating what other poeople say who have never owned property here and if they did overpaid for it

Because they listened to people speculating in real estate here and bought property through them

and now regret doing so

[xylophone]

There are hundreds, if not thousands of properties on the market for sale here. That should say something to you.

Some have been on the market for years - and that is not an exaggeration, years.

Many of these properties will not sell because the listing price is too high, most probably because the owner originally paid too higher price for the property when they bought it.

The land the property is sitting on most likely has a 30 year land lease, so is diminishing year by year, and who know what will happen when year 30 arrives.

They keep building and building and building here, so there will definately be, if not already, an oversupply of property on the market, pushing sales and rents down.

Phuket property boomed in the late 80's to early 90's - a lot of these properties will have their 30 years land leases up soon. It will be interesting to see what happens.

In my opinion, I think you will see downward pressure on the property market here.

If you chose to buy, do so without any expectation there will be any appreciation of the asset, in fact, you should expect depreciation.

You should just look at your purchase as a lifestyle decision, rather than an investment. The trouble with that is, as there is no town planning here, you never really know what will become of the area you chose to live in.

this is very helpful to have your perspective. much appreciated. M

You won't hear a similar perspective from any other member who has bought property here.

I agree with much of what you have said and I have bought and sold two houses here (in Patong) since 2007 and I now rent an apartment.

I think I was extremely lucky to sell both of the houses, however I did spend a lot of time doing them up and marketing them myself, and I am truly thankful that I got out of that market when I did, selling the last one almost 4 years ago. This because similar houses in the same street/area were for sale when I bought mine, and still are, meaning that they have been on the market for over seven years and not moved.

As I have mentioned before, there is a glut of condos/apartments being built, whilst others remain empty and unable to be rented. Not only that, many of the new developments are being purchased off the plan by every-day Thai folk hoping to sell them for a profit a little later on when "the prices have risen".

The chief flaw in this plan appears to be that with many more of these being built, and with a declining number of visitors, the price will not rise due to oversupply and lack of demand. I forecast quite a few folk losing money on these little "investments". Indeed one Thai lady friend has suggested that I might want to rent her 40 m² apartment for 30,000 baht per month when it is completed later this year/early next year.

This when I am currently renting the same size apartment for 13,000 baht a month, with a large balcony and a view in a quiet location. However that is how this particular condo has been marketed/sold and many more will have been bought on this premise.

Personally, I would never buy here again because having done the maths, it's not worth my time and effort. This especially when the older houses and apartments here tend to deteriorate quite fast and after a while nobody is really interested in buying them.

My take is that if one is interested in buying, then next year will see a glut of accommodation available so one may be able to get something at a good price. Condominiums and apartments which can be fully owned by a farang would be my first choice, however if I was not fazed by having a 30 year lease on the land on a property, and really wanted a house or Villa, I might well look at the Rawai area and surrounds.

[KarenBravo]

The only reason to buy for the last few years is because you want to live in the place. Not a good time for investment and hasn't been since 2007.

Empty land has pretty much always been a good investment.

[KarenBravo]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

[CFC]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

[nedkellylives]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

Stop being a trol you are useless at it

If you want to put your money where your mouth is, speculating that i overpaid for property i will be happy to oblige you

Who ever is wrong donates 30K baht or more if you like to increase the wager to The Phuket Sunshine Village Which is

a NGO that looks after orphaned and abandoned children

Its not me that fantasizes about the value of property i have purchased here, take a look in a mirror troll

[usasia8888]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

[stevenl]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

[usasia8888]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

do you have a suggestion?

[KarenBravo]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

Stop being a trol you are useless at it

If you want to put your money where your mouth is, speculating that i overpaid for property i will be happy to oblige you

Who ever is wrong donates 30K baht or more if you like to increase the wager to The Phuket Sunshine Village Which is

a NGO that looks after orphaned and abandoned children

Its not me that fantasizes about the value of property i have purchased here, take a look in a mirror troll

Firstly, you seem to bite every time.

Secondly, you seem to think that property is not a good investment due to over-supply. If that is true, and I agree with you, then there will be downward pressure on prices on new units. There will be an even bigger downward pressure on the price of "used" units as in Phuket, the majority of buyers prefer new property. In fact there are auctions underway soon of new properties at steep discounts.

If prices do go down, then people who bought earlier at higher prices will have "paid too much".

Exactly the same situation that buyers in most western countries have found themselves.

Instead of just being your usual insulting self when you don't agree with a post, using logic, tell me why you disagree.

Edited May 16, 2014 by KarenBravo

[nedkellylives]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

People do it all the time and will keep doing it, the govt will not seize the companies or their assets, very bad business

for them if they did, they may clamp down on farangs who use a company to speculate in real estate by buying and selling

for a profit as plenty have done over the years but not on people who buy a house thru a company to live in

[stevenl]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

do you have a suggestion?

Put the property in an active company, lease or usufruct the land. All options, including the company suggestion, have their pros and cons, you'll have to choose the one that suits you best.

Edited May 16, 2014 by stevenl

[stevenl]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

People do it all the time and will keep doing it, the govt will not seize the companies or their assets, very bad business

for them if they did, they may clamp down on farangs who use a company to speculate in real estate by buying and selling

for a profit as plenty have done over the years but not on people who buy a house thru a company to live in

Or listen to Ned, he can predict what the Thai government will do in the future. Could be right, could be wrong.

[nedkellylives]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

Stop being a trol you are useless at it

If you want to put your money where your mouth is, speculating that i overpaid for property i will be happy to oblige you

Who ever is wrong donates 30K baht or more if you like to increase the wager to The Phuket Sunshine Village Which is

a NGO that looks after orphaned and abandoned children

Its not me that fantasizes about the value of property i have purchased here, take a look in a mirror troll

Firstly, you seem to bite every time.

Secondly, you seem to think that property is not a good investment due to over-supply. If that is true, and I agree with you, then there will be downward pressure on prices on new units. There will be an even bigger downward pressure on the price of "used" units as in Phuket, the majority of buyers prefer new property. In fact there are auctions underway soon of new properties at steep discounts.

If prices do go down, then people who bought earlier at higher prices will have "paid too much".

Exactly the same situation that buyers in most western countries have found themselves.

Instead of just being your usual insulting self when you don't agree with a post, using logic, tell me why you disagree.

i have never been interested in units here and never will be, sounds like your sort of investment

Care to take up my challenge????

Edited May 16, 2014 by nedkellylives

[KarenBravo]

I'm not specifically talking about "units", I'm talking about houses, especially ones on estates.

Tell me why you think I'm wrong, when we both think there will be downward pressure on prices in the coming years.

As you have only bought relatively recently, it's quite conceivable that the re-sale price for your house will go lower than what you payed for it.

Edited May 16, 2014 by KarenBravo

[usasia8888]

All the properties look terrible before they have a coat of Render. The brick work is a joke and I am 99% sure its not only the brick work. I would never buy an apartment in Thailand. When you get problems in an apartment building its not good. A detached property with a decent amount of land might be an option but you need to set up a company to buy that in Thailand if you are a farang.

That trick is known in other places too! LOL. All makes sense. I think I probably in the "Set up a company..." situation. Thank you!

Take into account that if you setup a company with the sole purpose of owning a house, that is an illegal construction. So how secure that is???

People do it all the time and will keep doing it, the govt will not seize the companies or their assets, very bad business

for them if they did, they may clamp down on farangs who use a company to speculate in real estate by buying and selling

for a profit as plenty have done over the years but not on people who buy a house thru a company to live in

my wife & i are looking to buy one villa and hold until I pass away or some other major reason that has to move away. Since I just over 50 years and entering in on retirement visa, the plan could be 40 to 50 years (dont plan on dying early if I can help it!

[nedkellylives]

I'm not specifically talking about "units", I'm talking about houses, especially ones on estates.

Tell me why you think I'm wrong, when we both think there will be downward pressure on prices in the coming years.

As you have only bought relatively recently, it's quite conceivable that the re-sale price for your house will go lower than what you payed for it.

Not that its any of your busines but i did not buy the house from a managed estate but from a private seller

when it was 5/6 years old and the village i live in never was a managed estate

Challenge still stands

[NamKangMan]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

I agree KB.

Most own a depreciating asset here, not an asset that is appreciating.

This is fine if it is purely a lifestyle decision, not a financial decision, but then there is the town planning issue I have mentioned.

Where you have bought today, may not be such a nice place 2 years from now.

[usasia8888]

Repeating what other poeople say who have never owned property here and if they did overpaid for it

I think in two, or three years time, it will look like you live in a property that you overpaid for.

I agree KB.

Most own a depreciating asset here, not an asset that is appreciating.

This is fine if it is purely a lifestyle decision, not a financial decision, but then there is the town planning issue I have mentioned.

Where you have bought today, may not be such a nice place 2 years from now.

Does this apply to more established places like Kamala or Surin... or less developed places like Cape Yamu?