Isaan Building Boom

[Toknarok]

In live in Southern Buriram. For the past 8-10 years or so there has been a building boom in this part of the world, and it doesn't seem like stopping. Houses, flats (no high rise condos here), and shops, particularly those shops with the roller door at the front, often with living quarters upstairs. Hundreds have been built everywhere.

Trouble is most of them seem to be empty. For those of you that know Buriram there is a long line of the roller door type shops as you go south towards Prackonchai. There are about 100 of these shops, last week I counted and it would appear that only 18 of the 100 were occupied. A couple of Kms further south another 35 have just been constructed, none of which are occupied.

Same sort of thing in my local town Ban Kruad. Dozens of these shops standing idle. A farang in my village build 4 of these shops about 6 years ago and none of them have ever been occupied.

What's going on here? Do these people who have constructed these buildings (and it,s not only shops but houses too) know something that I don,t? Is there going to be a boom here in Buriram that all properties will be sold/let and vast mounts of money will be made? Or is it that someone started to build and everybody thought ';what a good idea' and rushed out to borrow or spent his money to do likewise.?

Is similar building going on in other parts of Isaan, is this a bubble that will eventually burst with lots of people getting burnt? Are these buildings being erected by Bangkokians as a refuge from when their city sinks into the sea? Your thoughts pse.

[bermondburi]

There is a boom going on in Buriram as it goes. In the centre of the city land now goes for 5 million a rai. Newin is pumpimg vast sums of money into the province what with the football team, and the motor racing circuit when it's finished should be pretty good for the area too. I know what you mean about all of these shophouses dotted about the place though, seen a lot near Nang Rong too. Maybe it's just speculation waiting for what might never happen. I know that land in family village was 70k a rai seven years ago and now it's 200k. In the nearest big village next to the road, it's now a million which is astounding when you think that you can buy a house in BKK for that!!

[bkkjames]

Hopes of a hi speed train that will be late to arrive?

Sent from my LG-P970 using Thaivisa Connect Thailand mobile app

[PaulHamon]

my thoughts.... plenty of rich Thai's out there, they just hiding behind the obvious poverty.

plus:

no taxes for holding land/building.

very little council rates.

[krisb]

There is a boom going on in Buriram as it goes. In the centre of the city land now goes for 5 million a rai. Newin is pumpimg vast sums of money into the province what with the football team, and the motor racing circuit when it's finished should be pretty good for the area too. I know what you mean about all of these shophouses dotted about the place though, seen a lot near Nang Rong too. Maybe it's just speculation waiting for what might never happen. I know that land in family village was 70k a rai seven years ago and now it's 200k. In the nearest big village next to the road, it's now a million which is astounding when you think that you can buy a house in BKK for that!!

house in bkk for a mill...really?

[bermondburi]

Yeah. I used to live in Nonthaburi. Many two bedroom townhouses at that price. Have a look on D+D property.

[Issangeorge]

Go back to 1997, same thing, people never learn. It's all borrowed money. The banker will loan you x amount of baht on your property, but only if a building is on it. If it's the same as 97, which I suspect it is, the amount of money loaned will be enough to build the structure, give the banker and his boss a little bonus and come out of the whole thing with a large amount of money in your pocket. Nobody ever pays off any of the capital, and only sometimes the interest and then only a small amount of it. The time will come when the lenders wake up and realize they have all these loans and there is no value in them. Beware of the 17 crash if not before.

[Sparkles]

Same in Chiang Mai, shopping centres ,condos ,houses and loads of empty shop house which sit empty.

Money laundering has been mentioned in relation to shop houses as they are cheap to build.

[ubonrthai]

There was a BP article recently you might find interesting. Don't think we're allowed to directly link to them but this link will get you there. In mid 2013, studio apartments in Ubon were filling up almost as fast as they were built. That's based on visiting a couple dozen of them looking for a decent one for four different people. Houses also weren't having much trouble selling either according to a developer I talked to. The 2 new condos are selling fast too. But I haven't been in town most of this year. You do seem to see a large number of empty 2 or 3 story townhouses though.

Edited August 31, 2014 by ubonrthai

[DILLIGAD]

Go back to 1997, same thing, people never learn. It's all borrowed money. The banker will loan you x amount of baht on your property, but only if a building is on it. If it's the same as 97, which I suspect it is, the amount of money loaned will be enough to build the structure, give the banker and his boss a little bonus and come out of the whole thing with a large amount of money in your pocket. Nobody ever pays off any of the capital, and only sometimes the interest and then only a small amount of it. The time will come when the lenders wake up and realize they have all these loans and there is no value in them. Beware of the 17 crash if not before.

+1

[SilverBeast]

Maybe its just Thai style planning...

[cooked]

Buriram, in the same corner of the city, has Home Mart, Homepro, Thai Watsadu, IQ House and a Global House on its way. There are quite small houses being built costing ฿2 - 3 million, we also have Sirikit, BigC, Makro as well as a Robinson's on its way. Car dealerships. The do it yourself places are generally pretty empty, never have to queue at the pay point. I don't use them much anymore anyway, mom and pop shops give better service.

Apart from the race track being built, I haven't noticed any signs of places that would actually be producing or processing goods. I am pretty sure that the area is heading for bad times,

Try reading http://www.forbes.com/sites/jessecolombo/2013/11/04/thailands-bubble-economy-is-heading-for-a-1997-style-crash/

Why people (including myself) invest in property here is a mystery to me.

Edited September 1, 2014 by cooked

[meatboy]

Go back to 1997, same thing, people never learn. It's all borrowed money. The banker will loan you x amount of baht on your property, but only if a building is on it. If it's the same as 97, which I suspect it is, the amount of money loaned will be enough to build the structure, give the banker and his boss a little bonus and come out of the whole thing with a large amount of money in your pocket. Nobody ever pays off any of the capital, and only sometimes the interest and then only a small amount of it. The time will come when the lenders wake up and realize they have all these loans and there is no value in them. Beware of the 17 crash if not before.

I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers.

[bermondburi]

There is a boom going on in Buriram as it goes. In the centre of the city land now goes for 5 million a rai. Newin is pumpimg vast sums of money into the province what with the football team, and the motor racing circuit when it's finished should be pretty good for the area too. I know what you mean about all of these shophouses dotted about the place though, seen a lot near Nang Rong too. Maybe it's just speculation waiting for what might never happen. I know that land in family village was 70k a rai seven years ago and now it's 200k. In the nearest big village next to the road, it's now a million which is astounding when you think that you can buy a house in BKK for that!!

house in bkk for a mill...really?

http://www.ddproperty.com/en/property/2-bedroom-townhouse-in-bang-khen-bangkok-1417798

[krisb]

There is a boom going on in Buriram as it goes. In the centre of the city land now goes for 5 million a rai. Newin is pumpimg vast sums of money into the province what with the football team, and the motor racing circuit when it's finished should be pretty good for the area too. I know what you mean about all of these shophouses dotted about the place though, seen a lot near Nang Rong too. Maybe it's just speculation waiting for what might never happen. I know that land in family village was 70k a rai seven years ago and now it's 200k. In the nearest big village next to the road, it's now a million which is astounding when you think that you can buy a house in BKK for that!!

house in bkk for a mill...really?

http://www.ddproperty.com/en/property/2-bedroom-townhouse-in-bang-khen-bangkok-1417798

Thanks for the link!

It's haunted sure sure.

[rice555]

Hello All, this condo in Korat start a 1.3 mil. from what I here. There's

other smaller condos and shophouses between The Mall and the train

station that are about to be finnished.

A lot of housing and new big shophouse out Hwy.226, about 5Km out

from Hyw. 224 Y. The SH's are the same as between the bus station

and Marco.

rice555

[eng911]

I saw an advertisement for 100% of value real estate mortgages with no credit check for Khon Kaen condos. We all know how ended in the USA in 2009.

[surinderek]

Same in Surin, Houses galore.

[sanuk711]

I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers.

I think you are having one of those fantasy dream meatboy......... in 10 years its never reached past 57baht - GBP

.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y

[khwaibah]

I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers.

I think you are having one of those fantasy dream meatboy......... in 10 years its never reached past 57baht - GBP

.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y

meatboy is a tad low..101..http://www.thaivisa.com/forum/topic/343444-the-1997-bahtpound-sterling-exchange-rate/

[LennyW]

I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers.

I think you are having one of those fantasy dream meatboy......... in 10 years its never reached past 57baht - GBP

.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y

In 1997 i remember 98 to the pound, Meatboy said 97 as in 1997, that is not in the last 10 years sanuk711.

[soihok]

Yes, colonies of new houses on new housing estates poping up around my place West Side of Korat (Bahn Mai).

It doesn't look like stopping any time soon either.

[happylarry]

I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers.

I think you are having one of those fantasy dream meatboy......... in 10 years its never reached past 57baht - GBP

.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y

In 1997 i remember 98 to the pound, Meatboy said 97 as in 1997, that is not in the last 10 years sanuk711.

I moved here ten years ago last july and I seem to remember getting 78 baht to the pound for a while.

HL

[soihok]

Those were the days eh?

[gooberpeas]

Maybe its just Thai style planning...

Buriram is indeed growing at a fast pace. We have been living here for nearly 17 years. Everywhere around the city there has been a lot of uilding construction including renovation of much of the downtown area going on for the past 3 years. The effect of a ery successful football franchise Buriram United with average attendance at matches over 19,000 paid admissions (see TPL stats for confirmation) and the upcoming opening of the Buriram Circuit are fueling a lot of the growth. New hotels: Ma Maison, Chateau Tada, Best Western, Amari along with increased number of rooms at Siri Resort and Thepnakorn and lots of new smaller "resorts" is evidence of significant growth. Newin said in a recent interview that even more entertainment activities are coming soon. He even mentioned bungee jumping. Sabaidee Buriram Magazine was launched 8 months ago and already has a circulation of 5,000 copies monthly. The Lively Mall across from Taweekit Plaza on Jira Road is scheduled to open on Christmas Day. The only thing I dislike about all this is the increased traffic but even then it is so much better than in Bangkok. With the new shopping centers and restaurants, and parks bring it on!

[soihok]

Got to be a winner for the area.

One day I would like to go to watch some racing there. Bikes preferably.

[Nuddy]

Buriram building boom because thats where the Govt are going to build the Nuclear Power Station.

[loong]

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I remember 97,90+bht.to the gbp.you want to come and see the building that's going on about 5kilom.from korat city.

I pass 4 lots of shop houses most days that have been built the past 2yrs.not even a third of them have been taken,

and there's another lot going up close by.keep it up guys the banks will be looking for some money shortly to prop them up.

10% interest for savers. alt=biggrin.png>

I think you are having one of those fantasy dream meatboy......... in 10 years its never reached past 57baht - GBP

.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y

I guess that was a typo?

You ,meant 75, not 57 ?

[henry15]

Yeah. I used to live in Nonthaburi. Many two bedroom townhouses at that price. Have a look on D+D property.

Used to live is maybe the correct expression. You can not even find a 25m² condo in the new high rises for 1 million Baht.

[sanuk711]

"in 1997 i remember 98 to the pound, Meatboy said 97 as in 1997, that is not in the last 10 years sanuk711.--LennyW"

True LennyW... I missed read that one................maybe a trip to spec savers is on the cards.

Apologies to Meatboy..........................