Isaan Building Boom

[Ombra]

There's a lot of construction in Nakhon Phanom as well. BigC and Makro arrived 9 months or so ago and Tesco has doubled in size in the past year. People attribute the boom to trade with Vietnam and Laos ... and to other things.

[soihok]

Loads of building going on.

Just need to have more tunnels being built, that would suit me down to the ground

[Toknarok]

Well I'm glad that those of you who live in the Buriram area are so pleased about the football stadium, race track. swanky hotels etc. but if you lived in the Province away from Buriram itself you might have a very different opinion. The roads generally are in an appalling condition,Chidchop may have improved the roads around the city in order to service his playthings, but have a look further afield.

For example just 2 kms from my house is a patch of road that has always given problems. Maybe an underground stream or something causes the problem. It's never been properly fixed for 25 years. Two weeks ago a team of 4 blokes came withe a few shovels, picks ans a load of bitumen . The buggered about for a week, basically did nothing, filled the holes with bitumen and gravel and tamped it down with hand tools. Came past today, almost all of it broken up with holes deeper than when they first started.

[MILT]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

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.

Actually it is very different now than in 97. In fact night and day different.

[totallyobnoxiousme]

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

Not true - 9 yrs ago 74 baht to GBP

[clockman]

Well the stolen money has to be cleaned!

[Anon999]

Yes the same everywhere by the look of it. New villages, shophouses, renovations, plus the the superstores and a Robinsons by the end of this year. Roi Et is the same. One nice side effect is we now have some nice coffee shops and restaurants too. However, too much traffic now.

[sanuk711]

I am obviously getting dyslectic --I posted the chart showing 75GBP as the highest point since 2005 & then wrote down ...57GBP

.

Apologies to all...........................

[ozyjon]

In my village,, my other half insisted we buy as much land around us as possible,, i saw many blocks of bushland being leveled,

the monk going in and blessing the land, other people checking the land for bones,, this went on and on,, i refused to buy

anything as (it would be owned by the other half) eventually i asked as to why so much land was being bought and cleared,,

"don't you know Bangkok is sinking and it will be flooded completely,, people are preparing to leave Bangkok once it is

underwater" so that's the answer my friends.

[kerrysum]

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 here by award you with the ,"Quote of the day..." This has been going on in Mukdahan also, my wife is from there. and yes you timing is right on..

People forget, and then the process starts all over again.... In my opinion there is way too much loan sharking going on, I.E. interest only loans... How about trying Economics 101....???? Thanks for your post..... Kerry

[cooked]

In my village,, my other half insisted we buy as much land around us as possible,, i saw many blocks of bushland being leveled,

the monk going in and blessing the land, other people checking the land for bones,, this went on and on,, i refused to buy

anything as (it would be owned by the other half) eventually i asked as to why so much land was being bought and cleared,,

"don't you know Bangkok is sinking and it will be flooded completely,, people are preparing to leave Bangkok once it is

underwater" so that's the answer my friends.

That's what I was told also. Good to see that the Thais are thinking ahead! What time scale is this based on, 25, 50 years?

[mike324]

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?

You can easily find old town houses for less than 1 Million baht in Bangkok or the outskirts (of course not around Sukhumvit area), Lumpini house developer also sells brand new condos around 25sqm in size from 600,000 baht and up.

[mike324]

Read a research 2-3 years ago how there is a large population of thais who live in those 2nd-3rd tier cities actually saved up considerable amount of money and have the spending power to buy new property, but there is a lack of supply. Also due to changing tastes in peoples living habits and the rise of minimum wages, both support the property boom.

But I do agree supply seems to outstrip demand nowadays.

[Farma]

There's been speculation of an inflow of funds to boost Issan up for entry into ASEAN.

Then you have all the big supermarket chains and building companies opening up new outlets. In the past few years we've had Tesco, Big C and HomePro open up within 30 Km's. A bit further away a big Central shopping centre and all sorts of big name building suppliers have opened recently.

Closer to home a smaller Tesco, 7-11 and 2 banks have opened very close to us in the past 18 months.

Add to that full chanote titles being granted for land in our district recently and prices have shot up along with small car sales, farm equipment and other mechanical services buildings appearing on those plots dotted along the highway .

That's created a flurry of shophouses being built with crazy rental or building values being asked with a limited number of renters/buyers prepared to pay the prices.

Even the asking price for old shophouses has jumped through the roof. One next to a shophouse owned by my wife came on the market last week for twice what my wife paid for hers 2 years ago. The expected rent is only 5k per month on a 2.5 million outlay.

[bermondburi]

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.

See my post #14. You don't get much for your money with a condo unless you spend a lot of cash, but if you don't mind living in the suburbs you can still get decent deals. Have a look on DD property website and play around with the price range on the settings. You might be surprised.

[nithisa78]

no one has small clue and nothing to do.

[Jay Sata]

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

The thought of Thai government money funding building a nuclear power station with workers from Buriram is enough to make me want to live on the other side of the world.

Half will be skimmed and the rest will be substandard with local rice farmers cobbling it together.

Have you ever witnessed Thai building work and the total lack of skills?

[cooked]

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

The thought of Thai government money funding building a nuclear power station with workers from Buriram is enough to make me want to live on the other side of the world.

Half will be skimmed and the rest will be substandard with local rice farmers cobbling it together.

Have you ever witnessed Thai building work and the total lack of skills?

There is,as far as I know, nothing behind this strange rumour. Solar power investment? yes.Corruption turned up there already.

[belg]

farang built... so in wife's name ...

many milked farangs for all their savings and booted out when the construction was finished , and now nobody to rent it out as farmers do not have business skills ?

or just asking tooooo muttt

[Diablo Bob]

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

The thought of Thai government money funding building a nuclear power station with workers from Buriram is enough to make me want to live on the other side of the world.

Half will be skimmed and the rest will be substandard with local rice farmers cobbling it together.

Have you ever witnessed Thai building work and the total lack of skills?

There is,as far as I know, nothing behind this strange rumour. Solar power investment? yes.Corruption turned up there already.

Something is going on, at least in Buriram.

Just did a quick check on the internet and found something that is quite puzzling, to me at least.

Best Western Hotels has opened in Buriram, now this hotel chain is worldwide and have 13 in Thailand Mostly Bangkok and beach resorts and Buriram.

Amari Hotels Resorts & Spas is another one, having locations in Bangkok and the beach resorts and Buriram.

Corporations don't build hotels because a city has a race track or a football team, the upcoming race is a 4- day event and even if the football team is winning today and drawing fans that might change tomorrow. The hotels must be looking at something that will be bringing them customers for the long term. What?

[Assurancetourix]

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.

January 12th 1998 1 GBP=90.674462 THB

my source :

http://fxtop.com/fr/conversion-devises-date-passee.php?A=100&C1=THB&C2=GBP&DD=13&MM=01&YYYY=1998&B=1&P=&I=1&btnOK=Chercher

[Kudel]

Most land in Buriram is owned by Bangkok high rollers and the girls from certain bars in tourist places have really been trying their best at getting farang hubbies money invested in said provence.

[willyumiii]

Many Issan Thais have discovered "credit" in recent years.

Loans very easy to get.

New homes and new cars everywhere in Issan.

Unfortunately, the concept of making payments and making them on time has not caught on as fast.

I have been warned that to make a loan in Thailand is to give your money away..do not expect repayment.

Unfortunately for the Issan Thai, the banks do expect repayment.

Recently the number of cars and trucks repossessed has sky rocketed here.

I have not read any reports on it, but I suspect the repossession of new houses has increased as well.

Mai pen rai, does not cut it with the banks!

Maybe it is just as well...

I know a few Thais who have built new, very nice houses and refuse to live in them, they prefer the old shacks they have lived in forever!

Many new houses sit empty and unused.

I understand that there are large auctions of repossessed cars and trucks in the Khorat area now....

Maybe auctions of houses soon too?

If the economy dives like it did in 2008 as some are predicting and the dollar continues to gain strength...

This could turn into a great opportunity for those collecting income from the U.S.

Slightly used houses, cars, and trucks..."done dirt cheap!"

[Ombra]

Willyumiii makes a good point. One change I've noticed in Isaan over the past few years is the appearance of second hand car dealers and of those companies that loan money to people who are high-risk borrowers. I suppose that one good thing is that the loan companies prove an alternative to the loan sharks.

[Tokay]

My GF was offered 20+ rai across from her home in Nong Khai for 700,000b. She declined at the time as she was building a new home for her mother on her land. TWO YEARS LATER the same land that was offered to her for 700,000 was sold for 5,000,000 baht. Two freakin' years!!!!!! I think someone is going to build a small village there.

It's literally unbelievable. I don't even know how such a price hike happened.

[meatboy]

Many Issan Thais have discovered "credit" in recent years.

Loans very easy to get.

New homes and new cars everywhere in Issan.

Unfortunately, the concept of making payments and making them on time has not caught on as fast.

I have been warned that to make a loan in Thailand is to give your money away..do not expect repayment.

Unfortunately for the Issan Thai, the banks do expect repayment.

Recently the number of cars and trucks repossessed has sky rocketed here.

I have not read any reports on it, but I suspect the repossession of new houses has increased as well.

Mai pen rai, does not cut it with the banks!

Maybe it is just as well...

I know a few Thais who have built new, very nice houses and refuse to live in them, they prefer the old shacks they have lived in forever!

Many new houses sit empty and unused.

I understand that there are large auctions of repossessed cars and trucks in the Khorat area now....

Maybe auctions of houses soon too?

If the economy dives like it did in 2008 as some are predicting and the dollar continues to gain strength...

This could turn into a great opportunity for those collecting income from the U.S.

Slightly used houses, cars, and trucks..."done dirt cheap!"

if you search LED.CO.TH and click on the area nakhon ratchasima you will see the no.of properties that are coming up,last auction for korat was tues.16th.mind you you have to understand thai and it is so complicated.

[cvs04]

Unfortunately people have little imagination and copy each other. There are many unoccupied shop houses in ubon but that doesn't stop people building many more and asking as much as 9-10 million baht for them. This is Bkk prices. Some sell but not sure what business the buyers are thinking of doing to make it worth while. Can't see a little som tam shop producing returns to warrant this much.

[Issangeorge]

Where I live there are many businesses that as far as I can figure have to be running a laundry operation, I don't see anyway else they can be making money, all cash operations, dummy receipts if any, nothing computerized. I suppose computerized records are made as the need arises.

[cooked]

Article in the BKK post today about oil prospecting by Chinese north of Buriram.

[stevo2]

Article in the BKK post today about oil prospecting by Chinese north of Buriram.

That'll be in Satuek district then. That story has been going on for years.