Someone explain please.

[dBrown]

I live about 15 km East of Pattaya. Recently I sold my house, so I'm looking for another building plot and want to stay in the same area, but currently every seller wants 4 Million a Rai.

I paid less than 1 Million 7 years ago, and that was the goingrate at that time.

So the plot next to mine is now 4 M a Rai as are all the other plots within a 5 km radius.

As far as I recall, in my "soi" which is about 4 km long, not a single plot has been sold since I bought mine and there is loads of free land available.

I recalled that the plot opposite my house asked 7.5 Million for 3 Rai about 2 years ago, but you had to buy it all in one plot.

So today the owner, who grows Tapioca or Cassava on it was working on the land, and I went over to him to ask if he still wanted to sell the land.

His answer was positive, but now he wanted 12 Million for the 3 Rai.

I had a translator with me and let him ask if anyone ever offered him the 7.5 Million he was asking previously, and the answer was negative.

I had another Thai person sourcing land for me in an area about 5 km's away, and overthere it was the same story.

A plot she inquired last year, and was 1.5M at that time, was 2.8M today. Not that anything had improved since last year, but they just doubled the price.

By the way I spoke with the staff of one of the few local real estate offices recently, and they said they had never experienced such low business since they opened.

I went into a small Moobaan in the area I fancy, which has 5 houses built and another 5 plots available however it was started about 8 years ago. Three of the houses were owned by the bank already, the fourth was for rent at 15.000 a month with swimming pool on 3/4 Rai, or or sale at 3 M down from 6M, because the owner needed money and had no buyers.

For the available plots was asked 3M.

So anyone can explain if I'm missing something, because I see every day less potential buyers and the environment degrades instead of improve, nothing is sold but yet they just triple or quadruple the prices as if it is nothing.

[CharlieH]

Moving to local forum for localused knowledge and input.

MOVED

[benalibina]

One can only guess that in all those landowners eyes.....they dont need to sell it ......time will be on their side they must think.

[David48]

The mistake you are making is that you are assuming a 'supply/demand' curve that is used in the West.

What works in the West, doesn't always apply in the East.

Tough nut to crack BTW.

Good Luck.

.

[yankee99]

Shop house are 4.3 m on soi siam cc so the land must be valuable

[KittenKong]

So anyone can explain if I'm missing something, because I see every day less potential buyers and the environment degrades instead of improve, nothing is sold but yet they just triple or quadruple the prices as if it is nothing.

The owners probably paid virtually nothing for the land and they probably pay nothing in taxes to own it.

So why not put it up for sale at a ridiculous price?

They have absolutely no incentive to sell it promptly and it will stay that way until property ownership taxes are introduced here (or until the owners lose money elsewhere and actually need to sell).

Edited September 21, 2014 by KittenKong

[ATF]

Most of the land around Pattaya has doubled in the last few years. It's mainly due to Bangkok speculators who will buy and hold the land and as others have said people who own land and have no incentive to sell except at an extortionate price.

Secondhand homes however are still fairly cheap if you know where to look.

[guzzi850m2]

Yes the other posters are right, land prices have sky rocketed the last 3-4 years and many sellers can wait or they will pass the land over to their kids.

In my Moo Ban they now charge +50.000 baht per square wa. When I bought my house there in 2009 it was 25.000.

The developer still have about 10-15 empty plots but since they earn money from many other sources they don't care if they sell or not, they are on a 10-50 year plan if needed.

I don't think the prices will drop unless Thailand are thrown into major financial crises.

Take it or leave it, your choice.

I read it's the same in Hua Hin.

[dBrown]

Yes the other posters are right, land prices have sky rocketed the last 3-4 years and many sellers can wait or they will pass the land over to their kids.

In my Moo Ban they now charge +50.000 baht per square wa. When I bought my house there in 2009 it was 25.000.

The developer still have about 10-15 empty plots but since they earn money from many other sources they don't care if they sell or not, they are on a 10-50 year plan if needed.

I don't think the prices will drop unless Thailand are thrown into major financial crises.

Take it or leave it, your choice.

I read it's the same in Hua Hin.

50.000 a square wah translates to 20Million a Rai. Are you sure about that ?

Care to share which Moobaan in Pattaya has land prices of 20 Million a Rai ?

Edited September 22, 2014 by dBrown

[dBrown]

I think landowners in Spain, the US, the UK or so many other countries in the world also were of the opinion that landprices couldn't come down, isn't it ?

What differs Thailand from any other country in the world in that respect?

There is loads of empty land available. Tourism numbers are down and falling, economic situation doesn't look rosy and investors don't favor a junta in general.

Only a very small part of the Thai population is able to buy land at those prices, so I think they target foreigners, who can't own the land in the first place.

[Sigurris]

You can't make more land and only a blind man could miss the massive expansion of Pattaya. Moving further out will help for lower cost land. But once a Thai fixes a price in their head there is little that can be done to change it. Land near me on the beach is ridiculously high but one plot is double the others. Its been empty for years and the owner will not drop the price, nice if you can afford it.

[dBrown]

You can't make more land and only a blind man could miss the massive expansion of Pattaya. Moving further out will help for lower cost land. But once a Thai fixes a price in their head there is little that can be done to change it. Land near me on the beach is ridiculously high but one plot is double the others. Its been empty for years and the owner will not drop the price, nice if you can afford it.

I'm talking about 15 km east of Pattaya, where there is still plenty of available land. In fact there is more empty land than developed land in those areas.

[shirtless]

Dont try and rationalise the prices, be smart rent.

[55Jay]

Did you not suss this out before you sold your current, ex-house?

[gmac]

Yes the other posters are right, land prices have sky rocketed the last 3-4 years and many sellers can wait or they will pass the land over to their kids.

In my Moo Ban they now charge +50.000 baht per square wa. When I bought my house there in 2009 it was 25.000.

The developer still have about 10-15 empty plots but since they earn money from many other sources they don't care if they sell or not, they are on a 10-50 year plan if needed.

I don't think the prices will drop unless Thailand are thrown into major financial crises.

Take it or leave it, your choice.

I read it's the same in Hua Hin.

50.000 a square wah translates to 20Million a Rai. Are you sure about that ?

Care to share which Moobaan in Pattaya has land prices of 20 Million a Rai ?

Probably any hi-so type of moo ban in the area. Just looked at a house on a very low cost estate (under 3m Baht) on the outskirts of Pattaya and they quote a price for the house on a standard plot with additional land going at a rate of 30000 per square wah. Seemingly unrealistic at 12 million baht per rai but it's just the going rate. Even 10 years ago I can remember being charged 12000 per square wah for additional land (4.8 million per rai).

Don't know how much it costs to build a small house these days but if it's only 1 million baht then that 12 million/rai could well be what is being charged for the land. (Single house on 45 sq wah plots selling at 2.39m baht)

[guzzi850m2]

50.000 a square wah translates to 20Million a Rai. Are you sure about that ?

Care to share which Moobaan in Pattaya has land prices of 20 Million a Rai ?

It's on the inside of Sukhumvit road very near BKK/Pattaya hospital.

Yes 100% sure, if you don't believe me why don't you go and ask the sales office in my village.

If you PM me I will give you the exact location.

The biggest house/land in the village is just under one rai and last time it was for sale it was +22 mill, 2 years ago I think and the house is not something special and no pool too.

[seajae]

money is the all important factor to thais, some always will ask more than what something is worth, it is in their nature. The land I was leasing is a good example, before I started to lease the lady wanted 1.5 million baht for it(1/2 rai), as soon as I cleared it and had my trees planted she wanted 4 million and didnt want to lease it any longer, some people cant help themselves. They would rather starve than drop the price or go broke and have it re possessed, dollar signs are just too strong for them.

[guzzi850m2]

I forgot to add, it's owned by a Bangkok Thai that don't stay in it, no furniture and garden not made up.

Thais like to sit on land/houses and as many as possible, hardly any tax on land & houses and they fell it's safer/better than have the money in the bank.

The house opposite mine is owned by a BKK Thai, he spend max 5 days there a month, his father and mother takes care of the garden since they live in Pattaya.

The house next to mine is also owned by a local Thai doctor but since he already have 5 other houses around Pattaya he keeps in empty for now and garden not made up either.

The houses I am talking about is app 10-12 mill baht houses so not cheap huts.

[dBrown]

Did you not suss this out before you sold your current, ex-house?

Actually not, because I wasn't aware that they had gone insane and quadrupled the price of land without any visual improvements. or any sales going on.

I'm still asking my self if it is the amount of potholes in the road that maybe has doubled or quadrupled during that period, that warrants the price increase.

[Suradit69]

Recently I sold my house

So when you sold your house did you price in the newly inflated land cost in your asking price?

[55Jay]

Did you not suss this out before you sold your current, ex-house?

Actually not, because I wasn't aware that they had gone insane and quadrupled the price of land without any visual improvements. or any sales going on.

I'm still asking my self if it is the amount of potholes in the road that maybe has doubled or quadrupled during that period, that warrants the price increase.

Indeed. Been going on for a while now, even up country where I am.

My Mrs. pointed out plots less than 2 years ago. One was 3m. Still for sale, now 5m, even though nobody would have it at 3.

[dBrown]

Did you not suss this out before you sold your current, ex-house?

Actually not, because I wasn't aware that they had gone insane and quadrupled the price of land without any visual improvements. or any sales going on.

I'm still asking my self if it is the amount of potholes in the road that maybe has doubled or quadrupled during that period, that warrants the price increase.

Indeed. Been going on for a while now, even up country where I am.

My Mrs. pointed out plots less than 2 years ago. One was 3m. Still for sale, now 5m, even though nobody would have it at 3.

Sent a few Thai people around the Nongplalaia and Khow Mai Keow area, and they are all astonished why the prices have doubled in such a short time period for no reason. Went to look for another plot of 2Rai in KMK today, and it was for sale for 3.5M for the 2 Rai last year, but this year they had leveled it and wanted 3.8M per Rai

Was shown another plot in KMK, which was at least 5 km dirt road and about 8 km to the nearest house with only 15A single phase electric available, and asking price was 8000 Baht/tw, but they could go down a little bit

I think people will really need a reality check.

Edited September 23, 2014 by dBrown

[rekkie]

May be able to assist if your interested in mabprachan area...