Real estate values climbing in Khon Kaen

[GinBoy2]

I'm pretty firmly in the 'Bubble Camp'. Building has been crazy past couple of years, but the occupancy rate in some of the new developments seems pretty poor. Drive by a few and just look at the lights on at night, pretty crude measure but I guarantee you it's is a fairly accurate guide. The new condo prices also seem outta whack, especially if you compare it to Bangkok, where there is a large expat population (I mean the working variety) which certainly inflate prices in central Bangkok. I don't see a lot of extra foreign companies(or Thai for that matter) jumping into the area that might justify a building boom on this scale

Maybe I'm wrong, but I think there is a touch of 'build it, and they will come', or just plain stupidity going on

Edited December 24, 2014 by GinBoy2

[Issangeorge]

In my 29 years of coming to Thailand and 11 living here, I have only seen land prices go down after the 97 crash. I have been saying for a couple of years now, I think prices are too high, and yet they seem to go higher, however I have a piece of property for sale, for the general asking price, and I am willing to go down, but in two years I have only had two enquiries and no offers. On Monday I made a trip to Mukdahan and haven't seen it so dead in my memory, maybe the bubble is finally here. If you want a piece of property to live on, and plan on staying for a long time, don't worry buy it, but for an investment, you might want to wait, then again it depends on how long a time frame you plan for your investment. In the past 5 years, just about everything that could happen to cause a crash has happened, but Thailand seems to just keep motoring along, so I have given up predictions.

[Robert24]

I think Issangeorge hit the nail on the head. Whether it's a bubble or not we don't know. Bubbles are usually characterized by sort of the last 6-12 months of a bull market with huge excessive increases in prices. I haven't seen this to be honest. Prices have gone up for years and still keep going up. Condos are being built now everywhere in Thailand, people pay similar amounts for condos in Khon Kaen as in Bangkok which to me doesn't make sense.

I think it will require an external shock to the economy for prices to drop, i.e. something with China or the Global economy or some geopolitical event. Also banks have become more cautious with their lending to private individuals in Thailand, so I'm more concerned about some of the corporate debt (possibly even in US$ that continues to appreciate) than private household debt in Thailand.

[Smithwick]

In general, Thais like to live in new housing projects so those will be in high demand.

[Thai at Heart]

I think Issangeorge hit the nail on the head. Whether it's a bubble or not we don't know. Bubbles are usually characterized by sort of the last 6-12 months of a bull market with huge excessive increases in prices. I haven't seen this to be honest. Prices have gone up for years and still keep going up. Condos are being built now everywhere in Thailand, people pay similar amounts for condos in Khon Kaen as in Bangkok which to me doesn't make sense.

I think it will require an external shock to the economy for prices to drop, i.e. something with China or the Global economy or some geopolitical event. Also banks have become more cautious with their lending to private individuals in Thailand, so I'm more concerned about some of the corporate debt (possibly even in US$ that continues to appreciate) than private household debt in Thailand.

One person explained to me that the condos going up today in KKC will be the equivalent of being in ploenchit 1 or saladaeng in 20 years time in KKC.

They see this as something bankeable for the long term. I giggled that by putting the central and apartments all on top.of one another they were trying to emulate the traffic jam as well.

[chiang mai]

Khon Kaen, is going to become the crossroads of the North South double track railroad and East West double track railroad. I could see Khon Kaen becoming the second largest city in Thailand. In ten years people will be wishing they bought land today.

Khon Kaen has always been the second largest city in Thailand

No, my understanding is Chiang Mai

Correct, CM city population is circa 182k whilst KK city is circa 114k.

[Thai at Heart]

Khon Kaen, is going to become the crossroads of the North South double track railroad and East West double track railroad. I could see Khon Kaen becoming the second largest city in Thailand. In ten years people will be wishing they bought land today.

Khon Kaen has always been the second largest city in Thailand

No, my understanding is Chiang Mai

Correct, CM city population is circa 182k whilst KK city is circa 114k.

Meaung Khon Kaen stretches along way out to several towns. Anyone who has been to chiangmai knows that the city chiangmai is much more populous than chiangmai.

The geography is just screwy about how they treat Khon Kaen which makes the population higher.

[Guest]

Khon Kaen, is going to become the crossroads of the North South double track railroad and East West double track railroad. I could see Khon Kaen becoming the second largest city in Thailand. In ten years people will be wishing they bought land today.

Khon Kaen has always been the second largest city in Thailand

I thought 4th largest

[pianoman]

Khon Kaen, is going to become the crossroads of the North South double track railroad and East West double track railroad. I could see Khon Kaen becoming the second largest city in Thailand. In ten years people will be wishing they bought land today.

Khon Kaen has always been the second largest city in Thailand

I thought 4th largest

If you check it out on line, http://en.wikipedia.org/wiki/List_of_cities_in_Thailand Khon Kaen is 10th...

Pianoman

[hanuman2543]

Khon Kaen, is going to become the crossroads of the North South double track railroad and East West double track railroad. I could see Khon Kaen becoming the second largest city in Thailand. In ten years people will be wishing they bought land today.

Khon Kaen has always been the second largest city in Thailand

Actually on Wikipedia with data from 2013 it is number 10.

[Smithwick]

Will the new condos have squat toilets and a bowl of water next to it?